DEGIS gGmbHDEGIS gGmbHIn an era of digitalization, knowledge is always at the tip of our fingers. However, so is a lot of disinformation and it can get overwhelming to know which is which.
So to help you stay informed we summarized the most important aspects of why Germany needs international students, and why those students oftentimes struggle when they do decide to come here.
For beginners, the argument can be split into three main aspects:
The baby boomer generation significantly impacts Germany’s labor supply, with the largest cohorts (born between 1957 and 1969) retiring within the next 15 years. Around 12.9 million economically active individuals will likely retire by 2036, representing nearly 30% of the labor force available in 2021.
Source: Destatis (2022)
Source: Destatis (2023)
By April 2022, Germany already lacked 320.000 STEM experts and enrollment rates in STEM degrees decreased by 6% within one year.
Source: DW (2023)
In 2023, a shortage of skilled workers hindered the business operations of 42 % of companies. The scarcity of skilled workers is historically high. Shortage of skilled workers is evident in all sectors of the economy, most notably in the service sector, where 47 % of companies report a lack of skilled professionals.
Source: KfW-ifo-Fachkräftebarometer (2023)
Birth deficit means that more people die than are born. This difference was a staggering 327.000 in 2022. Birth rates surged in the late 1950s, peaking at nearly 1.4 million newborns in 1964, followed by a sharp decline after the baby boom. In 2022, only a little over half as many babies – 739.000 – were born.
Source: Destatis (2023)
This has obvious implications for the age distribution of the population and the strength of the workforce. This is worrisome, as
Therefore, this shortage may also lead to an increased tax burden as more pensions have to be paid for longer periods by fewer working people. This may put the pension system at risk.
Source: Bundeszentrale für politische Bildung (2020)
Due to significant emigration from Germany and the declining birth rates, Germany will need a notable amount of migrants in order to have 400,000 new citizens each year and thus maintain its workforce.
According to economist Monika Schnitzer,
Source: Spiegel (2023)
Source: Wissenschaft weltoffen (2017-2023)
As the graph shows, international students contribute significantly to this necessary and welcome influx.
Labour Force
Self-Employed
Start-Up Founders
Source: Migrant Founders Monitor (2021)
In 2012, foreigners in Germany paid an average of €3.300 more in taxes and social contributions than they received in state benefits, resulting in a total surplus of €22 billion.
Source: Bertelmann Stiftung(2014)
Despite Germany desperately needing skilled workers to immigrate to the country, once expats and international students arrive, they face a variety of challenges.
Some of the most prevalent barriers include:
In a survey conducted among expats,
in the categories of living, digital infrastructure, language and administration.
1 out of 10 have no social network and do not feel at home
Every 2nd respondent said it’s difficult to make friends
Every 3rd person agreed that Germans are unfriendly to foreigners
Source: Spiegel (2023)
Biggest Challenges for International Students during the visa process
Source: DEGIS ISG Survey (2022)
