The spread of artificial intelligence is expected to eliminate around 800,000 jobs in Germany over the next 15 years. At the same time, it will create new employment opportunities and significantly change the structure of the labor market.
Andrea Nahles, head of Germany’s Federal Employment Agency, issued the warning. In an interview with the newspaper Handelsblatt, she said that almost no profession is now shielded from the impact of artificial intelligence.
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The impact will not be the same across all sectors. Service providers, insurance companies and banks are among the most exposed, as new technologies could automate a significant share of their processes.
Occupations that rely on specialized skills and hands-on work are proving more resilient to these changes. Semi-skilled workers and those without specific qualifications may also be at lower risk of being replaced because many of their tasks require human involvement.
Nahles called for more investment in the development of artificial intelligence in Germany, stressing that it must deliver real productivity gains. She said the technology should help improve the economy, rather than simply be used to replace workers.
Despite the transformation expected in the coming years, Nahles believes that, for now, unemployment is a greater concern for Germany than the shortage of skilled workers.
That situation could reverse within five years, she said. By then, a shortage of skilled labor is expected to become one of the main challenges facing the German economy.
Demographic change is one factor directly affecting the labor market. Nahles said Germany loses around 500,000 workers a year because of demographic shifts.
Meanwhile, the number of young people arriving from other European countries has fallen to its lowest levels in recent years. For this reason, she stressed the need for Germany to attract more skilled workers from countries outside the European Union as well.
The construction sector has seen a partial improvement, while government infrastructure investment programs have shown positive signs.
Forecasts indicate that Germany’s labor market is entering a period of significant transformation: artificial intelligence is expected to eliminate existing jobs but also create new professions and employment opportunities.
