Germany has issued a total of 80,000 work visas to foreign skilled workers between January and June 2024. This includes 40,000 visas granted specifically to skilled professionals, marking an increase of 3,000 visas compared to the same period in 2023.
Response to Labour Shortages
The increase in visa issuance is a response to Germany’s significant labour shortages, particularly in skilled professions. The country is facing shortages in over 70 occupations, including transportation, manufacturing, construction, healthcare, engineering, and information technology. According to the German Economic Institute (IW), 570,000 jobs were left unfilled in 2023, impacting the country’s economic potential. The IW projects a loss of €74 billion in production by 2027 due to these unfilled positions.
Measures to Address Shortages
In response to these shortages, Germany has introduced several measures to attract skilled workers:
- Relaxed Immigration Rules: Germany has eased certain immigration rules to address labour shortages more effectively. The Opportunity Card was launched to simplify the employment process for non-EU citizens seeking jobs in Germany.
- Tax Rebates for Foreign Workers: Germany is considering tax rebates for foreign skilled workers. Proposed rebates include 30% in the first year, 20% in the second year, and 10% in the third year of employment. This initiative is part of the “growth initiative” aimed at attracting qualified professionals. Federal Minister of Finance Christian Lindner has stated that these rebates will apply only during the first three years of employment and are subject to approval and revision after five years.
Conclusion
Germany’s strategic visa issuance and planned tax rebates are key efforts to mitigate the impact of its labour shortages and enhance its economic growth by attracting and retaining skilled professionals.
