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‘Refugees will strengthen Germany’: Bundesbank

Jens Weidmann, the president of the Bundesbank (German central bank), said on Wednesday that Germany will face the future stronger if it successfully integrates refugees and other immigrants.

Published: 16 September 2015 11:37 CEST

'Refugees will strengthen Germany': Bundesbank

Jens Weidmann, President of the Bundesbank. Photo: DPA

Talking to the Süddeutsche Zeitung (SZ), Weidmann said that while Germany was currently in a strong economic position it faced a formidable task to remain competitive in the future.

“In the long term Germany faces considerable challenges – if you think about its ageing society, increasing competition from developing countries, and the Energiewende [the transition to renewable energy]” Weidmann told the SZ.

Due to the the country's population becoming ever older, Germany needs to replace its workforce if it is to maintain its current standard of living, he added.

Despite refugees posing a challenge to the country “this influx also provides opportunities which will be all the bigger the better we are at integrating these people into society and the job market in a long-term way.”

Weidmann's opinion was backed up by the United Nations Special Representative for International Migration, Peter Sutherland, on Wednesday who tweeted “The populations of many EU states need a crash course in demographics. Their people are aging and economies threatened.”

The populations of many EU states need a crash course in demographics. Their people are aging and economies threatened.

— Peter Sutherland (@PDSutherlandUN) September 16, 2015

Weidmann was also critical of the European Central Bank's (ECB) recent announcement that it will consider extending quantitative easing measures beyond September 2016.

“All this cheap money can't create sustainable growth and builds up ever greater risks for financial stability the longer it goes on,” he said.

The ECB has been buying government bonds since March to the tune of €60 billion per month.

Two weeks ago ECB president Mario Draghi said he would considered extending the measure beyond September 2016 if his growth goals for the euro zone still had not been met.

Which regions in Germany need foreign engineers?

What’s going on?

Germany is currently facing a worsening shortage of skilled workers, with employers struggling to fill around 630,000 job vacancies in various industries. The engineering sector is particularly affected and saw a 21.6 percent increase in vacancies in the fourth quarter of 2022 compared to the same period in 2021.

According to the latest figures from the Association of German Enginners (VDI), there are currently 170,300 vacancies for engineers.

READ ALSO: ‘600,000 vacancies’: Why Germany’s skilled worker shortage is greater than ever

There’s a particular shortage of civil engineers, computer scientists and electrical engineers which is leading to hold-ups in public construction and digitalisation projects.

Which regions are particularly struggling?

Though there are shortages everywhere, there is a widening gap between the numbers of foreign engineers in large cities and those in rural areas.

In Munich, for example, foreign nationals make up almost 13 percent of the total number of engineers. In the Stranberg district of the city, more than one in four engineers are foreigners.

The employment of foreigners in engineering professions is highest in Berlin where they make up 18.6 percent of engineers, followed by Hamburg with 13.3 per cent and Bavaria with 12.7 per cent. Schleswig-Holstein has the lowest proportion of foreigners out of the western German states with a share of 4.9 per cent.

Employees of the Tesla Gigafactory Berlin Brandenburg work on a production line of a Model Y electric vehicle. Photo: picture alliance/dpa | Patrick Pleul

In eastern states like Mecklenburg-Western Pomerania and Saxony-Anhalt, foreign engineers are few and far between, despite being desperately needed.

There are also differences between the states in terms of the types of engineers needed. For example, in the last quarter of 2022, the total number of vacancies in information technology jobs in Hesse increased by 49.7 per cent, in Baden-Württemberg by 45.2 per cent and in Berlin/Brandenburg by 40.1 per cent, while the number in Rhineland-Palatinate/Saarland decreased by 23.5 per cent.

READ ALSO: Germany sees ‘over 550 percent increase’ in Indian IT workers over decade

The demand for civil engineering jobs, however, decreased significantly in Berlin/Brandenburg (-3.8 per cent), Saxony (-7.7 per cent) and Saxony-Anhalt/Thuringia (-7.8 per cent).

According to the VDI, the huge differences in the proportion of foreign engineers mainly depend on which universities and companies there are in the region.

If there are technical universities with lots of foreign students, this increases the proportion of engineers with foreign passports in the region.

The presence of factories or international corporations has a similar effect. For example, the proportion of foreign engineers in the Oder-Spree district in Brandenburg was stuck at two to three percent for a long time. But at the end of 2020, that figure tripled within a few months – thanks to the car manufacturer Tesla opening a factory there.

Germany needs to be “more welcoming” to foreigners

Head of the VDI, Dieter Westerkamp has said that without a strong influx of foreign skilled workers, Germany will not be able to close the gap in the labour market for engineers and that this could ultimately slow down Germany’s economic development.

READ ALSO: IN DEPTH: Are Germany’s immigration offices making international residents feel unwelcome?

The VDI is now calling for Germany to make itself more attractive to foreign engineers. The German government recently published a new draft law which aims to plug its skills gap by adapting its immigration laws. Amongst other things, the proposals aim to loosen the requirements for Blue Card applicants and to bring in a points-based job seekers visa.

However, Westerkamp complains that some immigrants wait months for a visa appointment at the German embassy and that staff shortages at the foreigners’ offices lead to delays.

A recent study by the Bertelsmann Foundation’s Skilled Migration Monitor also found that managers increasingly complain about bureaucratic and legal hurdles as well as difficulties in the recognition of qualifications for foreign workers.

Westerkamp said that Germans must understand that their standard of living can’t be maintained without more immigration and said that, people must “give foreigners the feeling that they are welcome in this country”.

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