International students who complete their studies in Germany are significantly more likely to secure employment and remain in the country than migrants who arrive directly to seek work, according to a new report examining the transition from higher education to the labor market.
The report, Between Graduation and Career Entry: How Immigration Through Higher Education Facilitates Labour-Market Entry and Retention of International STEM Professionals, was published in May 2026 by Stifterverband and DEGIS in partnership with Fintiba. Drawing on a survey of more than 6,400 international students, graduates, job seekers, and professionals from 134 countries, the study argues that universities play a crucial role in addressing Germany’s growing skills shortages, particularly in STEM fields.
Universities as a pathway to skilled migration
Germany faces mounting demographic pressures as large numbers of experienced workers approach retirement. According to the report, approximately 1.85 million STEM workers are expected to leave the labor market within the next decade, while domestic talent pipelines are unlikely to meet future demand. Germany currently faces a shortage of around 148,500 STEM professionals, particularly in engineering, manufacturing, construction, and technical fields.
Against this backdrop, international students are viewed as a critical source of future talent. More than half of international students in Germany are enrolled in STEM programs, making higher education an increasingly important channel for attracting skilled workers.
The study found that migrants who entered Germany through higher education were more than three times as likely to be employed than those who migrated directly to search for work. Researchers argue that studying in Germany provides time to develop language skills, build professional networks, gain practical experience, and become familiar with the country's labor market before beginning a job search.
Language skills remain a key factor
German-language proficiency emerged as one of the strongest predictors of successful labor-market entry.
International graduates who had secured employment reported significantly stronger German-language skills than those still searching for work. The relationship remained significant even after accounting for differences in the length of time respondents had spent in Germany.
However, the report highlights a challenge for universities. Around 80 percent of international students study in English-language programs, while only 14.5 percent reported that German-language courses were compulsory within their degree programs. As a result, language acquisition often depends largely on students’ personal initiative rather than formal curriculum requirements.
Researchers argue that expanding German-language provision and integrating language training more directly into degree programs could improve graduates’ employment outcomes.
Practical experience matters
The study found that academic performance alone does not determine employment success.
International graduates who had participated in internships, company-linked thesis projects, applied coursework, or other practical learning experiences were more likely to transition successfully into employment. Among employed graduates, 38.8 percent had completed a company-linked final project, compared with 30.4 percent of those still seeking work.
Student employment also played an important role. International students who held jobs related to their field of study during their studies were substantially more likely to find employment after graduation. By contrast, students who worked in positions unrelated to their academic field were less likely to make a successful transition into the labor market.
The findings suggest that stronger connections between universities and employers can help students gain relevant experience before graduation and improve long-term employability.
Networks influence integration and career success
Beyond academic preparation, social and professional networks were found to play a critical role in both employment outcomes and long-term integration.
International graduates with stronger professional and personal networks in Germany reported higher levels of job satisfaction and found it easier to adapt to German workplace culture. More than one in five employed respondents reported obtaining their job through personal or professional connections.
The report also found that stronger professional networks were associated with higher starting salaries. International graduates with German professional contacts, STEM qualifications, and master's degrees generally reported better salary outcomes than those without such advantages.
Among employed respondents, the median annual starting salary was between €45,000 and €50,000. However, nearly one-quarter reported earning less than €35,000 annually despite working in graduate-level positions related to their qualifications.
Employment linked to long-term retention
The report concludes that successful labor-market integration is closely linked to international graduates' decisions to remain in Germany.
Respondents who had secured employment were more likely to express long-term intentions to stay in the country. International graduates who entered Germany through higher education were approximately 1.6 times more likely to extend their plans to remain in Germany than those who migrated directly for employment.
At the same time, the research highlights persistent barriers. Among respondents who had revised their plans and become less certain about remaining in Germany, the most commonly cited concerns included difficulty finding employment, economic uncertainty, bureaucratic challenges, social integration issues, and language barriers. Nearly half of those who had already left Germany reported that external factors—including visa problems, financial difficulties, and integration challenges—had influenced their decision.
Calls for stronger university-industry collaboration
The report recommends that Germany place greater emphasis on higher education as a strategic migration pathway and invest more resources in supporting international students throughout their studies and transition into employment.
Among the recommendations are expanding German-language instruction, increasing practical components within degree programs, strengthening university career services, simplifying visa procedures, and improving cooperation between universities and employers. Researchers also argue that universities should receive greater support as key institutions for attracting and retaining international talent.
As Germany competes with other countries for highly skilled international graduates, the report suggests that success will depend not only on attracting students but also on helping them build careers and long-term lives after graduation.
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