The number of foreign nationals employed in Germany continues to rise, with approximately seven million individuals working within the country in 2024. This represents nearly one in six of the total workforce, according to a recent analysis published Friday by the Institute of German Economy (IW). In 2015, only one in ten employed persons did not hold German citizenship.
This growth is reflected in the nation’s economic output. Foreign employees contributed 536 billion euros to value creation last year, according to the IW. Those joining the workforce since 2015 alone generated 240 billion euros. Factoring in upstream value creation effects and consumer spending, a total of 706 billion euros of value creation within Germany is now linked to foreign employees.
The contribution of foreign workers to value creation varies regionally. Baden-Württemberg recorded the highest proportion in 2024, with 17.3 percent, while Mecklenburg-Vorpommern reported the lowest direct contribution at 5.4 percent.
Across other eastern German federal states, the direct contribution of foreign employees to value creation remains significantly below the national average. “If federal states can successfully attract foreign workers to their labor markets, this will directly contribute to economic success” stated IW expert Benita Zink.
“Conversely, foreign workers benefit from employment, as successful integration largely occurs through the labor market”. Zink emphasized the need to simplify the recognition of foreign professional qualifications in order to fully unlock this potential.
