• Sunday, May 05, 2024

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How India can help Germany address labour crunch challenge

Integrating the Indian student population into the German workforce could be one way to stop the European nation’s economic growth potential slide further.

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By: Shubham Ghosh

GERMANY, Europe’s strongest economy, is facing a significant labour shortage and an ageing population, with forecasts indicating a shortfall of seven million skilled workers by 2035 and its saviour could be India, Deutsche Welle (DW) reported.

Currently, there are approximately 700,000 job vacancies that remain unfilled, leading to a decline in the country’s economic growth potential from about two per cent in the 1980s to around 0.7% now. German economy minister Robert Habeck has warned that it could drop further to 0.5 per cent if the issue is not addressed, emphasizing the crucial role of migration in closing the widening gap.

One potential solution could involve integrating the Indian student population into the German workforce, the report added.

According to the country’s Federal Statistical Office, there are approximately 43,000 Indian students enrolled in German universities.

Michael Flacke, spokesperson for the German Academic Exchange Service, has said that international students constitute approximately 14 per cent of Germany’s total student population. He told DW that international students are often deemed as the “so-called ideal immigrants” since they have already resided in Germany and acquired proficiency in the local language.

“At the same time, we know that learning the German language, finding one’s way in the German university system, which is very much geared toward independence, and the transition to the labour market poses particular challenges for international students,” he was quoted as saying.

Enzo Weber, an expert in employment research at the University of Regensburg, emphasized on Germany’s growing need to tap into international talent pools since the country is facing dual challenges of ageing population and shortage of skilled workers.

“By providing opportunities to international students, the state not only aims to attract skilled individuals but also to cultivate a pipeline of talent for the workforce,” he told DW.

Germany has also come up with laws that make it conducive for international students to work alongside their studies. The country’s recent Skilled Immigration Act would allow international students to work 20 hours a week — twice the previous limit.

Suryansh, who is pursuing a doctorate in computational materials science and theoretical nanophysics at Dresden University of Technology, told DW that the new laws make it easier for the students to work.

“If you have the right skills and certification, with a decent salary, life becomes easier. Also, there are options for permanent residency,” he told the publication, adding that various fields come up with opportunities, including high-tech sectors such as semiconductors and quantum computing.

He said the placement rate is quite good and that many people in his lab got a job offer within two to three months.

However, there are also challenges.

Weber said that despite the focus on qualifications under the Skilled Immigration Act in Germany, challenges do remain, stemming from the intricacies of the German education system.

“The law’s effectiveness depends on factors like digitalization and practical integration support,” he told DW.

Flacke highlighted that the shortage of skilled labour is notably acute, extending beyond the care and healthcare sectors to encompass IT and engineering professions. He pointed out that Indian students in Germany are disproportionately enrolled in IT and engineering courses, underscoring their significance for the labour market and efforts to address the scarcity of skilled workers.

Mohammad Rahman Khan, another student India, picked Leibniz University Hannover to pursue his studies in mechatronics and robotics.

In Germany, “from my observations, there is a significant demand for tech and programming-related roles compared to other sectors,” he told DW.

Weber emphasized that Germany’s engineering sector is witnessing a pronounced demand for skilled professionals, especially amidst the changes spurred by digitalization in fields such as machinery and energy.

“With a scarcity of labor looming and the German cohort shrinking due to a birth rate of 1.4, the influx of international talent becomes a critical factor for sustaining competitiveness,” he told the outlet.

However, a lot still needs to be done.

To ensure a seamless transition for students entering the workforce, universities and employers must take proactive steps, the DW report said. It’s essential to provide students with clear legal guidance regarding their ability to remain in Germany post-graduation and secure employment contracts.

Weber suggested adopting strategies from countries such as Canada, which involve establishing transparent communication channels, effectively managing legal procedures, and offering clear guidance on residency options after the completion of studies.

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