Germany’s labour market is grappling with a significant shortage of skilled workers, prompting the government to issue a considerable number of work visas and introduce measures aimed at attracting foreign professionals.
In the first half of 2024, Germany issued 80,000 work visas, with 40,000 of these granted specifically to skilled workers. This marks an increase of 3,000 visas for skilled workers compared to the same period in 2023.
The shortage of skilled labour is not a new challenge for Germany. According to the 2023 EURES report on shortages and surpluses, the country faces shortages in more than 70 occupations.
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These roles are spread across several key sectors, including transportation, manufacturing, construction, healthcare, engineering, and information technology. The increased issuance of work visas is a direct response to these shortages, as Germany seeks to fill critical gaps in its workforce.
To further address the issue, the German government has eased some of its immigration rules, making it easier for foreign workers to relocate to the country.
In addition to relaxing visa regulations, Germany is considering introducing tax rebates for foreign skilled workers as part of a broader “growth initiative.”
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These rebates, if approved, will be structured to provide 30% relief in the first year of employment, 20% in the second year, and 10% in the third year.
Christian Lindner, the Federal Minister of Finance, has indicated that these tax incentives are designed to make Germany a more attractive destination for qualified professionals.
The specifics of eligibility and criteria for these rebates are still under discussion, and the measure is expected to undergo a revision after five years.
Lindner emphasized that the rebates will only apply during the first three years of employment, and the program’s effectiveness will be assessed after its initial implementation period.
