Germany plans to raise the number of skilled labour visas granted to Indian workers to 90,000 annually, up from the current limit of 20,000.
Philipp Ackermann, German Ambassador to India, said in an interview with LiveMint, “With Germany facing a worsening worker shortage, these visas will help fill gaps in sectors such as information technology, nursing, and caregiving.”
Germany’s decision comes as a response to its growing labour crisis, with an estimated 570,000 job vacancies across the country, according to the German Economic Institute. Ambassador Ackermann pointed out that Germany has already seen positive experiences with Indian legal migrants and is keen to increase this migration to address the labour shortfall.
“One thing which is also very important for our strategic partnership is the skilled labour migration to Germany. We need skilled workers in many areas, from IT engineers to bus drivers and caregivers,” said Ackermann. He added that the country is working closely with India to facilitate more migration and plans to support this in the coming months and years.
Skilled labour pact between India and Germany
India and Germany are also set to sign a pact on labour mobility and skill recognition this week, confirmed by the ambassador’s office. This will be the first agreement under the G20 Skills-based Migration Pathways framework, which was endorsed by G20 members during the 2023 summit in New Delhi. This framework plans to create opportunities for skilled professionals and promote formal employment both in origin and destination countries.
An opportunity for Indians
The benefits for Indian workers are notable. Germany’s new immigration policies not only make it easier for skilled professionals to work there but also offer higher wages. The average gross monthly salary for Indian employees in full-time positions in Germany is approximately €5,400, which amounts to around Rs 4,92,000—41% higher than the national median wage. Furthermore, the unemployment rate for Indians in Germany stands at just 3.7%, much lower than the 7.1% rate for the general population.
Ackermann explained that there is a high demand for both academic and non-academic workers, including nurses, who must pass a language test before being hired. “You would be surprised how many sectors are open for young Indians,” he said, noting the opportunities available for vocational training and degree programmes in Germany.
Family reunification and living conditions
Indian workers in Germany will also benefit from the family reunification option, which allows them to bring their families with them under the new immigration rules. These changes are expected to make Germany a more appealing destination for skilled Indian professionals seeking work abroad.
Labour market realities
Germany’s labour shortage is not unique. Japan has also been looking at Indian talent to boost its economy. Germany’s need for workers is urgent, and the country is implementing practical steps to address this. Earlier this month, German Labour Minister Hubertus Heil said that India’s labour market sees one million new workers enter the workforce every month, yet many struggle to find employment. This creates a natural incentive for migration to countries like Germany, where demand for skilled workers is high.
As of February 2024, there were around 137,000 Indians working in skilled positions in Germany, a sharp rise from the 23,000 recorded in 2015, according to the Federal Labour Ministry.
What is Germany’s Skilled Labour Strategy?
Last week, the German government introduced and approved a new Skilled Labour Strategy. This plan includes 30 measures focussed on easing the migration and integration process for Indian skilled workers.
Key objectives of the strategy:
1. Enhanced bilateral cooperation: Germany and India have strengthened their collaboration through the Migration and Mobility Partnership Agreement (MMPA), aiming to increase skilled worker migration from India.
2. Targeted recruitment efforts: The strategy focuses on recruiting skilled workers in high-demand sectors such as healthcare, IT, and engineering.
3. German language proficiency: Major focus is placed on German language acquisition, as it is seen as essential for the successful integration of Indian workers into the German workforce.
30 measures:
1. Modernisation of legal frameworks: The revision of immigration laws to ease entry for skilled workers from third countries, including India.
2. Promotion of German language: Expansion of language training both in India and in Germany, with courses leading to B1-level proficiency.
3. Efficient recognition of qualifications: Streamlining the process for recognising foreign qualifications, especially in technical and medical fields.
4. Enhanced visa processing: Digitalisation and simplification of the visa application process, including online applications for Blue Card and other skilled labour visas.
5. Cultural integration training: Offering cultural orientation programmes for Indian workers to facilitate smoother integration into German society.
6. Support for family reunification: Providing support for family reunification to ensure that workers’ families can join them in Germany.
7. Improved matching of jobs and skills: Establishment of efficient matchmaking systems between Indian professionals and German companies.
8. Pilot projects: The expansion of pilot projects such as “Hand in Hand for International Talents”, which recruits skilled workers from India for jobs in Germany.
9. Technical vocational training: Initiatives like IGnITE (Indo-German Initiative for Technical Education) to improve the employability of Indian trainees in technical professions based on the German dual vocational system.
10. Industry collaborations: Partnerships with industry leaders to offer internships and apprenticeships to Indian workers in Germany.
11. Healthcare sector collaboration: Specific training and accreditation initiatives for Indian healthcare professionals, ensuring their qualifications meet German standards.
12. Visa wait times: Reduction in visa processing times through collaborative measures with Indian authorities.
13. Green skills programmes: Development of new training modules focused on sustainable industries and green technologies.
14. Upskilling opportunities: Continuous professional development and upskilling opportunities for Indian workers already in Germany.
15. Digital job portals: The creation of digital job portals to connect Indian professionals with German job opportunities.
16. Entrepreneurship support: Providing resources and support for Indian entrepreneurs looking to start businesses in Germany.
17. Support for Indian women: Gender-specific initiatives to increase the participation of Indian women in the German workforce.
18. Academic cooperation: Strengthening educational exchange programmes between Indian and German universities.
19. IT industry focus: Special recruitment programmes focused on IT professionals, addressing Germany’s need for tech experts.
20. Sector-specific training: Customised training programmes for different sectors, such as automotive, engineering, and healthcare.
21. German company engagement: Encouraging German companies to directly participate in the recruitment of Indian workers.
22. Relocation assistance: Offering logistical and administrative support for Indian workers moving to Germany.
23. Cultural exchange initiatives: Expanding cultural exchange programmes to improve mutual understanding between Indian workers and their German counterparts.
24. Student integration: Initiatives to retain Indian students in Germany post-graduation by facilitating their transition into the workforce.
25. In-country recruitment: Increasing recruitment drives in India through German embassies and consulates.
26. Job fairs and events: Organising job fairs in India focused on Germany’s employment opportunities.
27. Bilateral negotiations: Ongoing discussions between German and Indian governments to further ease migration.
28. Legal assistance: Providing legal assistance to Indian workers to ensure they understand their rights in Germany.
29. Workplace integration: Helping Indian workers integrate into the German workplace through mentorship programmes.
30. Housing support: Offering housing support for Indian workers moving to Germany to ensure they have safe and affordable living arrangements.