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Immigrants perform worse in the labor market than natives, likely because of the low transferability of home-country professional certificates. The standardized recognition of professional certificates in the host country represents one policy for increasing their transferability.This paper investigates the effects of a large recognition reform in Germany on the labor market outcomes of non-EU immigrants.
At the moment, a lot of refugees fleeing from war and persecution are desperate to get to Germany. On the one hand, it is a great challenge. On the other hand, it is a great opportunity: Germany can offer the refugees a safe haven and at the same time enable them to get qualified and enter the labor market.
From 1 July onwards, skilled workers from non-EU countries will find it easier to relocate to Germany. On that date, the new Employment Act will come into effect, which is aimed at counteracting the current shortage of skilled workers and enhancing Germany’s position in the worldwide competition for qualified professionals. Not an easy task, as other large Western economies and newly industrialised countries are also adapting their immigration policies.
The Federal Statistical Office has published the recognition figures for 2022. In 2022, for the first time since Corona, the Federal Statistical Office recorded significantly more recognitions. 52,300 people received their recognition notification in this country. This is an increase of 11% compared to 2021. The number of new applications also rose sharply, by 13% compared to the previous year. This development is enormously important for Germany: Most companies face immense skills shortages.
Every year, the BIBB Recognition Monitoring Project takes a closer look at recognition figures. Applications for federal occupations saw growth of 10 percent compared to the previous year. 34,700 new applications for federal occupations were received in the recognition offices in 2021 ; 41% of these – and therefore significantly more than in previous years – were submitted from abroad, in particular from third countries.
The shortage of skilled workers in Germany has been increasing across all sectors for years and is slowing the German economy. A recent study by German Economic Institute (IW) shows that many skilled workers are lacking, especially in occupations with unequal gender ratios.
On April 16, 2015 German Chancellor Angela Merkel visited the Chamber of Commerce and Industry Foreign Skills Approval (IHK FOSA) in Nuremberg. On her trip Federal Chancellor was accompanied by Johanna Wanka, the Federal Minister of Education and Research.
New Destatis figures show that last year, more foreign vocational qualifications were recognised than in previous years,. Especially against the backdrop of demographic change and the corona crisis, Germany is dependent on skilled workers from abroad.