1

The Labour Market Integration of Immigrants in

Germany

Key results of the OECD-Report

Thomas LiebigDirectorate for Employment, Labour and Social Affairs

OECD, Paris

2 December 2005, Berlin

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I. The framework for integration Basic dates and figures Integration structure

II. Key issues Immigrants Second generation

III. Recommendations

Overview

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Key dates

I. Framework

1955-1973: Important recruitment of “guestworkers”

Post-1973: Family reunification and the subsequent growth of the second generation

1988-1995: Massive immigration of ethnic Germans from Eastern Europe

1989-1994: Large inflow of asylum seekers

1996: “Germany is not an immigration country”

2000: New Citizenship Law

2005: New Immigration Act

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I. Framework

Annual inflows of ethnic Germans since 1985

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

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I. FrameworkInflows of asylum seekers into Germany, the European Union, and the traditional immigration countries since

1985

0

100000

200000

300000

400000

500000

Germany

EU (without Germany)

Australia, Canada, USA and New Zealand

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Evolution of the employment/population ratios of German nationals, foreigners, and Turkish

nationals, men

I. Framework

50

55

60

65

70

75

80

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreigners

Nationals

Turkish nationals

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I. Framework

25

30

35

40

45

50

55

60

65

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreigners

Nationals

Turkish nationals

Evolution of the employment/population ratios of German nationals, foreigners, and Turkish

nationals, women

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Evolution of the employment/population ratios of foreigners, foreign-born, and ethnic Germans

I. Framework

45,0

50,0

55,0

60,0

65,0

70,0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreigners

Immigrants

Ethnic Germans (less than 8 years residence)

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I. Framework

Highly complex structure, with a multiplicity of governmental and non-governmental actors at all government levels

Large variety of local, time-limited and multiple-level funded projects

Strong focus on language training in Federal integration aid

Until 2005: Integration services differed between migrant groups

Some improvement with the new Immigration Act

The framework for integration

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I. Framework

No focus on preparation for labour market

Structure to be complemented with occupation-oriented and more advanced language courses, but only for registered unemployed

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Experiences from Sweden: labour market training and especially early employment have greater impact on later employment than intensive language training

The new integration programme

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II. Key issues

Language trainingEmployment rates six months after completion of language courses are low and have been declining

0%

10%

20%

30%

40%

50%

60%

70%

2001 2002 2003 2004

Total

Ethnic Germans

People with asylum

For comparison: all immigrants

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II. Key issues

Differences (in percentage points) between the employment-population ratios of 15-64 native-born and immigrants, by

years of presence in the host country, men, 2004 (Australia: 2003)

-5%

0%

5%

10%

15%

20%

25%

Germany - allimmigrants

Germany -foreign-bornforeigners

Germany -foreign-born

nationals

France Australia Netherlands United Kingdom

up to 5 years

6 to 10 years

more than 10 years

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II. Key issues

Differences (in percentage points) between the employment-population ratios of 15-64 native-born and immigrants, by years

of presence in the host country, women, 2004 (Australia: 2003)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Germany - allimmigrants

Germany -foreign-bornforeigners

Germany -foreign-born

nationals

France Netherlands United Kingdom Australia

up to 5 years

6 to 10 years

more than 10 years

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II. Key issues

Self-employment and work through temporary employment agencies

Self-employment lower self-employment rates for immigrants than for natives, although

self-employment rates of immigrants with Turkish nationality almost doubled since 1992

about one third of all foreigners do not have automatic access to self-employment

immigrants more than twice as likely to found new enterprises as natives lack of access to financial credits

Temporary employment agency work in many countries (e.g. Sweden, France) springboard into more stable

employment provides work experience to migrants and allows employer to evaluate

migrants’ skills but immigrants are not a target group in Germany’s programme for

employment through temporary employment agencies (i.e. the PSAs)

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Qualification structure

0%

5%

10%

15%

20%

25%

30%

35%

Germany France Austria Netherlands Sweden Denmark UnitedKingdom

Difference (in percentage points) in the share of persons with less than upper secondary education among the adult (25-64) population

between immigrants and native-born, 2002-2003

II. Key issues

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Impact on the second generationPoints differences in the PISA (2003) mathematics scores of natives

and the second generation, children aged 15 years

II. Key issues

-20

0

20

40

60

80

100

German

y

Belgi

um

Denmark

Switz

erlan

d

Nethe

rland

s

Austr

ia

Fran

ce

Swed

en

New Zea

land

United

Sta

tes

Austr

alia

Cana

da

Raw scores

After accounting for socio-economic background

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Second generation

II. Key issues

Strong influence of German language spoken at home on PISA results; appears to be linked with half-day nature of kindergarten and school

Participation in vocational training less than half of that of natives without migration background

Influence of a vocational degree on employment probability stronger for the second generation than for comparable natives without migration background

Low educational background may act as convenient screen for discriminatory attitudes among employers

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General recommendations Develop more statistics on the basis of country of

birth

Language training needs to be better linked with employment

Consider a more outcome-based funding scheme for integration courses

Systematic evaluation of effective measures and subsequent mainstreaming of successful project experiences needed

Migrants should be included as special target group of programmes for employment through temporary employment agencies (such as the PSAs)

Improve migrants’ access to self-employment by better information and removal of remaining legal obstacles

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Recommendations related to the second generation

Develop some statistics on parents’ country of birth

The German language needs to be systematically promoted from kindergarten age on or even earlier

Language testing in the year prior to elementary school, combined with intensive language training, should be provided on a broader basis

Given the fact of early screening, there is a need for better permeability between educational tracks

The second generations’ access to vocational training needs to be improved

Although discrimination is not perceived as a key problem, vigilance is warranted