VDMA warns of 12% labour‑force shrinkage in Saxony‑Anhalt, urging immigration‑friendly reforms after AfD win

The German engineering association VDMA projects a 12% drop in working‑age residents in Saxony‑Anhalt over the next nine years, a warning that has sharpened calls from business groups for faster immigration reforms following the AfD’s decisive state‑election victory.

7 September 2026

Saxony-Anhalt Ministry of Economic Affairs building (Domplatz 1), Magdeburg, Germany
FRANK BRüCKNER VIA WIKIMEDIA COMMONS (CC BY-SA 4.0)

Germany’s engineering federation VDMA warned that Saxony‑Anhalt will have roughly twelve percent fewer working‑age persons in its labour market within nine years, a projection that has intensified business calls for immigration‑friendly reforms after the AfD’s decisive victory in the state election.

VDMA’s demographic warning

In a statement reported by Handelsblatt, the VDMA highlighted that Saxony‑Anhalt already has the oldest population structure of any German state. The association quantified the demographic pressure: in nine years the region’s labour market will have about 12 % fewer potential employees than today.

"In neun Jahren werden dem Arbeitsmarkt rund zwölf Prozent weniger Erwerbspersonen zur Verfügung stehen," the VDMA said.
The figure is presented as a percentage of the current working‑age population and is not a year‑on‑year change; it is a forward‑looking projection for the period ending around 2035.

Political backdrop: AfD’s clear win

The warning arrives in the immediate aftermath of the AfD’s clear victory in the Saxony‑Anhalt state election, a result that has reshaped the political calculus in Berlin. The same Handelsblatt article links the VDMA’s alarm to the election, noting that the party’s success has prompted the business community to press the federal government for swift reforms.

Business response: HDE stresses free movement

Alongside the VDMA, the German trade association HDE (Handelsverband Deutschland) issued a parallel statement. HDE President Alexander von Preen warned that the German economy depends on a functioning EU internal market and the free movement of workers. He said, "Eine Politik der Abschottung und der Ausgrenzung führt in die Irre" and added, "Ich befürchte hohen Schaden für den Standort Deutschland, wenn potenzielle Fachkräfte aus dem Ausland nun davor zurückschrecken, zu uns zu kommen." Both remarks were published in the same Handelsblatt piece.

Why immigration reforms matter now

The projected 12 % decline translates into a substantial shortfall of skilled labour for Saxony‑Anhalt’s manufacturing sector, which relies heavily on engineering expertise. Without an influx of qualified workers, firms risk reduced output, delayed projects and a loss of competitiveness relative to other German states that enjoy younger demographics.

Business associations argue that the most direct policy lever is a liberalisation of immigration rules, particularly for skilled workers from non‑EU countries. They contend that easing visa procedures and recognising foreign qualifications would help offset the demographic head‑wind identified by the VDMA.

Implications for German competitiveness

If the projected decline materialises and immigration reforms are not enacted, Saxony‑Anhalt could become a case study of structural decline within a high‑tech economy. The broader German economy could feel spill‑over effects through supply‑chain disruptions, especially in sectors where the VDMA’s members are key suppliers.

Conversely, a swift policy response could mitigate the impact, preserving the state’s industrial base and reinforcing Germany’s overall position in the European market. The urgency expressed by both VDMA and HDE suggests that the next months will see intensified lobbying in Berlin.

Key facts at a glance

Projected labour‑force change in Saxony‑Anhalt
MetricValuePeriodSource
Projected decline in working‑age population12 %in nine years (≈2035)Handelsblatt

VDMA is headquartered in Frankfurt and was founded in 1890. Its industry classification is “Activities of business and employers membership organisations”. HDE, represented by President Alexander von Preen, is the umbrella body for German trade associations.

The timeline is straightforward: the Handelsblatt article reporting the VDMA warning and HDE comments was published on 7 September 2026, immediately after the AfD’s electoral win.

What remains unknown is the precise number of jobs at risk in Saxony‑Anhalt’s engineering firms and the exact policy measures the federal government will adopt. Both the VDMA and HDE have called for clarification, leaving the issue open for further debate.