Germany will welcome visitors as the labor shortage bites

Steven Maillot was transferred from the French island of Reunion in the Indian Ocean to Eisenhuettenstadt in Germany, just across the Polish border, for an apprenticeship at a steelmaker.

Maillot made his decision based on better pay and job prospects, which is good news for ArcelorMittal since Reiner Blaschek, the group’s Germany chief, acknowledged that it is getting harder and harder to recruit young trainees like the 23-year-old.

As large cohorts of older workers enter retirement, a skilled labor shortage has become a major headache for businesses in Europe’s largest economy.

Germany’s population is aging quickly, and Olaf Scholz’s administration is working to find a solution.

According to the federal Institute for Employment Research, there were just under two million open positions in Germany at the end of 2022. (IAB).

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Even though job seekers from the European Union, like Maillot, are already able to work in Germany without facing additional visa obstacles, the labor pool is insufficient.

Scholz’s cabinet is scheduled to discuss a draught bill on Wednesday that would relax immigration laws in an effort to bring in more foreign-born workers.

Making the most of the workers already present in Germany would “not be enough” to close the labour shortage, Scholz earlier this month told the parliament.

By opening up legal migration channels, he added, “We will also attract the workers that are desperately needed.”

The proposed legislation will establish a new points-based system for qualified individuals seeking visas to Germany, with requirements for language proficiency, work experience, and age.

Reunion is nothing like Eisenhuettenstadt, a socialist model city created to serve the steelworks.

Maillot admitted that he misses his home while telling AFP at the plant, “For my career development, I have to stay here.”

Making the most of the workers already present in Germany would “not be enough” to close the labour shortage, Scholz earlier this month told the parliament.

By opening up legal migration channels, he added, “We will also attract the workers that are desperately needed.”

The proposed legislation will establish a new points-based system for qualified individuals seeking visas to Germany, with requirements for language proficiency, work experience, and age.

Reunion is nothing like Eisenhuettenstadt, a socialist model city created to serve the steelworks.

Maillot admitted that he misses his home while telling AFP at the plant, “For my career development, I have to stay here.”

The majority already reside nearby, but “some travel from further afield,” according to Blaschek.

Due to lower wages than in the west and a reputation for being less hospitable to outsiders, it is particularly difficult to find new employees in eastern Germany.

Nevertheless, according to the economic think tank Ifo, businesses nationwide and across all economic sectors face difficulties in finding qualified employees or eager trainees.

According to the most recent data for January, roughly 44% of the companies surveyed by the think tank stated that they had been impacted by labor shortages.

As Germany ages, more and more workers are retiring, making it more difficult to fill open positions with fresh apprentices.

Scholz has urged employees not to retire early in response to the dire situation, and businesses are experimenting with the use of robots in brand-new industries like caring for the elderly.

Hubertus Heil, the labor minister, made the observation while visiting ArcelorMittal and speaking with trainees that the right training was crucial to prevent “young people slipping through our fingers.”

The transition to greener technologies in a polluting industry like steel will be difficult in the coming ten years, in addition to dealing with the worker shortage issue.

Achim Dercks, deputy head of the German Chambers of Commerce (DIHK), warned earlier this year that a lack of skilled workers could “hamper important transformation tasks like electromobility or renewable energies.”

By the end of 2026, ArcelorMittal intends to replace a fossil fuel-burning blast boiler at the east German location with a new unit powered by electricity and hydrogen.

Some jobs will be lost as a result of the transition to greener production methods, while new ones will be created that need to be filled.

While giving a tour of the group’s training facility, Blaschek stated, “We have a massive technological change ahead of us.”

“We need to start changing our training now if we want to convert our facilities in the next four years.”