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The economic effects of migration

Labour mobility was the topic discussed by EU finance ministers gathering in Bucharest.

Foto: pixabay.com
Foto: pixabay.com

, 08.04.2019, 15:28

Finding skilled labour has become a challenge in Romania. A relatively recent survey shows the country is going through its most serious labour crisis in recent history, after many skilled workers have left in search of work abroad for higher pay while at home work productivity is still low and business are not willing to invest too much in their employees. At 200%, Romania has seen the highest increase in the minimum wage in the European Union. Despite this, salaries are still far lower than in western countries. Secondly, investments have concentrated in recent years in Bucharest and several other big cities, so the labour supply has followed this trend.



The areas with the fewest human resources companies are also the areas with the biggest labour migration, especially to the West, namely the south and east of the country. Under the circumstances, another worrying sign is the economic discrepancy between regions, in other words the fact that Romania grows at different speeds, which can have extremely serious consequences from a social point of view.



Romania has a shortage of electricians, welders and mechanics, followed by engineers, especially civil engineers, and chemists, as well as lorry, courier, heavy equipment and public transport drivers, doctors and nurses and researchers and project managers. EU finance ministers who met at the weekend in Bucharest discussed, among others, the impact of labour mobility on the erosion of the basis of assessment in the country of origin.



In the opinion of the Romanian finance minister Eugen Teodorovici, the European countries who supply the largest number of workers to the rest of the Union, as Romania is not the only one in this situation, should consider an aggressive package of measures to find a solution to labour mobility. He said free movement brought great economic benefits. Migrant workers contribute to the GDP of their countries of origin and host countries and often play a significant role in supplementing the incomes of those left behind.



However, mobility can also have negative effects, leading to brain drain and halting potential growth. The priority in the near future should be finding a common solution at European level and implementing an instrument that helps solve this phenomenon. This is urgent, because, if the trend seen in the last ten years continues, the problem will become quite serious.

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