Half of German companies are struggling to fill vacancies due to labour shortages despite stagnation in the euro zone’s largest economy, reported by the DIHK Chamber of Commerce and Industry a few months ago.
Therefore, in early January 2024, the Philippines and Germany signed a joint declaration of intent to cooperate in skills development and employment of Filipino workers.
According to the declaration the Philippines is ready to assist Germany in addressing its skilled labour shortage by deploying skilled Filipino workers under the applicable terms and conditions.
On Germany’s side, the country aims to cooperate and assist the Philippines in various areas of endeavour such as collaborating towards maintaining a sustainable Filipino workforce, especially in the healthcare sector, and promoting the development and training of its human resources.
The declaration was signed on the same day President Ferdinand Marcos Jr. and German Federal Foreign Minister Annalena Baerbock met in Malacanang.
The planned partnership seeks an ethical recruitment of Filipino workers in Germany in accordance with international laws, with the participants committing to mutually respect the rights and promote the welfare of both workers and employers.
The declaration said the Philippines and Germany intend to “explore closer cooperation on facilitating certification and recognition of professional qualifications in Germany,”
It also affirmed that Filipino skilled workers “are accorded the same benefits, labour rights and standards as German employees.”
Filipino workers in Germany are covered by the German Social Security System, which provides insurance for health, accident, unemployment, and pension, the statement read.
The Philippine Embassy in Berlin said there were more than 30,000 Filipinos in Germany as of 2023.
Germany skilled worker shortage
Germany, like industrialised countries around the world, is facing deep labour shortages, particularly in skilled high-growth sectors.
The proportion of companies facing difficulties hiring was slightly down from the previous survey of 22,000 companies, falling to 50% from 53% in January 2023, but remained elevated.
DIHK stated that the country’s skilled labour situation remains very critical.
According to the latest estimate, 1.8 million jobs remain unfilled in the German economy as a whole.
The industry and construction sectors were the hardest hit by labour shortages, with 54% and 53% of those companies struggling to fill vacancies, respectively.
Germany is seeking to attract more foreign skilled workers after the passage of its Skilled Migration Act in November last year, which makes it easier for those outside of the European Union to immigrate.
