Germany Requires One Million Immigrants Annually to Address Skilled Labor Shortage, Says Economic Institute Head

Shafaq News/ Moritz Schularick, the president of the Kiel Institute for the World Economy, disclosed on Saturday that Germany needs approximately one million immigrants each year to tackle the crisis of skilled labor shortage.

In an interview with the German newspaper Rheinische Post, Schularick emphasized the necessity of attracting more immigrants to address the shortage of skilled workers.

"The greatest competitive disadvantage is not corporate taxes but the shortage of skilled workers and demographics. We need a million immigrants." He stated.

Schularick stressed the importance of an open and balanced approach to attracting immigrants to Germany to alleviate the shortage of skilled labor. He regarded this as a crucial structural reform, noting the need to expand childcare services to enable mothers to remain in the labor market. Schularick expressed optimism regarding Germany's economic position if both initiatives were successfully implemented.

Monika Schnitzer, the chair of the German Council of Economic Experts, stated in an interview with the German newspaper Süddeutsche Zeitung, "Germany needs 1.5 million immigrants annually if we aim to maintain the workforce count, considering the annual emigration of approximately 400,000 citizens."

Schnitzer highlighted the importance of fostering a welcoming culture for immigrants, using the example of Intel setting up a factory in Magdeburg. She emphasized the need for foreign professionals to feel welcome in Germany.

She also acknowledged the positive steps taken with the new skilled workers' law. Still, she advocated for further measures, such as improving foreign affairs bodies' services to foreigners to ensure a positive immigration experience.

"We should not require skilled foreign workers to speak German for every job; instead, we should ensure that personnel in foreign affairs bodies are fluent in English," Schnitzer added.

The German parliament recently approved a new immigration bill to encourage skilled workers from outside the European Union to come to Germany and create opportunities for asylum seekers already in the country.

The law includes a points-based chance card system, which assesses criteria such as language proficiency, professional experience, age, and connection to Germany.

Additionally, the law allows IT professionals to work in Germany without a university degree if they can demonstrate specific qualifications, signaling a more flexible approach to attracting talent in the field.