Most of the new jobs created in 2022 were filled by people from abroad. Workers from third countries in particular bring high qualifications with them.
The number of people in employment in Germany has once again reached a record level. At the end of the year, almost 46 million people were in paid work. People from abroad made a significant contribution to the continued positive development of the German labor market. Last year, employers created around 642,000 new jobs subject to social insurance contributions, a full 437,000 of which were filled by people from abroad. That is just under 70 percent. The figures come from the German Federal Employment Agency and were first published by Business Insider.
The foreigners who made the employment growth possible were mostly from third countries (a balance of plus 290,000). They are followed by EU foreigners (+ 147,000), people from the Western Balkans (+46,000) and Ukrainians (+43,000).
People from third countries are highly qualified in many cases
At the same time, most foreigners in Germany initially take on helper jobs, as they often have poorer formal qualifications than Germans. Third-country nationals who immigrate to Germany tend to be particularly qualified: The proportion of highly qualified employees among them is high at more than 24 percent and is only slightly below the level of Germans (just under 30 percent). By comparison, the Federal Employment Agency rates 14.6 percent of EU immigrants as highly qualified and 9.6 percent of people coming to Germany from the Western Balkans.
Third-country nationals are generally particularly often employed in the manufacturing sector in the Federal Republic. EU foreigners are also predominantly employed in this sector. People from the Western Balkans, on the other hand, work primarily in the construction industry, and employees from countries of asylum origin work in trade.
But immigrants do not always succeed in getting a job in Germany.
Of the approximately 2.6 million people registered as unemployed in Germany in January 2023, around 950,000 have a foreign nationality. They thus account for 36 percent of the group of unemployed in the Federal Republic. The absolute number of unemployed immigrants rose by 204,000 in January 2023 compared with the same month a year earlier. This corresponds to an increase of just over 27 percent. This development is largely due to people from Ukraine who came and are coming to Germany because of the war. Although many of them have found jobs, around 189,000 of the Ukrainian refugees are currently unemployed.
Source: Personalwirtschaft.de – 17.02.2023: Personalwirtschaft.de
How important are foreign professionals for the german economy?
Foreign professionals play a significant role in Germany’s economy and are in high demand across various sectors due to skill shortages in certain fields. Germany has a demographic challenge, where the aging population is resulting in a shortage of skilled workers, and this is where foreign professionals can fill the gap.
Germany has a high demand for professionals in fields such as IT, engineering, healthcare, and science. The country’s economic success depends on having a skilled workforce, and the government has introduced several measures to attract and retain foreign professionals.
In recent years, Germany has made it easier for foreign professionals to come and work in the country. The government has implemented a fast-track visa system for skilled workers, and various programs have been set up to help foreign professionals integrate into German society.
Overall, foreign professionals are crucial to Germany’s economy, and the country recognizes the need for them. The government is actively working to attract more foreign professionals and make it easier for them to come and work in the country.
How the problem expect to develop in future?
Sure, it’s always difficult to provide an exact number for how many foreign workers Germany would need to compensate for the retired people and have a growing business in the future. The number would depend on various factors such as the size of the workforce required, the skill sets needed, and the rate of retirement among the German population.
According to a report by the Institute for Employment Research (IAB), Germany will need around 260,000 skilled workers per year until 2060 to offset the effects of an aging population. This figure includes both foreign and domestic workers.
The German government has recognized the need for foreign workers and has implemented several measures to attract them. For example, the Skilled Immigration Act, which came into effect in 2020, aims to make it easier for foreign skilled workers to come to Germany and work.
In summary, while an exact number cannot be provided, it is clear that Germany will need a significant number of skilled workers, including foreign professionals, to compensate for the aging population and maintain a growing economy in the future.
Is Germany the only country with this problem in the EU?
Germany is not the only country facing the challenge of attracting and retaining young workers. Many other countries, particularly those in Europe, are also experiencing a shortage of skilled workers due to an aging population and declining birth rates. These countries include Italy, Spain, Greece, and Portugal, among others.
Additionally, many countries in Asia, including Japan, South Korea, and Singapore, are also facing similar challenges. These countries have aging populations and declining birth rates, and they are also competing for talent in a global labor market.
In recent years, many countries have implemented policies and measures to attract and retain young talent. For example, some countries have introduced fast-track visa programs for skilled workers, while others have invested in education and training programs to provide young people with the skills needed to meet the demands of the labor market.
Overall, attracting and retaining young talent is a global challenge, and many countries are competing for the same pool of workers. It is essential for countries to implement effective policies and measures to remain competitive in a global labor market.
And worldwide?
The challenge of attracting and retaining young workers is a global issue. Many countries around the world are experiencing a shortage of skilled workers due to an aging population and declining birth rates. The competition for young talent is fierce, and many countries are implementing policies and measures to attract and retain workers.
In addition to the countries in Europe and Asia that were mentioned earlier, countries in North America, such as the United States and Canada, are also experiencing a shortage of skilled workers. The competition for talent is especially fierce in the technology sector, where companies are vying for highly skilled workers in areas such as software development, artificial intelligence, and cybersecurity.
Similarly, countries in South America and Africa are also facing challenges related to attracting and retaining young talent. Many of these countries have invested in education and training programs to provide young people with the skills needed to meet the demands of the labor market.
Overall, the challenge of attracting and retaining young workers is a global issue, and many countries are competing for the same pool of workers. To remain competitive, countries must implement policies and measures to attract and retain young talent and provide them with the skills needed to succeed in a rapidly changing global economy.
So why professionals should decide for Germany?
Germany has several strengths that can help it remain competitive in attracting and retaining young workers. These include:
- Strong economy: Germany has the largest economy in Europe and is one of the world’s leading export nations. This strong economy provides opportunities for young workers to find employment and develop their careers.
- Quality of life: Germany offers a high quality of life, including excellent healthcare, education, and social benefits. This can be particularly attractive to young workers who are starting their families.
- Education and training: Germany has a strong education system, including vocational training programs that provide young people with the skills needed to meet the demands of the labor market. This focus on education and training can help Germany remain competitive in attracting and retaining young workers.
- Innovation: Germany is a leader in research and development, particularly in areas such as engineering and technology. This focus on innovation can help attract young workers who are interested in working in cutting-edge fields.
- Cultural diversity: Germany is a multicultural society, with a large immigrant population. This diversity can make Germany an attractive destination for young workers who are interested in experiencing different cultures.
Overall, Germany has several strengths that can help it remain competitive in attracting and retaining young workers. By continuing to invest in education and training programs, fostering innovation, and maintaining a high quality of life, Germany can remain an attractive destination for young talent.