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Labor shortage takes steam out of Eastern Europe
29.03.2019
A new report shows that a severe shortage of labor will pull down growth rates in coming years. Experts have long blamed migration for the shortage of workers in the region but now they point to another key factor.
Most of central and eastern European countries have been growing at their highest rates since the global financial crisis about a decade ago, but soon the boom may be over.
Growth rates in the region are expected to head south in the next two to three years, hurt by, among other factors, a severe shortage of labor, a new report by the Vienna Institute for International Economic Studies (wiiw) showed.
Central and eastern European countries have been struggling to fill up vacancies as more and more workers migrate to western Europe in search of better pay. The labor shortage has pushed down unemployment rates in the region to record lows and driven job vacancies to their highest levels.
The shortfall can also be attributed to a decline in overall population. Most countries in the region have experienced shrinking populations over the past 15 years even as total population in the EU has gone up.
"The working age population in these countries has been shrinking due to migration and other demographic factors such as low fertility rates," Robert Strehrer, scientific director at wiiw, told DW. "This shortage might result in lower GDP growth rates which could have severe implications for the welfare systems."
Migration and low fertility rates are expected to cause the working age population (aged 20-64) in central and eastern European countries to shrink by about 30 percent by 2050, the wiiw report said.
Read more: East-West Europe fight over jobs and pay intensifies
01:43 mins.
MADE IN GERMANY | 14.11.2017
[paste:font size="5"]which opposes immigration by Muslims, said in February women with four children or more will not have to pay income tax and promised $36,000 (€32,000) in interest-free loans to young couples. The loan would be cancelled once they have three children
https://www.google.com/url?sa=i&sou...aw07g6UPSGNwnZY6atExiDRw&ust=1556074523701677
Labor shortage takes steam out of Eastern Europe
29.03.2019
A new report shows that a severe shortage of labor will pull down growth rates in coming years. Experts have long blamed migration for the shortage of workers in the region but now they point to another key factor.
Most of central and eastern European countries have been growing at their highest rates since the global financial crisis about a decade ago, but soon the boom may be over.
Growth rates in the region are expected to head south in the next two to three years, hurt by, among other factors, a severe shortage of labor, a new report by the Vienna Institute for International Economic Studies (wiiw) showed.
Central and eastern European countries have been struggling to fill up vacancies as more and more workers migrate to western Europe in search of better pay. The labor shortage has pushed down unemployment rates in the region to record lows and driven job vacancies to their highest levels.
The shortfall can also be attributed to a decline in overall population. Most countries in the region have experienced shrinking populations over the past 15 years even as total population in the EU has gone up.
"The working age population in these countries has been shrinking due to migration and other demographic factors such as low fertility rates," Robert Strehrer, scientific director at wiiw, told DW. "This shortage might result in lower GDP growth rates which could have severe implications for the welfare systems."
Migration and low fertility rates are expected to cause the working age population (aged 20-64) in central and eastern European countries to shrink by about 30 percent by 2050, the wiiw report said.
Read more: East-West Europe fight over jobs and pay intensifies
01:43 mins.
MADE IN GERMANY | 14.11.2017
[paste:font size="5"]which opposes immigration by Muslims, said in February women with four children or more will not have to pay income tax and promised $36,000 (€32,000) in interest-free loans to young couples. The loan would be cancelled once they have three children
https://www.google.com/url?sa=i&sou...aw07g6UPSGNwnZY6atExiDRw&ust=1556074523701677
