Germany Grants 80,000 Work Visas in H1 2024 Amid Skilled Labour Shortages
Germany issued a total of 80,000 work visas to foreign skilled workers from January to June 2024. This figure includes 40,000 visas specifically for skilled professionals, representing an increase of 3,000 visas compared to the same period in 2023.
Addressing Skilled Labour Shortages
The rise in visa issuance is closely tied to significant labour shortages in Germany, particularly in skilled professions. The country faces shortages in over 70 occupations, including transportation, manufacturing, construction, healthcare, engineering, and information technology.
According to the German Economic Institute (IW), 570,000 jobs remained unfilled in 2023. This workforce deficit is affecting Germany’s economic potential, with an estimated loss of production worth €74 billion projected by 2027.
Measures to Tackle Labour Shortages
In response to these shortages, Germany has relaxed immigration rules to attract foreign talent. The introduction of the Opportunity Card aims to simplify the employment process for non-EU citizens.
Tax Rebates for Foreign Skilled Workers
Germany is also considering tax rebates for foreign skilled workers as part of a “growth initiative” to address these shortages. Proposed rebates include 30%, 20%, and 10% tax relief for the first three years of employment.
Federal Minister of Finance, Christian Lindner, stated that these rebates will be available only during the first three years of employment. Eligibility and specific criteria for these rebates are still being finalized and will be reviewed after five years.
