Few decisions in a Pakistani home are weighed as carefully as a young graduate’s move abroad. Savings are counted, relatives consulted, and the airport goodbye carries a family’s hopes of a better life. A decade ago, Germany seemed one of the surest places to fulfil them. Public universities charged no tuition fees, the economy was among the world’s strongest, and companies needed skilled workers. Good grades, German language skills and an in demand qualification could lead to a respectable career. In 2016, I made that journey myself to begin my master’s.
Many friends who came with similar hopes built good careers here. But the Germany newcomers find today is not the one we found. The economy is barely larger than it was in 2019, and unemployment approached three million last year. Companies that once recruited graduates now talk more about restructuring than hiring. In my own circle, at least ten capable people, mostly from IT and the automotive sector, have had to start again after losing their jobs.
For young Pakistanis considering Germany, the question is no longer just whether its doors are open, but what lies behind them.
Germany remains wealthy, skilled and widely admired, but it is no longer quite the land of opportunity many once imagined.
The unease was visible on 31 October, when tens of thousands of Generation Z protesters took to the streets in more than 30 cities. They voiced concerns about living costs, cuts to education and social services, and the prospect of compulsory military service, reflecting wider anxieties among Europe’s young.
Having experienced Germany as both a student and a professional, I understand that unease.
Berlin’s commitment to fiscal restraint was one of the choices that shaped this situation. From 2014 to 2019, it took pride in spending no more than it collected, under a policy known as the schwarze Null, or “black zero”. It looked prudent, but deferred repairs do not appear in budgets until something breaks. Last year, four in ten long distance trains ran late. In 2024, part of a bridge in Dresden collapsed into the Elbe.
The pandemic dealt an early blow, with Berlin borrowing around €130 billion in 2020 to keep the economy afloat. But Germany’s deeper vulnerability was its dependence on foreign partners. Before the war in Ukraine, Russia supplied more than half its natural gas. When that relationship collapsed, manufacturers faced gas prices around 80 per cent above pre war levels, while household prices rose by about 67 per cent. China, once a major customer, became a formidable industrial competitor. German exports there fell by almost a tenth, while imports rose by nearly as much, leaving a trade deficit of €89 billion. US tariffs of 15 per cent on most German goods added to the strain. Exports to the United States fell by around 9 per cent and car exports by more than 17 per cent. For an economy reliant on imported energy, foreign markets and global supply chains, these developments exposed the risks of dependence.
The contradiction is also visible in defence policy. Berlin has committed tens of billions of euros in military aid to Ukraine, while its own armed forces struggled for years with equipment shortages and poor readiness. Washington repeatedly criticised Germany for not contributing enough to NATO. Military spending has since risen to 2.3 per cent of GDP in 2025, but a difficult question remains. Can a country facing industrial decline, high energy costs and crumbling infrastructure sustain expanding international commitments without addressing domestic weaknesses? Supporting Ukraine and meeting NATO obligations are legitimate responsibilities, but they require balance with Germany’s own economic and security needs.
An economy facing such pressures needs to move quickly, approving projects, hiring staff and opening businesses. Germany often struggles to do so. Its start ups raise far less money than American ones, its carmakers take about twice as long as Chinese rivals to launch a new model, and its offices scrutinise every file with the care associated with German engineering. That care can come at a cost. On one trip, a professional from a leading German telecommunications company told me that a plant project had been delayed because hamsters had been found in the area. Environmental protection matters, but when procedures stall projects, the balance between sustainability and economic progress deserves scrutiny.
Workers and households face the same pressures. Social insurance contributions amount to around 42 per cent of gross wages when employer and employee shares are combined. An ageing population is also straining the pension system. The number of workers supporting each pensioner has fallen from around six to two. Energy costs add to the burden. The transition to cleaner power, new infrastructure and carbon charges all affect household bills. German households pay around 28 per cent more for electricity than the EU average, while the recent Gulf conflict has pushed energy prices about 12 per cent above last year’s level.
German industry is under similar pressure. Volkswagen plans to cut 50,000 jobs worldwide, around half in Germany. Bosch is reducing its German workforce by about 9,800, while Siemens plans to cut 2,850 positions. On 3 November, Schaeffler announced plans to eliminate 2,660 jobs in Germany and close four sites by 2028. Volkswagen has also ended car production in Dresden, its first German plant closure in 88 years. Across the industry, around 124,000 jobs disappeared in 2025. The pressure is spreading to the Mittelstand, Germany’s mostly family owned small and medium sized businesses, which employ more than 33 million people. Only 40 per cent invested in 2025, while industrial insolvencies reached a 12 year high.
Some companies are responding by moving work to Eastern Europe or outsourcing it to countries such as India, where labour is cheaper. I have worked alongside German teams that took this route. As an accountant, I understand the financial logic, but the calculations do not always capture the full cost. In my experience, outsourcing can weaken the sense of ownership German companies expect from their employees. Work may come back for correction, deadlines slip and managers spend more time checking it. The expected savings can quickly narrow, along with control over the final product.
The consequences extend to the state. Those who lose their jobs stop paying taxes and social insurance and may instead draw unemployment benefits. The Federal Employment Agency’s deficit is expected to approach €10 billion by year end. What companies save through job cuts can become a burden on public finances. Frustration over living costs and migration has also strengthened the far right Alternative for Germany (AfD), which has led several national opinion polls.
For migrants, this is a reminder that life in a host country is shaped by its changing political climate.
None of this means Germany has stopped trying. Berlin has created a €500 billion infrastructure fund and exempted most defence spending from constitutional borrowing limits. Defence investment is also bringing work to struggling manufacturers. Volkswagen’s Osnabrück plant is set to produce air defence components, while Rheinmetall is converting two car parts factories for military production. The government has introduced energy relief for industry and promised to cut red tape. Yet young protesters would rather see more public money go to classrooms and social services.
Whether these investments deliver a lasting recovery rests with Germany’s policymakers. After years of stagnation, the IMF and the government expect growth of 1.3 per cent this year and 1.1 per cent next year.
Germany still offers opportunities to skilled newcomers, and its efforts to revive the economy offer cautious hope. My advice to young Pakistanis considering the journey is simple. Come with ambition and give this country your best, but do not let the bridge to home fall into disrepair. Stay connected to Pakistan through family, friendships and a willingness to give back, as well as through money sent home. Life abroad can change, economically, politically or personally. When it does, the country that saw you off at the airport should still be a place you can return to with hope.
