Germany: ifo Institute Welcomes Immigration of Skilled Workers Act
The ifo Institute welcomes the new Immigration of Skilled Workers Act. “In view of its aging population, Germany will face an increasing shortage of skilled workers in the coming years. The new law helps to attract more skilled workers and make Germany more attractive for immigrants,” says Panu Poutvaara, Director of the ifo Center for International Institutional Comparisons and Migration Research.
“Since 2010, our surveys have shown a sharp increase in the proportion of companies complaining about a shortage of skilled workers,” says Timo Wollmershaeuser, Head of Economic Forecasting at the ifo Institute. “Demand remains high in the service sector and in construction, although the economic slowdown in industry has been easing the situation there since 2019.”
“Given how the economy is evolving, there is much greater demand for skilled workers today than there was in past decades,” Poutvaara adds. “However, the new law still has room for improvement, especially in relation to immigrants who come to Germany in search of work.” The basic principle that immigrants must provide for their own livelihoods and that they are not entitled to social benefits is the right approach, Poutvaara says. However, the permitted ten hours of work per week on a trial basis are insufficient.
The ifo Institute therefore proposes allowing immigrants who come to Germany in search of work to take jobs that lie outside the scope of their qualifications and to work more than ten hours a week. “This would mean that people starting out in their careers and people with less savings could also enter the country in search of work,” Poutvaara says. “Moreover, giving immigrants the right to work not only allows them to earn a living, but above all it facilitates their integration into the labor market and society.”
