Opportunity Card: The solution to Germany's labor shortage?

With the introduction of a new points system, the so-called Opportunity Card, Germany wants to draw qualified workers from abroad and eventually get a handle on its shortage of skilled workers, with an approach that's similar to that of Canada or Australia. DW explains how the system, which kicked off on June1, is expected to work and where some experts see shortcomings.

How does the Opportunity Card work?

Starting June 1, 2024, job seekers from non-EU countries can enter Germany with the so-called Opportunity Card. That means they do not need to already have an employment contract. Instead, they're given one year to find a job. The condition for obtaining the Opportunity Card is a minimum of two years of vocational training or a university degree, in addition to basic knowledge of German at "A1" level or English at the more advanced "B2" level.  

Allocation of points depends on work experience, language skills, age and prior links to Germany. Those who are qualified for a job in an area with a particular labor shortage, receive extra points. Depending on the circumstances, the job search period can be extended by a maximum of two years.

How much do applicants have to earn?

Job seekers must make sure they are able to secure their livelihood. Only those who find a job are allowed to eventually stay in Germany. The condition however is that you need to earn an annual gross salary of at least €40,770 ($44,340). During the job hunt, applicants are allowed to work part-time (i.e. up to 20 hours per week).

The Opportunity Card is part of Germany's Immigration Act for Skilled Workers. The bill was passed in 2020 by the then-governing grand coalition of center-right Christian Democrats (CDU) and center-left Social Democrats (SPD) in order to attract skilled workers from non-EU countries.

What has changed for the Western Balkans?

Since June 1, workers from Western Balkan countries have more opportunities in the German labor market, even if they don't fulfill the above criteria. They must, however, be able to present an employment contract prior to entering the country.

Until now, 25,000 workers annually from Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia were able to enter Germany via the so-called Western Balkans Regulation. That annual quota has now been raised to 50,000.

Why doesn't Germany have enough skilled workers? 

According to Germany's Labor Minister Hubertus Heil, Germany will need an extra seven million skilled workers by 2035, a goal impossible to achieve without immigration. Sectors particularly affected include nursing and food and beverage. There is also a shortage of IT specialists.

There are various reasons for this shortage. Germany has an aging society, with the post-war baby-boom generation reaching retirement age. In addition, there are new jobs and industries in the area of digitalization in which skilled workers are in short supply. 

On average, job openings in geriatric nursing and in the production of building materials remained vacant for 251 days and 249 days respectively, according to Germany's Economy Ministry. The German Economic Institute (IW) estimates that the cost of the skilled labor shortage will amount to 49 billion euros in 2024 alone.

Sluggish economy means fewer jobs

Compared to last year, figures have somewhat improved though: The Federal Employment Agency (BfA) announced 701,000 vacant jobs for April 2024, some 70,000 less than in 2023. According to the ifo Institute for Economic Research, there has been a slight decrease in skilled labor shortage: Some 36.3% of the surveyed companies reported shortages, compared to 43.6% the previous year.

A slight decrease, however, is not the good news it appears to be, as it is primarily a result of Germany's sluggish economy. According to ifo expert Klaus Wohlrabe, the skilled labor shortage will rise again as soon as the economy recovers.

What are the downsides?

Despite all those innovations, migration researchers remain skeptical. In an interview with the German daily Rheinische Post, Herbert Brücker, of the Nuremberg-based Institute for Employment Research (IAB), believes the effects will be limited. Other than Canada for instance, Germany only offers the opportunity to find a job. Canada's points system, however, facilitates a permanent residence permit, which makes it much more attractive.

In addition, the Opportunity Card did not provide substantial mitigation because, through conference calls, job seekers around the world were already networking with potential employers, obtaining jobs via Facetime or Zoom. Others, Brücker said, entered Germany as tourists and started looking for a job during their stay.

The German Trade Union Confederation (DGB) already points to some problems when it comes to the requirements. The concept of officially recognized vocational training for instance is not common in some countries where young people learn their skills via informal training on the job. In addition, job seekers will have to prove that they're able to secure their livelihood without relying on support. The DGB therefore expects only few "positive effects" from the new policy.

This article was originally written in German.

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