On the Draft Act for the Further Development of Skilled Labour Immigration. Statement of the IAB on the public hearing in the Committee for Internal Affairs and Community of the German Bundestag on 22-5-2023

Abstract

"The IAB has submitted a statement on the Government’s law draft on the further development of skilled labor immigration for the public hearing in the Committee for the Interior and Community of the German Bundestag on May 22, 2023. According to IAB forecasts, the labour force potential would fall without migration by around one-third until 2060. Therefore, the German labour market will likely heavily depend on labour migration from third countries to stabilize the labour force potential in the coming years. However, in Germany, labour migration accounts for only 10 percent of all immigration from third countries. To increase this share, it is necessary to evaluate the minimum legal criteria that guide the system of managing labour migration. Since these criteria all have to be met at the same time, they can have a restrictive effect. The equivalence recognition of qualifications is likely to be the most significant hurdle for the influx of skilled foreign workers, considering the specifics of the German education and training system. However, given its high returns in the German labour market, recognition should be promoted. The Federal Government introduced various legal changes to simplify the influx of skilled workers in 2020. Further reform proposals have been formulated in a law draft on the further development of skilled labor immigration. The proposed measures might be reasonable, but are unlikely to have a major impact. For higher increases, on the one hand, fundamental reforms of the recognition process are needed. On the other hand, it should be examined whether immigration channels that do not require certified qualifications, such as the so-called Western Balkan regulation, can be opened up under more restrictive conditions for residence. Evaluations of the Western Balkans regulation show that persons who have been granted a residence permit for employment under this regulation are successfully integrated into the labor market. Nevertheless, immigration pathways that impose certified qualification requirements improve - as expected - the job match and increase earnings. The focus of a new law should therefore be on the immigration of skilled workers. However, the additionally high demand for unskilled labour should not be met only by non-managed types of migration such as human migration. Finally, apart from attracting skilled workers to migrate to Germany, also their integration into the labour market and society should receive major attention. Furthermore, since conditions for migration and labour market integration are constantly changing, implemented and proposed regulations should be continuously evaluated and reviewed." (Author's abstract, IAB-Doku) ((en))

Cite article

Adunts, D., Brücker, H., Fendel, T., Hauptmann, A., Jaschke, P., Keita, S., Konle-Seidl, R., Kosyakova, Y. & Vallizadeh, E. (2023): Zum Gesetzentwurf der Bundesregierung zur Weiterentwicklung der Fachkräfteeinwanderung. Stellungnahme des IAB zur öffentlichen Anhörung im Ausschuss für Inneres und Heimat des Deutschen Bundestags am 22.5.2023. (IAB-Stellungnahme 05/2023), Nürnberg, 26 p. DOI:10.48720/IAB.SN.2305