Hire in Germany

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Germany is one of the most scientifically advanced countries and home to several prominent corporations. The country's overall population is 83 million, but the country astonishingly has a less than 5% unemployment rate with an overall GDP of $4.31 trillion. It also happens to be the biggest trade partner of the United States. With the implementation of great strategies and protocols, the country was impressively able to combat the COVID-19 pandemic.

With increasing advancements in technology, Germany has become a preferred choice for qualified professionals seeking employment in various sectors. Germany is also known for its intriguing and rich history, breathtaking landscapes, and multicultural society, a big draw for expats worldwide. There are many opportunities available here, and the authorities are willingly opening doors for talented people seeking to progress their careers in Germany.

Overview of Germany

Germany is one of the most developed countries in the world. In Europe, it is considered to have the largest economy and ranks 5th globally in terms of its GDP. The service sector dominates the country and contributes 70% to the economy and is followed by automotive, chemical, mechanical and electrical sectors that contribute 23.4% to the economy and employ more than 6.2 million people. After this, agriculture, forestry, and fishery contribute 6% to the country's GDP.

Total population: 83 million+

GDP: US $4.3 trillion (2020)

Economic overview

Germany is a leading country in industrial development and has an overall GDP of US $4.3 trillion (2019). Despite strong restrictions on the country's activities due to the COVID-19 outbreak, it has retained its overall reputation as a global economic powerhouse. The GDP growth rate for the year 2020 has been pegged at 4.7%, and with the stabilization of the pandemic situation, this number will increase in the years to come. The country has also witnessed an overall drop in the unemployment rate over the years.

Market Size

Germany happens to have the largest consumer market and largest trading partner with the United States in the European Union. Despite the global impact of the COVID-19 pandemic, the country's progress has not been halted. It has also witnessed an overall drop of 10.1% in its GDP compared to the previous year, while the unemployment rate is only 4.5%, according to 2020 reports. Finance, research, health services, and automobiles are the most prominent sectors in the country.

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A Brief Glimpses of the Industries

  • The service sector contributes 70% of the total GDP of the country. Besides, it generates employment opportunities for over 70% of the working population. Tourism, finance, telecommunication all fall under this sector. Germany is a very popular tourist destination and a major financial hub, drawing the attention of many national and international investors.
  • The country also exports around the US $1,810.93 billion worth of material to many countries (2019). The export sector uses 41% of the nation’s manufacturing output. This includes the export of vehicles, machinery, transports, pharmaceuticals, electrical equipment, etc.
  • Apart from this, the authorities encourage a variety of research. Students are invited to carry out their Ph.D. research, and many of these projects are publicly funded. This has led to bridging the gap between theoretical knowledge and practical application and has led to the awakening of scientific temper amongst the masses.
  • This country is also the first one to implement Energiewende, the approach to renewable energy production. Many of the large companies here are family-owned. The headquarters of companies like Fortune Global 2000, Allianz, Daimler, BMW, Volkswagen, and 53 other multinational companies are all present here.
  • Germany is a polycentric country with a stock exchange situated in Frankfurt. Bertelsmann SE & Co. KGaA, the largest media company, located in Gutersloh, and the largest car manufacturers are in Munich (Audi and BMW), Stuttgart (Mercedes Benz), and Wolfsburg (Volkswagen).
  • The lowest unemployment rate is recorded in Bayern and Baden-Wurttemberg (around 3.7% and 2.1%, respectively).

Cost of Living in Germany

Compared to the other European companies, Germany is comparatively cheap and holds 15th rank in living costs. Even though the country is slightly heavily populated, living standards are extremely good, and the cost of living may vary with the city and desired lifestyle. But the most affordable places to live in are Bielefeld and Passau. The average monthly expenditure recorded in Germany is mentioned below: -

Category Estimated Cost in Euros Estimated Cost in USD
Place to live (apartment) €908 US $1084.22
Transport (train, bus etc.) €379 US $451.64
Food (groceries, beverages etc.) €360 US $428.99
Leisure, culture €304 US $362.26
Furniture, household, goods €137 US $163.26
Restaurants and hotel €168 US $200.02
Clothes €122 US $145.38
Health €115 US $137.04
Communication €71 US $84.61
Education €28 US $33.37
Miscellaneous €111 US $132.27

Cost of Renting

Depending upon the location and amenities, the cost of renting varies slightly. The average cost in Germany for shared accommodation is between $357.49 to $953.32. For a single-bedroom apartment, the rent is somewhere around $834.15. The city preferred is based on the availability of resources in the locality, and the lifestyle desired heavily influences the renting costs.

Cost of living based on the location:

The most expensive cities in Germany are Frankfurt and Munich. This is because these places offer numerous job opportunities, entertainment options to enjoy the weekends, and breathtaking landscapes, which are a focal point for the tourists. They are home to the biggest European banks and have foreigners coming in large numbers.

  • Metropolitan or tier-one cities are Berlin, Hamburg, and Munich.
  • Tier two or recently fast-growing cities are Potsdam, Dresden, and Erfurt.
  • Tier two cities showing steady growth are Halle, Magdeburg, and Jena.
City Cost range in Euros Cost Range in USD
Munich €860 - 2,900 US $1,000 – 4000
Frankfurt €860 - 2,900 US $1,000 - 4,000
Hamburg €820 - 2,800 US $960 - 3,300
Cologne €820 - 2,800 US $960 - 3,300
Stuttgart €800 - 2,700 US $930 - 3,200
Sr. No. Top Industries looking to hire
1 Medical Professionals
2 Engineering Professionals (Structural engineer)
3 Computer Science Engineers
4 Telecommunication
5 Research Laboratories
6 Professors
7 Electrical Engineers
8 Technicians
9 Managers

Top Skills in Germany

A variety of skills are required to be a part of the German workspace. The country pushes a lot of research at various scales; a gap between the theoretical understanding and practical implementation of skills is bridged here. Individuals possessing various hard and soft skills are hired very frequently in private semi private and many other organizations.

A few areas that have witnessed major growth in the country:

  • Research and development
  • Academics
  • Technicians
  • Engineers (IT, automobile)
  • Animation
  • Hospitality (for tourism and entertainment sector)
  • Linguistic (performing arts, languages)

Top Cities occupation wise and their average salaries

  • Berlin: The capital city of Germany is Berlin. The average salary of an employee here is around €50,000 (US $59,554.75). This city offers a variety of opportunities and jobs. Students from foreign countries come with their dreams and do not go back empty-handed. ICT companies, the entertainment sector, media houses are all present here.
  • Frankfurt: The city is the fifth-largest in the country and has around 717,624 citizens. The monthly salary in the city ranges from €1,020 (US $1,214.92) to €18,100 (US $21,558.82). This city has one of the lowest employment rates in the country, which is even below 5%. Few major occupations here are finance, telecommunications, logistics, and pharmaceuticals.
  • Munich: The largest city of Bravia and employs around 750,000 people. The median salary in this city is around €46,309(US $55,301). It also happens to be the largest supplier of highly qualified employees in the country. Major occupations here are relating to biotechnology, electronics, media houses, and the automobile industry.

Hiring costs in Germany

The employer must look into several factors before recruiting any employee in Germany. Some of the most important factors are mentioned herewith: -

  • Onboarding and training procedure
  • Training period and cost of hiring
  • Cost of Interview and onboarding

Salary structure for various roles

The table below highlights the average salaries that are offered to employees in Germany based on different sectors: -

Jobs Avg. Salary (USD)
C Level Executive $133,577
Dentist $76,642
Data Scientist $70,626
Software engineer $55,301
Copywriting $55,231
Mobile developer $53,980
Human Resource manager $50,337
Electrical engineer $52,741
Operation manager $50,281
Business analyst $53,146
Attorney $68,911
QA Engineer $70,597
Finance manager $75,341

Employment laws in Germany

The employment laws are fair and provide a flexible environment to the individuals hired. Some of these laws are: -

  • Terms and Conditions of the employment
  • Data protection and privacy employee privacy
  • Maternity and family leave rights
  • Discrimination
  • Business scales
  • Protecting business interest following termination
  • Court practice and procedure

How Can Skuad Help You with Hiring in Germany?

Conducting recruitments in Germany is an expensive and time-consuming process, thereby acting as a drain on your resources. But when you partner with Skuad, all your hiring requirements are taken care of by utilizing its unified employment platform. Connect with Skuad to know more.

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