Where the German economy depends on foreigners
Around one in seven employees in Germany is a foreigner. According to statistics from the Federal Employment Agency (BA), they make up around 15 percent of employees covered by social security. In some professions, the proportion is much higher - and rising. "This means that many sectors are already heavily dependent on foreign workers," says Panu Poutvaara, migration expert at the Ifo Institute. An overview of the situation.
Sectors with a particularly high proportion of foreigners
According to Poutvaara and the figures from the Federal Employment Agency as of March 2023, particularly high proportions of migrants can be found in sectors such as cleaning staff (41%), food production (38%), building construction and civil engineering (33%) and tourism, hotels and restaurants (32%). Migrants are also significantly overrepresented in the transport and logistics sector and in agriculture.
And the proportion of foreigners has recently tended to increase. In summer 2021, they were still slightly lower.
The economy has a positive attitude towards the immigration of workers. "We need to cushion the impact of demographic change in the coming years. Without skilled workers and workers from abroad, we will not be able to maintain our prosperity," says the Confederation of German Employers' Associations (BDA). One component of this is "that we quickly become significantly more attractive for qualified immigrants".
And Martin Lange, labour market expert at the Centre for European Economic Research (ZEW) in Mannheim, emphasizes: "Without immigration, our prosperity is at risk." Germany is in global competition. "If it positions itself as being hostile to immigration, this will not make us attractive to other countries and skilled workers."
The development
In some occupational groups, it can already be seen how declining numbers of German workers are being compensated for by foreigners. An analysis by the BA for Deutsche Presse-Agentur shows this for the period from 2018 to 2023 for the manufacturing industry, for example: the number of Germans in this sector has fallen by 285,000, while the number of foreigners has risen by 202,000. In the hospitality industry, there are just under 64,000 fewer Germans and 72,000 more foreigners. There is also a similar trend in the finance and insurance sector: the number of Germans fell by 22,000, while the number of foreigners rose by 19,000. However, the proportion of foreigners here is still well below average at just under six percent.
In some professions, however, the number of both Germans and foreigners is growing strongly, for example in healthcare, information and communication or education.
The origin of the workforce
According to Lange, people from other EU countries are mainly represented in the manufacturing industry, trade, transport and construction. People from the countries from which a particularly large number of asylum seekers have come in recent years are mainly found in trade, but also in transport and the hospitality industry, he says. "And people from the Western Balkans are now mainly employed in the construction industry because the Western Balkans regulation has been in place for a few years now, which allows skilled workers to work here if they have found a job in Germany through the regulation." Construction companies in particular made use of this.
The level of qualification
According to Lange, both highly and low-skilled foreigners come here. In some cases, immigrants experience an effect known as "downgrading". They often have to "start as unskilled workers and switch to specialist or expert jobs over time", he says. It is particularly difficult for doctors or lawyers to have their professional qualifications recognized.
The Labor market in Germany is highly dependent on foreign workers, with sectors such as cleaning, food production, construction, tourism, and logistics having particularly high proportions of migrants. This reliance on migration is viewed positively by German employers, who see immigration as a necessity to counteract demographic changes and maintain prosperity. Without immigration, Germany's competitiveness could be at risk.
The recent trend in the German economy shows an increase in the proportion of foreigners in various sectors. For instance, in the manufacturing industry, the number of Germans has decreased while the number of foreigners has increased. In the hospitality industry, there are fewer Germans and more foreigners, with a similar trend observed in the finance and insurance sector. However, the proportion of foreigners is still relatively low in the latter.
On the other hand, in some professions, the number of both Germans and foreigners is growing, such as healthcare, information and communication, and education. The origin of the workforce varies, with EU countries predominantly represented in the manufacturing industry, trade, transport, and construction. Asylum seekers are mainly found in trade and transportation, while skilled workers from the Western Balkans are primarily employed in the construction industry.
The level of qualification among foreigners varies, with both highly and low-skilled individuals immigrating to Germany. Sometimes, immigrants may experience "downgrading," starting as unskilled workers before moving on to specialist or expert roles. Professional qualifications in fields like medicine and law can be particularly challenging to recognize and accept.
Source: www.dpa.com
