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Posted on September 19 2022

Top 5 reasons why more migrant workers in Germany are required to contribute to its economy

By  Editor
Updated October 26 2023

Highlights: Reasons why more migrant workers in Germany are required

  • Germany is the 4th most powerful economy in the world
  • It needs more immigrant workers to contribute to its economy
  • The number of deaths is higher than the number of burths in the country
  • A significant number of people will reach the retirement age in the next 15 years
  • The country is experiencing shortage of skilled workers

The Ministry of Labor of Germany plans to come up with a proposal to the German federal government to launch a new immigration policy for international skilled workers.

*Check your eligibility to Germany through Germany Immigration Points Calculator.

**Want to migrate to Germany? Y-Axis offers you assistance for a bright future abroad.

Need of More Migrant Workers in Germany

The reasons why Germany requires more migrant workers are given below:

1. Opportunity Card

The German Labor Ministry is working to create an "opportunity card". It will be issued on the basis of a points-based system. The points-based system will have four criteria:

  • The applicant needs to be of the age of 35 or below.
  • Have an academic degree
  • Have a minimum of 3 years of work experience
  • Have German language skills or should have stayed previously in Germany

Candidates are required to meet a minimum 3 out of 4 eligibility criteria to be issued an "opportunity card" to arrive in Germany and seek work.

The opportunity card will have a limit to the number of cards issued every year. The limit will be modified every year to address the needs of the job market in Germany.

Read more on...

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2. Retirement of German Individuals from the Workforce

Germany's average age is much higher in addition to the shortage of skilled workers. The country needs to address the gaps that have been created because of the significant number of people that will retire from the workforce in the coming years

Approximately 13 Million will be retiring from the workforce in the next 15 years.

According to Statista, the statistical office of Germany, once that specific generation starts to retire, the country's job market will witness a loss of a significant number of economically active people.

By 2036, close to 12.9 million people born between 1957 to 1969, who are presently part of the job market in Germany, will reach retirement age.

The data published by Statista shows that higher age groups consist of more economically active individuals than inactive ones. Approximately 63.6% of 60 to 64-year-olds are in the job market, and 71% of 20 to 24-year-olds participate in the job market.

3. Dire Shortage of Skilled Workers in Germany

Germany is facing a dire shortage of skilled workers, which affects almost half of the companies in the country.

In April 2022, around 43.6% of the organizations were impacted by job positions lying vacant. In August, the rate rose to a recorded high of 49.7%.

Due to the shortage of staff, a large number of companies in Germany will have to shut down.

These are the hardest-hit sectors:

Hardest Hit Sectors of Germany
Sector Shortage of Skilled Workers
Service Providers 54.20%
Accommodation and Event Sector 64%
Warehousing and Storage 62.40%
Manufacturing Sector 44.50%
Food Manufacturers 58.10%
Manufacturers of Data Processing Equipment and of Metal Products 57%
Retail Businesses 41.90%
Construction Companies 39.30%
Wholesalers 36.30%

Read More:

Germany paves the way for migrants to obtain PR through the new bill

 4. Low Fertility Rates

The fertility rates in Germany remain low. According to reports by Eurostat, a statistical agency of the European Union, by 2060 the population of Germany will decrease by 14%.

Germany's median age is increasing each year. The average age of citizens in Germany witnessed an increase to 44.6 in 2020. The figures for death have outnumbered the figures for birth in Germany, widening the gap between deaths and births.

The population of Germany is shrinking and aging parallelly. The need to welcome more international skilled workers is growing stronger each year.

 5. Social Welfare In Germany

Germany needs economic productivity to help the running of the state's duties efficiently. It needs its citizens and immigrants to contribute to the economic prosperity so that Germany's government can use the revenues to take care of the people living in the country.

Germany is known for its inclusive welfare system. The basis of the welfare system is validated by the law of the country. It is committed to protect the freedom of citizens. A German citizen can claim support from the government if they cannot take care of themselves. The German state ensures that the person lives a life of dignity by taking care of them.

In Germany, people who are not employed can claim support. Anyone who is not working has a claim on unemployment benefits. Around 60 % of the last income for individuals who do not have minor-aged dependents and 67 % of the last net income for those who have minor-aged dependents can be claimed.

Any taxpayer having a child can avail of the "Kindergeld" or child benefit. Parents get it till the child reaches 18 years of age. The country also provides free education for all levels. This is the reason why many international students choose to study in Germany.

In 2015. the unemployment rate in Germany was just 4.7%. There is a high demand for professionals such as doctors, engineers, and IT specialists. Multinational companies based in Germany, such as Adidas, BMW, Volkswagen, and Siemens employ a large number of people every year. Recently, the country has succeeded in welcoming immigrants better in the German job market.

*Wish to find employment in Germany, you can apply for job seeker visa of Germany with the guidance of Y-Axis.

The reasons given above are why Germany needs to add more migrant workers to boost its economy. Germany is the largest economy in Europe and the fourth most powerful economy in the world. The lack of skilled workers in the country might hamper the economy. Germany needs foreign skilled workers to enhance its economy.

Wish to migrate to Germany? Contact Y-Axis, the leading Migration Agent in Australia.

If you found this blog helpful, you may want to read…

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