LaMP looks to create new safe and legal mobility pathways to OECD countries, but also to improve the quality and utilization (quantity) of existing pathways. Germany is one of the first OECD countries to create a scaled visa route for mid-skilled workers. To capitalize on this opening, the Indian government in 2022 collaborated with Germany to produce the German-Indian Migration Mobility Agreement. Recruitment agencies in India have reported a significant increase in worker demand for job opportunities in Germany (40-70% Indians desire to work abroad, with Germany as a top-5 destination for migration).
However, there are challenges that if overcome, can provide a meaningful unlock to increasing the number of workers moving between India and Germany. Recruiters cite the language certification required to migrate as a worker’s biggest hurdle to obtaining a visa due to cost ($~2k) and time required to achieve the certification (12-18 months). This is a significant commitment of time and money for workers, with an uncertain reward. The amount needed also excludes many low- to mid-income workers, and puts others in a position of risk, relying on lenders who can charge interest rates ranging from 20-50% (formal/informal). On the flip side, employers hesitate to pay the up-front costs for a worker’s language training, as they are unsure how to assess their RoI and have valid concerns relating to attrition and quality of worker’s language skills.
Lack of equitable access to capital for language prevents workers who need it the most from safely accessing opportunities to work abroad, missing out on associated wage gains estimated to be up to ~$100k/person (est. average over 5 years of working abroad).
The broader country context enhances the depth of the impact that could be had if the challenge of language financing is addressed. Youth unemployment in India is over 20%, and 140m of the population lives in poverty (annual PPP-adjusted income of $7.3k is less than half of the global average of $18.7k).
The current lack of shared-value problem solving among recruiters, language schools, employers, financial institutions, and funders to address this issue will create a glass ceiling above many prospective migrants, and thus block the pathway to labor mobility at scale.
Project Description
LaMP aims to develop a proven solution to scale that unlocks worker migration from India to Germany by making German language training accessible for prospective Indian migrants regardless of their economic backgrounds. Our solution aims to increase migrant worker wages by at least 10 times what equivalent jobs would pay in India. Beyond these gains, our goal is to create a program that can be replicated across other global corridors.
We expect to roll out the project in 3 phases over 5 years. The first phase is fully funded, while the second and third phases will require additional sources of capital.
Phase I: Product Development and Advocacy (July 2023-24)
- Financial solution (Ia): Develop a financial solution to unlock access to German language training for workers
- Advocacy (Ib): Develop and implement an advocacy strategy that seeks to promote a financial solution that shares value and risk across all key stakeholders e.g. workers, employers, etc.
Phase II: Launch of financial solution pilot and Advocacy Campaign (July 2024-December 2025)
- Pilot the solution designed in Phase 1 with the support of additional funding partners,
- Given the timeframe for language learning and design, we expect 1k workers to be trained by the end of 2025 (target contingent on level of financial commitment secured from partners)
- Lead targeted advocacy campaigns aimed at the governments of Germany and India in showcasing the impact of language financing on worker outcomes in securing jobs, and advocating for expansion of model across other mid-scale sectors
- Work with employers and recruiters to develop proof points of employer-paid models and/or models where the employer supports in contributing fully or partially to the worker loan
Phase III: Scaled deployment and monitoring
- In phase III we will scale the model aiming to reach a total of 5k workers
- Monitor worker’s success and retention in their new jobs abroad; and examine the impact of remittances
- Publish our findings
For more information, contact:
