Rising insolvency figures and skilled worker immigration: What does the wave of insolvencies mean for international talent?

For years, Germany has been actively courting international skilled workers . Campaigns like "Make it in Germany ," accelerated visa procedures, and a modernized skilled worker immigration law are intended to strengthen the country's attractiveness as a business location. But while the government opens doors, the business sector is increasingly closing them: Germany is experiencing its most severe wave of insolvencies in almost 20 years . According to the German Association of Chambers of Industry and Commerce (DIHK), around 22,000 companies are facing closure – a historic high that is shaking the entire architecture of labor migration. What does this mean for people who come to Germany from abroad to work, begin vocational training , or establish a long-term presence? This blog post explores the risks involved, explains why many promises made abroad are unrealistic, and helps immigrants realistically assess their opportunities.

The discrepancy between skills shortage and company bankruptcies

Germany has been suffering from a structural shortage of skilled workers for years – particularly in nursing, skilled trades, logistics, IT, and hospitality. At the same time, however, the number of company insolvencies is rising dramatically. This apparent contradiction leads to a dangerous misconception: Yes, there is a shortage of skilled workers. But simultaneously, more and more employers are going out of business. This creates a paradoxical situation: On the one hand, policymakers are urgently seeking qualified immigrants, while on the other hand, many companies are under such severe cost pressure that they are forced to reduce staff or file for bankruptcy .

For foreign skilled workers, this means that entering the German labor market is becoming riskier , because newly hired employees are often among the first to be laid off when companies experience economic difficulties. Those who lose their jobs quickly face existential problems – not only financial, but also regarding their residency status. Many affected individuals report that they find it difficult to find alternatives after being laid off , because other companies in the same sector are also struggling or have implemented hiring freezes. The result is lengthy job searches, precarious employment, or even a return to their country of origin.

The imbalance is particularly evident in the case of apprentices : the pressure to cut costs is increasingly leading companies to replace regular employees with cheaper apprentices. However, for many, the supposed "German Dream" promise ends abruptly after the apprenticeship because they are not offered a permanent position and the company is struggling or already insolvent.

Why intermediaries, language schools and agencies often present a distorted picture

As the economic situation worsens, the recruitment of international skilled workers continues unabated. Language schools , recruitment agencies, and state-run welcome centers continue to spread the narrative of a stable professional future in Germany. The problem: Many of these players profit from placements – not from the truth. Recruiters often receive their fees long before it's clear whether the job is secure, whether the company is financially sound, or whether the probationary period will even be successfully completed. Once the money has been paid, many of them withdraw their services. No one bears the burden of any subsequent insolvency except the individual affected.

Furthermore, applicants abroad have little opportunity to verify the financial stability of German employers. Many rely on promises such as "secure future," "successful integration," or "guaranteed employment." However, these assurances lose their value when the industry is implementing massive job cuts or experiencing a sharp decline in revenue.

Conclusion: Realism protects – and sound advice is more important than ever.

Germany remains an attractive destination for immigrants – but the dream of many skilled foreign workers is more fragile today than it was a few years ago. Those coming to Germany should not only look at job offers, but above all at their stability. Economic uncertainties, rising bankruptcies, and massive cost pressures are making the job market more unpredictable for immigrants. Therefore, the rule is: critically examine promises and thoroughly research employers. Skilled immigration can work – but it needs honesty, not marketing.