On 23 June 2023, the German Parliament (Bundestag) passed the legislation to reform immigration law to attract skilled workers in Germany. Once the legislation goes through the Upper House (Bundesrat), a number of initiatives are in store for skilled workers. Among these initiatives that this paper will delve in detail, is a new initiative known as the “Chancenkarte” or opportunity card. It has been introduced to facilitate the mobility of skilled workers from outside the European Union to Germany. Germany also proposes to lower the salary threshold for EU Blue Card. This reform of the German immigration law was in the offing for some time now especially when Germany has been experiencing severe labour shortages, and the economic growth of Germany has been slowing down. High energy costs, tedious bureaucratic procedures and generally a shortage of skilled workers is impacting the labour market situation in Germany.[i]
Germany’s Shortage of Workers
According to the Institute for Employment Research in Germany, there were 1.98 million open vacancies in Germany in 2022.[ii] Further, in the beginning of this year, the German Chambers of Commerce and Industry (DIHK) contended that more than half of companies in Germany were struggling to fill vacancies due to a lack of skilled workers and rising labour costs.[iii] The problem of labour shortages is so acute in Germany that DIHK survey in February 2023 reported that out of the 27,000 companies it surveyed, 60 per cent of them reported lack of skilled workers as a business risk.[iv]
In 2022, there were approximately 40,000 jobs in care giving alone. It is estimated that by 2030, the country will need approximately 300,000 nurses.[v] Sectors which saw loss of workers during Covid 19 are now reporting high labour demand and flag rising labour costs as risk. These sectors include food and hospitality, taxi industry and security industry.[vi] DIHK Survey also reports that lack of skilled workers have gone up in industrial companies that seek to expand their operation (69 per cent), in mechanical engineering sector (68 per cent, up from 63 per cent), manufacture of metal products (65 per cent, up from 55 per cent), in construction industry ( 72 per cent, up from 70 per cent) and in services sector (61 per cent, up from 58 per cent).[vii] There is a lack of skilled craftspeople, electrical engineers, IT specialists and hospitality sector professionals in Germany.
Chancenkarte or Opportunity Card
The Olaf Scholz government through its immigration reform is making it easier for foreign workers to find employment in Germany that would help it ease worker shortages. One of the provisions that has been introduced is the “opportunity card” that would follow a points-based system and allow foreigners to come and seek employment in Germany without a prior job offer for one year. While looking for employment, individuals are allowed to work part time for 20 hours per week. Vocational training or university degree would be essential to qualify for this card along with other criterion such as language proficiency in German, whether spouse will accompany the individuals in the German labour market, age under 35, and preexisting connections in Germany. The issue of recognition of degrees has also been addressed by doing away with the requirement of getting the degree recognized in Germany if an applicant has at least two years of professional experience and possesses a degree that is State recognized in the origin country.[viii] It is expected that this new visa category as established by the opportunity card will come into implementation in late 2023. The number of opportunity cards to be issued in a year will be determined by the German government on yearly basis depending on labour market demand.
Other Immigration Reforms
Another significant plank of reform is regarding the EU Blue Card.[ix] A low minimum salary threshold for job starters with academic degree is sought to be created that is aimed at attracting young professionals.[x] According to some reports, the salary threshold for EU Blue Card[xi] is proposed to be reduced to 3500 Euros per month which would amount to 42,000 Euros on an annual basis. [xii]Blue Cards will also be issued to those who have received their protection status in Germany or another Member State of the European Union. Provisions have specifically been relaxed for IT specialists whereby they shall be able to move to Germany if they can provide evidence of non-formal qualification in lieu of a university degree. Studying in Germany has been made more attractive by linking it to the prospect of securing employment in Germany.[xiii]
However, certain challenges are foreseen in the implementation of the scheme. On the domestic front, Germany is facing heat from opposition parties for lowering the qualification and language threshold which they claim would only encourage low skilled workers.[xiv] Another point of contention has been the provisions that allow asylum seekers to get work in Germany. The opposition has also stated it does not address the question of bureaucratic bottlenecks at foreign consulates. Germany’s bureaucratic procedures and the delay they cause, were even acknowledged by the Interior Minister of Germany while presenting the draft law who mentioned that this would only work if the bureaucratic hurdles were dismantled in implementation.[xv]
Implications for India
Germany has been an important destination for skilled Indian workers. In 2021, Germany issued the highest number of Blue Cards to non EU citizens (19,502) and out of these India was the top recipient country with 4,996 permits being issued.[xvi] There has been a recognition on both sides of the benefits accruing from the mobility of skilled workers that resulted in the signing of a comprehensive Migration Mobility Partnership Agreement (MMPA) between India and Germany in December 2022. It is a broad-based agreement that covers all strands of mobility including temporary migration, students, vocational training, apprenticeship, researchers, young professionals, intra-corporate transferees, business travel, skilled workers, return migration and reintegration. The agreement also speaks about partnership approach that may be determined by regional requirements and requirement of a specific occupational group in Germany. This approach can already be seen in Triple Win Project being implemented by Germany in the State of Kerala regarding the recruitment of nurses. There are three benefits that are understood to be accruing from the project, hence the name Triple Win. These three benefits are easing pressure in origin country, ensuring remittance flows that contribute to sustainable development of a country of origin, and addressing shortage of workers in Germany.
The new changes brought about in the immigration law by Germany further advance the potential for skilled mobility as envisaged under the MMPA. With the changes proposed with regards to EU Blue Card, specialists will find it easier to enter the German labour market. Specifically, requirements for IT specialists to work in Germany have been lowered. Further, Chancenkarte establishes a new visa category for the purpose of seeking employment in Germany while residing in Germany instead of applying from abroad and may be useful for Indian young professionals. The emphasis on attracting students with potential may also be a great draw among Indian students notwithstanding language barriers.
Recognition of educational qualifications has traditionally been a challenging task when applying for employment in Germany. Under the existing system thus far, competent German authority has to recognize diploma or degree of an individual for the purpose of taking up employment in Germany. It is a mandatory requirement for regulated professions in Germany irrespective of country of origin.[xvii] In the new reforms, Germany is doing away with the requirements from skilled migrants to have their degrees recognized in Germany provided they present a degree that is recognized by the government in the origin country and have at least two years of experience. However, this will be limited to skilled workers above a certain salary threshold.[xviii] For individuals with job offers, they can come to work in Germany while their degree is still being recognized.
Concluding Remarks
Given the reform being brought out by Olaf Scholz government with respect to skilled workers driven by the precarious labour market needs, and an existing MMPA between the two sides; India can position its workers as the skill pool from which Germany can draw. Germany also stands to gain by furthering its cooperation with India on mobility issues as an institutional framework for regulated mobility has already been established by the bilateral MMPA that will enable it to address labour shortages. As the Joint Working Group implementing India-Germany MMPA sketches out modalities for implementation and share updates on the changes in national law, the timing of these reforms could not have been better. It will facilitate the execution of the agreement. Both sides would also need to work out practical ways of providing verified information to be publicized in the public domain regarding skilled workers needs of Germany, and related processes of application; establish regular channels of communications between business chambers of respective countries; foster employer connect; and periodically share important updates with respect to national requirements. Lastly, to ensure that mobility of workers is not stifled due to administrative processes and documentation, efforts would also be required from the German side to fast track and digitalize their visa related processes which at present remain a daunting task..
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*Dr. Surabhi Singh, Senior Research Fellow, Indian Council of World Affairs, New Delhi. She heads the Centre for Migration, Mobility and Diaspora Studies.
Disclaimer: Views expressed are personal.
Endnotes
[i] Knight, Ben (2023), “German parliament reforms skilled work immigration law”,DW, Accessed on 26 June 2023, URL: https://www.dw.com/en/german-parliament-reforms-skilled-work-immigration-law/a-66010566
[ii] Institute for Employment Research (20230, “IAB job survey 2022”, Accessed on 27 June 2023, URL: https://iab.de/das-iab/befragungen/iab-stellenerhebung/
[iii] German Chamber of Commerce and Industry (2023), Accessed on 27 June 28, 2023, URL: https://www.dihk.de/en/german-economy/crash-of-the-german-economy-averted--91330
[iv] German Chamber of Commerce and Industry (2023), “DIHK Economic Survey February 2023”, Accessed on 25 June 2023, URL: https://www.dihk.de/resource/blob/91332/56c45e0c5a680abf5543667c3f57e65f/download-economic-survey-february-2023-data.pdf
[v] Knight,op.cit, p.1
[vi] https://www.dihk.de/en/german-economy/german-economy-resilient-despite-poor-conditions-95948
[vii] DIHK Survey, op.cit ,p 1
[viii] Symons, Angela (2023), „Germany to pass immigration reform law making it easier for foreign workers to move there”, Euro News, Accessed on 24 June 2023, URL: https://www.euronews.com/travel/2023/06/21/skilled-workers-are-in-demand-as-germany-tackles-labour-shortage-with-new-points-based-vis
[ix] * Bundestag (2023) “Law on the further development of skilled worker immigration”, https://dserver.bundestag.de/btd/20/073/2007394.pdf
[x] ibid
[xi] EU Blue Card scheme allows for highly qualified non-European citizens to live and work in any European country-except Denmark and Ireland.
[xii] Goodman, Imogen (2023), “German Bundestag passes sweeping immigration reforms bill”, The Local de, Accessed on 25 June 2023, URL: https://www.thelocal.de/20230623/breaking-german-bundestag-passes-sweeping-immigration-reforms-bill
[xiii] Bundestag, op.cit., p.2
[xiv] Goodman, op.cit., p.2
[xv] Knight,op.cit, p.1
[xvi] Eurostat (2023),”Top 10 countries whose citizens were granted EU Blue Cards by Main issuing EU Member State”, Accessed on 27 June 2023, URL: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:T3n_Top_10_countries_whose_citizens_were_granted_EU_Blue_Cards,_by_main_issuing_EU_Member_States,_2021_v2.png
[xvii] Giehle,Sabine (2023), “The key to a job in Germany”, Deutschland.de , Accessed on 27 June 2023, URL, https://www.deutschland.de/en/topic/business/recognition-of-foreign-professional-qualifications-in-germany
[xviii] Hänel, Lisa and Grunau, Andrea 92023), “Germany to ease immigration law to attract skilled workers”, DW, Accessed on 27 June 2023, URL: https://www.dw.com/en/germanys-new-immigration-law-promises-easier-visa-process/a-66000520