Economy
If you are planning to work in Germany, here is good news: the German economy is Europe’s largest, fueled by exports of machinery, vehicles, chemicals and household equipment. The World Bank (2011) ranked Germany’s over US$3.6 trillion Gross Domestic Product (GDP) fourth out of 192 countries studied. Germany ranked ninth out of 142 countries on the Legatum Institute Economy Sub-Index (2013).
Germany’s economy benefits from a highly skilled workforce that produces high productivity per worker and a strong domestic market, the world’s third largest. A large proportion of manufactured exports are high-tech products, placing Germany in the top 30 countries in that export category. Export of goods and services amounted to over US$1.4 trillion in 2012. The country produces about 10 percent of all global exports with only 1 percent of the global labor force. Imports totaled just over US$1.0 trillion.
For the future, Germany faces significant demographic challenges to sustain long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country’s social welfare system. The country’s GDP is growing at an annual rate of 0.7 percent, but Germany’s central bank forecasts it may be lower in 2013. Unemployment remains over 5 percent, which is good compared with most industrial nations. Inflation remained low at 2.0 percent in 2012, but is forecast to be lower in 2013.
Finding a Job
The German economy historically has been based on manufacturing, but things are changing. The service sector is growing rapidly and now makes up nearly two-thirds of all jobs. Industries like information technology and sales and marketing are aggressively looking for qualified employees who have German language skills to work in Germany.
However, Germany’s high unemployment rate makes finding a job a challenge, with the exception of those with high technology and sales and marketing skills. A good place to start is a local employment office (Arbeitsamt), which maintains a job bank of opportunities. The classified sections of the daily papers are another source, as are private placement and temporary employment agencies. Two of the largest temporary agencies in Germany are Randstadt and Adecco. Computer specialists might want to visit Computerjobs 24, a data bank that allows you to search for jobs or list your services at no cost. All sites are in German, so the more fluent you are in the language, the better your chances are to find work in Germany.
One of the best ways to find work in a new country is to network your way in. Check the online country and city forums and bulletin boards to uncover opportunities and connect with expats who may be able to steer you in the right direction.
To get you started, here is a list of websites that may help you in your job search:
Job
Germany USA
Monster
Stellen
Stellenmarkt
Starting a Business
Germany is the United States’ largest European trading partner and the sixth largest market for U.S. exports. The World Bank (2012) ranked the country ninety-eighth out of 183 countries on its Ease of Starting a Business Index and nineteenth on its Ease of Doing Business Index. The Legatum Institute ranked Germany eighteenth out of 142 countries studied on its Entrepreneurship and Opportunity Sub-Index (2013).
The German market, the largest in the EU, is attractive for new business opportunities in computers, computer software, electronic components, health care and medical devices, synthetic materials and automotive technology. Although there is a generally higher cost of doing business in Germany, there are also high levels of productivity, a highly skilled labor force, quality engineering, a first-class infrastructure and a location in the heart of Europe. The most successful market entrants are those that offer innovative products that feature high quality and modern styling.
Like most countries, Germany provides some financial and/or tax incentive help for new businesses. The benefits are granted in the form of investment grants, tax benefits, low interest loans or loans with a state guarantee for exporters. Occasionally, the benefit is granted as a combination of an investment grant and low interest loans, depending on the geographic area of the investment and the size of the investing company. Benefits are divided according to two types of investments: an investment in new areas (East Germany, East Berlin) and an investment anywhere in Germany.