The need for migration
While the economic crisis has a short term effect on the demand for most labor, in the long run labor immigrants will be much needed to keep the European economy running. Within 10 years Europe will be confronted with an enormously increased demand for all types of labor. 73 million retirees will have to be substituted, whereas transformation of European economies will create 7 million new jobs. Immigration can help meet this increasing demand for labor, and sustain high levels of social welfare.
Challenges for growth and prosperity
The report Immigration and European Innovation Systems, Challenges for Economic Growth and Prosperity by Koen Jonkers of the Spanish National Research Council, CSIC in Madrid, identifies ways to deal with the challenges brought about by an aging population, rapid technological change, and economic restructuring. The paper aims to outline how the EU and its member states approach the immigration-growth question, and examines short and long term trends in how the immigration system supports economic growth and prosperity.
Europe looking forward
The EU acknowledges the need for migration. The new European strategy for “smart, sustainable and inclusive growth” recognizes that training and retraining of EU citizens will not be enough to fill the considerable gap. Most member states seemed to have been well aware of this. While steps were taken to decrease the inflow of labor migrants during the economic crisis, few actual changes in migration policy were made. This will allow member states to respond relatively quickly to the increasing demand for labor.
Attract high as well as low skilled labor
Throughout the past decade, member states have been implementing policies aimed at attracting highly skilled labor migrants. Regulations were adjusted to make countries more attractive to foreign high skilled labor. Existing barriers were reduced, whereas incentives such as tax discounts were implemented. While higher skilled migrants are generally preferred, due to their larger additional value to the economy, states should keep in mind that laborers in every segment of the economy will be needed to meet the increased demand.
Recommendations
Some of the reports recommendations include:
- Attract migrants that can contribute most to economic development;
- Select those migrants that generate the most economic and social return to the host system;
- The system should help to retain needed migrants, and absorb and integrate them into their host system;
- In situations where retention is not desirable, the system may need to create mechanisms to foster the return of migrants to their home system.