The European Central Bank (ECB) stated on Monday (June 20) that the admission of Ukrainian migrants into the European Union might progressively alleviate labour shortages. The ECB emphasised that some of those escaping the fighting are likely intending to settle permanently. On February 24, Russia declared an invasion of Ukraine, referring to it as ‘special military operations’. People were displaced on a massive scale as a result of the Russia-Ukraine war.
According to the UNHCR, a total of 8.3 million refugees may have fled Ukraine by the end of the year. More than 7.5 million people have fled Ukraine, and millions more have been internally displaced. Those who have infiltrated neighbouring nations want to obtain long-term work in the EU’s 27 member states.
The scenario is likely to benefit all parties, since the eurozone has been dealing with rising labour shortages, and those who have entered Europe are searching for jobs. According to the ECB, the flood of migrants might ‘somewhat reduce’ labour market shortages. According to an Economic Bulletin article, ‘under all of the assumptions outlined thus far, back-of-the-envelope calculations suggest a median rise in the eurozone labour force of between 0.2 per cent and 0.8 per cent in the medium term’.
‘This equates to an increase in the size of the eurozone labour force of between 0.3 and 1.3 million as a result of the Ukrainian refugee crisis,’ it added. The ECB also stated that getting individuals to work may be challenging owing to administrative hurdles. ‘Barriers to the labour market and other frictions continue to be substantial hurdles to refugees, making it difficult for them to integrate into host nations’ labour markets, particularly in the near term,’ it stated.
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