From January to June 2024, Germany gave out 80,000 work visas. Half of these, about 40,000, went to skilled workers. This was 3,000 more than in the first half of 2023.
Schengen.News reported that Germany is giving out more work visas because it really needs workers, especially people with special skills.
Germany needs workers for more than 70 different jobs. These include driving trucks, making things in factories, building houses, working in hospitals, engineering, and working with computers.
A study by the German Economic Institute (IW) showed that 570,000 job positions were not filled in 2023.
Not having enough workers is hurting Germany’s economy. IW says this might cost Germany €74 billion in lost production by 2027.
IW explained, “Companies can’t make as much stuff as they want to because they don’t have enough workers.”
Germany’s Plan to Get More Workers
Germany is trying many things to fix this problem. One big idea is to get skilled workers from India. They will talk about this plan in German-Indian meetings later this year.
This plan is a team effort. It includes the German Foreign Office, the Federal Ministry of Labor, German businesses, state governments, and other ministries.
Hubertus Heil, the German Minister of Labour, said, “This plan is made together with the Foreign Office, the Federal Ministry of Labor, German businesses, states, and other ministries.”
Germany also changed some immigration rules to make it easier for people to move there for work. In June 2024, they doubled the number of work visas for people from Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. Now, 50,000 people from these countries can work in Germany each year.
Additionally, Germany introduced the Opportunity Card, which makes it easier for non-European Union citizens to work in Germany.
Important Things to Know
Recently, it was reported that Germany might give tax breaks to skilled workers from other countries who decide to work there. These tax breaks will be 30%, 20%, and 10% for the first three years they are in Germany. This is part of Germany’s “growth initiative” to get more skilled workers.
This tax break is very important to help fix the worker shortage. Christian Lindner, the Federal Minister of Finance, said the tax break will apply only for the first three years these workers are in Germany. It still needs to be approved.
Lindner added, “We will give tax breaks for foreign skilled workers during their first three years in Germany. The breaks will be 30%, 20%, and 10%.” He also mentioned that the rules for who can get these tax breaks will be decided later, and the plan will be reviewed after five years.