Germany targets Indian students to tackle labor shortages – DW – 22/04/2024

Germany faces critical labor shortages and an aging population, with forecasts pointing to a shortage of 7 million skilled workers by 2035.

With some 700,000 vacancies currently unfilled, the country’s economic growth potential has fallen from around 2% in the 1980s to around 0.7% today. It will fall further to 0.5% if the country fails to solve this problem, German Economy Minister Robert Habeck said, emphasizing the importance of migration in bridging this widening gap.

Involving the Indian student population in the German workforce could be part of the solution.

Tapping into the international student talent pool

According to the Federal Statistical Office, there are approximately 43,000 Indian students enrolled in German universities.

International students make up about 14% of all students in the country, said Michael Flacke, spokesman for the German Academic Exchange Service. International students are often the “so-called ideal immigrants” because they have already lived in Germany and learned the language, Flacke told DW.

“At the same time, we know that learning the German language, finding your way in the German university system, which is strongly focused on independence, and the transition to the labor market pose special challenges for international students,” he said.

Enzo Weber, an employment research specialist at the University of Regensburg, said tapping into international talent pools is becoming essential as Germany faces an aging population and a shortage of skilled workers.

“By providing opportunities for international students, the state aims to not only attract skilled individuals but also cultivate a pipeline of talent for the workforce,” he said.

Work alongside your studies

The recent German immigration law would also allow international students to work twenty hours a week – double the previous limit.

Suryansh is pursuing his Ph.D. in computational materials science and theoretical nanophysics from the Technical University of Dresden. Speaking to DW, the 35-year-old student said the new laws benefit working students.

“If you have the right skills and certification, with a decent salary, life becomes easier. There are also options for permanent residency,” he said, adding that opportunities can be found in a number of areas, including high-tech sectors such as semiconductors and quantum computers.

“From what I’ve seen, the placement rate is quite good,” he said, adding that many people in his lab received job offers within two to three months.

Although Germany’s Skilled Immigration Act prioritizes qualifications, challenges remain due to the complexity of the German education system, according to Weber.

“The effectiveness of the law depends on factors such as digitalization and practical integration support,” he said.

IT and engineering students can help the industry thrive

Flacke said the shortage of skilled workers is particularly serious, not only in the healthcare and healthcare sectors, but also in IT and technical professions.

Indian students in Germany are taking higher-than-average IT and engineering courses, making them an important group for the labor market and for combating the shortage of skilled workers, he said.

Germany has traditionally been highly competitive on the international stage when it comes to engineering sciences, so the high share of Indian students in IT and engineering can help the country ‘maintain this advantage in global economic competition’.

Mohammad Rahman Khan, a 26-year-old student from India, chose Leibniz University Hannover to continue his studies in mechatronics and robotics.

In Germany, “from my observations, there is a significant demand for technology and programming-related positions compared to other sectors,” he said.

Weber from the University of Regensburg said the German tech sector is experiencing high demand for skilled professionals, especially amid transformations driven by digitalization in areas such as machinery and energy.

“With a looming labor shortage and the German cohort shrinking due to a birth rate of 1.4, the influx of international talent becomes a crucial factor in maintaining competitiveness,” he explains. He stressed the importance of attracting and retaining skilled people in the technical sector to meet the labor demand of German industry.

Germany still has many policy hurdles to overcome

Riya Joseph, 24, moved to Germany from the southern Indian state of Kerala in 2023 to pursue her Ph.D. in cancer research at the Dresden University of Technology. She told DW that she finds the academic journey in Germany, from research assistant to a postdoctoral position, “very promising.”

But much work still needs to be done. Universities and employers must take proactive measures to ensure students’ smooth transition into the labor market. Students still need legal clarity to be able to stay in Germany after their studies and obtain an employment contract.

According to Weber, “this means learning from countries like Canada, establishing clear communication channels, effectively addressing legal formalities and providing clarity about staying after study.”

Furthermore, given global trends such as the aging workforce in the US, Germany must “make immigration laws competitive and accessible, streamline processes, offer diverse visa options and promote seamless integration for international students and workers,” Weber added.

Edited by: Sou-Jie van Brunnersum