How Germany is betting on international students amid demographic shift
Estimates suggest that by 2036, around 19.5 million people are expected to retire in Germany, while only 12 million will enter the workforce. The resulting talent gap has pushed skilled migration to the centre of the country’s economic strategy, with international students playing a critical role.
At The PIE Live Europe conference held in London, sector leaders from across Germany came together discuss the country’s expanding international education sector.
“There is a very open policy for skilled immigration,” explained Rishi Kumar, head of international growth at Mediadesign University of Applied Sciences, with campuses in Berlin, Munich and Düsseldorf.
“Qualified migration is probably the only option to keep up with economic and the labor market needs, and this is probably what distinguishes Germany from other destinations,” added Akos Kiraly, deputy director at SRH Higher Education.
“Other destinations might recruit students. We try to recruit talent, and students to fill classrooms… but the talent also fuels the economy.”
Akos Kiraly, SRH Higher Education
“Other destinations might recruit students. We try to recruit talent, and students to fill classrooms… but the talent also fuels the economy,” he added.
Germany’s rise comes at a time when traditional study destinations – including the US, UK, Australia and Canada – are perceived as becoming more restrictive.
“In the current climate, with major destinations facing more challenges, this is a big driver,” said Kamila Szalast, director of marketing and recruitment, Lancaster University Leipzig.
Speakers noted that where only a handful of German institutions actively recruited overseas students less than a decade ago, dozens are now competing globally, with many more beginning to follow.
“All the universities are actually winning in Germany,” said Kumar.
Germany’s growth is also reflected in national enrolment data. The country recently recorded a 6% rise in international student numbers, driven by a surge in first-year intake.
A key part of Germany’s appeal is the clarity of its post-study migration pathway. International students can work part-time during their studies, stay for 18 months after graduation to find employment, and then transition through a structured process: work permit, EU Blue Card, permanent residency and ultimately citizenship.
While Germany is often associated with heavy bureaucracy, speakers emphasised that the system is consistent and predictable – something many students increasingly value.
“It is predictable bureaucracy, yes, but you are prepared for all the steps,” said Szalast.
Research also suggests that international students who remain in Germany after graduation contribute significantly more to the economy than they cost – reinforcing the case for retention-focused policies.
The labour market is also becoming more accessible to international graduates, with increasing numbers of job postings being listed in English.
Despite the growth of English-language opportunities, speakers stressed that German language skills remain important, particularly outside large multinational companies. Small and medium-sized enterprises – described as “the backbone of the German economy” by Kiraly – still predominantly operate in German.
As a result, many institutions are attracting students through English-taught programs, while supporting them to learn German during their studies.
Germany has seen a sharp increase in English-taught degrees, with an estimated 2,400 programs now available. The vast majority – roughly 2,000 – are at master’s level, with fewer options at undergraduate level.
If these programs didn’t lead to jobs, they wouldn’t exist, claimed Kumar, noting that institutions closely track employment and retention metrics.
As international students become more focused on return on investment, German institutions are placing greater emphasis on employability. Partnerships with industry, including embedded certifications and practical training, are becoming more common. SRH University’s partnership with German software company SAP was cited as an example.
Despite its strengths, Germany’s international student experience is not without challenges. Housing shortages, particularly in cities like Berlin, remain a significant issue with students often having to live further outside the city or pay above market rates.
However, the picture varies regionally and smaller cities are increasingly positioning themselves as alternatives.
Purpose-built student housing developments, often backed by international investors, are also beginning to ease pressure in some locations.
Looking ahead, speakers were unanimous in their view that Germany’s growth in international education is far from over. With more institutions entering the international recruitment space, competition is increasing, but so is overall demand.
Szalast described the current moment as a major opportunity for both universities and education agents, urging institutions that are not yet active in Germany to enter the market and capitalise on strong demand, growing international collaboration, and the country’s long‑term need for skilled graduates.
However, this expansion may bring changes. Kiraly anticipates tighter regulation to maintain quality, as well as potential increases in tuition fees across both public and private institutions.
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