German Chancellor Angela Merkel’s cabinet agreed on measures on Wednesday, December 7 to attract skilled workers from non-European Union countries to help to plug shortages in its labour market.
The step highlights the strength of the jobs market in Europe’s biggest economy, despite the euro zone debt crisis, compared to the situation in other EU states, including Spain, Ireland and Portugal, where unemployment levels are much higher.
"The draft law makes Germany a more attractive place to work for well-educated foreign immigrants," said the government in a statement. "With this (step) the long-term influx of highly-qualified workers will be made easier."
The draft law reduces the minimum salary workers need to stay in Germany and removes bureaucracy – in future, workers need only a college degree and a work contract that shows they will earn at least 44,000 euros a year to get a 2-year permit.
For engineers, doctors and academics and workers in the information technology and communications technology fields, the threshold will be lowered to 33,000 euros per year.
GROWTH RISK
Firms have long warned that a labour shortage is a major risk for long-term growth in Germany with its ageing population.
A study from the BDA exporters and BDI industry associations and an economic think tank showed last week German firms need 167,000 more qualified workers in maths and science branches.
A Labour Office index also showed demand for workers hit its highest level since the index began in 2005.
"The medium-term challenge for the German labour market is … a lack of skilled workers and the strong rise in vacancies in some sectors is an indication of things to come," said Goldman Sachs economist Dirk Schumacher in a note this month. The DIHK Chambers of Commerce has said 250,000 jobs will be created in Germany next year with the health industry the biggest single contributor, alone adding 70,000 jobs.
Under existing rules, a firm has to prove it cannot find someone suitable in the EU before hiring a foreign worker and the employee has to show he will earn over 66,000 euros a year.
The rules are stricter than in most EU states and immigration experts say the system has pushed skilled workers to countries like the United Kingdom and Ireland.
However, the government does not expect the new rules to open the floodgates. A draft of the law seen by Reuters shows it reckons on dealing with only 3,500 new permits to start with.
The DIHK criticised the 2-year time limit on the permits. "New limits and restrictions are the wrong way of sending a clear welcome signal," Martin Wansleben, DIHK managing director told the Rheinische Post daily.
With a seasonally adjusted rate of 5.5 percent in October, Germany had the fourth lowest unemployment rate in the 27-member EU which had an average rate of 9.8 percent, EU data showed. (Reporting by Madeline Chambers and Holger Hansen).
Source: Madeline Chambers/ The Guardian
