Germany has long been recognized for its robust and resilient economy, which continues to attract a significant number of labor migrants. A cornerstone of this economic strength is the predominance of small and medium-sized enterprises (SMEs). These companies, which account for an overwhelming 99.6 percent of all German businesses, are defined by their annual turnover not exceeding 50 million euros and staffing fewer than 500 employees. This sector, known in Germany as the Mittelstand, is crucial in driving economic stability and innovation.

Among these numerous SMEs, over 1,000 are classified as “Hidden Champions.” These are world market leaders in their respective niches, yet they remain relatively unknown to the general public. Their success is often attributed to their specialized products and services, which dominate global markets. The presence of such companies highlights the diversified and highly specialized nature of the German economy, which does not rely solely on large corporations but also on the significant contributions of smaller firms.

Germany’s industrial sector plays a pivotal role in its economy, boasting the highest share of industry in gross value added among the G7 countries, standing at 26.6 percent. The most powerful sectors include the automotive, electrical, mechanical engineering, and chemical industries. These industries are not only central to Germany’s domestic economy but also contribute significantly to its export prowess.

In the global arena, Germany is a formidable export power, standing alongside China and the USA. In 2022 alone, Germany exported goods worth 1,576 billion euros, with an export ratio of nearly 50.3 percent. This impressive export capability underscores the country’s integration into the global economy and its reliance on international trade.

The allure of Germany’s strong economy, characterized by its dynamic industrial sector and the thriving SMEs, creates a magnet for labor migration. Skilled workers from various parts of the world, particularly from within the European Union, are drawn to Germany in search of better employment opportunities and living standards. The country’s demand for skilled labor, particularly in engineering, IT, and health sectors, is met with a corresponding supply of labor migrants seeking stable and lucrative job prospects.

Labor migration to Germany is further facilitated by the country’s progressive immigration policies and its commitment to integrating foreign workers into the economy. Programs aimed at recognizing foreign qualifications, language courses, and vocational training help in smoothing the transition for immigrants. The country’s emphasis on vocational education and apprenticeships ensures that both local and migrant workers are equipped with the necessary skills to thrive in the German labor market.

Moreover, Germany’s economic stability and comprehensive social welfare system provide an attractive package for labor migrants. The promise of job security, coupled with access to high-quality healthcare, education, and social services, makes Germany a preferred destination for many. This influx of skilled labor not only helps in addressing the demographic challenges posed by an aging population but also contributes to sustaining the country’s economic growth and innovation.

Work and Career After Moving to Germany

• Your Professional Qualifications Abroad: If you have diplomas or certificates obtained in your home country, it’s worth checking whether they are recognized in Germany. You might need to have these diplomas validated or undergo additional training.
• Knowledge of the German Language: In many international companies, the language of communication is English. However, a good command of the German language is a key to success in the local job market. Many employers require candidates to have German language proficiency at the B2 or C1 level.
• How to Find a Job in Germany: There are numerous resources available, such as online portals (e.g., Indeed, StepStone), employment agencies, or the local printed press. It’s also beneficial to build a network of professional contacts (e.g., through LinkedIn).
• Work Culture: German employees are valued for their punctuality, precision, and professionalism. It’s important to adopt the German corporate culture in your professional duties to avoid misunderstandings in the future.
• German CV and Cover Letter: A German CV might differ slightly from what you are used to in your home country. Examples of German CVs typically include a photo and a detailed description of your professional experience and educational background. The cover letter should be specific and directly targeted at the particular job position. Check – CV  in German.
• Healthcare and Insurance System: If you get employed in Germany, you will be automatically enrolled in the social insurance system. This includes health insurance, pension insurance, unemployment insurance, and accident insurance.
• Taxes: Like most European Union countries, Germany has a progressive tax system. Depending on your family status and the size of your income, you will pay different tax rates.
• Labor Law: German labor law is quite complex but generally worker-friendly. It’s worth familiarizing yourself with the basics of labor law in Germany, especially regarding issues like holidays, working hours, and conditions of dismissal.
• Training and Courses: Employers in Germany often offer a wide range of professional training and development courses, which can help you effectively perform your assigned professional tasks. Your employer may provide full funding for such professional training.

The German capital attracts many foreigners – check out the list of the largest employers in Berlin.

Germany’s strong economy, underpinned by its vibrant SMEs and dominant industrial sectors, continues to attract labor migrants from around the world. The country’s position as a leading export nation and its proactive approach to integrating foreign workers solidify its status as a prime destination for those seeking better economic opportunities. As Germany continues to thrive, the synergy between its economic policies and labor migration will undoubtedly play a crucial role in shaping its future growth and prosperity.