Owing to the high
competitiveness of German companies and structural problems in many
European countries, a period of weak economic activity is not likely to lead to a
slowdown in labour migration to Germany.
On the contrary, a slowdown in
economic growth could have a much lesser impact on the German labour
market than on countries that already have a double-digit unemployment rate.
Germany’s broader fiscal latitude could help to quickly re-ignite economic
Therefore, migration to the German labour market could endure just as
much as the extensive housing shortage in Frankfurt and other major German
cities for many years.