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. Demographic developments in Germany have 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 made it possible for highly qualified workers from abroad to immigrate to Germany without a previous job if 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 labour must be recruited from third countries. And thus close the gaps in the German labour market.

Many bureaucratic hurdles have been closed. 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 professional and social foothold in Germany. 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's 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 travel to Germany. This is no longer necessary if they have the required qualifications.

It is also important for workers from abroad to have a knowledge of German. This makes integration into the labour market easier and they can be better integrated. 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 caused 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 here to ensure that qualified specialists are always 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 focus here is on facilitating their entry into working life. This can take place through language, but also through cultural exchange and, above all, social integration programmes. Employees should not only be able to do good work in Germany, but also integrate into society. This is often particularly difficult in other countries where the cultural background is different from that in Germany.

However, despite the Skilled Labour Immigration Act, Germany continues to compete on the international market. 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, which can be a challenge for skilled workers from abroad, as they have to find affordable accommodation - in some cases it can even mean that they are unable to settle in Germany so 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.