Germany is increasingly looking towards India to address a deepening shortage of skilled workers, as an ageing population and declining birth rates continue to strain its labour market. With large numbers of older employees retiring and too few young Germans entering vocational professions, industries across the country are struggling to fill vacancies, prompting businesses and institutions to recruit talent from abroad.
The shift gained momentum following an outreach email received in February 2021 by Handirk von Ungern-Sternberg, then associated with the Freiburg Chamber of Skilled Crafts in southwest Germany. The message, sent by an Indian employment agency, highlighted the availability of young, motivated candidates seeking vocational training opportunities. At a time when German employers were facing acute hiring challenges, the proposal offered a timely solution.
One of the sectors most affected by the labour crunch has been the butchery trade, which has seen a steady decline over the past two decades. The number of small, family-run butcher shops in Germany dropped significantly from around 19,000 in 2002 to fewer than 11,000 by 2021. Industry representatives have attributed this fall to a lack of interest among younger generations, who increasingly pursue alternative careers.
In response, a pilot initiative was launched in collaboration with the Indian agency Magic Billion, bringing 13 young Indian trainees to Germany in late 2022 to begin apprenticeships in butchery. These trainees, including 21-year-old Anakha Miriam Shaji, relocated to small towns near the Swiss border, combining practical training with classroom education. For many, it marked their first experience living abroad, driven by aspirations for better wages, improved living standards, and social security.
The success of the programme has since led to its expansion. Von Ungern-Sternberg has gone on to establish a new recruitment firm, India Works, in partnership with Magic Billion, aimed at facilitating the migration of Indian workers to Germany. What began with a small group has now grown to around 200 Indian workers employed in butcher shops across the country.
Germany’s demographic challenges remain a pressing concern. A 2024 study by the Bertelsmann Foundation estimates that the country needs to attract approximately 288,000 foreign workers annually to prevent its workforce from shrinking by up to 10% by 2040. With a significant youth population, India has emerged as a key partner in meeting this demand.
India Works is now preparing to bring nearly 775 additional Indian trainees to Germany this year, covering a wide range of professions, including road construction, mechanics, masonry, and baking. The growing trend has been supported by policy measures such as the 2022 Migration and Mobility Partnership Agreement between India and Germany, as well as a substantial increase in skilled work visa quotas for Indian nationals—from 20,000 to 90,000 annually by the end of 2024.
Official figures reflect this upward trend, with the number of Indian workers in Germany rising sharply from just over 23,000 in 2015 to more than 136,000 in 2024. Many of these workers cite limited job opportunities in India and the prospect of higher earnings in Europe as key motivations for relocating.
Employers in Germany have acknowledged the critical role played by these workers in sustaining their businesses. Some have stated that without foreign recruits, they would have struggled to continue operations. The reliance on overseas talent is not limited to private enterprises; local governments are also exploring international hiring to fill gaps in essential services such as education.
With labour shortages affecting multiple sectors, German officials increasingly recognise that international recruitment is not just a temporary measure but a long-term necessity. As efforts to attract skilled workers intensify, India is expected to remain a central partner in helping Germany navigate its workforce challenges.
