Germany’s labor market is currently facing a notable shortage of skilled workers, prompting the government to take significant action by issuing a substantial number of work visas. In the first half of 2024 alone, Germany granted 80,000 work visas, including 40,000 specifically for skilled professionals. This represents an increase of 3,000 visas for skilled workers compared to the same period in 2023.
The challenge of skilled labor shortages is longstanding in Germany. The 2023 EURES report highlights shortages in over 70 occupations, spanning critical sectors such as transportation, manufacturing, construction, healthcare, engineering, and information technology. The surge in visa issuances is part of Germany’s strategy to address these gaps and bolster its workforce.
In addition to easing visa regulations, the German government is considering a “growth initiative” that would offer tax rebates to foreign skilled workers. Proposed rebates include 30% relief in the first year of employment, 20% in the second year, and 10% in the third year.
Federal Minister of Finance Christian Lindner has stated that these tax incentives aim to enhance Germany’s appeal to qualified professionals. The details of eligibility and the criteria for these rebates are still being finalized, with the program expected to undergo a review after five years. Lindner noted that the rebates will be applicable only during the initial three years of employment, with the program’s impact to be evaluated post-implementation.
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