Replacement migration from a labour market perspective: Germany's long-term potential labour force and immigration from non-EU member countries

We quantify the development of the potential labour force in Germany from 2014 to 2050 and pose the question as to which extent migration will be able to offset the well-known negative demographic influence. The mean overall results of this long period of time show that while migration may slightly dampen the trend, it cannot fully compensate for it, depending on the development of domestic labour participation. Persistently high immigration numbers, however, will defer the demographic caused decline of the workforce for some years. In contrast, even high, if realistic, immigration flows will only slow down demographic ageing.