Skilled Immigrants Underused Despite Germany's Labor Shortages

Newsworm
Newsworm
with
AFP
July 2, 2026
Germany's labour market is benefiting from immigration, a new Bertelsmann Foundation study shows, easing the country's skilled-worker shortage and boosting both tax revenue and social security. Yet major potential remains untapped: qualified immigrants are too often working as unskilled helpers, and language support and and faster qualification recognition could bring many more into work.
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Skilled Immigrants Underused Despite Germany's Labor Shortages
According to a study by the Bertelsmann Foundation, the German labor market benefits from immigration, but could still tap into further potential. - AFP

The German labour market is benefiting from immigration, according to a new study by the Bertelsmann Foundation, though significant potential remains untapped. "Better labour market integration of immigrants not only eases the shortage of skilled workers, but also boosts tax revenue and stabilises the social security system," the foundation said on Thursday in Gütersloh.

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Particularly large potential exists among qualified immigrants, the study found, who are "too often" employed merely as unskilled helpers.

Why the Labour Market Is Under Pressure

According to the study, the German labour market faces major challenges above all due to the increasing ageing of the population. The number of people in jobs subject to social security contributions was 0.2 percent lower in March than a year earlier, even though the number of foreign employees rose sharply by 3.4 percent. The reason: the number of employees with German citizenship fell by 0.9 percent. Overall, "within a single year, 75,000 workers were missing," the foundation explained.

Industries Depend on Foreign Workers

At the same time, many sectors are already dependent on immigration, the study shows. Nearly half of employees in cleaning occupations hold a foreign nationality (47.5 percent), followed by almost 44 percent in food production and 36 percent in the tourism and hospitality sector, the Bertelsmann Foundation reported. In the care sector, more than one in five employees comes from abroad.

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"The figures show: without immigration on a considerable scale, many industries would run into difficulties," explained the foundation's labour market expert, Tobias Ortmann. "Even though jobs are being cut in some places, there are still more than a million vacant positions in Germany," he added. "Anyone who wants to preserve the prosperity of our society must improve the integration of immigrants," Ortmann urged. It was "high time to bring more objectivity to the debate on immigration."

An Untapped Workforce

According to the study, there is major untapped potential among immigrant women, who are considerably less likely to hold jobs subject to social security contributions than women with German citizenship. In addition, foreign employees frequently work below their qualification level, the foundation explained. Among German employees, just over 12 percent work as unskilled helpers.

Among foreign employees, however, the figure is almost 36 percent, and even among those with a university degree, 12.5 percent of foreign employees work at this level.

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Removing the Barriers

One important lever, according to the study, is language support. Good German skills increase the chances of finding work, particularly for women, the foundation explained. For this reason, reliably funded language support, linked with training and childcare, including alongside employment, needs to be made possible. Recognition of qualifications and professional experience is similarly crucial, since many immigrants bring qualifications with them that they are unable to use in Germany.

According to the Bertelsmann Foundation, differing responsibilities, for instance by occupational field or region, lead to "lengthy procedures and often only partial recognition." Further training should therefore be made "faster, compatible with employment and affordable."

Bureaucratic Hurdles

Long asylum procedures and uncertain prospects of remaining in the country also delay people taking up work, the study found, "and discourage employers." On top of this come "interface problems between immigration authorities and employment agencies."

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What is needed, therefore, is a "centralized point of contact" for foreign employees, explained Bertelsmann labour market expert Roman Wink. Issues such as language, administrative processes and childcare would need "to function as a continuous integration chain."

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