Industry backs calls for foreign skilled workers to enter Germany

Aug 3, 2010, 15:54 GMT

Berlin - US companies based in Germany complained Tuesday that there were still too many obstacles to skilled foreign workers coming to the country, in the wake of a disagreement on the issue in the ruling coalition government.

Economics Minister Rainer Bruederle at the weekend sparked the debate when he called for Germany's companies to offer 'welcome money' to encourage workers to migrate.

Chancellor Angela Merkel immediately slapped down the plan from Bruederle, who is a member of the junior partner in her coalition, the pro-business Free Democrats.

But more than a quarter of those responding to a survey undertaken by the American Chamber of Commerce in Germany said bureaucratic hurdles were the main hindrance to seeking out skilled foreign workers.

The American chamber of commerce pointed to the need for foreign workers often to take fresh professional exams in Germany.

The chamber argued that this requirement on foreign workers was more flexible in other European nations, such as the Netherlands and Belgium.

It also said Germany rules such as the nation's failure to recognize drivers' licences from several US states was a hindrance to recruiting. The survey was based on 50 leading US companies in Germany.

In addition to bureaucratic problems, 21 per cent of those responding to the chamber's survey said they found integration of migrant workers in Germany was a major hurdle to employing foreign skilled workers.

A further 11 per cent said that complicated tax laws in Germany also hindered foreign worker recruitment.

On Monday a spokesman for Merkel said that new rules for foreign workers that were introduced in January were already having a positive effect and so Bruederle's proposal was unnecessary.

Germany's strong economic pickup this year combined with a continuing fall in unemployment has helped to fuel concerns about a skills shortage emerging in Europe's biggest economy.

Unemployment in the nation fell for the 13th consecutive month in July, the labour office revealed last week, with the number of people out of work in seasonally-adjusted terms dropping by another 20,000 last month.

The labour market also showed a 31.3-per-cent surge in job vacancies over the last month, underscoring worries about a growing skills shortage in Germany as the nation's economic upswing gains momentum this year.