Chance for attracting more foreign workers to the job sector

Inquiries and Responses - Invitation to attract more foreign workers into the job market

The German labor market has been heavily reliant on individuals with foreign roots for quite some time now, yet there's a growing skills gap. In an effort to address this issue, the government is implementing reforms to the Skilled Immigration Act. Here's an overview of what changes are happening as of June 1st:

How many skilled workers are needed in Germany?

By 2035, seven million skilled workers will need to be replaced due to societal aging, according to Labor Minister Hubertus Heil (SPD) at a skilled worker congress. The shortages are particularly severe in fields such as nursing and the food industry. IT professionals are also in high demand both in companies and government organizations. While there were 707,000 open positions reported by the Federal Employment Agency in March, down by 70,000 from a year ago, long-term, more jobs may become available. Approximately a quarter of all employed individuals have a migration background, with particularly high proportions in cleaning professions and the food industry.

What's new starting June 1st?

The Opportunity Card, a part of the Skilled Immigration Act, is now in effect. It's aimed at people coming from outside the European Union. There's no need for these individuals to have a job contract with a German employer before arriving in the country.

Additionally, opportunities for workers from Western Balkan countries to work in Germany are expanding. However, those seeking entry under this "Western Balkan regulation" must first present a job contract.

How does the Opportunity Card work?

To be eligible for the Opportunity Card, applicants must possess at least two years of vocational training, a university degree, or relevant professional experience in their home country. They should also have German or English language skills. These qualifications will earn them points; based on these points, they'll receive the opportunity card.

With this card, non-EU nationals can come to Germany and have a year to find permanent employment. In certain cases, a one-time extension of two years is allowed.

What's new about the West Balkan regulation?

The Western Balkan regulation aims to make it easier for citizens of Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia to find jobs in Germany. Previously, the Federal Employment Agency issued 25,000 approvals per year for workers from these countries who had job offers. Now, that number will be doubled to 50,000 approvals each year.

Germany has had a skilled worker immigration law in place since March 2020, with the goal of attracting more qualified non-EU workers. Despite this and the impact being limited by the Corona pandemic's travel restrictions, further simplification of the immigration process remains a focus.

Changes in effect since March include:

Germany offers a residence opportunity based on professional experience, a cornerstone of the Skilled Worker Immigration Law. Skilled workers with a degree and professional experience can enter and work without requiring prior recognition. They only need to show a recognized education. The goal is to reduce bureaucracy and expedite procedures.

The job offer in Germany must guarantee a minimum annual salary of €40,770 gross. If the employer is subject to a union agreement, this requirement is met automatically. To address temporary labor shortages, temporary employment has been allowed, with the Federal Employment Agency setting a quota of 25,000 for 2024.

Will these reforms encourage more migrants to work in Germany?

It's too early to assess the impact, as the new regulations have only been in effect for a short period. However, potential workers face high requirements, bureaucratic hurdles, and other challenges.

German Green interior politician Misbah Khan said, "Regarded from the perspective of Germany, the Chance Card is primarily an opportunity." It remains to be seen how effectively Germany as a society and economic location will leverage these changes and make the country even more appealing to immigrants.

What else discourages immigrants from coming to Germany?

In comparison to other popular immigration destinations, Germany has a relatively high tax and tax burden. This is particularly off-putting for highly skilled workers. Additionally, some cities are struggling to provide affordable housing, while some landlords expect employers to serve as guarantors for potential new immigrant tenants.

After these initial reforms, are more changes likely in the future?

"We, as legislators, are not yet finished," FDP immigration expert Ann-Veruschka Jurisch remarked in the Bundestag. "We've set ourselves the goal of making immigration law more transparent; this ongoing task awaits us."

Artificial intelligence (AI) is a highly anticipated solution to enhance application processing for potential skilled workers in Germany. The Foreign Office has already began pioneering efforts in this field. This is crucial due to the unacceptable wait times of over a year.