Skills shortage in Germany: “Germany radiates bureaucracy above all else”
Economist Holger Bonin knows why too few foreign skilled workers immigrate and how this could be changed.
Interview with: Holger Bonin is Director of the Institute on the Future of Work (IZA) in Bonn and teaches as Professor of Economics at the University of Kassel
Almost half of the companies in Germany are looking for staff. At the end of 2022, there were 1.98 million vacancies in this country, according to the Institute for Labor Market Research. Many entrepreneurs are hoping for workers from other countries. But Germany is unpopular with skilled foreign workers, according to a new study. Politicians want to change that with a law. Holger Bonin of the Institute for the Future of Labor explains whether the planned “opportunity map” will really help and what else needs to be done.
ZEIT ONLINE: During a visit to Ghana the other day, Finance Minister Christian Lindner asked a lecture hall full of students who would like to work in Germany one day. No one came forward. Why is Germany so unpopular with foreign professionals?
Holger Bonin: Germany is not yet seen as an option or a country of immigration in many parts of the world. Everyone knows about the American Dream or sees that in Great Britain a son of immigrants of Indian origin became prime minister. Hardly anyone associates such success stories with Germany, even though there are an increasing number of them, for example with the BioNTech founders. And Germany exudes a lot of bureaucracy and little welcoming culture.
German language is the difficulty
ZEIT ONLINE: Even if someone from Ghana decided to come to Germany, it would not be easy.
Bonin: That’s true – and the problem here is not so much the rules for immigration. In that respect, Germany is now liberal compared to other countries. More problematic is the German language and the unique system of dual vocational training. Foreign degrees are therefore often difficult to compare. At the same time, the recognition procedures in Germany are very non-transparent and take far too long.
ZEIT ONLINE: How many workers from abroad would Germany need?
Bonin: According to the Federal Employment Agency, it needs 400,000 people to immigrate to Germany every year. And that’s on a net basis. Since people always emigrate as well, the number of workers who would have to immigrate each year is significantly higher.
“Other countries offer better incomes and working conditions.”
ZEIT ONLINE: Do you think it is realistic that so many skilled workers will come?
Bonin: To be honest, not. Measured in terms of population, more people would then have to come to Germany than to the classic immigration countries. And it is precisely with these countries that Germany is in competition. In many cases, they offer better incomes, more attractive working conditions, a more relaxed housing market and a more digital everyday life. For sought-after professionals who can choose where they want to work and live, all of this is important.
ZEIT ONLINE: Politicians want to give it a try and implemented a skilled labor immigration law three years ago. What effect has that had?
Bonin: That is difficult to evaluate empirically, because shortly after it was introduced, the pandemic led to fewer people migrating from their countries. But the decision that it is now no longer necessary to check whether a job could also be filled by a German or European employee is correct. So is the decision that people from abroad can now work in professions that do not yet have a severe shortage of skilled workers. And above all, the very name of the law means that politicians have finally acknowledged that Germany is an immigration country. Overall, however, this was not a huge step forward. That’s why we’re already talking about a new law.
“Immigrants must demonstrate a job offer and a recognized credential.”
ZEIT ONLINE: What requirements does a foreign skilled worker currently have to meet if he or she wants to come to Germany?
Bonin: If this skilled worker comes from the EU, the free movement of workers applies. This means that as a European, you can work in any member state under the same conditions as a native. The situation is different for people who come from a so-called third country. They must prove that they have a concrete job offer under the usual conditions in this country and that they have a professional qualification recognized in Germany. Those with an academic degree must present an employment contract with a certain minimum gross salary. In this way, policymakers wanted to prevent immigrants from ending up primarily in low-wage jobs.
“The government was just desperate to accommodate a point system.”
ZEIT ONLINE: The German government now wants to further facilitate the immigration of skilled workers. What is planned?
Bonin: Several measures at once. In the future, those who have a recognized vocational qualification will be allowed to work not only in their learned profession, but also in other jobs. It will also be easier for skilled workers whose qualifications are only partially recognized to come to Germany. If they find a job in this country, they will have three years to make up for the missing qualifications. And people who have at least two years of work experience will be able to take a job in Germany in the future even without having their degree recognized. I think that makes sense, trusting employers with who they want to hire.
ZEIT ONLINE: At the same time, the so-called opportunity card is to be introduced. What is that?
Bonin: A kind of points system for people from third countries, allowing them to come to Germany for up to one year to look for a job here. But whether you get this possibility of a limited residence title depends on how qualified you are, what language skills and work experience you have, and also on how old you are and whether you have a so-called connection to Germany. For each criterion that one fulfills, there is a number of points yet to be determined, and whoever reaches the minimum number of points is allowed to come.
“Providing all this evidence takes a lot of effort.”
ZEIT ONLINE: Sounds complicated.
Bonin: It is. Providing and sifting through all this evidence in order to be able to collect points means a lot of effort for the professionals, but also for the authorities. And all that in order to get a temporary residence permit. I don’t think many professionals will be interested in an opportunity card under these conditions. I rather think that the federal government only wanted to use the term “points system” because it is known from immigration countries like Canada or Australia.
ZEIT ONLINE: But it has nothing to do with that?
Bonin: No, because a classic points system is about people with good potential getting an immigration permit and not just an opportunity to look for a job. Overall, this points system is much less revolutionary than some people think.
Discouragin foreign workers with points procedure and bureaucracy
ZEIT ONLINE: What would you suggest?
Bonin: I would introduce a visa for a limited period of a few months to look for a job, combined with the opportunity to do a trial job with potential employers, in a very unbureaucratic way. Anyone who is really a sought-after and suitable specialist should be able to get a job here quickly. Of course, care must then be taken that the visa is not overstayed and that people who do not find a job also leave Germany again. In order not to lose the overview, one could cap the number of these visas.
ZEIT ONLINE: And if all that is not enough?
Bonin: We need a large-scale offensive to recruit skilled workers. This is not just a task for politicians. Companies in particular, which complain a lot about the lack of personnel in this country, would have to do much more. They need more attractive working conditions and real support in being able to integrate.
Likewise, more would have to be done to teach the German language and vocational qualifications to German standards abroad. And instead of more campaigns, we need a genuine culture of welcome. Germany must be a country that really wants immigration, not one that discourages skilled workers with points procedures and bureaucracy.
Source: Zeit Online – 14.03.2023 – Zeit Online
There are several reasons why Germans have a tendency for bureaucracy:
- Historical legacy: Germany has a long history of bureaucracy that dates back to the late 19th century when the country was unified under Prussian leadership. The Prussian administration was characterized by a strict hierarchical structure, rules and regulations, and a focus on efficiency and accountability. This legacy has continued to shape German bureaucracy to this day.
- Legal requirements: Germany has a highly regulated economy, and there are many legal requirements that companies and individuals must comply with. This includes regulations related to taxes, employment, health and safety, and environmental protection, among others. The bureaucracy is seen as a way to ensure that these regulations are followed and that everyone is held accountable.
- Culture of orderliness: Germans are known for their love of orderliness and precision, and bureaucracy is seen as a way to ensure that everything is done according to a strict set of rules and procedures. This culture is reinforced in schools and other institutions, where students are taught to follow rules and regulations.
- Public trust: Germans have a high level of trust in their government and public institutions, and bureaucracy is seen as a way to ensure that these institutions are accountable and transparent. This trust in the government and public institutions has also helped to reinforce the bureaucratic system in Germany.
While bureaucracy can sometimes be frustrating for individuals and businesses, it is seen as a necessary part of ensuring that Germany is a well-regulated and orderly society.
How a foreigner can challenge this burocreacy best?
Handling bureaucracy in Germany as a foreigner can be a challenging task, but there are a few things you can do to make the process easier:
- Be prepared: Before you start any bureaucratic process, make sure you have all the necessary documentation and information. Research the process in advance and try to understand the requirements, deadlines, and any potential obstacles you may encounter.
- Seek help: If you are struggling with bureaucracy, seek help from friends, colleagues, or professionals. There are also various organizations and support networks that can assist you with navigating the bureaucratic system in Germany.
- Be patient: Bureaucracy in Germany can be time-consuming and often involves multiple steps and visits to different offices. It’s important to be patient and to allow plenty of time to complete the process.
- Learn German: While many bureaucratic processes in Germany can be completed in English, learning German can be a significant advantage. It can help you understand the requirements more easily and communicate more effectively with officials and representatives.
- Get professional help: If you are struggling with bureaucracy, consider hiring a professional such as a tax advisor, immigration lawyer or relocation specialist. These professionals have experience dealing with bureaucracy in Germany and can help guide you through the process.
Overall, handling bureaucracy in Germany as a foreigner can be a challenging task, but with preparation, patience, and perseverance, you can navigate the system and achieve your goals.