Why Germany struggles to attract the thousands of foreign workers it needs

The German labour market is dependent on a "substantial number" of immigrants in the long term, a new analysis by the Bertelsmann Stiftung has revealed.

The study on immigration and the labour market in Germany said that the number of workers could shrink by 10 percent in the next 15 years due to demographic change. Without around 288,000 additional international workers every year, the workforce could drop from the current 46.4 million to 41.9 million by 2040 - and even to 35.1 million by 2060.

A second projection model, based on a slightly less favourable starting point, suggests that 368,000 people from abroad will be needed each year until 2040.

But researchers say German society isn't doing enough to attract foreigners and make them feel welcome.

What puts foreigners off from staying in Germany?

The previous German coalition government - made up of the Social Democrats, Greens and Free Democrats - brought in a series of changes as part of the reformed Skilled Labour Immigration Act, which included the 'Chancenkarte' visa.

Susanne Schultz, the Bertelsmann Foundation's expert on migration, said that although these offer new opportunities, foreigners will not settle in Germany without a better welcoming culture.

Around 70,000 skilled workers arrived from non-EU countries in 2023, but 20,000 left Germany at the same time.

"Germany now has a very liberal immigration law," said Schultz. "However, it needs to be implemented much better in practice." Bureaucracy and staff shortages, including in immigration authorities, are barriers, she said. 

Although there have been some success stories, including in some industries such as IT and construction, Schultz said "a clear move away from a restrictive, dismissive attitude" from authorities and employers was key.

Experts say more knowledge about recruitment abroad and the assessment of foreign qualifications would also be helpful.

'I felt discriminated against'

Foreigners have voiced concerns to The Local about life in Germany, citing issues including bureaucracy and red tape, as well as discrimination and racism. 

READ ALSO: 'No one will offer me a job' - how having a foreign name affects life in Germany

Many internationals are choosing other countries over Germany, which experts say will impact society in the long term. 

A 29-year-old man who fled Syria for Germany in 2016 told news agency DPA that he had completed a bachelor's and master's degree at universities in North Rhine-Westphalia - but has now left Germany for Switzerland after being unable to get a full time job.

"I achieved top results here in order to be recognised as an equal, but I felt discriminated against and rejected," he said.

Schultz believes this case is "unfortunately not a total outlier".  She said Germany can't afford these mistakes and "needs to become more attractive".

Herbert Brücker, from the Institute for Employment Research (IAB), said discrimination was a problem at all levels, but seemed to get more prevalent in professions where higher qualifications are needed.

"Where immigrants want to become teachers, professors or judges, we observe that it becomes problematic," he said. "It is interesting that these people are generally well integrated, they have high qualifications and perform well, but still often report experiences of discrimination."

With additional reporting from DPA