Germany Faces 7 Million Worker Shortfall by 2035 as AI Reshapes Entry-Level Hiring
Published on 07/06/2026 at 05:34 | Redaktion boerse-global.de
Germany is heading toward a demographic cliff, and artificial intelligence is simultaneously redrawing the landscape of who gets hired — and who doesn’t. The Institute for Labour Market and Vocational Research (IAB) projects that the country will lose seven million workers by 2035. The Institute of the German Economy (IW) put the economic damage from unfilled positions in 2024 at €49 billion, and forecasts that figure will rise to €74 billion by 2027.
Meanwhile, polling from the DGB Index of Good Work reveals widespread anxiety about staying power. Four in ten employees doubt they can hold their job until retirement age. The figures are starker in nursing (71 percent) and skilled trades (72 percent). DGB chairwoman Yasmin Fahimi is calling for dignified transitions into retirement, while the federal government debates linking the retirement age to life expectancy.
Uneven Impact of Generative AI on Jobs
The arrival of generative AI late in 2022 has produced sharply divided data. A study by Jobcloud found that the number of entry-level positions dropped by 32 percent since then, with administration, marketing and finance hit hardest. In Switzerland, unemployment among university graduates ticked up from 1.4 to 2.2 percent between 2024 and 2026.
Economist Monika Bütler says the trend is making people question a long-cherished assumption. “Education as a guarantee of high salaries is increasingly being questioned,” she warns.
Yet other numbers tell a different story. Between 2021 and 2026, Ramp and Revelio Labs tracked companies that made heavy AI investments. Those firms expanded their overall workforce by an average of ten percent, and entry-level roles jumped 12 percent.
Anthropic CEO Dario Amodei struck a grim note for fields like law and programming. His company has committed over €170 million to studying what AI means for jobs.
New Virtual Assistants Debut in HR Departments
Several software vendors launched AI tools for human resources in early July. On July 4, uKnowva introduced its virtual assistant UVA, built on the Model Context Protocol (MCP). It automates recruiting, vacation management and scheduling via natural language. Navan, also using MCP, implemented the technology for travel and expense data earlier in the month. SugarCRM released a project management tool on July 5 that includes embedded AI agents, and Lucanet followed with six specialised agents aimed at making ESG reporting more efficient.
Entrepreneur Bhavin Turakhia put €30 million into the AI platform Neo at the start of July. OpenProject’s version 17.6, featuring XWiki integration, is expected soon.
Strategic Shifts at SAP and ADP
Major players are repositioning their resources. SAP has capped new hires outside AI-critical roles and limited travel expenses, freeing up cash for cloud capacity and AI specialists. Amazon and Adobe have adopted similar strategies.
On the financial side, ADP expanded its credit capacity to $9.2 billion in late June, securing liquidity for working capital and potential acquisitions. Institutional investors moved in opposite directions: Y Intercept Hong Kong built up ADP positions in the first quarter, while Kepler Cheuvreux Suisse trimmed its holdings. Analysts expect ADP’s next quarterly results around the end of July, with revenue growth forecast.
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