We Cannot Expect to See Major Changes in the Labour Market Any Time Soon
CommentZEW Economist Katrin Sommerfeld on the Skilled Workers’ Immigration Act
On 1 March 2020, the new Skilled Workers’ Immigration Act will enter into force in Germany. This new legislation aims to facilitate migration for university graduates and vocationally trained individuals coming from non-EU countries. With this measure, the federal government hopes to reduce the skills shortage. Dr. Katrin Sommerfeld, head of the Junior Research Group “Integration of Migrants and Attitudes Towards the Welfare State (IMES)” at ZEW Mannheim, comments on this matter:
“The demographic change will have a severe impact on the German labour market in the coming years. Despite being a step in the right direction, it is questionable whether the Skilled Workers’ Immigration Act will be able to mitigate the skills shortage by offsetting the low birth rate. In addition to the acquisition of German language skills, foreign professionals also encounter barriers to integration when it comes to the recognition of diplomas and qualifications obtained abroad. Germany sets very high qualification standards that make it difficult for qualified professionals to meet all immigration requirements. To address the skills shortage, more focus should be placed on the actual skills and competences of foreign professionals, and less on vocational training certificates, which are often not provided in other countries. We cannot expect to see major changes in the labour market resulting from this new law any time soon.
However, this legislation could at least ease the tension on the labour market. For those interested in vocational training, this could make it easier for them to migrate to Germany to search for apprenticeship opportunities. Especially in sectors such as logistics, manufacturing and gastronomy, the Act could alleviate the situation. In other sectors facing a massive personnel shortage like nursing care or the craft sector, the desired relief effects could fail to materialise due to strict regulation and high professional qualification requirements.”
