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Germany is gradually easing its laws on citizenship, immigration and visas to attract migrant workers to address increasing labor shortages. As a result, the European nation is becoming an appealing destination for youth seeking jobs and education for countries like Nepal. Many Nepali students and migrant workers are currently heading to countries such as the US, Canada, Australia, and the Middle East. 

Germany needs 400,000 foreign workers annually to bridge its labor gap, according to the country’s Federal Employment Office. Recent data shows that 10,670 Nepali workers and students have already chosen Germany. Nepali citizens can apply for a German work visa if they meet any of the following criteria: completion of a recognized training course or study program, a degree equivalent to a German qualification, a degree recognized in Germany, at least five years of professional or academic experience, vocational training, and German language proficiency.

In 2023, the German Parliament passed legislation aimed at attracting workers from non-European countries. Germany is now looking at South Asia and Southeast Asian countries for skilled laborers to keep its economy moving. The new law prioritizes work experience over academic qualifications, allows foreign workers to bring their families, and offers a pathway to citizenship. Germany has also relaxed its citizenship policy—anyone with five years of work experience in Germany and strong German language skills can apply for citizenship. This shift is driven by an aging population, with baby boomers retiring and birth rates steadily declining.

Germany’s population is at risk of long-term decline, with a birth rate of only 1.5 children per woman—below the two children needed to sustain the population. Without immigration, this trend is expected to continue. After a baby boom in the 1960s, birth rates began to decline from the 1980s onward. According to DW, there have been significant changes in birth patterns in a long-term comparison with 2013. In 2013, 49.4 percent of births were first children, 34.4 percent were second children, and 16.1 percent were third or subsequent children. However, between 2013 and 2023, the proportion of first-born children has decreased, while births to third or later children have increased.

According to migration expert Frank Burgdörfer, most women in the 1970s had children in their early 20s, but today, they are more likely to have children in their 30s. Without migration, Germany’s population will continue to shrink, while the number of people requiring care is steadily rising, he added.

Germany’s labor market is now facing multiple challenges. Unemployment is gradually declining, while job vacancies are increasing daily. According to Burgdörfer, sectors with high demand include finishing and dry construction, geriatric care, industrial glass production, metal production and construction, building construction, and vehicle and aircraft manufacturing.

In eastern Germany, 39.7 percent of businesses are struggling with skilled labor shortages, compared to a lower 31.8 percent in Hessen and Rhineland-Palatinate, according to Burgdörfer. Employers in many eastern regions face particular challenges in recruiting highly skilled young workers due to a noticeable decline in the working-age population and low net migration. Structurally weak rural areas and small towns are especially vulnerable, potentially falling behind economically as a result, he added.

Official statistics show that the working-age population is expected to shrink by 1.6m to 4.8m over the next 15 years, while the number of people reaching retirement age (67 or older) will increase significantly throughout the 2020s and 2030s.

Germany plans to attract 400,000 skilled workers annually. But there are various challengers. High taxes and the difficult German language pose major barriers, especially as Germany competes with the USA, Canada and China for talent. Following the Russia-Ukraine war and other global conflicts, Germany has seen an influx of refugees. However, integrating them into the workforce has proven challenging due to language barriers and lack of vocational skills. While humanitarian immigration has increased, it has not translated effectively into meeting Germany's skilled labor demands.

Various German institutions, including the Goethe Institute, are working to support successful integration into the German labor market. According to Schengen News, Germany granted 80,000 work visas in the first half of 2024, with 40,000 issued to skilled workers—3,000 more compared to the same period of 2023.

Ralph Heck, chairperson of the Bertelsmann Foundation, said that population aging is evident across almost all German states. The percentage of people aged 65 and above is projected to increase from 22 percent in 2020 to 28 percent in 2040, while the working-age population will decline from 54 percent to 48 percent.

A March 2024 report by the Federal Institute for Population Research revealed that live births in 2023 fell to their lowest level since 2009. The birth rate dropped from 1.57 per woman in 2021 to approximately 1.36 in autumn 2023. According to the report, West Germany's birth rate has historically remained low, fluctuating between 1.2 and 1.4 children per woman for four decades after 1975.

Germany’s most in-demand professions include green jobs, nursing professionals, physicians, engineers, IT specialists, scientists, craftspeople, and various healthcare roles such as dental assistants, medical assistants, veterinary assistants, physiotherapists, occupational therapists, pharmacists and podiatrists. Nepal and Germany signed an agreement for legal labor migration in October last year. Labor ministry officials say Germany is looking to recruit some 3,000 workers from Nepal.

 With over 380,000 foreign students, Germany ranks  fourth worldwide among the most popular study destinations.  According to the study carried out by Fintiba, for the first time since 2024, the Indian make up the largest share within this group, replacing the Chinese as the most prominent population group. And the  numbers of Nepali students in German universities are increasing over the past few years. 

A survey conducted by Fintiba, the leading finance and insurance platform for international students and job seekers, reveals that Germany is primarily valued for its career opportunities and openness. Moreover, the German universities can set themselves apart from other top nations for international students (USA, United Kingdom, Australia) with a unique selling point. 

Overall, 71 percent of the surveyed international students indicate that they want to work in Germany, thus seeing their studies in Germany as a springboard for their professional careers. As the most important factor for their career plans, 73 percent of all participatns in the Fintiba survey cite the good career opportunities in the German job market compared to their places of origin. Jonas Marggat, CEO of Fintiba says: Foreign students are generally in a very comfortable situation in the Germany. The high quality standards and almost no tuition fees combined with the subsequent great career opportunities are almost unique world-wide. 

Nevertheless, the remaining challenges, especially the language barrier, must to taken very seriously. Therefore, we at Fintiba ensure that actual complications such as bank accounts and insurances are provided quickly and securely for the students so that they have enough time for the state and university-organized integration courses, he said. Administrative hurdles represent another obstacle for around 20 percent of international students. According to the study, 22 percent of students reported difficulties with immigration authorities, while 17 percent had problems adapting to new academic structures. 

Not only the students, the migrant workers from South Asian countries to Germany is increasing over the past few years. According to Federal Statistical Office, 10565 Nepalese are living in Germany for the study and works.  Similarly, around 2000 temporary residence permit has been granted to Nepali students for the educational purposes. More than 8,000 Nepali are studying in the various universities and every year number is increasing. Over the past decade, Germany is increasing the scholarships quotas for the Nepali students. 

President Ramchandra Paudel recently paid an official visit to Germany and Switzerland, countries with which Nepal established diplomatic relations in 1958 and 1956, respectively. He also served as the keynote speaker at the ILO’s 112th International Conference. The timing of these diplomatic ties coincided with global instability and the Cold War. Nepal joined the ILO in 1966, during this period of geopolitical tension.

This visit, his first since taking office in March 2023, had been postponed due to a devastating 6.4 magnitude earthquake in November 2023. The earthquake, centered in the Jajarkot and Rukum districts of western Nepal, caused significant loss of life, injuries, and property damage. Consequently, President Paudel chose to remain in Nepal to support the affected families.

Reviving bilateral ties

High-level exchanges between Nepal and Germany and Switzerland had been absent for decades. The last significant visit from Switzerland to Nepal occurred twenty-seven years ago when President Arnold Keller paid an official visit from 9-12 Nov 1997. From Nepal’s side, late King Birendra visited Germany in 1986, which was reciprocated by President Roman Herzog in 1996. Before Herzog’s visit, President Heinric Luebke visited Nepal in July 1967, following the establishment of diplomatic relations between the two countries in 1958. More recently, in June 2017, President Bidya Devi Bhandari visited Switzerland to address the 106th International Labour Conference on “World of Work Summit: A Better Future for Women at Work.” Given the close and friendly ties with these European nations, a high-level visit from Nepal’s head of state was long overdue and imminent.

Solidarity for social justice

Nepal joined the ILO in 1966, and President Paudel’s participation in the 112th International Conference was a key part of his visit. The conference theme was “Global Solidarity for Social Justice.”  At the inaugural session, ILO Director-General Gilbert F Houngbo welcomed President Paudel, highlighting his democratic credentials and his life-long struggle for democracy and social justice, which included over fourteen years of imprisonment under despotic rule. In his address, President Paudel affirmed Nepal’s commitment to the ILO’s international campaign and emphasized Nepal’s efforts in implementing international labor agreements. He noted that Nepal's constitution guarantees rights to employment, the formation of trade unions, and participation in collective bargaining.

President Paudel also addressed the challenges posed by the IT revolution, which has given rise to digital, gig, and care economies. He stressed the urgent need for safe and decent working conditions globally. Emphasizing the theme of social justice, he stated, “Without justice to the helpless and economic gains to the destitute, nations around the world can’t achieve the goal of Social Justice.” He also highlighted climate-induced socio-economic inequalities and the issue of climate refugees in Nepal, a topic also raised during COP26 in Glasgow. President Paudel’s voice on climate change and its socio-economic impacts was echoed by Brazil’s President Luiz Inácio Lula da Silva in his address at the conference’s concluding session. President Paudel’s speech received a standing ovation from delegates, including government representatives, workers, employers, activists, and institutions dedicated to labor causes worldwide.

Broadening prospects of partnership

On June 12, President Paudel met with Swiss President Viola Amherd for bilateral talks in Geneva. After a brief exchange of pleasantries and introductions, President Amherd expressed satisfaction with the current state of bilateral relations. She emphasized that democracy, peace, and human rights are areas of interest for Switzerland and expressed a desire to see these areas flourish in Nepal. She also mentioned transitional justice as an area where Switzerland is interested in collaborating.

In response, President Paudel praised Swiss democracy and governance, highlighting the progressive provisions of Nepal’s constitution, particularly its inclusiveness and the 33 percent representation of women in the legislature. This aspect of Nepal's constitution impressed the Swiss side. President Paudel also discussed Nepal’s efforts toward socio-economic progress and prosperity following the establishment of a democratic system. The discussions covered mutual interests such as climate change and the need for enhanced assistance to Nepal after it graduates to a middle-income nation in 2026. President Paudel emphasized that while Nepal is least responsible for environmental degradation, it suffers significantly from climate change impacts. He suggested areas for Swiss investment, including agro-forestry, mountain tourism, and hydropower development, to aid Nepal’s socio-economic transformation. He also expressed gratitude for Switzerland’s continued support in Nepal’s socio-economic endeavors.

In Germany, President Paudel met with German President Frank-Walter Steinmeier on June 17 at the presidential palace in Berlin. Nepal and Germany established diplomatic relations in 1958, and Germany began its development cooperation with Nepal in 1961, initially focusing on technical assistance. Over the past six decades, this relationship has expanded to include scientific collaboration, academic exchanges, technology transfer, and cooperation in governance and democracy. More recently, the ‘Ausbildung’ or Dual Vocational Training program has provided employment opportunities for Nepali youth in Germany, which was a significant topic during the bilateral talks.

During their meeting, President Steinmeier praised Nepal for its support for Ukraine at the UN and expressed concern over the recruitment of Nepalis by the Russian army. President Paudel addressed the climate crisis and its impact on resource-poor nations like Nepal. He also requested support for the release of six Nepalis held as prisoners of war by Ukraine and the lifting of the ban on Nepali airlines in European airspace.

Special gestures 

Throughout his visit, President Paudel was accorded state-level receptions, marked by significant gestures of goodwill from both his German and Swiss counterparts. In Berlin, President Steinmeier displayed a remarkable degree of humility and support, assisting President Paudel when he appeared momentarily frail during the guard of honor. This visit included a surprise one-on-one meeting between the two heads of state, during which they recalled their countries’ historic leaders, Willy Brandt and BP Koirala, who both had notable backgrounds in the struggle for social democracy.

In summary, President Paudel’s week-long official visit to Germany and Switzerland from 11-19 June 2024, significantly reinvigorated Nepal’s bilateral relations with these European nations. His participation in the ILO’s 112th International Conference reinforced Nepal’s solidarity with the ILO’s campaign for “Global Solidarity for Social Justice.” Throughout his visit, President Paudel highlighted the progressive aspects of Nepal’s constitution, including its inclusive character and the constitutional guarantee of 33 percent representation for women in the national legislature. He also solicited enhanced support from these friendly nations for Nepal’s post-2026 challenges.

President Paudel’s meaningful participation at the ILO conference and his bilateral engagements emphasized the global need for climate justice and highlighted Nepal's ongoing socio-economic challenges and aspirations. His interactions with entrepreneurs and stakeholders in the environment and SME sectors broadened the prospects for future partnerships, underscoring Nepal’s commitment to socio-economic transformation and its dedication to a socially just world. The official visits not only strengthened Nepal’s bilateral relations with Germany and Switzerland but also enhanced its international standing and reinforced its commitment to the ILO’s goals.

The author is foreign relations advisor to President Paudel

Wrapping up his visit to Switzerland and Germany, President Ram Chandra Paudel returned home on Wednesday.

Vice President Ram Sahaya Prasad Yadav and Prime Minister Pushpa Kamal Dahal welcome him at the special room of the Tribhuvan International Airport.

A contingent of the Nepal Army also offered a guard of honor to President Paudel.

President Paudel had left for Switzerland to attend the High-level Segment of the 112th Session of the International Labor Conference in Jeneva on June 11.

After attending the conference, he left for Germany on June 15.

President Paudel’s spouse Sabita Paudel, foreign affairs expert to the President Dr Suresh Chandra Chalise and secretaries of the President’s Office and Foreign Ministry were in the visiting team.

President Ram Chandra Paudel's recent visit to Switzerland and the ongoing visit to the Federal Republic of Germany are expected to be instrumental in further consolidating and renewing Nepal's bilateral ties with these European nations.

Germany offered a huge welcome and hospitality to the President and his delegation, reflecting its goodwill towards Nepal. 

The President has been on an official visit to Germany since June 15, 2024 at the friendly invitation of his German counterpart Frank-Walter Steinmeier. The two held a bilateral meeting on Monday and Germany's President assured of much support to Nepal. 

The two Heads of State reportedly reviewed the bilateral relations being based on development support, trade, tourism, investment, and vocational training in a very cordial atmosphere. President Paudel encouraged Germany to support Nepal's agriculture, tourism, and water resources sectors, highlighting them as the development priorities of Nepal.

The President departed for Germany after completing his visit to Switzerland.

President Paudel also extended his invitation to his German counterpart for an official visit to Nepal. The year of Germany's unification coincided with the year of Nepal's restoration of democracy, he recalled.

The visit is expected to contribute additionally to enhancing Nepal's diplomatic relations in the entire Europe.

Political analyst Dr Chandra Dev Bhatta said the Head of State's visit to Germany after a long gap should be considered an important one. "Of late, Nepal's official relations with Europe have not been consolidated as per the expectations and this high-level visit will help address this gap."

He advised that Nepal should take measures to promote its relations with Germany which is the world's third economic power and the most powerful nation in Europe.

"Nepal's presence in Germany and its relations with it have to be sustained as it is the world's third largest economy and a powerful European nation," he added.

In connection with this visit, President Paudel held bilateral talks on June 12 with President of the Swiss Confederation, Viola Amherd in Bern before this.

Foreign affairs expert Dinesh Bhattarai also opined that the high-level visit from Nepal after a long time will help further strengthen the climate of trust between the two countries. "Germany is Nepal's close friend. Nepal has special relations with the socialist leaders and party of Germany. Willy Brandt, the former German Chancellor and the leader of the Social Democratic Party and Nepal's popular leader BP Koirala were close friends," he added.

Stating that the visit of the Head of State in itself is meaningful and significant, former ambassador Bhattarai expressed the belief that this visit would contribute to expanding the areas of cooperation in future.

According to him, Nepal can take notable benefit from Germany through export of handicraft goods and carpet, among other goods as well as through tourism promotion.

This is the first time since 1986 that a Head of State from Nepal has made an official visit to Germany.

Dr Suresh Chandra Chalise, the foreign affairs expert to the President, expressed the belief that this visit taking place at the Head of State-level from Nepal after 38 years would contribute towards further strengthening the bilateral ties between the two countries.

He stated that the President's visit to the world's third largest economy and Europe's influential country, Germany, would help in increasing investment and trade in Nepal.

Nepal and Germany established diplomatic relations on April 4, 1958. Since then, the ties between the two countries have progressed based on friendship, mutual understanding and cooperation.

Spokesperson of the Ministry of Foreign Affairs, Amrit Bahadur Rai said that the visits taking place at various levels between the two countries would assist in further deepening the mutual relations.

"We are confident that this visit at the Head of State level will contribute in bringing German investment and technology into Nepal. Germany has made a good deal of study and practices on adaptation to safeguard from the effects of climate change, and there are many things that Nepal can learn from this as well," he said.

Bhishma Raj Ojha/RSS

President Ram Chandra Paudel reached Berlin on Saturday.  He paid an official visit to Germany at the cordial invitation of President of the Federal Republic of Germany Dr Frank-Walter Steinmeier.

Ambassador of Nepal to Germany Ram Kaji Khadka and senior officials from the Federal Foreign Office and the Office of the President of the Federal Republic of Germany welcomed the President and members of his entourage upon arrival at Berlin-Brandenburg International Airport, according to the Embassy of Nepal in Berlin.

President Paudel is accompanied by his spouse Sabita Paudel, Foreign Affairs Expert Dr Suresh Chandra Chalise, Foreign Secretary Sewa Lamsal, Secretary at the Office of the President Dilliram Sharma and senior officials of the Ministry of Foreign Affairs and Office of the President of Nepal.

This is the first official visit from Nepal at the level of the Head of State to Germany since 1986.

Official talks are scheduled to be held between President Paudel and the President of Germany on Monday, the Embassy has said.

Diplomatic relations were established between Nepal and Germany in 1958.

President Poudel is scheduled to return home on June 19.

Nepal and Germany on Tuesday signed financial and technical cooperation agreements on Euros 56,000,000.

Joint Secretary at the Ministry of Finance Shreekrishna Nepal and Ambassador of the Federal Republic of Germany to Nepal Dr Thomas Prinz signed the agreements on behalf of their respective governments.

The grant was the sum pledged by the Federal Republic of Germany in 2022.

The financial cooperation agreement shall support the private and public sector to expand energy transmission lines, to promote solar energy, gender equality and to improve maternal care and childcare in remote areas in Nepal, reads a statement issued by the Embassy of the Federal Republic of Germany in Kathmandu.  

The technical cooperation agreement focuses to support gender equality and social inclusion in Nepal and local and provincial economic development - especially in Western Nepal (together with the European Union and Finland).

Moreover, the Agreement shall promote renewable energy and energy efficiency, strengthen quality infrastructure for sustainable economic development and support the health sector strategy in Nepal, according to the statement.

The Federal Republic of Germany has consistently contributed to Nepal’s development efforts in diverse ways over the years. It has been actively contributing to the fields of energy, health, good governance as well as aiding Nepal in meeting its Sustainable Development Goals. Through this grant, the German Government targets to further enhance its commitment and continue its valuable support to the people of Nepal.

“Our friendship with Nepal is deeply cherished. Germany has been supporting Nepal’s hydropower and energy endeavors, among others, since long. Through collaboration and support, we aim to contribute to its continued progress and prosperity,” said Ambassador Dr Thomas Prinz on the occasion, the statement reads.

The year 2023 marked the 65th anniversary of diplomatic relations between Nepal and Germany.

Nepal and Germany have signed a Joint Declaration of Intent (JDoI) on the Skilled Labor Migration and Knowledge Exchange at the Federal Ministry of Labor and Social Affairs of Germany on Tuesday, the Embassy of Nepal in Berlin, Germany, stated in a press release, shared by the Ministry of Foreign Affairs here today.

Ambassador of Nepal to Germany Ram Kaji Khadka and Michael van der Cammen, Director, International Affairs, German Federal Employment Agency, signed the JDoI on behalf of their respective governments in the presence of Minister for Labor, Employment and Social Security Sharat Singh Bhandari and Leonie Gebers, State Secretary (Deputy Minister) of Federal Ministry of Labour and Social Affairs of Germany.

The singing of the JDoI was preceded by a bilateral meeting between the high-level Nepali delegation led by Minister Bhandari and the high-level German delegation led by the State Secretary (Deputy Minister) Gebers.

On the occasion, the leaders of the two delegations shared views, primarily, on the agenda of Nepal-Germany bilateral relations, skilled labor migration, Nepal's commitment to legal migration, workers' welfare and social security, German language and vocational training, and circular migration.

During the meeting, the two leaders expressed happiness over the growing relations between the two countries in recent years and stated that the signing of the JDoI would be the first step in the roadmap towards fair and legal labor migration from Nepal to Germany.

Minister Bhandari also expressed Nepal's willingness to collaborate with the friendly Government of Germany in all sectors of mutual benefits.

State Secretary Gebers also stated that the signing of the JDoI would open the way forward for institutional arrangement in immigrating Nepali skilled workers as per the need of the German job market. She also highlighted the positive sides of the recent German Skilled Immigration Act which has eased the process of recruiting foreign skilled workers in Germany.

The Nepali delegation led by Minister Bhandari included Secretary at the Ministry of Labour, Employment and Social Security, Kewal Prasad Bhandari, the Ambassador of Nepal to Germany, and other officials from the Ministry of Labor, Employment and Social Security, Ministry of Foreign Affairs and Embassy of Nepal, Berlin.

The German delegation led by Gebers included the high-level officials from the Federal Ministry of Labour and Social Affairs, Federal Employment Agency and other relevant Departments of Germany.

Meanwhile, on October 9, 2023, the Nepali delegation held discussions with the delegation of International Labor Organization (ILO) Berlin Bureau led by Dr Annette Niederfranke, Director at the Embassy of Nepal, Berlin. During the meeting, various labor-related issues including welfare of workers, measures against the exploitation and trafficking of workers, inclusive foreign employment and reintegration of migrant workers in the country of origin were discussed.

In the afternoon, the Nepali delegation participated in an interaction program with the Nepali diaspora living in Germany organized by the Embassy.

The Nepali delegation is holding a meeting with the representatives of private sectors of Germany today.

The delegation is scheduled to leave Germany for Nepal tomorrow.