Study: IT specialists and engineers, especially in southern Germany, often come from abroad

It's a scenario that seems contradictory at first glance and is causing uncertainty for many HR departments and international experts alike. While headlines about factory closures and job cuts in German industry are increasing, companies in the economic heartland of southern Germany are desperately fighting for qualified engineers and IT specialists . The current analysis of the VDI/IW Engineering Monitor for the third quarter of 2025 paints a picture that we are seeing more and more frequently in our daily consulting practice: an economic downturn coinciding with a deep-seated, structural deficit . Anyone who believes that the issue of visa law and skilled worker immigration will lose relevance due to rising unemployment is sorely mistaken. In fact, the opposite is true, because securing Germany's technological sovereignty depends more than ever on the smooth immigration of highly qualified individuals.

The bare facts behind the Bavarian paradox

Looking at the hard facts, a clear discrepancy between the regions emerges . In Bavaria, unemployment among engineers and IT specialists has risen by a substantial 30.1 percent compared to the previous year, while in Baden-Württemberg it has increased by 25 percent. However, these figures should not obscure the fact that the so-called skills shortage index remains alarmingly high. Nationwide, there are still 173 open positions for every 100 unemployed people in these occupational groups. In Bavaria, this figure, at 208, is even significantly higher than the average.

We are witnessing a development that demands precise legal and economic management. Companies are not looking for just anyone, but for specialists who are often simply no longer available domestically . This is where the Skilled Immigration Act (FEG) comes into play, particularly the regulations concerning the EU Blue Card pursuant to Section 18g of the Residence Act . This is and remains the most important instrument for meeting the demand in shortage occupations. Despite economic fluctuations, the legal hurdle for granting these residence permits remains stable, as the legislature has recognized that innovation cannot be paused simply because the economy is experiencing a temporary stagnation.

The South as a magnet for international talent

It is particularly striking that the regions with the strongest increases in unemployment also have the highest proportion of foreign skilled workers . Bavaria and Baden-Württemberg are significantly above the national average in this regard. Almost 27 percent of the total employment growth in engineering professions since 2012 can be attributed to international experts. In Bavaria, 13.9 percent of engineers are now foreign – a figure that demonstrates how systemically important immigration has become for the Free State.

Our law firm handles numerous cases in the greater Munich area, a region that plays a leading role nationwide. Districts like Starnberg have a foreign-born workforce in engineering professions exceeding 30 percent. This is largely due to the influence of the Technical University of Munich (TUM) , which serves as a breeding ground for talent. For us as lawyers, this often means supporting students during their transition from university to their professional careers. According to Section 20 of the German Residence Act (AufenthG), graduates of German universities have the right to remain in the country to look for work – a privilege that gives Bavarian companies direct access to world-class talent before they are poached by international competitors.

The role of politics and the new work-and-stay agency

The realization that the engineering market would collapse without migration has now also reached the political sphere. Plans to establish a central " work and stay agency " are expressly welcomed by experts. We share this view, but urge caution in its practical implementation. A centralized system is only efficient if it incorporates the decentralized knowledge of local immigration authorities and the expertise of specialized legal representatives.

From a legal perspective, accelerating the procedures is the bottleneck. The accelerated skilled worker procedure under Section 81a of the German Residence Act (AufenthG) already offers a way to significantly shorten waiting times. Nevertheless, in practice, we often see that the recognition of foreign qualifications (Section 18, Paragraph 2 of the German Residence Act) becomes a bureaucratic stumbling block . A new agency must act as a catalyst here, not as an additional administrative layer. Securing added value, especially in high-tech clusters like Munich, depends directly on how quickly a signed employment contract can be translated into a valid visa.

Conclusion: Migration as a life insurance policy for the southern region

In summary, the current economic downturn is merely a temporary mask for the real problem . Demographic change and declining student numbers in Germany will inevitably widen the gap further in the coming years. Foreign skilled workers are no longer just a supplement, but rather the lifeblood of industrial SMEs and large corporations in southern Germany.

As a law firm, we see it as our responsibility to provide legal security for this process. It's about utilizing the complex provisions of the Residence Act in such a way that companies gain planning certainty and skilled workers find genuine opportunities in Germany. The figures from the VDI Monitor are a wake-up call: those who abandon their efforts to attract international talent now will find themselves without the necessary expertise during the next economic upswing.

Would you like to learn how we can guide your company or your personal career through the complexities of German visa law ? Contact us for an initial consultation.

Here is the link to the VDI/IW Engineering Monitor for the third quarter of 2025: https://www.vdi.de/news/detail/ingenieurarbeitsmarkt-unter-druck-zwischen-krise-und-fachkraeftemangel