The demographic structure emerged to an immense problem because the population in Germany is shrinking.
The number of people dying is higher than the ones who are being born, leading to a continuing trend. Following a static analysis, the population of younger people under 20 is almost the same as people aged 65 or older
(Demography Report, 2020).
In other words, while the population in Germany is decreasing, the age structure is shifting, predicting that in 2060, every third person is considered to be at least 65 years old (Demography Report, 2020).
Germany has evolved into one of the leading destinations for immigrants. The country emphasizes the integration of newcomers and the recruitment of migrated labor force.
One of the most crucial points is the demographics decline; that’s why from a purely economic point of view, it would be harmful when reducing the amount of immigration.
Due to a special report on migration and security in Germany, about 146,000 immigrants are needed to meet labor shortages in the long-run (Euroactiv, 2019).
Along with this article, a demographic change in Germany is linked to the fact that around 300,000 labor forces leave the country. In order to buck the declining demographic trend, the Bertelsmann Stiftung migration report, states that a net total of 260,000 non-German migrants must arrive annually (Zuwanderung und Digitalisierung, 2019).
A significant benefit will be reached when labor force participation gradually grows and won’t be kept on a constant rate. When labor force participation is kept on a constant rate and no future immigration is considered; as a result, the potential labor force would be reduced to 31.0 million people by 2060 (Zuwanderung und Digitalisierung, 2019).
This might be an extreme case that nobody immigrates, but even if there is a reduction in net immigration from 400,000 to 200,000 in each year, the potential labor