Businesses and organizations in Germany will be able to appoint employees from overseas more easily under plans approved by the nation's cabinet.

An ageing population and relatively low levels of employment in the country mean that some industries are suffering from skills shortages.

As a result, ministers have given the green light to proposals that are intended to reform labor market legislation and permit more highly-skilled overseas members of staff to be recruited.

Positions that will be covered by the legislation include automotive professionals, healthcare workers and those seeking engineering jobs in Germany.

Quoted by Dow Jones, German chancellor Angela Merkel stated: "More steps will follow to make a targeted immigration possible. We invite specialized workers, especially from other European countries."

Under the plans, a requirement for companies to give precedence to German workers will be removed in certain areas where talent gaps have been identified.

German statistics agency Destatis recently reported that real earnings in the country rose by an average of two per cent year-on-year during the three months to March 2011.

Posted by Alex Donnell