Living & Working in Germany

Living and Working in Germany

Shin Daniel Cho

Thessaloniki, October 2011

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Facts about GermanyGermany – an overview

Unemployment Rate

Labour Market Information

Working in GermanyWorking Conditions

Salaries

Social Security

Taxes

Some interesting facts for Engineers

Finding a JobHow to find job offers

How to apply

Overview

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Facts about Germany

Germany – an overview

Unemployment Rate

Labour Market InformationDemographical Change & Challenges

Labour Market Trends

Top 10 Vacancies

Surpluses & Shortages: Who are we looking for?

Some facts for Engineers

Where are the jobs located in Germany?

Some Profiles of Foreign Applicants – Some Experiences

Kapitel 1 / 5

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Facts about GermanySurface Area: 357.000 km²

Population: ~82 Mio. (2010)

Population with migrational background: ~15 Mio. *

Immigrants with Greek nationality: ~400.000 *

Capital: Berlin (3,4 million inhabitants)

16 Federal States

* Source: Ungenutzte Potentiale, Berlin-Institut 2010

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Unemployment Rates & Employment Figures

September 2011 Germany 7%

Western Germany 6% Eastern Germany 10,9%

Unemployed people2,8 Mio. (as of September 2011)

Employments41,2 Mio. (as of July 2011)

Registered openings 501,000 (as of September 2011)

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Demographical Change – Challenges for the Labour Market

The demographical change – a major challenge for the German Labour Market

Shrinkage of the population about 8 Mio. people (9,5%) in Germany in 2040

Substitutional demand due to retirements will increase considerably in the next years

Currently every seventh employee is aged over 55 years

The structural change of the Labour Market to a service society is proceeding

The demand of highly skilled workforce continues to ascend

Lack of approx. 5,2 Mio. labour forces in 2030 – thereof 2,4 Mio graduates (Prognos AG)

International Placement Services (ZAV) 2011 © Bundesagentur für Arbeit

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Share of Population of Working Age decreases continuosly Population by Age, share in %, Germany ,

2008 - 2040

19,0 17,0 16,7 16,0

60,659,6

54,5 51,9

20,4 23,328,8 32,1

2008 2020 2030 2040

65 years and older

20 to 64 years

Source: Statistisches Bundesamt

under 20 years

International Placement Services (ZAV) 2011 © Bundesagentur für Arbeit

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The Number of employees with university grade one-fifth higher in 2009 compared to 2000Development of employments subject to social insurance dinstinguished by level of qualification, Germany 2000 to 2009 (year 2000 = 100)

Source: Statistik der Bundesagentur für Arbeit

International Placement Services (ZAV) 2011 © Bundesagentur für Arbeit

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

graduates (overall)+21%

vocational training / apprenticeship -7%

100

low-skilled workforce / without apprenticeship -22%

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Till 2030 lack of up to 5,2 Mio labour forces expectedif status quo maintainsMismatch of supply of labor vs requests for labour (in thousand)

Germany, 2010 till 2030

lack of university graduates:2,4 Mio

lack of unqualifiedpersonnel: 0,6 Mio

lack of skilled workforce :2,2 Mio

International Placement Services (ZAV) 2011 © Bundesagentur für Arbeit

Source: Prognos AG, 2010

without qualification

with apprencticeship / vocational training

with university degree

0

1.000

2.000

3.000

4.000

5.000

6.000

2010 2015 2020 2025 2030

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TOP 10 of vacancies September 2011

Potentielle

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Labour Market - SurplusesCurrent surpluses in the following professions:

Architects and Civil Engineers

Bachelors/Masters of Arts and Social Sciences

Geographers and Geologists

Biologists

Graduates in Business Studies

Construction Workers

Unskilled Workers

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Whom we are looking for?

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Labour Market – Shortages in Germany Medical Doctors all specialisations: assistant doctor & medical specialists

Nurses surgery intensive care geriatric care / elderly care graduated nurses

Hotel and Gastronomy (saisonal) Hotel Clerks / Waiter/Waitresses / Specialists Cooks Chambermaids

Engineers Mechanical Engineers Electrical Engineers

Qualified Metal Workers CNC Operators

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BerlinBremen

Dortmund Erfurt

Frankfurt

Hamburg

Köln

Magdeburg

München

Nürnberg

Rostock

Saarbrücken

Stuttgart

Trier

Dresden

Karlsruhe

Leipzig

Freiburg

Hannover

Essen

New German states

Rural regions

Where are the jobs located?

Throughout Germany

mainly in:

Hamburg

NurembergBerlin

MunichStuttgart

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Medical Doctorsmainly applications for Assitant Doctors

countries of origin: mainly Eastern Europe, Greece, Austria

main problems: lack of German Language Proficiency

certification of license to practise medicine for Greeks not problematic at all

Nursesmainly applicants of new EU Member States

oftentimes with working expirience of many years

German Language Proficiency varies Use of Technial Language often leads to problems

Big Issue: Recognition of profession / educational training

Profiles of Foreign Applicants – Some Experiences (1)

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Engineersmainly graduates of job starters

lack of work experiences and lack of branch knowledge

German Language Proficiency often at low level

general problem: discrepancy between demands of employers and qualification of applicants

Hotel & Catering / Servicejob seekers are quite flexible (mobility, availabilty)

good qualifications and work experiences

partly good command of German Language

until now no experience with Greece

Profiles of Foreign Applicants – Some Experiences (2)

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Working in Germany

Working conditions

Some facts for Engineers

Kapitel 1 / 5

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Working Conditions in Germany

Wages

Social security

Taxes

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Wages & Minimum Wages

Average salary approx. 41.000 € gross/year

Engineers: approx. 47.000 € (average yearly income)

Hotel- and Catering Staff: approx. 15.000 to 21.000 € (depending on Federal State): 15.000,- Mecklenburg-Vorpommern 21.000,- Bayern, Baden-Württemberg, Hessen

There are no regulations on minimum wages! Exceptions for selected branches e.g. cleaning sector, temporary employment

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Social SecurityFive pillars of the German Social Security System:

(Contributions Employer – Employee = 50 : 50)

rates:Health Insurance 15,5 %

Unemployment Insurance 3,0 %

Pension 19,9 %

Long-Term Care Insurance 1,95 %

Work Accident Insurance paid by employer

For detailed information in English and French see www.deutsche-sozialversicherung.de

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Taxes

Income tax 14 % - 42 %

Church tax 8 % - 9 % of income tax

Solidarity tax 5,5 % of income tax

Automatically deducted from employee’s salary

general rule for total deduction: 35-45% from gross salary

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Labour Market and Employment situation are continuously solid

currently more than 800.000 employed Engineers, thereof 55% in the industrial sector

5 % with foreign nationality (57% EU)

number of graduates is at a low level (ascending tendency, but every year appr. a lack of 12.000 graduates)

over all quite low unemployment rate (3%)

Engineers in Germany – some facts (1)

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high number of Engineers, who are about to retire

• more than 40% of employed Engineers are aged 45 years and older

• appr. 100.000 retirements in the next 10 years

number of reported vacancies is rising

relatively long time duration until placement of one reported vacancy (~105 days)

appr. 80% unlimited contracts, 20% are temporary contracts

Engineers in Germany – some facts (2)

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Reported vacancies mainly in the following fields

Mechanical Engineering

Automotive Engineering

Electric/Electronical Engineering

High demands come from the following sectors:

Temporary Employment Agencies (25%)

Engineering / Consulting (20%)

Public Sector (15%)

Engineers in Germany – some facts (3)

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Salaries for Engineers, period of first 6 months 2010

Sector entry level (€) average salary (€)Mechanical Engineering 41.600 58.066Automotive Engineering 43.025 59.150Electronic Engineering 42.000 58.237Energy Supply 42.075 55.511Chemical- and Pharmaceutical Industry 44.920 66.652Civil Engineering (Construction) 36.025 47.275Engineering (consultant’s) Offices 38.115 44.312Information Technology 39.996 51.010Average 41.235 54.900

Source: VDI www.ingenieurkarriere.de

Engineers in Germany – some facts (4)

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How to find a job

Websites

Application

Contacts

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How to find a job

Internet

EURES – www.eures.europa.eu

German Federal Employment Agency www.arbeitsagentur.de > Jobbörse

Specific websites for different branches see www.ba-auslandsvermittlung.de)

Company websites

Newspapers, yellow pages, private job agencies, international chambers of commerce …

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Websites

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Other useful websitesEmployment:• www.crosswater-systems.com (“all about work”)• www.karrierefuehrer.de

Language courses:• www.vhs.de (“Volkshochschule”)• www.goethe.de

Accommodation:• www.mitwohnzentrale.de• www.wohnung-jetzt.de• www.meinestadt.de (“my city“)

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Application

Basic rules1. Cover letter: short and precise 2. If possible, e-mail application3. Date of birth to be mentioned in CV4. Photo in CV5. If a certain position is known to applicant, he/she should refer to it6. No grammar and spelling mistakes7. Including copies of diplomas and letters of reference from employers

Help for application process is offered:www.bewerbungsdschungel.dewww.europass-info.de (CV)

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Contact us!

Bundesagentur für Arbeit

Zentrale Auslands- und Fachvermittlung (ZAV)

Team Incoming

Villemombler Str. 76

53123 Bonn

Germany

Telephone: +49 228 713 1570

FAX: +49 228 713 270 2224

E-mail: [email protected]