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WORKING IN GERMANY

INTERVIEW: ‘The biggest hurdle for foreign jobseekers is not speaking fluent German’

Amid a sluggish economy, the job market in Germany is turbulent at the moment. We spoke to a career coach to find out the outlook for this year and the biggest challenges for foreign jobseekers.

A person works on a laptop.
A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

With several companies announcing restructures and layoffs, the labour market in Germany may feel discouraging for those that are unemployed and searching for a job. 

READ ALSO: Which companies in Germany are planning to cut jobs?

Adding to the volatile atmosphere is that many people in their jobs feel dissatisfied, resulting in a lot of applicants applying for the same role. 

Hamburg-based careers expert Kevin Kocher, managing director of Immigrant Spirit – which helps foreign nationals find jobs – told The Local’s Germany in Focus podcast there was “turmoil” and “turnover in the job market”.

“There’s a lot of people looking around, looking for something new,” he said.

“And you combine that with the layoffs – this is making it a very competitive atmosphere right now.”

Kocher said that the high competition for roles currently is one of the big challenge for foreign jobseekers who are looking to settle in Germany this year. 

“There’s just a lot of cycling through to figure out what’s what’s the right fit, because there’s a lot of change going on,” he said. 

Requirements to speak fluent German

Although English is spoken regularly at lots of firms in Germany, a recurring issue that international residents also face when applying for jobs is not being able to speak advanced fluent German. 

Just four percent of job postings in Germany are currently in English, according to experts.

Kocher said most companies “will not evaluate your candidacy” if applicants don’t have C1 level German skills.

“One of the biggest challenges is learning German to a point and getting up to speed where you can feel comfortable enough to be in an interview, and then actually secure a job and prove that you can be flexible, and still learn German on the job,” said Kocher. 

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

Germany is struggling with a well-publicised labour shortage, with thousands of vacancies going unfulfilled. Many companies are looking for foreign talent to help fill positions, while visa rules are being eased by the German government. 

But as Chris Pyak, former head of Immigrant Spirit, told The Local’s Germany in Focus podcast last year in an interview, recruiters and human resource departments in Germany are slow to adapt and still call for fluent German even when it is not always essential for the job in question. 

Kocher says he believes the situation is changing slightly as more bosses realise the extent of the worker shortage but that more flexibility could be offered.

“There’s a need for international workers,” said Kocher, citing the estimates that around 400,000 immigrants will be needed each year on average to fill jobs as older people in the German workforce retire.

Immigrant Spirit managing director Kevin Kocher.

Immigrant Spirit managing director Kevin Kocher. Photo courtesy of Kevin Kocher

Kocher said foreign nationals may end up choosing another country to settle in if Germany doesn’t become more flexible on this issue. 

Is it possible to get a job in Germany without advanced German skills – or even none at all?

Yes, depending on the line of work and company you’re applying at.

For example, in many startup scenes, English is a commonly spoken language. There are plenty of startups offering a variety of jobs in Germany, particularly in Berlin, Munich and across the state of North Rhine-Westphalia. 

Kocher said some well-known large firms are also a good option for English speakers. 

“So you’ve got Zalando, a major company in Berlin – also highly competitive – always has English speaking roles,” he said, adding: “As well as Adidas (which has headquarters near Nuremberg) – those are two clear ones.

“There’s some American companies that have presences here like FreshWorks in Berlin. You’ve got a NinjaOne in Berlin as well, I believe that recently was hiring English speakers.”

Kocher added that with around 350 companies in Germany regularly hiring English speakers or posting their job ads in English, “it’s very limited”.

READ ALSO: Which Bavarian-based companies regularly hire English speakers?

Seek support from professionals or common connections

For anyone struggling to find work in Germany as an English speaker, Kocher recommends seeking a mentor or enlisting the help of a careers coach to .

“My tip would be: don’t be afraid to find some help and find either a mentor or someone who has gone through the experience as well or is going through the experience right now so you can brainstorm, share ideas.

“Two brains – at least – is always better than one. And this could also be finding resources online, you know, in your niche or, like I said, someone who’s run a similar path or has a similar story to you.”

Kocher said networking and using sites like LinkedIn are also helpful.

“It’s so valuable to dig deep into who’s who in certain positions in the cities that that you want to live in.

“Is there any – one, two, three – common connection that I have, that I could search on these networks, that that could get me into a conversation with these people? Because if someone know someone that knows you, then this automatically boosts your credibility, that someone can vouch for you. And that’s super important right now, that someone can speak for you, or you can get into the right conversation.”

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TAXES

EXPLAINED: How do you close down a freelance business in Germany?

Leaving the country? Got a steady job offer you can’t say no to? Winding down your self-employment activities in Germany still requires taking a few bureaucratic steps.

EXPLAINED: How do you close down a freelance business in Germany?

Striking out on your own as self-employed is one of the scariest – and potentially most rewarding things – you can do. In Germany, it also comes with its own set of rules around tax and social insurance.

But there are times when – for whatever reason – it may be time to move on.

Whether it’s because you have an exciting new opportunity or things haven’t quite worked out the way you hoped due to economic pressures – winding down self-employment the right way is crucial to avoid gaps in your health and social insurance coverage in Germany.

The steps you have to take are also a bit different depending on if you are new self-employed (Freiberufler) or have a trade licence (Gewerbe) – with some steps not being necessary for new self-employed.

Trade licences are automatically cancelled if the licenced person dies or the company ceases to have financial assets.

Resigning the trade licence or declaring it dormant

New self-employed people like writers or speakers don’t need to go through this step, as they don’t need a trade licence.

Those who have a trade licence will need to contact their competent local authority and resign it, or declare it dormant (withdrawing the licence). If you’re only winding down temporarily, declaring your trade licence dormant instead of de-registering completely may save you a few headaches later.

You may have to do this in person at your local trade office – or Gewerbeamt – depending on whether your local authority allows online de-registration or not. You’ll need to bring your official ID, trade licence, confirmation of registration and possibly an extract from the trade register. Fees are dependent on your local authority and can range from being free to €25.

You can declare the date you intend to resign the licence – which can be in the future. To ensure no gaps in your social insurance protections, including health insurance, set this date for the day before whatever comes next. For example, if you’re starting a new job on January 1st set the date for your trade licence to expire as December 31st.

The trade office will typically notify your local tax office, so you won’t need to do this yourself.

Notifying your tax office

If you’ve had to resign your trade licence, you can skip this step as your trade office will do it for you. If you’re a Freiberufler without a trade licence you need to resign, you’ll have to notify your local Finanzamt, or tax office, yourself.

Luckily, this is a pretty easy step.

First, you need to decide whether you’re ceasing operations completely or wanting to continue them part-time. If you’re ceasing completely, you’ll end up surrendering your self-employed tax number.

You don’t have to do this though. If you think you may still carry on some self-employed business as a side gig, you can inform the tax office that you intend to do so and keep your number.

At that point, the tax office should treat you as a Kleinunternehmer – or a small business making less than €22,000 a year. Having this status means that you will not need to pre-pay taxes or charge VAT on your invoices for freelance side projects.

If you derive any income from your side gig in the future though, you’ll still have to file a tax return.

READ ALSO: Can I have a freelance side gig as an employee in Germany?

Notifying your health insurance

While different private plans in Germany may have different notification requirements, if you have public health insurance in Germany, you should notify them that you’re winding up your self-employed business. Specifically, advise them exactly what date you’re wrapping up.

Again, this should be right before you start your new job or leave the country, to ensure no gaps in your coverage.

If ending your self-employment in Germany, take care to ensure that there’s no gaps in your health insurance coverage, by giving the right date for when you’re ceasing activity. You don’t want to be caught without coverage. Photo by Stephen Andrews on Unsplash

If you are in an artistic profession and thus pay pension, health, and nursing insurance through the Artist Social Insurance Fund (KSK), you should also advise them as well. If you’re leaving self-employment completely, you can typically give notice to KSK as to when it’s ending.

If you’re not, and intend to still make money freelancing as a side gig, they should know this as well. In this event, you’ll no longer pay health or care insurance through KSK, as this is covered through your main job.

You may need to continue to pay pension contributions through KSK based on the amount of money you still make from self-employed activities — depending on how much of them you continue.

KSK: How creative freelancers can pay less for German health insurance

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