Skilled Immigration Act: Opportunities and challenges for the German labour market

It was long overdue that a step was taken in Europe to counteract the general shortage of skilled labour. This is why the Skilled Labour Immigration Act came into force in 2020. It represents a decisive step towards ensuring that skilled workers continue to be available in a globalised and demographically ageing society. The shortage of skilled labour has been a serious problem in Germany for a long time.

Estimated reading time: 8 minutes

Background and development of the law

There has been a shortage of skilled labour in Germany for several decades now. Many sectors are suffering from this, especially IT, engineering and, above all, healthcare. There is a serious shortage of skilled labour in these areas. Another problem that has led to this is the ageing society. Many of the long-established skilled workers have retired and there is simply not enough young potential coming up. In addition, the demographic development in Germany has also led to a shortage of skilled labour.

Germany is well aware of the need to secure the long-term competitiveness of its own economy. This is why the Skilled Labour Immigration Act was introduced. The aim is to offer a solution that makes it easier for qualified skilled workers from third countries to come to Germany. The aim is to counteract the shortage of skilled labour.

This law also makes it possible for highly qualified workers from abroad to immigrate to Germany without a previous job, provided they fulfil certain requirements. In the past, these rules were much stricter and made immigration more difficult.

Objectives of the Skilled Labour Immigration Act

The aim of the Skilled Immigration Act is to enrich the German labour market with skilled workers from abroad. Furthermore, the aim is to reduce the bureaucratic effort they have to go through when immigrating.

In order for Germany to remain competitive on the international market, skilled workers must be recruited from third countries to fill the gaps in the German labour market.

Numerous bureaucratic hurdles have already been removed. Instead, a points system has been introduced that makes it easier for both employers and employees from abroad to work in Germany. This simplification of bureaucracy has made Germany much more attractive for international workers in recent times.

By abolishing bureaucratic hurdles, Germany is also focussing on promoting integration. The Skilled Labour Immigration Act not only aims to encourage international skilled workers to come to Germany to work, but also to integrate them into German society. For this reason, various courses are offered to immigrants to help them gain a foothold in Germany both professionally and socially. For example, cultural orientation programmes or language courses are offered so that workers can improve their German language skills.

Ultimately, the aim is to make it easier for companies to access the best international talent. The aim is to ensure that Germany can continue to compete internationally in the economy.

Important provisions of the law

Let us now take a look at the various regulations that have been brought onto the market with the Skilled Labour Immigration Act.

The EU Blue Card applies to skilled workers who have a university degree or comparable qualification in their home country. They can then apply for the EU Blue Card and use it to work in Germany. This simplifies the process for academics so that their qualifications are also recognised in the EU and they have easier access to qualified jobs in Germany.

In general, the law aims to make it easier for foreign educational qualifications to be recognised in Germany. This will ensure a fair assessment of qualifications and also close the gap between the different educational standards in the various countries.

In the past, employees had to have a concrete job offer in order to be able to enter Germany. You no longer need this if you have the necessary qualifications.

It is also important for workers from abroad to have a knowledge of German. This makes integration into the labour market easier. Language barriers in particular can be a major challenge for employees.

The law primarily helps skilled workers from non-EU countries. The aim is to help in areas where there is a major shortage of skilled labour. By simplifying immigration, these sectors can benefit from highly qualified skilled labour.

What opportunities does the Skilled Labour Immigration Act offer?

The introduction of the Skilled Labour Immigration Act has many opportunities not only for the German economy, but also for society.

First of all, this puts us in a position to remedy the situation in areas where there is a shortage of skilled labour. The law gives us the opportunity to access a much larger pool of skilled labour in the international arena.

Furthermore, the immigration of foreign employees leads to significantly more diversity on the labour market. It also increases innovative strength. This can be a real energy boost for technology, but can also promote cultural exchange and the further development of the German economy.

Of course, this can also secure economic stability in Germany in the long term. The demographic challenges in particular. challenges of recent years have led to uncertainty in the economy. Immigration can fill gaps in the labour market and increase productivity.

The ageing population in Germany can also be helped by immigration. Qualified labour from abroad is an important solution to ensure that sufficient skilled workers are available.

What are the challenges posed by the Skilled Labour Immigration Act?

Of course, there are also some challenges with the Skilled Labour Immigration Act. These can be very different.

Linguistic challenges

There are some countries where English is chosen as the working language. In Germany, however, it is important that employees also speak German. This can be a hurdle for workers from non-European countries. It's not just about employees understanding instructions, but also being able to communicate with their colleagues and customers. It is therefore important that appropriate language courses are offered.

Integration

Suitable integration measures must be found for employees from abroad. Of course, the main aim here is to facilitate their entry into working life. This is made possible by language, cultural exchange and, above all, social integration programmes. Employees should not only be able to do good work in Germany, but should also be able to integrate into society. This is often particularly difficult in other countries where the cultural background is different to that in Germany.

However, Germany continues to compete on the international market despite the Skilled Labour Immigration Act. Countries such as Canada, Australia and the UK have also set up programmes to attract skilled workers from third countries. This naturally makes it more difficult for Germany to attract talented workers to the German labour market. It is therefore important that attractive programmes are put in place for workers.

Affordable living space

Another hurdle that needs to be overcome is affordable housing. Especially in large cities such as Frankfurt, Berlin, Munich or Hamburg, the situation on the housing market is very tight. Housing is scarce and very expensive - this poses a major challenge for skilled workers from abroad, as they have to find affordable accommodation. In some cases, this can even mean that they are unable to settle in Germany quickly. It is therefore important that you are helped to find accommodation.

It is generally important to realise that workers from abroad not only have to work in the German market, but also live there. It will be their new centre of life in the future. It should therefore be made as easy as possible for them to settle in Germany quickly.