Skilled professionals leaving Germany for other English speaking countries

Germany is raising concerns over losing highly-skilled migrants to Britain and other English-speaking countries, the British newspaper the DailyMail reported yesterday (July 16).

During a recent visit to a Berlin university, German Labour Minister Hubertus Heil reportedly urged a group of Indian science students to remain in the country. 

Germany is suffering from a massive labor shortage across many sectors such as service and healthcare. However, the estimated shortage of workers specializing in science and technology could threaten Germany’s global reputation as a force in engineering quality and innovation. 

According to a 2022 report by the German Economic Institute in Cologne, the country needs about 320,000 people who specialize in science, technology, engineering, and math or what is known as STEM fields. This shortage is further compounded by many engineers and scientists now entering retirement at a time when Germany is faced with a herculean task of embarking on a massive digital transformation. 

Read more: How much immigration does Germany need?

Unattractive to foreign skilled workers

According to Holger Bonin, head of the ZEW (Leibniz Centre for European Economic Research) Labor Market, Human Resources and Social Policy, a combination of relatively lower wages compared to other European countries, high tax rates, and the language barrier contribute to Germany not being an attractive workplace for skilled professionals. 

Bonin added that for too long, Germany has signaled that it does not welcome immigration, but also acknowledged that the government is on a mission to change all that. 

Germany recently introduced a number of immigration policies to attract skilled workers and make them stay.

Last month, the country launched the “Chancenkarte” (also known as the Opportunity Card), a points-based residence permit that allows workers from third countries to enter Germany and look for a job.

The German foreign office is also seeking to streamline the recognition of foreign professional qualifications.

In parallel, the country’s citizenship laws were reformed to accelerate naturalization, make the acquisition of birthright citizenship easier, and allow for dual citizenship.

Read more: Germany’s reformed citizenship law is coming into force. What does it mean for migrants?

India: Source of skilled migrants  

Germany is increasingly eyeing India as a recruitment ground for skilled labor migrants. 

Local German media reported this week that Heil announced that a new ‘skilled labor strategy’ is to be presented at the Indian-German consultations in autumn.

The strategy reportedly includes easing visa processes and allowing the recruitment of skilled worker immigrants on a large scale. 

The aim is to send a “clear signal to India that bright minds and helping hands are welcome in Germany.”

Figures from the Federal Statistical Office show that in 2023 alone, the number of Indian nationals in Germany was estimated at 36,391. In 2022, that number was estimated at 38,114 and 21,224 in 2021.

Indian youth in search of jobs

According to the Indo-German Chamber of Commerce, the country’s young population makes the country attractive to prospective German employers. Population statistics indicate that the median age in India is about 28 years old. 

“No other industrialized or emerging country is so young,” the Indo-German Chamber of Commerce said on its website. 

The burgeoning youth population which is estimated to be growing at about 1 percent per year poses a challenge to India, the most populous country in the world. The country’s job creation rate is in stark contrast to its growing economy. 

In the fourth quarter of 2023, the Indian economy expanded 8.4 percent but unemployment remains high, even among college graduates. According to the recently released India Employment Report 2024 by the Institute for Human Development (IHD) and the International Labour Organization (ILO), India’s youth account for nearly 83 percent of the unemployed workforce. 

The proportion of young people with secondary or higher education but are unable to find jobs reportedly nearly doubled from 35.2 percent in 2000 to 65.7 percent in 2022.  

“Youth unemployment rates in India are now higher than global levels,” the report stated. 

Many new jobs are in agriculture and construction which do not align with the qualifications of the newly educated workforce and present a mismatch between job skills and expectations.  

According to the Indo-German Chamber of Commerce, these insufficient employment opportunities in the Indian labor market drive skilled workers to seek jobs abroad. Additionally, English being one of India’s official languages ensures the integration of Indian workers into the German workforce.