Germany’s fertility rate is 1.6:
The labor shortage is magnifying the pressure. With workers in high demand and inflation jumping to 10.9% last month — the fastest rate since the euro was introduced more than 20 years ago — German public sector staff are seeking a 10.5% pay boost, while metals workers are demanding an 8% raise.
Rapid wage increases could help entrench inflation, creating a headache for policy makers. The trend could push the European Central Bank to clamp down harder, even as the economic outlook is worsening.
Source: Germany Faces $85 Billion Hit as Labor Shortages Intensify – Bloomberg
20 years ago, Germany’s fertility rate was 1.3. Their labor markets, consequently, are now crashing into that small cohort of new workers.
