One Third of International Students Stay in Germany for Life
A new report finds 34% of international students who start degrees in Germany remain as qualified workers until retirement, generating a €23.1 billion
One in three international students who begin a degree in Germany will stay in the country as qualified workers until they retire. This finding comes from a new report by the German Economic Institute (IW) for the German Academic Exchange Service (DAAD), which also calculates a €23.1 billion surplus for Germany's public finances from the 2023 student cohort.
Long-Term Economic Contribution
The report estimates that the nearly 82,000 international students who entered German higher education in 2023 will generate a total gross value-added contribution of approximately €127 billion over their careers. Their combined taxes and social security payments are projected to exceed the public support they receive, including the cost of largely tuition-free university education, within just two years of graduation.
DAAD president Joybrato Mukherjee said the report demonstrates the key economic role of international students and doctoral candidates. He stated that attracting such talent requires "attractive living and study conditions and a welcoming culture that ensures a smooth transition into university studies, society, and the job market."
Retention and Integration Pathways
The analysis, which uses Germany's microcensus data, shows that 59% of degree-seeking international students remain in the country during the nine years after arrival. About three-quarters of that group complete a university qualification. This means roughly 45% of the initial cohort enters Germany's labour market as academically qualified professionals, though some leave later.
After accounting for subsequent departures, the IW estimates that 34% of the original cohort stays in Germany as qualified workers until retirement. This latest €23.1 billion calculation places the economic return at the higher end of scenarios modelled in a 2025 IW study.
Germany's Competitive Position
Germany's appeal to international students is growing. The country hosted 516,820 students with foreign citizenship in the 2025/26 academic year, representing 18% of its university population. Indian enrolments alone hit a record 69,816 after rising by 17.5%, making Indians the largest international student community in Germany.
The country's affordable public universities, expanding English-taught programs, and established post-study work routes have strengthened its position. This is especially relevant as other major destinations tighten immigration rules. Separate research found international graduates were three times more likely to find work than qualified migrants arriving directly for employment, a benefit attributed to local networking, language improvement, and practical experience gained during studies.
Addressing Workforce Shortages
More than half of Germany's international students are enrolled in STEM subjects. This provides a critical talent source as the country faces a shortage of around 148,500 STEM professionals. A further 1.85 million people are expected to leave Germany's STEM workforce over the next decade.
Ákos Király of SRH Higher Education argued on LinkedIn that universities must treat recruitment, education, employability, employment, and retention as parts of a single journey. He called for career guidance from the start of a degree, stronger university-employer links, more practical experience, and better support during the transition to work. Király suggested graduate retention should become a core measure of internationalisation strategies, framing the challenge not as attracting global talent, but keeping it.
The report concludes that Germany could increase the economic contribution of international students further by improving academic success, reducing dropout rates, and helping graduates enter relevant employment more quickly.
