Many people in Germany have a distorted view of migration. Some see immigrants as the root of all the problems that plague the country. Others, on the other hand, promote migration as a panacea for the shortage of skilled workers and the financing problems of our social security system. Both views are equally dangerous because they poison social coexistence. The xenophobia of the German nationalists is inhumane. But denying the limited capacity to accept refugees and the integration problems also damages the political climate because it gives the electorate the feeling that “those at the top” are not taking note of the growing concerns of many citizens.
Migration is undeniably affecting a number of problems: from the housing shortage to the educational crisis and the overstretched citizen’s allowance system. There are many reasons for the lack of affordable housing. But the ongoing influx of migrants is exacerbating the shortage. Schools are also overwhelmed by the influx of non-German speaking children, which is exacerbating the already existing deficits in the education system. And the fact that the majority of citizen’s allowance recipients are foreigners shows that there are integration problems.
Conversely, however, Germany would not be able to survive without migrants. Not only would a large number of places in factories be vacant. Patients in hospitals would also not be able to receive proper care without the immigrant doctors and nurses. Whether in production, research or services – diverse workforces are common and beneficial everywhere today. When the baby boomers, the largest generation ever to have existed in Germany, retires, there is an urgent need for migrant workers. Because the generations coming up from educational institutions are much smaller.
As important as migrants are for the economy, the illusion conveyed by the traffic light government that more immigration would prevent the negative consequences of demographic change for the labor market and social security funds is misleading. The Chancellor rejects the social reforms called for by experts as unnecessary. After all, economists did not expect the job boom of recent years. In fact, the long upswing in the years after 2010 made Germany a magnet for immigrants from the EU. These usually gain a foothold in the labor market quickly, but the majority of them do not stay permanently.
The situation is different for refugees and illegal immigrants from third countries who have been coming to Germany in large numbers since 2015. Most of them stay, but their integration into the labor market is more difficult. Especially since they receive social transfers, which only applies to EU citizens if they have earned the right through work. The traffic light government hopes to attract more migrant workers from third countries with its skilled immigration law.
Meanwhile, uncontrolled immigration via asylum law continues. As a result, the population increasingly perceives migration as a burden. According to the Federal Employment Agency, the majority of refugees who came in 2015, mainly from Syria, now have jobs, but with a wage that is well below average and correspondingly relatively low tax and contribution payments. It is unlikely that the German state budget will ultimately make a profit from this type of immigration.
But even with intelligently managed migration, cost-cutting social reforms would remain essential. The skilled workers sought after worldwide will not come to solve the financial problems of the German welfare state. And every immigration into the social system increases the pressure in the boiler. It therefore depends on German politics whether migration is part of the solution or part of the problem.
