A new opportunity card could entice working migrants.
Germany faces a significant skilled labor shortage, with industries relying heavily on foreign workers. To fill these gaps, regulated employment immigration is being implemented. Last year, 419,000 residence permits were issued to employed foreigners from non-EU countries, but the labor shortage continues to grow. The government aims to recruit more foreign workers, similar to countries like Canada, New Zealand, and Australia. The new Skilled Immigration Act is bringing changes starting June 1st:
How many skilled workers are needed in Germany?
By 2035, seven million skilled workers must be replaced due to the aging society, according to German Labor Minister Hubertus Heil. The shortage is severe in industries like care and hospitality. IT specialists are in high demand, and jobs and training positions may remain vacant in the future. Currently, approximately 25% of employees have a migration background, with higher proportions found in sectors such as cleaning and hospitality.
New developments from June 1st:
The Chance Card, a part of the Skilled Immigration Act, comes into effect. It focuses on attracting qualified workers from non-EU countries. This comes with expanded opportunities for workers from the Western Balkan states to find jobs in Germany. Although these workers still need a job contract, it is expected to benefit both skilled and unskilled laborers.
Working mechanics of the Chance Card:
Meticulous language skills, qualifications, and experience are prioritized to attract motivated and talented individuals. Applicants must show proof of at least two years of vocational training or a university degree from their home countries, and demonstrate proficiency in German or English languages. Points are allocated based on language skills, professional experience, age, and Germany connections. Quotas are also given for occupations in high demand. Holders of the Chance Card can then come to Germany and search for permanent employment. After one year, an extension of two years is possible under certain conditions.
Updates on the Western Balkan Rule:
The Western Balkan Rule simplifies access to the German labor market for citizens of Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia. This regulation will potentially double the entry of workers from these countries, with the annual quota rising from 25,000 to 50,000 approvals.
What happened to the Skilled Immigration Act?
While Germany does have a Skilled Immigration Act from March 2020, experts claim it had limited impact due to travel restrictions and high bureaucratic barriers during the pandemic. The first major reforms went into effect in November 2021, focusing on simplifying processes for the "Blue Card EU" and recognized skilled workers.
Restored aspects from March:
A residency option for foreigners based on their professional experience has been in effect since March. Skilled individuals with degrees and professional experience can enter Germany and work without prior recognition. They must not have a qualified recognition in Germany, but they must have a job offer that guarantees an annual gross salary of at least 40,770 euros according to the collective agreement. This measure aims to reduce bureaucratic hurdles, speeding up procedures. The Federal Employment Agency has set a quota of 25,000 for temporary employment in 2024.
Do these reforms improve the possibility of attracting more workers?
The variety of opportunities for immigration has grown to match the demands of businesses, notes Heil. Yet, there are still challenges such as high requirements, bureaucratic obstacles, and other difficulties. As a result, the SPD's migration commissioner Reem Alabali-Radovan advocates for streamlined, digital administrative processes, early integration in schools, German classes, or the job market, and consistent anti-discrimination policies. Due to a talent shortage of more than 400,000 people annually, the Chance Card primarily benefits Germany, asserts Green politician Misbah Khan. To make Germany an even more attractive destination for immigrants, these proposals need to be implemented.
Apart from language, what else discourages migrants?
In contrast to renowned immigration nations, Germany has a relatively high tax and tax load. This discourages highly skilled individuals. Moreover, there have been whispers that it's challenging to find affordable housing in certain urban areas. Alarmingly, some municipalities have reported that landlords demand employment guarantees from new foreign applicants keen on renting properties.
"As lawmakers, we haven't yet reached the end of our duties," explains Ann-Veruschka Jurisch, interior policy expert from the FDP in the German parliament. "We've decided to streamline immigration law but this remains a work in progress," states the MP. She is optimistic about incorporating AI in processing applications from potential economic immigrants. The Foreign Office is already forging the path in this domain. This is essential given the excessive wait times of over a year that Germany cannot continue to tolerate.
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The mentioned reforms in Germany's Skilled Immigration Act, such as the Chance Card, aim to attract more skilled workers from non-EU countries to address the minimum wage-compatible skill shortage in industries like IT. However, high requirements, bureaucratic hurdles, and a high tax and living cost in certain urban areas may still discourage some potential immigrants, including highly skilled individuals. In contrast, countries like Canada have implemented immigration laws that help address their labor needs, overcoming such challenges and offering more attractive conditions.
