Germany is taking bold steps to attract skilled workers from outside the European Union (EU) with a comprehensive overhaul of its immigration laws. Designed to address the nation’s pressing manpower needs, the reform is being implemented in three phases, beginning in November 2023. The government’s final approval of the new legislation was granted in July 2023, with the final stages concluding in March and June of 2024.

Why Germany Needs Manpower Reform

Germany faces a critical skilled manpower shortage akin to many European nations. In 2022, the problem reached severe levels, with 1.74 million unfilled positions nationwide. A survey conducted by the Munich-based IFO research institute revealed that nearly 50% of all German companies struggled with manpower shortages in July 2022.

To bridge the gap in its manpower supply, Germany seeks to attract skilled professionals from beyond the EU. However, bureaucratic hurdles currently slow the immigration process, hindering the nation’s efforts. Recognizing this challenge, Chancellor Scholz and Foreign Minister Baerbock have called for a complete transformation of the visa system, emphasizing the need to remove bureaucratic obstacles and embrace digital efficiency to ensure Germany’s economic and social future.

Germany’s Strategy for Manpower Attraction

Germany’s key initiative is the introduction of the “chancenkarte,” a points-based visa system designed to streamline skilled worker immigration. This system targets qualified foreign workers, even those without existing job offers, awarding points based on criteria such as professional experience, qualifications, age, German language skills, and connections to Germany. By simplifying the entry process for talent, the country hopes to bolster its manpower and economic standing.

Annual quotas will help tailor immigration based on specific industry manpower needs. To qualify for the “chancenkarte,” applicants must meet three out of four criteria:

• University degree or vocational training
• Three years of relevant professional experience
• Language skills or prior residence in Germany
• Age 35 or younger

Additionally, the “Opportunity Card” will enable job seekers to arrive in Germany and actively look for work or apprenticeships, eliminating the need for remote applications. This card requires applicants to demonstrate financial self-sufficiency to support themselves during their job search. However, the specific details are still under development, and the launch of the card is not expected before late 2023.

Key Changes in Manpower Policies

• Focus on Experience: Germany will emphasize professional experience, even without formal university degrees, opening up opportunities for skilled tradespeople.
• Recognition of Foreign Qualifications: Germany will become more flexible in recognizing qualifications and professional experience gained in other countries.
• Opportunity Card: This initiative simplifies job seeking in Germany for those without prior job offers.

These core changes, coupled with relaxed salary requirements and streamlined pathways to permanent residency, aim to make Germany a more attractive destination for international manpower.

Manpower Needs Across Industries

Germany actively seeks skilled manpower in the following sectors:

• Skilled craftspeople
• Electrical engineers
• IT specialists
• Caregivers and nurses
• Professionals in the catering and hospitality industry

The IFO survey highlights the severe staff shortages impacting businesses across various sectors, particularly in accommodation, events, warehousing, service providers, and key manufacturing industries.

Easing the Path for IT Manpower

Germany is specifically targeting its IT manpower shortage by offering EU Blue Cards to qualified IT specialists, even without university degrees. This aligns with the ongoing high demand for other professions like physicians, scientists, metallurgy workers, and builders.

Conclusion

Germany’s immigration reform demonstrates a significant commitment to attracting foreign manpower and addressing its labor shortages. This forward-thinking approach is crucial for ensuring the nation’s continued economic competitiveness and social prosperity.