Migration brings prosperity: How Ukrainian conquer the job market!

Migration brings prosperity: How Ukrainian conquer the job market!

The discussion about migration has become very important in recent years, especially in the European Union. While many people have little to do with immigration in their everyday life, the topic is omnipresent as a political concern. According to a survey by the Eurobarometer, migration is the second largest issue in Europe, after the Ukraine secretary. The governments strive to hold both unwanted immigrants and to attract the necessary specialists. A new study by the International Monetary Fund (IMF) illuminates the economic effects of the last wave of migration and comes to a positive result.

In 2022, the migration to the EU reached a record high of 6.5 million people, including around four million from Ukraine. This increase led to an increase of 1.4 percent of the population, which is a significant increase compared to the 2015/2016 refugee waves. The IMF notes that more people go hand in hand with a higher demand and a larger job offer, which means that the positive effects of immigration go beyond the associated costs.

Integration of the Ukrainians into the labor market

A remarkable aspect of the current wave of migration is the speed at which Ukrainians are integrated into the labor market. Compared to previous refugee flows, many managed to find employment quickly. The high demand for workers in the EU played a crucial role here. In addition, many Ukrainians quickly received permission to start work. The OECD reports that the Ukrainians' employment rate in the EU countries varies between 60 percent in Poland and below 20 percent in Italy. These are values ​​that are usually only achieved after a longer stay of five years and more.

This development led to the number of people at work in the EU. While a decline of 265,000 people was still recorded in 2021, the number rose by 838,000 in 2022. According to the IMF, this increase was particularly compensated for by immigration, which partially satisfied the extreme need for workers. Almost two thirds of the positions created between 2019 and 2023 were occupied by migrants, while the unemployment rate among EU citizens sank to historical lows.

economic growth through immigration

With more people in the labor market, the economic perspectives have also increased. The productivity of migrants plays a major role in this. Although many migrants are overqualified and work in professions that are below their level of education, they still have a significant positive impact on the growth of the EU economy. The IMF estimates that despite a hypothetical lower productivity of migrants, the additional growth by immigration from 2020 to 2023 increases potential growth by 2030 by 2030.

But migration also brings challenges. The initial costs are real, and the IMF estimates it to 0.2 percent of EU economic performance-much lower than the income increased by migration. The long -term effects depend heavily on the integration of migrants into the labor market.

There are also critical voices that say that migrants act as a wage impressor, which can lead to working disadvantages for the local population. However, a comprehensive analysis of wages is not yet possible because there are no reliable data.

In addition, resource conflicts are often pointed out: migrants compete for living space, training positions as well as health and transport services. This can lead to noticeable challenges in regions with high immigration that strongly claim resources in the public sector.

A clear connection shows that the more people come to the EU, the greater the potential for economic growth - as long as the integration of immigrants succeeds well. However, the question remains how the additional government income is sensibly used by immigration in order to improve the current situation. The entire situation is still accompanied by controversial debates, while the IMF calls on politics to proactively use the opportunities of migration.