The eyes of the world are trained admiringly on the India of today. We are seeing how the world’s most densely populated democracy is currently addressing enormous challenges, reporting outstanding growth rates and how, in some sectors, it already occupies a position as a global leader. It looks very likely that India will make its mark on the 21st century.

Well-educated people are the key to economic and social progress. The Indian government is currently reforming the vocational training system, an area in which Germany and India have been working closely together for two decades. One of the main questions facing India is how it can provide the many millions of young and eager Indians with the opportunity of training and a good start to their professional lives?

In Germany, however, we are asking ourselves an altogether different question: how can we fill the many current and future vacant positions for well-qualified skilled labour? Despite approaching this matter from two different starting points, the question which is concerning both of our countries is essentially the same, namely how can we secure the skilled labour basis of the future?

Conducting a dialogue on these questions, in the same way as we work closely in exchanging ideas on other key issues, is a worthwhile exercise for both countries. Standing alongside a trading history which stretches back a good 500 years is a 60- year history of diplomatic relations between our countries. The most recent visit to India by Federal Chancellor Merkel in May 2011 marked a further chapter in this success story. The expected conclusion of a comprehensive Indo-German social security agreement will also see the partnership between our countries extend to the area of pensions.

The challenge facing Germany in the years to come: who will do the work of the future?
There are countries whose economic strength is based on oil reserves or other natural resources. In this respect, we have never been particularly blessed in Germany. Instead, our prosperity is thanks to the people who live and work in our country, most notably the well-educated skilled labour with their expertise, ingenuity, performance at work and everything that is associated with these factors: good schools and universities as well as an excellent system of initial and continuing vocational education and training.

Germany in 2011 is a country with a strong export industry and a flourishing, growing economy ,with innovative products and many companies who are global market leaders in their respective sectors. German medical technology and wind parks set technological standards while the country has long been in the vanguard in the field of mechanical engineering. We are so renowned for our engineering that the advertising slogan of one shoe manufacturer simply reads: “German engineering for your feet.”

Of all the OECD countries, we were one of those to emerge quickest and in the best shape from the trough of the economic and financial crisis. Companies are already posting record profits again. All around the world, countries are admiring and emulating the German jobs miracle. Nevertheless, we cannot afford to be complacent.

Since our economy is performing so well, we are having to address problems which many other countries would also be pleased to have. Over the coming years, the biggest issue facing Germany will no longer be how we can tackle mass unemployment and rising joblessness, but instead who will do the work of the future? Where are the well-qualified people who can help take our country forward?

The number of people in gainful employment stands at a record high. Yet more than a million jobs in German companies remain unfilled. In many places, there is a desperate need for skilled labour. Employers are extremely keen to recruit engineers or doctors. In the craft and service sectors too, the next generations of budding employees are highly sought after.
Our need for skilled labour will continue to grow in future. Work is shifting from simple mass production to the production of knowledge-intensive goods and services. Demographic change is leaving its mark as well: more and more people in our country have stopped working because of their age. In the last half century alone, the average age of both the male and female population has increased by 11 years.

Furthermore, the low birth rate of the last couple of decades means that there are fewer young people entering the German labour market than companies could employ. This stands in stark contrast to the situation in India where millions of young people join the apprenticeship and labour market every year.

Mobilising potential, restructuring immigration
The extent to which the trends outlined will have an impact on the German labour market in future depends on the political measures taken. We still have a considerable degree of potential in our country, most notably among older people and women. Despite being well qualified, many continue to work in positions where their skills are not being utilised to the full. At the same time, however, we know that this potential will be insufficient to plug the skilled labour gap. This is why Germany is setting out to also attract talent on the global labour market.

Let me just make some brief comments on the situation domestically. One of the most important tasks of the next few years will be for companies to rediscover that the wisdom and professional experience of older people can prove a key asset. In this respect, the last few years have witnessed a genuine rethink on the part of companies. More and more businesses are now understanding that while younger people may have a thorough grasp of the latest academic research, older employees possess valuable professional experience. The best solution is for younger and older employees to work together.

Improving the work-life balance is instrumental in increasing the number of women in work. The government and companies are working together in this area. We do not want women to give up their jobs in order to be able to look after their families. But neither do we want women to forego having children so as to focus on their careers. It should be possible to combine the two. This is why the government is increasing the range of childcare facilities that are available. Companies are being asked to create more family-friendly jobs.

With regard to the issue of how Germany will be able to maintain its prosperity, drive its economy forward and remain innovative over the next few years, we will concentrate more strongly than before on the global labour market. Other countries have long since been trying to attract the best people.

We have one of the safest countries in the world, our infrastructure is outstanding and day-to-day life runs smoothly. Innovative companies, world-class research and development, a rich culture, pulsating cities and delightful scenery are further arguments in Germany’s favour. However, these factors alone are not enough to attract talent from all over the world and to show them that it is worth learning our language and working in Germany.

Breaking down obstacles for foreign talent
In order to attract talent, we need to break down existing obstacles. Skilled workers from non-EU countries currently require a permit in order to be able to accept a job in Germany. For some people who could just as well work in one of our neighbouring European countries, North America or Australia, this poses too much of an inconvenience.

For individual professions where the shortage of skilled labour is already visibly acute, we are therefore making access to the German labour market easier. This currently applies to doctors as well as to mechanical, automotive and electrical engineers. It is a first step. Further steps will follow.
I am also supporting efforts to lower the minimum salary level that skilled labour from abroad needs to prove in order to be able to live and work in Germany on a permanent basis. This would particularly benefit young university graduates with little professional experience. However, it is even more important that we set out to try and attract global talent to Germany via chambers of commerce abroad and other channels. Our aim is to appeal to people who can take our country forward.

To this end, we should build on existing partnerships. Our cooperation in vocational training is not only of great benefit to India, it may also prove helpful in securing skilled labour for Germany.

We can create a triple win situation: Germany wins if foreign skilled labour comes to work in our country, people coming to our country win if they leave having acquired a good level of training and international professional experience with attractive companies, and the country of origin wins if these people can act as intermediaries between the countries, deepen the exchange of knowledge and build the bridges required in order for companies to gain a foothold and grow in the German market.

As the Labour Minister for my country, I warmly invite talent from all over the world to come to Germany. We welcome you because you enrich our country. I would be delighted if young Indians too were to head to Germany. The global labour market will have many winners.