We are going to examine some business news now on the program, with Brian Quinn joining us on satday. We start with the historic showing we discussed in the news regarding the far right in German State Legislative elections. The outcome may not be well-received by businesses in the eastern part of the country. Indeed, the German business community has expressed significant concerns about the surge of the far right in recent years.
Sunday's electoral results will only exacerbate their worries. The AFD party, which emerged victorious in trinia state, has largely based its platform on opposing immigration. However, German companies are encountering a substantial shortage of skilled labor. The country requires an estimated 400,000 skilled immigrants annually just to sustain its workforce.
The demographic crisis is particularly acute in Eastern Germany, where the AFD has experienced its most robust growth in recent times. Thuringia currently boasts a workforce of approximately 1 million people, but it is projected to lose 385,000 workers over the next decade, resulting in a quarter of jobs in the region remaining unfilled.
In Saxony, a fifth of the workforce is expected to retire in less than ten years, leading to a shortfall of around 366,000 jobs. For years, the AFD's xenophobic rhetoric has hindered German companies from attracting talent from abroad to the east. Business leaders in Thuringia have established an association to counter that rhetoric. They are not only concerned about recruiting workers but also about attracting investment to the region.
People may hesitate to relocate to the area with their families as immigrant workers or individuals looking to leave. Potential investors will also question whether they want to establish their company or subsidiary in the region, and if they truly want to commit to the area. There is ample data indicating that foreign labor is crucial to the German economy.
A recent study revealed that the German economy relies on foreign workers for its very survival. The German Economic Institute disclosed its findings shortly before the latest election, stating that in 2023, there were over 400,000 workers with foreign passports employed in Germany's five easternmost states. This figure represents an increase of 173,000 compared to five years ago. These foreign-born workers contributed to the generation of nearly 25 billion EUR in economic activity, accounting for almost 6% of the total for the entire country. In Saxony, where the AFD secured a close second, immigrant labor generated almost 8 billion euros in revenues last year, while in Thuringia , where the AFD emerged victorious, foreign workers created nearly 4 billion. The majority of these workers originate from Poland and the Czech Republic, with many engaged in construction, temporary services, research, and technology. These roles are particularly challenging to fill. As one individual highlighted, "We primarily require workers here. Germany is currently facing economic challenges, and we need skilled workers from abroad." Shifting our focus to today's trading activity, European indices commenced the week relatively flat following the anticipated German electoral outcome.
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