Why are Western EU countries focusing in hiring from outside the EU zone?

western eu countries

western eu countries

Why are Western EU countries focusing on hiring from outside the EU zone?

Receiving almost daily signals that certain Western EU countries are looking to relax the work visa legislation and hire from outside the EU zone, I just wanted to understand the mechanism, and the real reason for this employment direction.

This led me to a few questions:

  1. Is the Western EU economy growing so fast that everyone in the EU has a job and there are still a lot of unfilled positions?
  2. Is the entire EU zone population decreasing at such an alarming level?
  3. What is the current difference between East and West EU of the National Minimum Wage average? Could this be a reason?

 

I need to find an answer to these questions in order to understand the sudden strong desire of more and more Western EU countries to hire from outside the EU zone.

 

Let’s take them one by one

Is the Western EU economy growing so fast that everyone in the EU has a job and there are still a lot of unfilled positions?

 

To understand that we need to see the actual economic growth by country, and this is what you will find in the below table

CountryEconomic growth prediction for 2024Per capita growth prediction for 2024National Minimum WagePopulation 2024 versus 2023
Norway0.5% increase80831.00 USDAlthough there is no NMW, the lowest payment we found is at 13.67USD/hour, about 2225 USD/month0.73% increase
Sweden0.2% increase56322 USDAlthough there is no NMW, the lowest payment we found is at 15.67USD/hour, about 2580 USD/month0.58% increase
Finland0.6% increase56157 USDAlthough there is no NMW, the lowest payment we found is at 17.72USD/hour, about 2923 USD/month0.08% increase
Ireland1.2% increase98485 USD13.84 USD/hour, about 2283 USD/month0.64% increase
Denmark1.6% increase61251 USDApproximately 18 USD/hour, about 2970 USD/month0.49% increase
Germany0.2% increase43578 USD13.52 USD/hour, about 2230 USD/month0.05% decline
Netherlands0.4% increase59486USD14.46 USD, about 3856USD0.3% increase
Belgium1.4% increase44847USDAbout 2172USD0.26% increase
Austria0.6% increase46978USDAbout 1634USD0.20% increase
Italy0.7% increase33514USDAbout 1734 USD0.29% decline
Switzerland0.9% increase91498USDAbout 5003USD0.62% increase
France0.9% increase39088USDAbout 1925USD0.19% increase
Spain2.1% increase28146USDAbout 1235USD0.09% decline

 

As you can see, we took the most known to be powerful EU countries to analyze.

Is clear now that:

– the economic growth expected for this year is not huge… I would say, nothing to worry about

– the National Minimum Wage increase is low

– the decrease in population is not at an alarming stage, the highest rate we see in Italy, at 0.29%

 

Then why this rush for workforce from outside the EU?

 

The only thing I can think of is the rising salaries from the Eastern European countries, which were until now the workforce’s main suppliers for the Western European countries, combined with the need to keep the cost of production at an affordable price, so it can be covered by the salaries they are offering in their respective countries.

 

How is this affecting from the recruitment perspective?

 

I would say that first is becoming a political (not economic) need, which explains the reluctance of some countries to embrace this route. From the recruitment perspective, we will see changes in legislation up and down, as the parties are moving in governments… this will cause instability and will become a time-hunt for candidates and recruitment companies alike.

Second, I see a possible issue in accommodating the immigrant workforce in the host countries, as the local population will suffer from unemployment because they will need a higher payment, according to position… I know that in theory, every employer will have to prove that were unable to find the necessary workforce on the local/national market before going the visa route, but this is an easy task, as they will look for candidates internally offering salaries as for immigrants (usually the minimum accepted by visa legislation, which often is just a bit over the national minimum wage)… so they will not “find” on the national market.

 

The “rush for foreign workforce” will last only for a year, as anything over that will increase:

– the population in the respective countries

– rent prices, as the accommodations will be harder to find

– lands and houses/apartment prices

 

The time will tell if I was right…

 

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