Job market: "800,000 jobs will be lost in Germany due to AI"

Andrea Nahles, the head of Germany's Federal Employment Agency, predicts that artificial intelligence will disrupt the country's job market over the next 15 years. She told the "Handelsblatt" that approximately 800,000 jobs in Germany will disappear due to AI, but an equal number will be created. Some sectors, such as business consultancy, analytical roles in insurance and banking, will be hit harder.

Nahles hopes for more investment in AI in Germany, but only if it improves productivity, not simply for the sake of being trendy. The job losses won't primarily affect highly qualified individuals; instead, young academics in the U.S. face a shock study. Even those who don't get their dream job will still have better chances compared to others.

However, not all of these changes can be attributed to AI. Weak economic growth plays a significant role. Roles that cannot utilize AI, like the craft sector, prove to be quite robust. The core of work remains human craftsmanship. Even uneducated and semi-skilled workers have opportunities, as it may not be economically viable to replace them with AI.

Nonetheless, Nahles emphasizes that no one is completely immune. To boost Germany's competitiveness amid demographic challenges, where the country loses around 500,000 workers annually, she urges securing skilled labor from non-EU countries. She calls for the promised "Work-and-Stay Agency" to make Germany more competitive, modern, digital, and faster compared to other immigration countries.

However, she stresses the need for "courage to embrace a central solution" amid internal disagreements within the coalition and between the federal government and the Länder regarding the design of the planned agency. She laments the protection of the 550 foreigner offices nationwide, saying they were never intended to be welcome centers for international skilled workers.

While they do a good job, it doesn't meet the requirements for competing with countries like Canada.