An IMGW News Report:
Facing an ageing population and a sluggish economy, Germany is grappling with significant challenges. Could a visa targeting young, ambitious workers be the solution?
This summer, Germany is set to launch an “Opportunity Card” aimed at attracting young foreign workers who wish to either secure long-term employment or work in the country temporarily. The Opportunity Card, or “Chancenkarte,” is Germany’s latest initiative to lure young talent from outside the EU by simplifying entry requirements. This visa, open to non-EU residents, including UK workers, is designed for young professionals.
“Nearly 45% of the workforce is open to new job opportunities, and recruitment is increasingly difficult, taking an average of 160 days to fill a vacancy, up from 145 days in 2022 and 77 days a decade ago.”
GALLUP, 2024
The Opportunity Card operates on a points system, favouring qualified teachers, nurses, engineers, and those proficient in English or German. Professionals with five years of experience in fields like accounting also have strong chances. Applicants under 35 can earn two of the required six points just for their age.
Once in Germany, Opportunity Card holders can work up to 20 hours a week while seeking long-term employment through another visa. However, with earnings capped at €1,000 (£870) per month, the limitation of part-time work might deter some young professionals looking for better opportunities.
Germany’s economic recovery is faltering, with a 0.3% GDP decline in 2023 and continued industrial contraction in early 2024. Despite this, the labour market remains robust, adding to the challenges of talent retention. Nearly 45% of the workforce is open to new job opportunities, and recruitment is increasingly difficult, taking an average of 160 days to fill a vacancy, up from 145 days in 2022 and 77 days a decade ago. Only 53% of employees plan to stay with their current employer for a year, down from 78% in 2018, with long-term retention also declining to 40% from 65% (Data: GALLUP, 2024).
“With a potential workforce shortfall of about 16 million by 2060 without immigration, Germany hopes the Opportunity Card will attract the young, skilled workers needed to sustain its economy and support its ageing population. In the short term, these workers might also help revive the economic powerhouse of Europe.”
Despite seeming like a glorified holiday visa, the Chancenkarte aims to tackle two major issues. Firstly, Germany’s economy has been stagnant, shrinking by 0.3% last year, partly due to disruptions from the Ukraine conflict. Increasing the workforce is seen as a crucial step to rejuvenate economic activity. The official website highlights that employers struggle to attract talent under the current system.
Secondly, Germany faces one of the highest old-age dependency ratios in Europe, with low fertility rates exacerbating the issue. The IMF recently warned that Germany’s working-age population is set to decline faster than any other G7 nation, impacting productivity and public finances. More workers, especially in healthcare and high-productivity sectors, are essential to support the ageing population and maintain economic stability.
Launching on 1st June, the Opportunity Card requires candidates to complete an application form and provide identification, employment, and language documents. Additionally, applicants must demonstrate genuine interest in working for German companies on a part-time basis, though an employment contract is not necessary.
With a potential workforce shortfall of about 16 million by 2060 without immigration, Germany hopes the Opportunity Card will attract the young, skilled workers needed to sustain its economy and support its ageing population. In the short term, these workers might also help revive the economic powerhouse of Europe.