The European Central Bank is photographed during sunset in Frankfurt
The European Central Bank (ECB) and the skyline with its financial district are photographed during sunset as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, April 13, 2021. Reuters

Costa Rican Alex Madrigal, a trained economist, had his visa approved in May last year in just six hours, although that was just the beginning of the hurdles he faced in settling in Germany, despite the country's chronic skills shortage.

Like all migrants, he then had to contend with obstacles ranging from the paper chase needed for a bank account and apartment, through to just getting an appointment to have his work permit approved.

"It's a circle without exit in which one thing depends on the other and there is no logical order," said Madrigal.

"Germany wants to attract workers, but they need to establish some logical steps to follow," added the 33-year-old, who after taking a crash course in German and navigating all the red tape landed a job with the Berlin arm of tech consultancy InterWorks.

Germany, like industrialised countries around the world, is facing deep labour shortages, particularly in skilled high-growth sectors, which are taking their toll on an economy that could yet face a recession this year.

More than half of Germany's companies are struggling to fill vacancies, according to a survey by the German Chamber of Commerce and Industry (DIHK). It estimates that two million posts remain unfilled, worth nearly 100 billion euros ($106.03 billion) of lost output.

"It is too difficult to come to Germany," Hagen Wolfstetter, a labour expert at the BVMW association for small- and medium-sized businesses, told Reuters, citing in particular under-resourced consulates and excessive paperwork.

Aware of the difficulties, the German government is looking to speed up the issuance of visas and is drawing up new legislation to help foreign workers establish themselves in Germany. The draft law was submitted to the states and relevant associations on Monday for comments until March 8.

Although not alone in facing labour shortages, Germany does not benefit from language and other ties with former colonies. Britain, Spain, France and Portugal all have such links making migration and integration easier.

"We have seen how people struggle when they arrive," said Justus Niemzok, Madrigal's supervisor at his employer InterWorks. "We are very happy to support people to come here, but we are a small company."

With official estimates that Germany's ageing society will be short seven million skilled workers by 2035, Labour Minister Hubertus Heil warned in January that the skills shortage could become a "permanent brake on growth".

However, Germany does not have a long-established history of immigration and the need for greater reliance on foreign labour will need a change in mindset. Even the Turkish workers who were brought in from the 1960s to help with post-war rebuilding were labelled "Gastarbeiter" - temporary "guest workers."

Ulrich Herbert, history professor at the University Freiburg, said the "Gastarbeiter" experience was already a first step in a slow process.

"Since it became clear that most of them would stay here, this changed, although it wasn't until the late nineties that Germany accepted being a country of immigration," Herbert said.

POINTS-BASED

The new law aims to address key hurdles for migrants to Germany, including the complex process for the recognition of educational credentials.

Under the proposals, professional experience will be given more value. A candidate will need a minimum of two years working in the sector of the open position and a degree, or vocational training, related to the job, even if this certificate isn't officially recognised in Germany.

The draft law also includes a new "opportunity card" with a points-based system that takes into account qualifications, language skills, professional experience, connection to Germany and age.

With this card, obtained before arrival, individuals with potential will be allowed to stay in Germany to find a job. Unskilled workers will be allowed to enter if the Federal Employment Agency (BA) identifies an acute shortage in a sector.

One controversial issue has been the reward of points for ability in German, which lead to complaints from some associations who say English should also be rewarded as it is enough for some jobs.

While the first challenge is attracting talent, the second one is ensuring that the talent wants to stay.

Madrigal is planning to stay in Germany as he wants to grow inside of his company, InterWorks. "For me, this is a long-term project," he said.

($1 = 0.9431 euros)

Germany