EU is addressing labour shortages with the help of selective immigration

European governments are grappling with paradoxes in the realm of immigration. Despite witnessing the highest levels of illegal crossings of the external borders of the European Union (380,000 in 2023, up by 17%) and a surge in asylum applications (806,000 from January to September 2023, up by 22%) since 2015-2016, the member states have implemented a series of restrictive measures. Simultaneously, in the United Kingdom, Prime Minister Rishi Sunak seeks to deter arrivals via the Channel by proposing the transfer of asylum seekers to Rwanda.

Europe is facing a shortage of employees

However, Europe, facing an aging population, is experiencing a shortage of workers. At the end of 2023, three-quarters of the continent’s SMEs reported futile attempts to find staff, a trend expected to intensify. Ylva Johansson, the European Commissioner for Home Affairs, projects that around 7 million workers will exit the labour market in the next six years. This has led to demands from employer organizations in various countries for solutions.

Despite these needs, legal immigration at its current level remains insufficient. Margaritis Schinas, Vice-President of the Commission for the Promotion of the European Way of Life, highlights that of the 3.5 million people entering Europe legally in 2023, only 1.2 million possessed work visas. Ylva Johansson emphasizes the necessity of providing safer routes for legal entry, such as obtaining a work visa, to dissuade people from risking their lives through illegal sea crossings to reach Europe.

Under pressure from various sectors, governments, including those traditionally opposed to immigration, have recently adjusted their legislation to address labour shortages. Some have established “selected” immigration channels, often through agreements with third countries different from those of the majority of migrants seeking entry to the EU.

Hungary, Germany and Greece upgraded their work legislation

A significant shift occurred in Hungary, where Prime Minister Viktor Orban, previously staunchly against immigration, embraced a sudden change in policy since 2022. The country opened its doors to foreign workers to meet the demands of employers in a fully employed nation.

In contrast, Germany has extensively reformed its legislation, adopting measures to facilitate labour immigration, including the regularization of undocumented immigrants, simplified recognition of foreign diplomas, and lowered eligibility criteria for work visas. The German government recognizes the need for 400,000 net arrivals per year to fill the gaps left by the 13 million workers expected to exit the labour market in the next fifteen years. Ministries have actively sought qualified workers through diplomatic efforts in countries such as Brazil, Canada, India, and Ghana, focusing on sectors like IT, health, education, metallurgy, mechanics, and transport where personnel shortages are particularly acute.

In Greece, the migration policy, which has faced criticism from NGOs due to almost systematic pushbacks of migrants to Turkey since 2020, persists. However, Prime Minister Kyriakos Mitsotakis introduced an amendment in December 2023 allowing for the regularization of undocumented migrants working in Greece. Those with a work contract can obtain a three-year residence permit, with the condition that they must leave the country immediately if they lose their job. Greece, particularly in agriculture, is in need of approximately 180,000 workers annually, with 63% of companies facing difficulties in recruitment, especially in construction and tourism. To address the labour shortage, Greece signed agreements with Bangladesh in February 2022 to recruit 4,000 Bangladeshi agricultural workers annually and with Egypt in October 2022 for 5,000 workers allowed to stay up to nine months in the Schengen area.

Other countries are relying on Asian workers

Poland, experiencing an economic boom for the past decade, is increasingly relying on workers from Asia to cope with a growing labour shortage, primarily in construction and agriculture. The country has witnessed an unprecedented increase in workers from India, Pakistan, Nepal, Bangladesh, the Philippines, and Kazakhstan. In 2022, Poland granted work permits to 41,000 Indians, 20,000 Nepalese, and 22,000 Filipinos, while workers from Ukraine numbered 1.5 million.

Belgium, dealing with recruitment problems, particularly in Flanders, considers granting work permits and temporary residence permits to non-Europeans for professions in shortage. VOKA, the main organization of Flemish bosses, targets India and Mexico for potential workers.

In Italy, President Giorgia Meloni, while fighting against illegal migration, acknowledged the labour demands in sectors like agriculture and tourism. The government issued a decree in July 2023, allowing the entry of 452,000 people authorized to work in Italy, favouring countries with migration control agreements. In 2023, there were 600,000 applications for 136,000 vacancies, reflecting the government’s focus on promoting legal immigration.

In Sweden, the minimum wage required for a work permit doubled in November 2023 to reduce low-skilled labour immigration. However, this measure faces opposition from employers who argue for a need for both highly qualified and less qualified workers. In Denmark, facing a severe labour shortage, the minimum wage for foreign workers, aimed at attracting the most qualified individuals, was lowered in 2023.

EU has introduced the “blue card”

At the EU level, the Commission has proposed tools to help member states identify labour needs, facilitate diploma recognition for non-European nationals, and unify entry rules. The EU has introduced a “blue card” for qualified workers and plans a passport for less qualified individuals. In November 2023, the Commission proposed an Internet recruitment platform for member states to post job offers, check qualifications, and expedite recruitment procedures. The EU and European countries also finance professional training in partner countries to ensure the qualifications of recruited workers.