Germany Industry Calls for Reform of Immigration Policy

Executives have long complained that the German educational system is doing a poor job in preparing the country's future work force. Business leaders say too many low-skilled workers are coming out of German schools, along with too few specialists and academics. The country's demographic developments promise to make the problem only worse since the number of employed people is expected to shrink by some 10 million by 2050.

Add to this the latest statistics on migration, which on Thursday revealed that the numbers of immigrants coming to Germany are at their lowest level since reunification in 1990. Only 580,000 immigrants came to Germany last year, 4 percent less than the previous year. Conversely, more Germans emigrated or left the country, many of them skilled workers or professionals.

Dieter Hundt, head of the Confederation of German Employers' Association, has been especially critical of German schools and says if skilled workers cannot be found among Germans, the nation needs to start looking at workers of foreign origin to ensure Germany's economic future.

"The successful integration of immigrants into our society is a decisive pillar that affects the future innovation potential of our country," he said.

Poor record

But the integration of millions of immigrants has, thus far, not been very successful, a fact that a glance at the labor market makes clear, according to Jutta Allmendinger, director of the Institute of Labor Market and Occupational Research. Around 40 percent of people with immigrant backgrounds in Germany lack a basic high school diploma or any kind of occupational training.

"So it shouldn't surprise us that the level of unemployment among people with immigrant backgrounds is higher," she said.

For Hundt, the high rate of unemployment among this group is proof that Germany's immigration policies have failed, and aren't designed to meet the country's needs. He says children from immigrant families are not supported enough and the potential of millions of people in the country is being wasted.

"In an open society and a globally organized economy, we need intercultural expertise," he said. "That's why it is important that immigrant children speak German and their native language well."

But that is wishful thinking, since the large majority of immigrant children are far from that goal. In fact, after they leave school, only about one-half of them have the qualifications to begin an apprenticeship program.

"The economy is the most important integration mechanism we have," said German Interior Minister Wolfgang Schäuble. "That's why I ask that we take our responsibility in creating enough apprenticeships for young people very seriously, even in lower-skilled professions."

Low-wage expansion

According to him, the majority of young people with immigrant backgrounds will enter professions that are not in the highly skilled sector, but in sectors that require less training. That is why he has called for reform in the country's low-wage sector, since he says without the creation of additional jobs in this area, the threat of illegal work will only grow.

Still, creating more low-wage jobs runs contrary to what the economy is looking for in the future. Otto Kenzler, present of the German Confederation of Skills Crafts, says both industry and young people must be involved in bringing more skilled labor into the economy.

"I can only advise young people to get in contact with companies early on, even during their time at school," he said. "The fact that they have a goal in front of them and a chance at an apprenticeship has help them considerably."

Foreign-owned businesses

Just under 24 percent of German companies offer training program for young people, although only 15 percent of those companies with owners of foreign origin do. That should change, according to Nihat Sorgec, director of the Kreuzberg Educational Works, who works with many business owned by people of Turkish origin.

"In the meanwhile, there are more than 60,000 businesspeople of Turkish origin in Germany. They employ more than 320,000 people and have annual sales of over 30 billion euros," he said. "According to estimates, that number will double in the next 10 to 15 years."

But statistics such as these aren't enough to meet the problem of a future lack of qualified personnel, according to Dieter Hundt. He has called for a change in Germany's immigration policy. He'd like, for example, to link immigration to Germany to qualifications such as education, work experience and language ability.

"A rational immigration policy that is oriented toward the needs of the labor market can do a lot for overall economic dynamism and job creation," he said.

That is an opinion that the head of the Munich-based Institute of Economic Research, Hans-Werner Sinn, shares. Germany has to condition itself for large-scale immigration, he says, since without immigrants, Germany has little chance keeping its spot as one of the biggest economies in the world.