News from 2017-01-16 / KfW Research

Foreign workers in German SMEs: a strong plea for free labour markets

Germany is particularly dependent on foreign labour potential because of its unfavourable demographics. Today, one in ten employees subject to social security contributions have a foreign passport. The German economy thus benefits heavily from the EU’s free movement of workers, but labour migration from outside the ageing EU states is becoming increasingly important. Refugees can also contribute to offsetting looming labour market constraints if they integrate successfully. In the past five years, SMEs have hired some 250,000 refugees – although rarely as skilled workers and primarily as temporary employees, interns and apprentices.


Foreign workers in German SMEs: a strong plea for free labour markets

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