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Germany is set to become a hotspot for skilled Indian professionals as the country prepares for a massive influx of immigrants to counter the challenges posed by its ageing population.
A recent study by Bertelsmann Stiftung reveals that Germany will require nearly 288,000 immigrants annually until 2040 to sustain its labour market, with the figure rising to 368,000 if other workforce participation measures fall short.
India-Germany Workforce Collaboration on the Rise
Germany’s move to attract foreign talent presents a significant opportunity for Indian workers. With over 273,000 people of Indian origin already residing in the country, Indians constitute the second-largest Asian community after Afghans. This number is set to grow as Germany expands its visa programs.
Earlier this month, the German government announced plans to issue 200,000 professional visas in 2024, with 90,000 allocated specifically to Indian skilled workers. This marks a dramatic increase from the current cap of 20,000, signaling Germany’s commitment to addressing its labour shortage through global partnerships.
“Germany is Open for Skilled Workers”
During a recent visit to India, German Chancellor Olaf Scholz underscored Germany’s readiness to welcome Indian professionals. “The message is that Germany is open for skilled workers,” Scholz said, noting that Indians play vital roles in sectors such as IT, healthcare, and nursing.
This openness is reflected in a steady rise in the number of Indian professionals in Germany. As of February 2024, 137,000 Indians held skilled positions in the country, up from just 23,000 in 2015, according to the Federal Labour Ministry.
Cost of Living: Key Insights for Indian Migrants
For Indians considering a move, understanding Germany’s cost of living is crucial. According to the European Student Landscape 2024 report by University Living, average monthly expenses in German cities amount to €1,235 (approximately ₹1 lakh).
Accommodation accounts for the largest share at 48.6% (€600), followed by utilities (38.5%, €475) and transportation (6.9%, €85). The total cost of living ranges between €920 and €1,550, depending on lifestyle and location.
Why Immigration is Vital for Germany’s Labour Market
Germany’s ageing population is a primary driver of its need for skilled migrants. By 2040, nearly 28% of Germans will be aged 65 or older, up from 22% in 2020. “Demographic change will pose major challenges for the German labour market with the retirement of the baby boomers,” said Susanne Schultz, a migration expert at Bertelsmann Stiftung.
Schultz emphasized that while boosting local workforce participation is essential, it won’t suffice to meet future demands.
Regional Variations in Immigration Needs
Germany’s federal states face differing immigration demands due to demographic and structural factors. States like Thuringia and Saxony-Anhalt may see workforce declines exceeding 10% by 2040, while urban regions such as Berlin and Hamburg are projected to experience less severe reductions. Regions like Baden-Württemberg, Bavaria, and Hesse will require more international workers due to rising workforce demands.
Preparing for an Ageing Population
The report by Bertelsmann Stiftung highlights the broader implications of Germany’s ageing trend. By 2040, the number of Germans aged 65 to 79 will rise from 12.3 million in 2020 to 16.2 million, while those aged 80 or older will increase to 7.7 million, comprising 9.2% of the population.
Ralph Heck, chairman of the Bertelsmann Stiftung Executive Board, called for targeted strategies to adapt infrastructure for older generations and address the economic challenges posed by demographic shifts.
Ageing Germany: The Bigger Picture
Germany’s median age is set to rise nationally by 1.2 years by 2040, with stark regional disparities. Urban centers like Hamburg and Berlin will have the youngest populations, while eastern states are projected to have the oldest.
District-level variations are even more pronounced, with Heidelberg maintaining the youngest median age (38.8 years) and Greiz the oldest (57.3 years). As Germany navigates the challenges of an ageing society, its focus on skilled immigration—especially from India—marks a pivotal strategy in sustaining its economic and social stability.
