Germany’s serious labor shortages led to the issuance of 80,000 work visas to foreign skilled workers during the first half of 2024. Compared to the 40,000 visas granted between 2023 and 2024, this represents an increase of 3,000 visas.
There is a severe labor shortage in Germany in more than 70 professions, including engineering, information technology, manufacturing, transportation, and construction. The German Economic Institute (IW) found that 570,000 jobs remained unfilled in 2023, which had a major negative effect on the economic potential of the nation. By 2027, it’s estimated that the economy will lose €74 billion due to the vacant posts.
Aims to resolve these shortfalls
Germany has loosened certain immigration laws to address these shortages. The Opportunity Card makes it easier for non-EU nationals looking for work in Germany.
Things to be careful about
As part of its “growth initiative,” Germany is also contemplating tax incentives for competent foreign workers. With incentives set at 30%, 20%, and 10% for the first three years of work, the intention is to draw in more skilled workers. Christian Lindner, the federal minister of finance, stressed that these rebates would only be applicable for the first three years of work, subject to approval and formal implementation. The measure will be reevaluated in five years, and the details of eligibility and criteria are still being finalized.
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