German Chancellor Olaf Scholz has warned against relying on the initial successes of the so-called "job turbo" for the placement of refugees. "We need maximum pragmatism on all sides," he said at an event at the chancellery this week.

Since September 2023, significantly more refugees from Ukraine have been placed into work. By July 2024, 266,000 Ukrainians were employed, an increase of 71,000 compared to the same month last year. Among people from other main origin countries, the total number employed had risen to 704,000, also an increase of 71,000 compared to the previous year.

Labor Minister Hubertus Heil noted that out of the 266,000 employed Ukrainians, approximately 113,000 had regular jobs.

Overall, the employment outlook is promising. According to a 2024 report by the Institute for Employment Research (IAB), about two-thirds (64 percent) of refugees who arrived in 2015 now have jobs, with nearly three-quarters of them working full-time. Employment among refugees has steadily increased in recent years.

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Welfare payments

Alluding to a wider debate in Germany surrounding welfare payments, Scholz said: "[W]e don't want to support idleness with taxpayers' money. That is unacceptable to anyone."

"This harms the acceptance of refugees and the many hard-working people who are helping out here," he added.

The opposition accuses the government of not creating enough work incentives with overly generous welfare payments.

Both Scholz and the head of the Federal Employment Agency, Andrea Nahles, have called on employers to offer even more in-service language courses in future, so that refugees can be placed in a job more quickly.

German officials have implemented various measures to change conditions for refugees in the country, including replacing cash benefits with a debit card system and requiring community service. Several states, such as Hamburg and Thuringia, have already introduced the prepaid card, which can only be used for local purchases, and plans are in place to extend this system nationwide by the end of 2024.

A proposed work scheme would require asylum seekers without work permits to complete up to four hours of community service daily for a small allowance. Public support for these initiatives is strong, with 82 percent favoring the work program and 77 percent supporting the debit card system.

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Labor shortage

Scholz emphasized how important foreign workers are for Germany. Their number has increased by 283,000 people in the past 12 months. "Without these employees, the number of people in employment in Germany would have fallen by 163,000," he emphasized. The Federal Republic needs immigration in order to balance out the demographic trend.

In the first half of 2024, Germany issued over 80,000 employment visas. Over half of these visas were issued to skilled workers, highlighting Germany's proactive approach to tackling workforce shortages. This marks a notable rise from the roughly 37,000 visas granted during the same period in 2023.

Despite recent changes in the Skilled Immigration Act designed to ease barriers for skilled workers from outside the EU, businesses highlight the need for cultural shifts to support and integrate foreign workers. A survey by the OECD showed that only 5 percent of potential skilled workers who expressed interest in moving to Germany actually did so, with language barriers and lengthy visa processes cited as significant obstacles.

The OECD reports that about 70 percent of migrants in Germany have found employment, which is a key indicator of successful integration. Germany remains the second-largest recipient of immigrants among OECD countries, following the United States, with the majority of new arrivals coming from EU member states. It also leads the EU in asylum applications, receiving over 330,000 last year. Despite stricter border controls, local authorities are struggling to manage the influx, and rising public skepticism about immigration is intensifying debates around asylum and migration policy.

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Harsher stance faces criticism

In recent weeks, Chancellor Olaf Scholz has called for a tougher approach to migration policy, which has created tensions within his government. Scholz emphasized the need for faster and larger-scale deportations of those without legal grounds to remain in Germany.

This position has drawn sharp criticism from within his coalition, particularly from members of the Green Party and The Left. Janine Wissler, leader of The Left party, accused Scholz of aligning with right-wing rhetoric, calling for more focus on affordable housing and local support instead. Green politician Jürgen Trittin argued that such deportations only foster racism and fuel far-right movements. In contrast, the center right FDP's Wolfgang Kubicki defended Scholz, criticizing the Greens for unrealistic migration policies.

On August 30, Germany resumed deporting Afghan nationals for the first time since the Taliban took control of Afghanistan in 2021. A flight carrying 28 Afghan offenders, all convicted and without legal rights to remain in Germany, departed from Leipzig/Halle Airport to Kabul. The deportation followed months of secret negotiations with Qatar due to the lack of Germany's diplomatic relations with the Taliban. This move came just ahead of state elections in regions where the anti-immigrant AfD party made considerable gains.

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With Reuters