The influx of foreign workers is stirring emotions, particularly in the election campaigns in East Germany. A study presents economic arguments to counter these sentiments, highlighting that without foreign workers, especially from Eastern Europe, regional growth would be significantly lower.
Foreign workers boost East German economy
According to a study, foreign workers are an indispensable support for the economy in East Germany. The study, conducted by the employer-affiliated German Economic Institute (IW), reveals that in 2023, around 403,000 people without a German passport were employed in the five eastern German states, an increase of approximately 173,000 compared to five years earlier.
This group alone generated €24.6 billion, contributing 5.8 percent to the gross value added in East Germany. The study concludes that “foreign workers are indispensable for the East: between 2018 and 2023, the number of German workers decreased by 116,000.”
Political and social implications
The IW notes that East Germany does not have the best reputation for hospitality, particularly in the lead-up to state elections in three eastern German states. The Alternative for Germany (AfD) party persistently criticizes migrants and enjoys strong polling numbers, while many migrants are concerned about their future. The institute points out, “Foreigners, in particular, support the East German economy.”
Without the influx of new foreign workers, the IW believes that the economy in the region would have declined noticeably. Instead, it has grown. “Saxony benefits the most, with foreigners generating around €7.9 billion. Brandenburg, with a much smaller overall economy, accounts for €6.8 billion, and Thuringia still manages €3.9 billion.”
Key contributors and sectors
Over the past five years, most of the new arrivals in East Germany have come from Poland and the Czech Republic, followed by Romania and Ukraine, according to the IW. They primarily work in the construction industry, but also in the transport sector and through temporary employment agencies in Germany. “Foreign workers support the East German economy,” says study author Wido Geis-Thöne. “It is all the more important that the region remains open-minded – because only in this way can the East remain economically successful.”
The study underscores the critical role of foreign workers in maintaining and boosting the economic growth of East Germany. The region’s continued openness to foreign labor is essential for its economic success
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