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Labour market
Migration is often seen as a problem, but it is beneficial for the labour market because it helps to offset shocks and keep the economy going. From an economic perspective, migrants are not a burden, but a source of growth, resilience and efficiency, if supported by well-designed policies. This is according to a recent study by the SYRI National Institute, which deals with this topic. It is the setting of public policies that is key, because while some measures allow migrants to respond to changing labour market conditions, others may restrict their mobility.
"Migrants are more mobile in the labour market than local workers. They fill jobs where there is a shortage of people and thus help to alleviate the wage gap between regions across economic sectors," said Martin Guzi of the SYRI National Institute and Masaryk University. According to previous research, up to a quarter of the rise in unemployment in the EU during the last major economic crisis in 2008 was absorbed by migration. People simply moved to places where conditions were better.
As an example, he cites Ireland, which before the crisis was a symbol of the “Celtic Tiger” - rapid growth that attracted thousands of migrants, especially from Poland, Lithuania and other new EU Member States. The construction, finance and service sectors offered plenty of jobs. But when the bubble burst, it was the construction industry that was the first to collapse. "Migrants in Ireland have faced massive job losses. Many decided to leave. While this has meant an outflow of workers for Ireland, it has also helped to reduce pressure on the local labour market. Without this '”exodus”, unemployment would have been even higher," Guzi said.
The 2008 crisis hit Europe hard, but in different ways in different countries. Interestingly, while migrants often left countries like Ireland and Spain, they conversely came to Germany because there were more job opportunities even in times of recession. Germany has thus become a magnet not only for the highly skilled but also for workers with secondary and lower education. "The Great Recession has shown that migrant mobility acts as a safety valve," Guzi said.
The current study shows that less restrictive migration policies and more effective integration measures can act as an effective tool to tackle market inequalities. "Migration is an economic plus. It helps to fill vacancies, reduce unemployment and dampen regional or sectoral inequalities. Migrants also increase the ability of economies to adapt to structural change. The free movement of workers itself allows economies to adapt flexibly to shocks and differences between regions," Guzi said.
According to the researcher, an open and well-designed migration policy together with effective integration measures promote the labour mobility of migrants. On the contrary, severe restrictions or a dysfunctional welfare state can hinder it. It is also important to remember that migrants are not a single group and differ according to their origin, education, length of stay and family background. Policies must reflect these differences to contribute to equal opportunities and fair inclusion. At the same time, relying on migrants often means filling jobs that locals refuse because of poorer conditions. Policies must therefore be concerned with preventing abuse, fair remuneration and protecting rights.