Foreign skilled workers offer potential for eastern Germany

Study - Foreign skilled workers offer potential for eastern Germany

Many positions in Germany cannot be filled due to the lack of necessary personnel. Experts therefore recommend focusing more on foreign skilled workers, especially in the eastern German federal states. These reportedly offer great potential. This is evident from a study by the Competence Center for Labor Security (Kofa) of the employer-affiliated Institute of the German Economy.

The study shows: Foreign employees already make a significant contribution to filling open positions in labor-short professions such as, for example, in elder care or building electrical work. So, the foreign worker share among all socially insured employees in federal states like Hesse, Baden-Württemberg, and Bavaria was up to 15 percent in 2023, while in the east (excluding Berlin), the average was below 6 percent. The difference is also due to "historically grown differences," said study author Gero Kunath. Such labor recruitment agreements in the 60s and 70s were differently designed in West and East.

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Kunath considers it sensible to integrate more foreigners into the labor market in the eastern states. "A welcoming culture for the successful recruitment of international skilled workers and their long-term binding is a prerequisite for this," he said. "The strengthening of nationalist parties like the AfD could further deter international skilled workers." He sees another obstacle: Foreigners tend to settle where there are already networks of foreign skilled workers or co-nationals. This is more common in West Germany.

Overall, the labor market situation in both parts of the country is similar in terms of difficulty, according to the study, with the same labor-short professions in East and West. Personnel is particularly lacking in social and health professions, in the areas of construction, metal and electro, handicrafts, and IT. To close the skilled labor gap, experts also recommend qualifying apprentices and trainees and keeping older employees in employment longer.

1. The study conducted by the Kompetenzzentrum für Arbeitsmarktsicherheit (Kofa) at the Institute of the German Economy highlights the significant role of foreign workers in addressing the skilled labor shortage in Germany, especially in eastern states like East Germany, where their share is below 6%.
2. Gero Kunath, the study author, suggests that strengthening a welcoming culture and integrating more foreigners into the labor market in the eastern states could be beneficial, as the growing influence of nationalist parties like the Alternative for Germany (AfD) may deter international skilled workers.
3. According to Kunath, there's another challenge in recruiting foreign skilled workers in East Germany: foreigners tend to settle in areas with established networks of foreign skilled workers or co-nationals, which is more common in West Germany.
4. The study also finds that the labor market situation in both East and West Germany is similar in terms of difficulty, with the same labor-short professions, such as social and health professions, construction, metal and electro, handicrafts, and IT, experiencing a skills shortage in both regions.

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