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IMMIGRATION

Which job sectors in Germany depend the most on foreign workers?

Germany’s statistics office released a report that details the occupations worked the most by foreign workers, as well as those where people with an immigration background are underrepresented. Here's a look at which industries rely the most on foreign workers.

woman cleans a store front
A woman cleans a clothing store in the Neumarktgalerie on a holiday evening. Photo: picture alliance/dpa | Henning Kaiser

On Friday, March 1st, Germany’s statistics office (Destatis) released figures, taken from the results of the 2022 micro-census, which suggest that people with an immigration background makeup a quarter of Germany’s workforce. 

It’s commonly understood that Germany is dependent on workers who have come from abroad. Recent figures suggest the country is already lacking an estimated 700,000 skilled workers, and that number is expected to grow until 2035. The only feasible means of plugging the labour gap, some experts suggest, would be taking in 400,000 skilled worker immigrants each year for the next decade.

READ ALSO: Better childcare to quicker visas: How Germany wants to attract more workers

But certain industries, such as catering or geriatric care, already depend overwhelmingly on the immigrant workforce, whereas in other types of work, such as policing, immigrants are severely underrepresented.

Which jobs do immigrants work the most?

It wouldn’t be an exaggeration to suggest that Germany’s cleaning and catering industries wouldn’t function without workers from an immigration background.

Destatis found that 60 percent of all employees in the cleaning industry come from an immigration background. In the catering industry it’s 46 percent overall, including 51 percent of all cooks.

In this case, ‘an immigration background’ is defined as “someone who has immigrated to Germany since 1950, or whose parents have immigrated since 1950”, according to Destatis.

Employees with immigration backgrounds also fill an above average share of roles in the transport and logistics industries – at 38 percent overall, and just under 40 percent of bus and tram drivers. 

It seems that some municipal transportation companies are already aware of this trend. BVG recently told The Local that its focusing “specifically on the topic of diversity”, in its recent recruitment efforts.

READ ALSO: ‘No family life’: A Berlin bus driver explains why public transport workers are striking

In building and civil engineering as well, a large share of the workforce are people with an immigration background – including 40 percent of construction workers and 34 percent of those in interior design occupations.

construction worker in scaffolding

A construction worker walks over scaffolding on a building site. an estimated 40 percent of Germany’s construction workers come from an immigration background. Photo: picture alliance/dpa | Marcus Brandt

Finally immigrants have taken on a growing share of medical and dental work. By the end of 2023, there were 63,763 doctors in Germany without a German passport, according to statistics from the German Medical Association. That number has doubled since 2013, when around 30,000 non-German doctors were practising in the country. Thirty years ago, in 1993, there were only around 10,000 foreign doctors.

According to Destatis, 27 percent of doctors in human medicine or dentistry are coming from immigration backgrounds. Additionally, in geriatric care, they make up 30 percent of the workforce, as well as 36 percent of personal care occupations, such as hairdressers and beauticians.

Which occupations are immigrants working the least?

On the other hand, people from immigration backgrounds are noticeably absent from other occupations.

As of 2022, only one out of 16 workers in police, court and prison occupations had an immigration history (or six percent), according to Destatis. 

People with immigration backgrounds are also underrepresented in the general armed forces (ten percent), among teachers in general schools (11 percent), and in agriculture (11 percent).

In banking and insurance occupations, employees with an immigrant background made up sixteen percent of the workforce.

Notably, people with immigration backgrounds are less likely to fill managerial positions, or to be executives or academics, while they are significantly more likely to work in low-skilled occupations. This seems to suggest that immigrants in Germany, who face language and cultural barriers, have less access to the kinds of opportunities that allow people to level-up in their careers.

How accurate is the data?

Destatis notes that these figures were based on a 2022 ‘microcensus’, in which roughly 1 percent of Germany’s total population was surveyed. All of the information was therefore self-reported by voluntary respondents.

The German workforce in this case refers to “the population in private main residence households aged 15 to 64 years”, which amounted to 53.4 million people in 2022, and did not include refugees.

More information can be found in the Destatis report.

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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