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Half of Germany's top earners consider moving abroad, survey finds

Created at 19 Jul · 12:31 PM1 source↑ Market-relevant
IN SHORT

A survey indicates that over half of German households earning at least 6,000 euros net per month have explored job opportunities abroad in the past year, with many seeking higher incomes and better quality of life.

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Key Numbers

288,000Germans moved abroad in the past year
54 percentTop earners considering moving abroad
6,000 eurosMinimum monthly household net income for surveyed top earners
77 percentInterested individuals seeking long-term or permanent relocation
51 percentCited higher income and better quality of life as drivers
42 percentHoping for better climate or lower taxes/social charges
24 percentCited better career and promotion prospects
70 percentBelieve Germany's tax burden is too high
50.70 eurosNet income per 100 euros of labor costs for an average single employee in German
14.4 percentSearch queries for the United States as an emigration destination
34 percentDecrease in US emigration search queries year-on-year
13.6 percentSearch queries for the United Kingdom and Switzerland
38 percentIncrease in UK emigration search queries year-on-year
24 percentIncrease in UAE and India emigration search queries year-on-year
10 percentIncrease in Australia emigration search queries year-on-year
97,000Net loss of German citizens last year
200,000Net immigration of non-German citizens to Germany

Who's Involved

Destatis
Germany's Federal Statistical Office
Indeed
Job platform that commissioned the survey
Virginia Sodergeld
Labour market economist at Indeed
Half of Germany's top earners consider moving abroad, survey finds

↳ Why This Matters

The potential emigration of a significant portion of Germany's top earners could lead to a brain drain, impacting the country's economic competitiveness and innovation capacity, while also highlighting dissatisfaction with its tax and social systems.

Key facts

  • Over 288,000 Germans moved abroad in the past year, according to Destatis.
  • A survey found 54% of top earners (household net income >= 6,000 euros) explored jobs abroad.
  • Higher income and better quality of life are the main reasons cited for considering emigration.
  • 70% of respondents feel Germany's tax burden is too high for the income earned.
  • The US, UK, and Switzerland are the top emigration destinations, with UAE and India gaining popularity.

A significant portion of Germany's high earners are contemplating emigration, driven by factors such as high taxes, a desire for better quality of life, and higher income potential abroad. Data from Germany's Federal Statistical Office (Destatis) indicates that over 288,000 German citizens moved abroad within the last year, marking the highest net loss since 2017.

A survey conducted by the job platform Indeed reveals that since 2020, searches for international job offers have more than doubled. Specifically, 54% of respondents with a household net income of at least 6,000 euros have explored job opportunities outside Germany in the past twelve months, with two-thirds generally considering working abroad. Of those interested, 77% intend to relocate for several years or permanently.

The primary motivations for considering emigration are the prospect of a higher income and a better quality of life, cited by approximately 51% of respondents each. Additionally, around 42% hope for a more pleasant climate or lower tax and social charges. In contrast, better career and promotion prospects were a deciding factor for only 24%.

Virginia Sodergeld, a labour market economist at Indeed, views international mobility positively for the knowledge and innovation it can bring. However, she also interprets the widespread consideration of leaving as a sign of dissatisfaction with living and working conditions in Germany. The survey highlights that 70% of respondents believe the tax burden in Germany is too high in relation to income, feeling that personal commitment at work does not yield sufficient rewards. This is underscored by the fact that an employer's 100 euros in labor costs yields only about 50.70 euros net for an average single employee in Germany.

The United States remains the most popular emigration destination, although interest has declined by 34% compared to the previous year. The United Kingdom and Switzerland follow, each accounting for 13.6% of search queries. Notably, the UK, along with the United Arab Emirates and India, have become significantly more attractive, with search queries rising by 38% and 24% respectively. Australia also saw a 10% increase in interest.

Germany's traditional strengths, such as its social environment, employment protection, and welfare system, are perceived as less critical by highly sought-after international specialists compared to opportunities for professional development. While Germany experiences a net emigration of its citizens, it records a net immigration of over 200,000 non-German passport holders annually, including highly qualified professionals from countries like India working in IT, AI, and engineering sectors.

Frequently asked questions

A survey found that 54% of respondents with a household net income of at least 6,000 euros have explored job opportunities abroad in the past year.

The primary drivers are the prospect of a higher income and a better quality of life, followed by a desire for a more pleasant climate and lower taxes and social charges.

The United States remains the top destination, followed by the United Kingdom and Switzerland. The UAE and India are also gaining popularity.

Germany recorded a net loss of approximately 97,000 citizens last year, the highest since 2017.

What Happens Next

01Germany's government may consider policy adjustments to address tax burdens and improve living/working conditions.
02Further data will likely emerge on emigration trends and their economic impact on Germany.

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Cadence

How It Developed

Germany's Federal Statistical Office reported over 288,000 German citizens moved abroad in the past year.
A survey by Indeed shows searches for international job offers have more than doubled since 2020.
Fifty-four percent of respondents with a household net income of at least 6,000 euros considered moving abroad.
Seventy-seven percent of interested individuals aim to live outside Germany for several years or permanently.
Higher income and better quality of life are the primary drivers for considering emigration.
Respondents cited a desire for a more pleasant climate and lower tax/social charges as additional motivators.
Seventy percent of respondents believe Germany's tax burden is too high relative to income.
The United States remains the most popular emigration destination, though interest has decreased.

Sources

T1
Survey: Half of Germany's top earners consider moving abroadEuronews

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