Machine Translated by Google

Current data and indicators

INDIAN WORKFORCE IN
GERMANY // February 21, 2024

Davit Adunts | Tanja Fendel | Andreas Hauptmann | Boris Ivanov | Yuliya Kosyakova
Machine Translated by Google

1. Summary
• The number of Indian citizens in Germany increased significantly between 2010 and 2022. In relation to the foreign
population as a whole or

Indian nationals still make up a relatively small proportion of third-country nationals.

• The immigration of Indian citizens is characterized above average by employment and educational migration. In

particular, immigration to study has risen comparatively sharply since 2010.

• The labor market integration of Indian citizens is overall positive when measured against common indicators.

The employment rate is comparatively high and the unemployment and SGB II assistance rates are relatively

low.

• The requirement level among employees subject to social insurance contributions is:

The activity of Indian nationals is above average, which is also reflected in the comparatively high wages.

• Against the background of demographic change and an increasing number of specialists and

Immigrants from India could help meet the labor demand in Germany.

• According to the World Gallup database's own evaluations, around 8 percent of 18 to under 35 year olds in India

could imagine emigrating. However, Germany is in competition with other, primarily Anglo-Saxon target

countries, such as the United States, the United Kingdom, Canada or Australia, which could be more attractive to
skilled workers from India due to the English language or existing networks.

• Evaluations based on the IAB-SOEP migration sample, the IAB-BAMF-SOEP survey

Refugee and SOEP core for 2021 are consistent with official statistics

in terms of a high level of qualifications, a high labor force participation and a low proportion of women among
immigrants born in India. The proportion of self-assessed good knowledge of German is lower than among all

immigrants living in Germany.

• The majority of Indians want to stay in Germany forever and barely

Two out of five Indians already have German citizenship.

Current data and indicators // Indian workforce in Germany // February 21, 2024
2
Machine Translated by Google

2 Population and migration

2.1 Population
The number of Indian nationals in Germany rose steadily between 2010 and 2022. According to the Central
Register of Foreigners (AZR), the number of Indian citizens increased by 160,000 from around 50,000 in 2010
to 210,000 in 2022 (Federal Statistical Office 2023a). Of these, the increase in people of working age from 15
to under 65, who are particularly relevant to the labor market, was 140,000 people, from 40,000 people in 2010
to 180,000 people in 2022. In absolute terms, the increase was greater for men (+85,000) compared to women
(+55,000). Relative to the population in 2010, the increase was even somewhat greater for women. Compared to
the overall working-age foreign population, Indian nationals make up a relatively small proportion at 1.8 percent in
2022. In relation to third-country nationals, the proportion is also 2.9 percent.

2.2 Hikes
The developments in population numbers are also reflected in migration movements. According to migration
statistics from the Federal Statistical Office, the annual net immigration of Indian citizens between 2000 and
2009 was an average of 2,000 people per year. This has increased continuously since 2010. The
only exception here is the year 2020 due to the pandemic. In 2015, annual net immigration reached 10,000
people for the first time in the period under review, in 2019 it was over 20,000 people, and in 2022 it was just over
40,000 people. Gross inflows have increased significantly more than outflows. The latter have tended to
stagnate or, in some cases, decline in recent years. Overall, Indian nationals account for 3.6 percent of the net
immigration of foreign nationals to the

years 2019 to 2022.

Current data and indicators // Indian workforce in Germany // February 21, 2024
3
Machine Translated by Google

Figure 1: Arrivals and departures of Indian citizens, 2010-2022

In 1,000

Source: Federal Statistical Office (2023b), own calculations. © IAB

2.3 Arrivals based on purpose of stay

Compared to other third-country nationals, the immigration of Indian
nationals is characterized above average by employment and educational migration. In 2021,
the Federal Office for Migration and Refugees (BAMF) recorded 5,300 immigration of Indian
citizens for employment purposes and 7,800 immigration for study purposes.
Indian nationals therefore form the largest group in both categories (although the absolute
numbers are still moderate). Compared to 2010, immigration has increased significantly,
especially for the purpose of studying. In 2010, there were 3,400 immigrants for employment
purposes and 1,900 immigrants for study purposes (Federal Office for Migration and Refugees
2010, 2021).

3 Labor market integration in Germany

3.1 Labor market indicators
The labor market integration of Indian citizens is overall positive when measured
against common indicators. The employment of Indian citizens was 120,000 people in
December 2022 (statistics from the Federal Employment Agency, Central
Register of Foreigners, own calculations). This is around 100,000 more employees compared
to December 2010. The employment rate was 65.1 percent in December 2022, which is higher
than the foreign population as a whole (52.3%). The number of unemployed Indian
citizens was 3,600 in December 2022 (+1,300 in

Current data and indicators // Indian workforce in Germany // February 21, 2024
4
Machine Translated by Google

Comparison to December 2010). The unemployment rate was 3.0 percent, compared to
14.2 percent for the foreign population as a whole. The number of employable
benefit recipients (ELB) among Indian citizens was 3,800 in December 2022, which is
1,100 fewer people compared to December 2010. The ELB quota in December 2022 was
2.1 percent, lower than among foreign citizens Nationals overall (17.1%).

3.2 Employment structures

Indian citizens are above average qualified among employees subject to social
insurance contributions. In December 2022, the proportion of people who carry
out expert work, which usually requires a four-year university degree, was 39.0 percent.
This is significantly higher than for foreign nationals as a whole (10.3%) or for all SV
employees as a whole (14.2%). The proportion of Indian nationals is also
comparatively high at 17.2 percent for specialist jobs, which usually require further
professional training (e.g. master's degree) or a bachelor's degree (foreigners: 7.3%, total:
14.2). This means that 56.2 percent of Indian employees work in the specialist or expert
sector. In the skilled sector, which often requires two to three years of vocational training
and is therefore more closely oriented towards the German training system, the
proportion is relatively low. The share of
Among Indian nationals, 16.7 percent of employees who perform helper work are roughly
the average for all employees (16.0%).

Figure 2: Employees subject to social insurance contributions by requirement level

Shares in the nationality group in percent, as of December 31, 2022

Note: Employees subject to social insurance contributions at the place of work according to the requirement level of the KldB 2010.
Source: Statistics from the Federal Employment Agency (2023), own calculations. © IAB

Current data and indicators // Indian workforce in Germany // February 21, 2024
5
Machine Translated by Google

Broken down by economic sector, Indian SV employees are employed above average in the information and
communication, professional, scientific and technical services and hospitality sectors. Over 50

percent work in one of these three industries. Then there is the manufacturing industry

13.5 percent, although this proportion is smaller than for other nationality groups. The most important economic groups

include information technology services, research and development in the areas of natural
sciences, engineering, agricultural sciences and medicine, as well as public relations and management
consulting.

Figure 3: Employees subject to social insurance contributions by economic sector

Shares in the nationality group in percent, as of December 31, 2022

Note: Employees subject to social insurance contributions at the place of work by economic sector (WZ2008).
Source: Statistics from the Federal Employment Agency (2023), own calculations. © IAB

Furthermore, among Indian SV employees, the proportion of men (69.9%) and especially of employees
between the ages of 25 and under 55 (90.1%) is above average
high.

Current data and indicators // Indian workforce in Germany // February 21, 2024
6
Machine Translated by Google

Figure 4: Employees subject to social insurance contributions by gender and age group
Shares in the nationality group in percent, as of December 31, 2022

Note: Employees subject to social insurance contributions at the place of work by gender and age group.
Source: Statistics from the Federal Employment Agency (2023), own calculations. © IAB

These and other structural features are also reflected in wages. Among Indian (full-time)
employees, the median wage was 5,200 euros in December 2022 (Federal Employment Agency
statistics 2023). In comparison, the median wage for employees overall was 3,600 euros and
for foreign employees it was 2,900 euros. However, these differences are largely
determined by the level of qualification. If you compare wages based on professional
qualifications or level of requirements, they are significantly lower.

4 Migration potential
Like other Western nations, Germany is facing the challenges of demographic
change, which will only intensify in the coming years. There is a specific need for skilled
workers and skilled workers in many economic sectors. Immigration can help meet this need
and at least mitigate the consequences of demographic change. There is some evidence
to suggest that immigration from the European Union will continue to decline in the coming
years (Adunts et al. 2022). In this respect, this need would have to be increasingly met in the
coming years through immigration from third countries, such as India.

According to the Gallup World Poll, around 8 percent of respondents aged 18 to under 35 in
India could imagine living permanently in another country. This roughly corresponds to
30 to 40 million people. The determination of migration intentions is formulated relatively
openly in the survey (see Infobox 1). It doesn't mean that all these people

Current data and indicators // Indian workforce in Germany // February 21, 2024
7
Machine Translated by Google

will migrate or have even made preparations. Rather, it is intended to estimate the
order of magnitude.

When it comes to attracting (highly qualified) immigrants from India, Germany is in

competition with other, especially Anglo-Saxon countries, which are likely to have an advantage
due to the English language and existing networks. This is also evident when you ask potential
migrants about their destination country. In the period 2015 to 2021, almost half of respondents
aged 18 to under 35 with a propensity to migrate indicated the United States, the United
Kingdom, Canada or Australia/New Zealand as their destination country. The European Union
and Germany play a very minor role in this.
What is striking is that the selection of target countries has diversified over time.
Compared to the period 2010 to 2014, the share of the United States, but also the Gulf states,
has decreased significantly. In addition, the proportion of highly qualified people is
above average among people who indicate one of the OECD countries as their destination
country compared to people with no intention of migrating, also compared to the other destination countries.

Figure 5: Destination countries of potential Indian migrants, people aged 18 to under 35

Shares in percent

Note: Indian respondents aged 18 to less than 35 years with migration propensity and information about the destination country.
Excluding the survey years 2019 and 2020. Results weighted.
Source: The Gallup Word Poll 2021, own calculations. © IAB

8th
Current data and indicators // Indian workforce in Germany // February 21, 2024
Machine Translated by Google

Figure 6: Proportion of people in India with tertiary education by propensity to migrate

Ages 25 to 35 years
Shares in percent

Note: Indian respondents aged 25 to less than 35 years with information on migration propensity, destination country and
educational qualifications. Excluding the survey years 2019 and 2020. Results weighted.
Source: The Gallup Word Poll 2021, own calculations. © IAB

Infobox 1: The Gallup World Poll

The Gallup World Poll surveys people around the world on various social and societal issues. In total, the survey is
conducted in more than 150 countries and territories, representing more than 98 percent of the world's adult population
(Gallup 2021).

The survey years 2010 to 2021 are generally used for the analyzes in this report, but excluding the years 2019 and
2020, in which the questions about migration in India are not included
was raised.

The migration potential is determined by the question “If you had the opportunity, would you like to move permanently to
another country, or would you prefer to continue living in this country?” The respondents who answered this question
positively are included in the Afterwards you will be asked to specify the desired destination country.

The classification of the educational level is based on the international classification standard ISCED. Accordingly, the
tertiary sector is defined as: Completed four years of education beyond general education (high school) and/
or completion of four years of attendance at a tertiary education institution (college).

In total, around 39,000 person-year observations are available with information on migration intentions, of which around
2,400 confirm this. In order to ensure the number of cases necessary for deeper evaluations, the data is grouped
according to target country groups and/or time periods. All results are presented weighted.

Current data and indicators // Indian workforce in Germany // February 21, 2024
9
Machine Translated by Google

5 Social living situation and barriers to immigration

Evaluations based on the IAB-SOEP migration sample, the IAB-BAMF-SOEP refugee survey and SOEP Core for
2021 provide further insights into the social living situation of immigrants with a place of birth in India (hereinafter

Indians).

The survey results are consistent with the results based on the official
Statistics. The proportion of women among Indians living in Germany is 25

Percent for 2021 is significantly lower than that of all newcomers (52%). Significantly more Indians have a university
degree than those living in Germany overall (86% compared to 31%). In contrast, the proportion of those who

rate their German language skills as good at the time of the survey, at 35 percent, is lower than the proportion among
newcomers overall (54%). This could be due to the generally good English skills of Indians, which may initially mean
that the need to learn German is lowered. The majority of Indians and newcomers overall stated in the survey

that they wanted to stay in Germany forever (96% and 83%).

81 percent of Indians moved to Germany for employment purposes and 16 percent because of family, while 31 percent
of those who moved to Germany overall moved to Germany for work or family reasons. The asylum and education
channels are also more relevant for the latter. Immigrant Indians only live in Germany for a shorter
period of time (on average seven years) than the immigrants as a whole (17 years), while the average labor force

participation of 76 percent is roughly the same as that of all immigrants (74%). Finally, 37 percent of Indians
have German citizenship compared to 28 percent of all immigrants in 2021.

Table 1: Immigrants living in Germany, all and those with a place of birth in India, according to
indicators of the social living situation, 2021
Shares in percent unless otherwise stated

All
India
No content newcomers
Women 25 52
No educational qualification 12 36
Vocational educational qualification 2 33
academic degree 86 31
Good knowledge of German currently 35 54
Intention to stay 96 83
Employment inflow 81 31
Influx of ethnic Germans 0 7
Family immigration 16 34
Asylum influx 0 13
Educational influx 3 8th

Other reason for moving 0 9

Length of stay (average) in years 7 17
Labor force participation 76 74
German nationality 37 28
Number of observations (maximum) 55 4,492

Source: IAB-SOEP migration sample, IAB-BAMF-SOEP refugee survey, SOEP-CORE, 2021, weighted. © IAB

Current data and indicators // Indian workforce in Germany // February 21, 2024
10
Machine Translated by Google

Infobox 2: SOEP-CORE, IAB-SOEP migration sample and IAB-BAMF-SOEP survey by

Refugees in Germany

The Socio-Economic Panel (SOEP) is an annual longitudinal survey of German households that has been based at the
German Institute for Economic Research (DIW) since 1984. The SOEP core survey (SOEP-CORE) also includes immigrants
to Germany. In addition, the SOEP contains various modules that are specifically aimed at immigrants as a target group.
On the one hand, this is the IAB-BAMF-SOEP survey of refugees, which the IAB carries out together with the Research
Center of the Federal Office for Migration and Refugees (BAMF-FZ) and the SOEP (see Brücker et al. 2017). This is
designed as a longitudinal survey of people who have moved to Germany seeking protection since 2013 and their
household members. On the other hand, it is the IAB-SOEP migration sample, which is created in cooperation between
the IAB and the SOEP and is aimed at immigrants to Germany as a whole (see Brücker et al., 2014).

The results shown here are based on all people surveyed in the various SOEP modules who were born abroad and
immigrated to Germany in 1975 at the earliest. It is also limited to people who were between 18 and 64 years old both
at the time of immigration and at the time of the survey. The information provided by these people from the surveys in
2021 is evaluated. The values for 2021 were extrapolated using the survey weights provided by SOEP.

The evaluations shown here for 2021 are based on a total of a maximum of 4,492 people who were born outside of
Germany - including a maximum of 55 people born in India.

6 Literature
Adunts, David, Herbert Brücker, Tanja Fendel, Andreas Hauptmann, Sekou Keita and Regina
Konle-Seidl (2022): Managed labor migration to Germany. IAB research report 23/2022.

Brücker, Herbert, Martin Kroh, Simone Bartsch, Jan Goebel, Simon Kühne, Elisabeth Liebau,

Parvati Trübswetter, Ingrid Tucci and Jürgen Schupp (2014): The new IAB-SOEP Migration Sample: an
introduction into the methodology and the contents. SOEP Survey Papers 216: Series C. Berlin: DIW/SOEP.

Brücker, Herbert, Nina Rother and Jürgen Schupp (2017): IAB-BAMF-SOEP survey by
refugees; Study design, field results and analyzes of school and professional qualifications, language skills
and cognitive potential. IAB research report 13/2017.

Federal Office for Migration and Refugees (BAMF) (2010): The Federal Office in Figures 2010: Asylum,
Migration, foreign population and integration. https://www.bamf.de/
DE/Themen/Statistik/Asylzahlen/BundesamtInzahlen/bundesamtinza
hlen-node.html,

accessed on November 3rd, 2023.

Current data and indicators // Indian workforce in Germany // February 21, 2024
11
Machine Translated by Google

Federal Office for Migration and Refugees (BAMF) (2021): The Federal Office in numbers 2021: Asylum,
migration and integration. https://
www.bamf.de/DE/Themen/Statistik/Asylzahlen/BundesamtInzahlen/bundesamtinza
hlen-node.html,

accessed on November 3rd, 2023.

Gallup (2021): Worldwide Research Methodology and Codebook.

https://news.gallup.com/file/poll/165404/World_Poll_Methodology_042722.pdf, accessed
on November 7th, 2023.

Geis-Thöne, Wido (2022): Immigration from India: A great success for Germany.
Development and significance for securing skilled workers, IW Report, No. 1.

Federal Statistical Office (2023a): Genesis-Online, Table 12521-0003: Foreigners: Germany,

Deadline, gender, age, country groupings/nationality, accessed on

May 4, 2023.

Federal Statistical Office (2023b): Genesis-Online, Table 12711-0007: Migration between

Germany and abroad: Germany, years, nationality, accessed on
July 7, 2023.

Statistics from the Federal Employment Agency (2023): Tables, employees by nationality
(Quarterly figures), Germany, states, districts, December 31, 2022. https://

statistics.arbeitsagentur.de/Statistikdaten/Detail/202212/iiia6/beschaeigung-eu-heft-eu-heft/eu-heft-d-0
-202212-xlsx.xlsx?__blob=publicationFile&v=6, accessed on
October 26, 2023.

Current data and indicators // Indian workforce in Germany // February 21, 2024
12
Machine Translated by Google

imprint

Indian workers in Germany

Release date
February 21, 2024

Authors

• Davit Adunt

• Tanja Fendel

• Andreas Hauptmann
• Boris Ivanov

• Yuliya Kosyakova

editor
Institute for Labor Market and Occupational Research
Regensburger Straße 104
90478 Nuremberg

Rights of use
This publication is published under the following Creative Commons license:
Attribution - Share Alike 4.0 International (CC BY-SA 4.0) https://creativecommons.org/licenses/
by-sa/4.0/deed.de.

You can obtain this document at

https://doku.iab.de/arbeitsmarktdaten/Indische_Arbeitskraefte.pdf

website
https://iab.de