Germany's labor market is very attractive to expat talent. Thanks to one of the lowest unemployment rates in the world and a continuously thriving economy, Germany is one of the leading entrepreneurship and career development destinations in Europe. Professional expats are keen on establishing their careers in a country with an ever-growing industrial production, significant exports worldwide, and quality working conditions. Major German cities such as Berlin, Munich, and Frankfurt gather most economic activities, including a large part of the industry and services.
Job opportunities in Germany
According to the Federal Government, in August 2022, the unemployment rate in Germany is set to be 3.3% in 2024. At the same time, youth unemployment in Germany is also very low (5.6% at the beginning of 2024), whereas that's not the case for other EU member states. Germany's success is primarily thanks to an efficient higher education system, which is not merely theoretical and is continuously modernized to meet the needs of the contemporary labor market.
The best job opportunities in Germany are in the IT sector, manufacturing industry, healthcare (especially nursing), engineering, science (especially pharmaceuticals), and commerce. However, regardless of the field, a certain level of knowledge of the German language is usually required to take up employment in the country. That may not be the case if the job is in a multinational company or if it is an unskilled job. German Working Holiday Visa holders and student visa holders stand good chances of finding seasonal jobs in the tourism sector or agricultural activities such as fruit-picking and grape harvesting.
Good to know:
Most job opportunities arise in Southern Germany, in Baden Württemberg and Bavaria, namely Stuttgart and Munich. Also, Frankfurt and the Rhine-Ruhr metropolitan area offer significant job opportunities.
Joining the German labor market
If you wish to enter the German labor market, you can start your job search from Expat.com's Jobs in Germany page. Once you find an advert that excites you, you can prepare your application documents and send them either via email to the HR team or via the company's website. Usually, the details about the application's submission are at the end of the job advert.
Three documents are mandatory for most job applications — the CV, cover letter, and professional references. Whereas the German cover letter is similar to cover letters across the world, the German CV may differ — namely, a photograph is expected on the CV. If you have relevant certificates (e.g., vocational training, university diplomas, etc.), don't hesitate to include them in your application. However, it would be best if you translated them into German or, at least, to English.
After submitting your application, you should wait for your invitation to an interview, which is your chance to impress the recruitment team. Among the typical interview questions, expect to be asked about your salary expectations. Also, even though the interview may be conducted in English, be prepared to do some small talk in German, as recruiters may want to test your level of German language skills. Lastly, recruiters may ask you why you want to work in Germany and what you expect from your expat life in Germany.
Good to know:
Some companies conduct group interviews, meaning that several candidates participate in group workshops and presentations or do role plays. These kinds of interviews are especially common for managerial positions when recruiters try to assess the candidates' problem-solving skills, teamwork, and stress management skills.
Attention:
When applying for a job in Germany, talk with the recruiters about the country that you're applying from and what type of work visa or residence permit you will need to work in Germany. Clarity will allow recruiters to help you with migration procedures and save you time if they aren't after international talent.
Unemployment benefits in Germany
In spite of Germany's low unemployment rate, it is still likely that finding a job in Germany may take a while. Hence, if you are looking for a job or your current contract is about to terminate in three months or less, you should register with the local employment agency (Arbeitsagentur). The registration should be in person and only for residents in Germany. Expats in Germany who have been contributing towards an unemployment insurance scheme in an EU-EEA country can transfer their entitlements to Germany.
Attention:
To be entitled to unemployment benefits in Germany, you must have contributed towards social security during your previous employment before you became unemployed.
Useful links:
Find your local employment agency
How to transfer unemployment benefits to Germany
Working conditions in Germany
In principle, working conditions in Germany are good. By law, the weekly working hours are 48 hours maximum. However, collective labor agreements in German companies may reduce the working time between 35 to 40 hours per week. In fact, most full-time positions are based on 40 hours per week. Also, German employees benefit from a minimum of 24 holidays per year — bank holidays and weekends excluded. Yet, the German average for holiday days is between 25 and 30 days per year.
Before undertaking employment in Germany, you should receive a written employment contract from your employer. The contract must state, among other things, the salary, paid leave, and working hours. Other information to look for includes:
- the start and end dates;
- probation period (if any);
- location of placement (or remote work);
- notice period;
- and the job description.
The HR department of every company should make sure to clarify any unclear information and answer any questions you may have regarding your employment conditions.
Attention:
The salary stated on your contract is the gross salary before the deduction of taxes and social security contributions (e.g., healthcare coverage, pension, and unemployment benefits). An additional deduction is the solidarity surcharge (Solidaritätszuschlag), which was introduced in 1991 to cover the costs of German reunification.
Good to know:
Most companies are highly hierarchical in their structure, with strongly defined roles and decision processes. Hence, the notice period, even for non-managerial positions, may range between 3 to 6 months, delaying recruitment processes.
Wages in Germany
Generally speaking, each company sets its own salary scales according to collective labor agreements and based on ability, skills, and experiences (Tariflohn). Usually, salaries are higher in West Germany than in the eastern regions. On average, a person's monthly gross income in Germany ranges from 2,500 to 4,000 euros, excluding bonuses, but this can increase depending on the industry. Among the highest-paid sectors are the financial sector, information and communication, science, and education sectors. The lowest paid sectors are transportation, construction, accommodation and food, and administration.
Unfortunately, the gender pay gap between men and women remains significantly higher (18% in 2024) than the European Union average (12% in 2024). However, when the pay gap is researched among men and women employed in the same positions and for the same working hours, the gap reduces to a one-digit number. Nevertheless, Germany is continuously working towards creating a fair and transparent labor market, which is why it introduced some critical labor market policies. For example, with about 60 percent of women in the labor market, Germany is among the top EU countries regarding equal labor market participation. But, of course, there's still a long way to go until women stop being underrepresented in higher management jobs.
You may hear people in Germany talking about Collective Bargaining Agreements (CBA). These are salary and employment conditions agreements between trade unions and employers' organizations of the same industry. Individual companies are also free to implement their internal employment practices and rules (known as company agreements) as long as they are approved by the workers' council — the body representing the employee's interests. In other words, there is no regulation at the national level covering the whole of the economy in Germany, and the main union confederation, the DGB, does not generally have the mandate to negotiate.
Good to know:
Overtime is not entirely regulated by the country but by the company's board members and managing directors.
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