Germany is reporting yet another record in the number of international students starting their studies. At the same time, the retention rate of foreign graduates remains too low despite high demand. Businesses are facing a worsening skill shortage, especially in the STEM (Science, Technology, Engineering, and Mathematics) fields. What solutions are available?
This article was the Topic of the Week in the 2025 newsletter for Week 47.
Record Number of Freshmen – Few Stay
In the last academic year, over 116,000 international students enrolled for the first time at a German university—a new record. However, statistics show that only about half of these international freshmen establish long-term roots in Germany. This means the local economy is losing critical workforce potential.
STEM Professionals Urgently Needed
Despite the overall challenging economic situation, companies in Germany continue to struggle with a shortage of qualified professionals. The situation is particularly dire in the STEM fields (Science, Technology, Engineering, Mathematics): According to figures from the German Economic Institute, there are currently a shortage of 55,000 academically qualified STEM experts, and the trend is growing. The total gap in these occupations, including skilled workers, masters, and technicians, is estimated to exceed 160,000 positions.
The most acute shortages are in IT, but there is also a lack of electrical engineers, mechanical engineers, and civil engineers. International STEM professionals significantly contribute to the German job market: Without skilled personnel with foreign citizenship, the overall STEM gap, with about 600,000 unfilled positions, would be considerably larger.
Emigration Despite Desire to Stay
The potential of international university graduates for securing specialists for the German economy is notable: Currently, more than 50,000 men and women from abroad successfully complete their studies in Germany each year—over half of them in STEM fields. The downside: While Germany ranks alongside Canada as having the highest retention rate of international students according to the OECD, more than half of them have left the country ten years after completing their studies, even though two-thirds of this group expressed clear intentions to stay at the beginning of their studies.
Challenges in Starting a Career
This shows that while foreign professionals are indispensable for the German job market, there are still numerous challenges in providing international graduates with attractive prospects for staying and finding employment after their university studies.
How Universities Can Improve
Alongside a more generous legislative framework and better social integration, universities could support with a variety of initiatives. This specific group of students should be supported even more closely than before—for example, through international mentor- or buddy-programs. Teaching formats with strong labor market connections and integrative offers from student councils could also make a positive contribution.
How Businesses Can Attract Talent
Improving language skills and preventing dropouts are key factors. Additionally, international students should be given the opportunity to gain practical experience in the economy early on. Universities can support these efforts by establishing contacts with regional companies and Chambers of Commerce. Programs that offer specific help during the application process, such as mentoring programs, can be a good outcome of such collaborations.
Chambers of Commerce as Bridge Builders
Various Chambers of Commerce and Industry (IHKs) are already actively collaborating with regional businesses, universities, and other stakeholders to successfully integrate international students into the job market. With job fairs, digital matching tools, and university partnerships as part of funding initiatives, they are setting meaningful examples in combating the STEM skill shortage. Hopefully, these efforts will inspire many to follow. Only through joint efforts can the valuable and urgently needed workforce potential of international students be leveraged for the German economy.
- Relevant in topic:
- Fachkräfte
- Key areas:
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- Integration
- Beschäftigung
- Hochschule
Released 19.11.2025
Modified 10.02.2026
Contact
Julia Flasdick
Director Education Policy, Universities, Research and Structural Issues