The article examines the current situation in the German labour market and measures aimed at overcoming the existing challenges. It explains the reasons for the emerging crisis in the labour market related to the demographic situation in the country. The shortage of qualified labour force is shown as the main challenge, with regional disproportions in the shortage of personnel being highlighted. It is noted that the main way to ease the labour shortage is to attract foreign specialists due to the low costs of such a strategy. The main mechanisms aimed at both integrating foreigners into the labour market and attracting them to the country are described. The prospects for integrating foreigners already living in the country are assessed and the problems complicating this process are analysed. The difficulties in implementing social policy in the area of pensions and the current government's approaches to addressing the relevant demographic challenges are highlighted. The assessment of the German expert community as well as other economic actors with regard to the government's pension reforms is presented. Special attention is paid to the issue of retaining pensioners in the labour market in order to solve the shortage of personnel in the country.