Germany is the EU’s largest economy. It has a strong manufacturing base – especially in the automotive sector – with several German companies numbering amongst the world’s leading manufacturers. Most employment, however, is found in the service sectors: the majority of employment is in non-marketed service, followed by the distribution and transport sector. The German economy benefits from a highly skilled workforce, with the dual system of vocational education and training considered an important pillar of Germany’s competitiveness.
Looking to the future, employment is projected to fall from its 2014 peak over the period to 2025. Most employment growth is expected in business and other services sectors and most job opportunities will be for professionals.
Germany is predicted to see an increase in demand for high-skilled workers, whilst demand for medium- and low-skilledlow-skilled workers will decrease in the medium-term future. Meanwhile, by 2025 the share of the labour force with high level qualifications is projected to increase, whilst the share of workers with low or no qualifications will decrease in the same period. The share of workers with medium level qualifications will remain at around the same level.
Germany’s working-age population (15-64) is projected to decrease in the period to 2025, with labour market participation forecast to decline but to remain above the projected EU28 average. Looking to the future, Germany is expected to maintain a higher old-age dependency ratio than the EU28 average.