In August 2023, a law outlining new regulations for the further development of skilled labor immigration was passed. The aim of the law is to meet the needs of Germany as a business location and to make it more attractive for skilled workers. In the coming years, the so-called boomer generation will retire and leave the labor market. This will lead to an even greater shortage of skilled workers than exists today. There are currently around two million unfilled vacancies in Germany. Projections indicate that this number could increase fivefold in the next 10 years. Immigration is therefore one of the most important tools to at least reduce the shortage of skilled workers.

The Skilled Labour Immigration Act provides for the following key points:

EU Blue Card: The most common and attractive residence and work permit — bigger target group, lower income threshold and simplified procedure (please see below for more details)

Simplification of the recognition procedure

Employees from non-EU countries will have more opportunities to work in Germany by proving their qualification for a non-regulated profession through a foreign vocational or university degree and professional experience, as set out below:

• Formal recognition of the foreign qualification is no longer required.
• However, to ensure fair working conditions, a salary threshold must be met, or the employer must be bound by a collective bargaining agreement.

The recognition of a foreign qualification can be initiated after the employee has already traveled to Germany. For this purpose, the employee and the employer must enter into a so-called "recognition partnership." This gives the employer the opportunity to hire qualified specialists faster.

Opportunity card

Third-country nationals who do not yet have a job in Germany are to be given new opportunities to find work with a so-called "opportunity card." This will allow individuals with potential to enter the country for up to a year to look for work. This should make it easier for both sides, employers and potential employees, to find each other.

During the job search, trial or secondary employment is allowed. In addition, the opportunity card can be extended by up to two years if the foreign national has an employment contract or a binding job offer for qualified employment in Germany, and the Federal Employment Agency agrees. However, the procedure for changing from this opportunity card to a more permanent residence permit has not yet been tested and may be time consuming and difficult.

Summary and practical outlook

The changes in the law are a step in the right direction for Germany to simplify immigration procedures, reflecting a commitment to a diverse workforce. However, amid these advancements, the new changes do not solve the most urgent issues and certain challenges persist. Inadequate staffing within immigration authorities and a lack of digitalization have led to prolonged processing times and limited personal appointment availability, hampering the potential benefits of the Skilled Labour Immigration Act.

The German parliament passed a law on 19 January 2024 that eases the process of naturalization significantly. With the new law, fundamental changes in German citizenship law are to be expected, particularly in relation to the minimum residency requirement for obtaining German citizenship and the acceptance of multiple citizenships. For more details, please see below (in the Other comments section).