More and more people without a German passport on the labor market
According to the IW study, almost seven million people without a German passport were employed in Germany in 2024. This means that almost one in six employees is a foreigner. In comparison: in 2015, the proportion was only around ten percent.
Since then, 3.2 million new foreign employees have joined the workforce. They alone generated around 240 billion euros last year.
All foreign employees together contributed 536 billion euros directly to GDP. If indirect effects such as orders placed with suppliers and private consumption are added, the total amount is 706 billion euros.
Major differences between the federal states
However, the federal states benefit from immigration to varying degrees. In Baden-Württemberg, foreign employees contributed around 17.3% to the economy in 2024 - the highest figure in Germany. Berlin, Hesse and Bavaria are also well above the average.
The share is lowest in Mecklenburg-Western Pomerania at just 5.4%. In the other eastern German states, the contribution is also comparatively low.
Experts see untapped potential here: "If the federal states manage to attract foreign employees to their labor markets, this will contribute directly to their economic success," says IW expert Benita Zink. The reverse is also true: Integration works best through work.
This is how much foreign workers contributed to GDP in 2024
- Baden-Württemberg: 17.3 percent
- Bavaria: 16.2 percent
- Berlin: 17.0 percent
- Brandenburg: 9.0 percent
- Bremen: 13.0 percent
- Hamburg: 15.4 percent
- Hesse: 16.6 percent
- Mecklenburg-Western Pomerania: 5.4 percent
- Lower Saxony: 10.3 percent
- North Rhine-Westphalia: 13.0 percent
- Rhineland-Palatinate: 12.2 percent
- Saarland: 12.3 percent
- Saxony: 6.7 percent
- Saxony-Anhalt: 6.1 percent
- Schleswig-Holstein: 8.6 percent
- Thuringia: 6.9 percent
Calculated for Germany as a whole, this results in a figure of 13.7 percent contributed to the economy by workers without a German passport in 2024.
Which countries of origin do the workers come from?
Over the last ten years, Germany has benefited both from immigration from EU countries and from skilled workers from third countries - particularly from India, according to the study. At the same time, many people have come to Germany from war and crisis zones.
In May 2025, around 1.1 million people from Ukraine and non-European countries of origin alone(Afghanistan, Eritrea, Iraq, Iran, Nigeria, Pakistan, Somalia and Syria) were employed in Germany, according to the Federal Employment Agency.
In order to make better use of this potential, the IW experts are calling for faster visa procedures, consistent digitalization of the authorities and easier recognition of professional qualifications.
Migration also strengthens other EU countries
Not only Germany, but also Europe benefits greatly from the migration of foreign workers. Christine Lagarde, President of the European Central Bank (ECB), explained at an international conference at the weekend: " Without the contribution of migrants, the situation on the European labor markets would be tighter and production would be lower.
For Germany, the ECB estimates that GDP would have been around six percent lower than in 2019 without foreign workers. In Spain, the economic upturn following the coronavirus pandemic was largely based on immigration.
Skills shortage in Germany continues to grow
The following figures show just how dependent Germany is likely to be on foreign workers now and in the future: According to the IW, around 570,000 jobs were already unfilled in 2023. According to the Federal Employment Agency, there were 628,000 vacancies in July 2025.
The IW puts the economic output lost as a result at 49 billion euros in 2024. By 2027, the loss could grow to 74 billion euros.
In the long term, the situation could become even worse: The Federal Employment Agency predicts that there could be a shortage of up to seven million workers by 2035.
Why is migration economically worthwhile for Germany?
The immigration of migrants was long regarded as a cost factor for Germany. However, a recent study now paints a different picture: in the long term, migration eases the burden on state coffers - and strengthens the German economy.
The economist Martin Werding, who advises the German government as a so-called "Wirtschaftsweise", has calculated this: An annual immigration of around 200,000 people could bring Germanyan additional 100 billion euros per year in the long term.
It is true that the immigration of migrants initially incurs costs - for example for language courses, integration measures or citizens' benefits. However, in the long term, each immigrant saves the state an average of 7,000 euros a year once they are working, paying taxes and making social security contributions.
Conclusion: Migration strengthens the economy in the long term
The figures make it clear: migrants make a significant contribution to value creation, help to cushion the shortage of skilled workers and keep the economy stable. And it's not just Germany that benefits from migration, but other European countries too.
In order for this positive effect to continue, bureaucratic hurdles must be removed and professional qualifications recognized more quickly. This is the only way to ensure successful integration into the labor market.
