The number of foreign nationals employed in Germany continues to rise, with approximately seven million foreign workers contributing to the German economy in 2024. This represents nearly one in six members of the workforce, a significant increase from 2015, when only one in ten employees did not hold German citizenship, according to a recent analysis published Friday by the Institute of German Economy (IW).
This growth has a demonstrable impact on Germany’s economic output. In the past year, foreign employees contributed 536 billion euros to the country’s value creation. The increase in foreign workers since 2015 alone generated 240 billion euros. When considering upstream value creation effects and consumer spending, the total value creation linked to foreign employees reaches 706 billion euros.
Regional disparities exist, with Baden-Württemberg exhibiting the highest contribution from foreign employees at 17.3 percent in 2024 – the highest percentage nationwide. Conversely, Mecklenburg-Vorpommern recorded the lowest direct contribution at 5.4 percent.
Other eastern German states also demonstrate a significantly lower direct contribution of foreign employees to value creation compared to the national average. “If federal states can successfully attract foreign workers to their labor markets, it directly contributes to economic success” stated IW expert Benita Zink.
“Conversely, foreign workers benefit from employment, as successful integration largely occurs through the labor market”. To fully harness this potential, simplification of the recognition of foreign professional qualifications is essential.