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Development of the Labour Market

Searching for qualifications

The occupancy of highly qualified positions has been decreasing since 2005 in Saxony. After overcoming the financial and economic crisis and the growth process starting in 2010, the industry's need for skilled workers has increased strongly. In 2011, 21 percent of all jobs offered remained vacant. Thus, the number of vacant jobs for qualified employees in Saxony was as high as in the mid-1990s.

Demographic Trend

Over Proportional Loss of Labour

More than 638.000 of Saxony’s population have left since 1990. That is almost 13%. To the year 2025 it is likely that a following 8,7% will leave. Then the total number of migrants leaving Saxony will be equal to the population of Saxony’s cities, Dresden and Leipzig. The low birth rate is the main reason for this trend. This makes Saxony’s average age, over 46 years old, the highest in Germany.

Qualified Labour Deficit

Too Few and Simultaneously Too Many

The unemployment rate in Saxony was over 10% in 2011. This has been the lowest unemployment rate since the German reunification. Nevertheless, the need for skilled workers in some industries differs on a regional level. Sometimes it is impossible to meet the industry's need from the group of job-seekers because job profile and individual qualification and competence do not match. The need for qualified workers can only be partly met by vocational and further training because further vocational training cannot qualify every job-seeker randomly for every need.

1 year of free movement for workers with the new EU member states

Moderate immigration flow – Saxony remains a transit state

Since May 2011 citizens from the eight Central and Eastern European EU member states (EU-8 member states) have been allowed to work in Germany without restrictions. By June 2012 4,300 additional employees had come to Saxony from these countries. These are only 2.9 percent of the additional employees from these countries in Germany. Saxony does not benefit from its close location to the border but remains a transit state. Most of the EU citizens move to the economic centres in Western Germany.

Migration in Saxony

In 2011, there were more people moving into than out of Saxony

In 2011, the migration balance has been positive for the first time for many years, i. e. more people moved into than out of Saxony. Clearly increased immigration played a significant role. Since 2010 however, there has also been the tendency of Germans returning to the Free State.

Right immigration policy

Clear increase in migration by foreigners in 2011

In 2011, over 5,000 foreigners more moved into than out of Saxony. This is ten times as many as in 2010. Immigrants are clearly younger than the Saxon population having an average age of 38.8 years compared to 46 years. Foreigners in Saxony are well-qualified. There is a high potential of labour force if their qualifications obtained in foreign countries are recognized. 85 percent of the inquiries regarding recognition of qualifications received by the Information and Counselling Centre for Recognition Saxony (IBAS) are made due to an intended start of employment. 71 percent referred to the recognition of an academic degree.

Nationalities in Saxony

Europeans and Vietnamese

One third of all foreigners in Saxony are Europeans. A share of more than 22 percent is from the Russian Federation, Poland and Ukraine. Vietnamese is the largest single nationality among foreigners in Saxony with a share of 9 percent. The foreign population clearly differs from the one in the Western German States.

Origin and Motivation

Europe or Asia and Career or Children

From the foreigners who arrived in Saxony in 2011 over 41% were from the EU, 15% from Non-EU-states like Russia and the Ukraine, another 7% from North and South America and a strong representation from Asia with almost 28%. Part of this group can be explained as family members joining Vietnamese already living in Saxony, another significant group are Chinese who come here to study. This is not a local phenomenon but can be seen world-wide as the Chinese student population spreads out. Generally they return to China after graduating.

Foreigners in Saxony

Differences between East and West

The number of foreigners, as a percentage of the population, living in the East of Germany is with 2-3% well below the average throughout Germany. In 1989 in the German Democratic Republic the percentage was also 2-3%.