Germany: the decline in the workforce reserve by 2025 can only be absorbed with training (IAB)

Women, older workers and migrants don’t compensate demographic ageing. In the study it presented on Thursday, June 24th, the IAB points to a major decline in “underemployment” in the long run. With figures, this fall can be explained by the demographic ‘extinction’ of 1.8 potential active workers on the employment market between 2010 and 2020, and another 1.8 million from 2020 to 2025. In 2010-20202, the need for workers will keep slightly increasing in western Germany (+ 400,000 vacancies) while it will durably consolidate in the east. Besides, the researchers found that the impact of demographic ageing will truly be felt as of 2015 only in eastern Lander and 2020 in western Lander. The study also shows that the impact of women’s employment won’t affect the labor market as much as it used to, for two reasons. One, the number of active women has already greatly increased over the few years and won’t keep increasing in the same proportions. Two, many women work part time, which limits the impact of their arrival on the labor market in terms of increased workforce. Besides, the researchers note that, if women’s working time increased, it would be a major employment “pool.” Add the expected effects of the increase in women and seniors’ work, you get an additional 1.6 million workforce potential.
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the researchers found that the impact of demographic ageing will truly be felt as of 2015 only in eastern Lander and 2020 in western Lander. The study also shows that the impact of women’s employment won’t affect the labor market as much as it used to, for two reasons. One, the number of active women has already greatly increased over the few years and won’t keep increasing in the same proportions. Two, many women work part time, which limits the impact of their arrival on the labor market in

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