Migration takes center stage in German election campaign amid economic and labor market concerns

Migration has emerged as a pivotal issue in Germany’s Bundestag election campaign, with far-reaching implications for the country’s economic future and labor market stability. The next federal government will need to balance integration policies while ensuring that Germany remains an attractive destination for foreign skilled workers to sustain its economy.

Germany faces a critical labor shortage, with businesses struggling to fill positions across various sectors. Experts argue that without an influx of at least 1.6 million foreign workers over the next four years, the country risks economic stagnation, business closures, and a failure to complete necessary industrial transformations. The challenge, therefore, is not only about preserving an open society but also about successfully integrating migrants and foreign specialists into the workforce.

Shifting Policies and Political Divisions

Over the past two years, Germany’s traffic-light coalition government has taken a fluctuating approach to migration and integration policies. While it has allocated additional funds for integration costs in 2022 and 2023, it has also proposed tighter immigration restrictions, increased deportations, and cuts to migration counseling and psychosocial support services.

On January 29, 2025, the Bundestag approved a migration policy tightening proposal known as the “Five-Point Plan,” backed by the CDU/CSU opposition and supported by the far-right AfD. The plan aims to further reduce illegal migration and strengthen internal security, despite data showing a decline in illegal entries. Critics argue that crime rates are more closely linked to socio-economic factors, such as poverty and lack of social inclusion, rather than migration status.

Political Stances on Migration and Integration

The debate over migration has taken a more extreme turn with the AfD calling for “remigration” policies, which would not only halt immigration but also force some residents to leave Germany—regardless of citizenship status. Meanwhile, CDU chancellor candidate Friedrich Merz has proposed revoking German citizenship in certain cases and rolling back the government’s recent citizenship reform, which accelerated naturalization and eased dual citizenship restrictions.

Despite these political shifts, economic data underscores the crucial role of migrants in Germany’s workforce. Without ongoing immigration, Germany’s working-age population would have already begun shrinking years ago. Over the past five years, more than 80% of employment growth has been driven by foreign workers, many of whom are entrepreneurs contributing to economic innovation. Since 2023, social security-contributing employment growth has been entirely sustained by foreign workers.

The Economic Reality: Migration as a Necessity

Germany’s record employment level of 46.1 million workers would not have been possible without inward migration from within and outside Europe. Many essential services, particularly in healthcare and elder care, rely on foreign labor, making migration a cornerstone of Germany’s economic sustainability.

As the Bundestag elections approach, migration policy will remain a defining issue, shaping Germany’s economic future, social cohesion, and international competitiveness. The debate now centers on whether Germany will embrace migration as an economic opportunity or adopt a more restrictive approach that could impact its long-term growth prospects.

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