The influx of refugees into Germany is both a boon and a burden for the economy: it needs 
huge numbers of migrants to rejuvenate an aging workforce, but must financially support many for years until they learn the language and gain qualifications.
The country needs about half a million migrants a year until 2050 to counter that fall in the workforce, a study by think-tank the Bertelsmann Foundation found.
Each unemployed refugee costs taxpayers 12,000 euros ($13,000) a year, government figures show. Only 8 percent find work in the first year and most rely on the state for everything from food and housing to language courses.
But the costs will be offset within five to 10 years as more and more refugees start working and paying taxes, according to a study by the German Institute for Economic Research (DIW).
The study forecast that rising migrant employment would gradually drive up German national output, with per capita income increasing by 0.5 percent by 2030. Deutsche Bank has published similar findings on the effect of migrants on German national output.
Chosen excerpts by Job Market Monitor. Read the whole story at Germany needs migrants as workforce dwindles, but must pay for them | Reuters
Related posts
European Refugee Surge – The labour market and fiscal impact
Europe is facing its biggest refugee inflow since World War II. Estimating the number of arrivals remains very challenging, but over one million asylum applications could be received this year in the European Union (EU), up from 630 thousand applications in 2014, with an estimated 350-450 thousand people likely to be granted refugee or other … Continue reading
Refugees in Germany – No minimum wage suggest top economic advisers
Berlin’s top economic advisers have recommended suspending the country’s minimum wage requirement to make refugees more attractive to employers. Easing access to the job market will help them integrate quicker, they say. The German economy is strong enough to stem the costs of the refugee crisis, the country’s economic “wise men” said in their annual … Continue reading
Social Assistance Receipt Among Refugee Claimants in Canada – At least 65% in the first year, over 85% in Quebec
Prior to the December 2012 reforms to the in-Canada refugee determination system, it was possible for some refugee claimants to reside in Canada for several years before the final adjudication of their claim. Their labour market activities, their receipt of publicly funded benefits, and their well-being during that period are relevant to public policy. Nonetheless, … Continue reading
Refugees – Worldwide displacement hits all-time high
Wars, conflict and persecution have forced more people than at any other time since records began to flee their homes and seek refuge and safety elsewhere, according to a new report from the UN refugee agency. UNHCR’s annual Global Trends Report: World at War, released on Thursday (June 18), said that worldwide displacement was at … Continue reading
Syrian Asylum Seekers – Nordic countries have reached the political limit
Sweden, Norway, Denmark and Finland, countries that long set the standard for welcoming refugees from war and persecution, are rapidly rethinking their generosity as the tide of migrants to Europe strains their budgets and roils their politics. The abrupt change in the Nordic nations is one of the most striking consequences of the surge into … Continue reading
Canada – Quatre demandeurs d’asile sur cinq reçoivent des prestations d’aide sociale
Quatre demandeurs d’asile sur cinq reçoivent des prestations d’aide sociale l’année suivant leur arrivée au pays, selon une récente étude de Statistique Canada. Les réfugiés d’origine syrienne ont toutefois moins tendance à réclamer une telle assistance. Les résultats de l’étude rendue publique en octobre démontrent qu’il faut de deux à trois ans pour voir le taux d’aide sociale diminuer parmi les réfugiés. Les travaux de … Continue reading
Discussion
Trackbacks/Pingbacks
Pingback: Germany – The economy can currently accommodate 350,000 migrants per year labor agency director says | Job Market Monitor - February 8, 2016
Pingback: Refugees in the US – 84,995 admitted in 2016 | Job Market Monitor - January 30, 2017