Germany has granted 80,000 visas for employment purposes between January and June 2024, of these, 40,000 visas were granted to skilled workers, marking an increase of 3,000 compared first half of the year 2023.
According to the report by Schengen.News the rise in visa issuance is closely linked to Germany’s significant labour shortages, particularly in skilled professions.
Germany is facing shortages in more than 70 occupations, including transportation, manufacturing, construction, healthcare, engineering, and information technology.
An analysis by the German Economic Institute (IW) confirms the severity of these shortages, highlighting that 570,000 jobs remained unfilled in 2023.
This workforce deficit is impacting the country’s economic potential, with IW projecting a loss of production worth €74 billion by 2027 due to the unfilled positions.
IW stated, “For companies, this means that their production potential is being wasted. They could actually produce more, but they don’t have the employees to do so.”
Majors to address these shortages
Germany has launched several initiatives to address these shortages, a notable strategy involves attracting skilled workers from India, with the Indian Skilled Worker strategy to be presented during German-Indian government consultations this autumn.
This initiative is a collaborative effort involving the German Foreign Office, the Federal Ministry of Labor, German businesses, state governments, and other ministries.
‘’This skilled labour strategy is being developed jointly with the Foreign Office and the Federal Ministry of Labor, with German business, with the states, and with other ministries.’’ Hubertus Heil, German Minister of Labour stated.
Germany has also relaxed certain immigration rules to better tackle labour shortages. In June 2024, the country doubled the number of annual work visas under the Western Balkans Regulation to 50,000, offering more opportunities for citizens of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia to join the German labour market.
Additionally, the introduction of the Opportunity Card aims to simplify the process for non-EU citizens seeking employment in Germany.
What you should know
Late this month, Nairametrics reported that Germany is considering introducing tax rebates for foreign skilled workers who choose to take up employment in the country. These rebates will be structured at 30%, 20%, and 10% for the first three years of employment, as part of the German government’s “growth initiative” aimed at attracting more qualified professionals.
This tax relief is seen as a crucial measure to address the country’s ongoing shortages in various sectors. The Federal Minister of Finance, Christian Lindner, stated that the rebate will apply only during the first three years of employment, pending approval and official implementation.
Lindner emphasized, “We are creating a tax rebate for foreign professionals during their first three years in Germany. There will be rebates of 30%, 20%, and 10% for those people who come here as qualified specialists.” He also noted that the specifics of eligibility and criteria for these rebates are still to be determined, and the measure will undergo a revision after five years.
