How International Students Strengthen the Economy

The German labor market needs immigration.

This in itself is nothing new. However, a new IW study commissioned by the DAAD now provides, for the first time, reliable figures on how many international students remain in Germany as workers in the long term and what an enormous contribution they make to the German economy.

About 59% of international students are still in the country nine years after their arrival; about 45% make the transition from their studies to the German labor market; and about 34% of an international freshman class remain in Germany as skilled workers until retirement. For the state treasury alone, these immigrant academics represent a significant gain.

Using the class of 2023—with approximately 81,800 international first-year students—as an example, the IW calculates that these future skilled workers and academics will provide Germany with a long-term contribution to value creation of 127 billion euros and a fiscal surplus of 23.1 billion euros. Just two years after graduation, these graduates pay more in taxes and social security contributions than they previously received in government benefits. Based on these figures, the acute shortage of skilled workers, and the demographic shifts outlined above, the DAAD advocates for an expansion of enrollment capacity and support services for international students.

We were also interested in these topics:

• The “transition sector” as a holding pattern: The Bertelsmann Foundation’s new change magazine reports on more than 250,000 young people who end up in limbo between school and vocational training each year, often without concrete prospects for the future. Better counseling, professional guidance, and consistent points of contact can help.

• The Labor Market in the Second Quarter: The IAB Job Vacancy Survey 2/2026 shows that the number of job openings has fallen by 11% compared to the previous quarter. Also in focus: nearly three out of four job applications are unsuitable from the employer’s perspective. The IAB notes that this is a consequence of the current period of significant transformation.

• Work-Life Balance: Die Zeit reports (€) on ten professions where work-life balance is still good.

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