The influx of Ukrainian refugees into the European Union could gradually reduce labor shortages in the eurozone, as some of those fleeing the war are likely to settle permanently, the European Central Bank said.
Some 7 million people, mostly women and children, have fled Ukraine since the Russian invasion began on February 24, and more are leaving the country every day, with many hoping to find sustainable employment opportunities in the EU-27.
Based on all these assumptions that have been reported so far, the calculations speak of an average increase of 0.2% -0.8% in the eurozone workforce in the medium term, the European Central Bank said in an article in its financial bulletin.
“This corresponds to a 0.3-1.3 million increase in the size of the eurozone workforce as a result of the Ukrainian refugee crisis,” he added.
With unemployment at an all-time low, the eurozone is struggling with growing labor shortages, and the influx of refugees could ease some of the tight labor market.
The ECB adds, however, that attracting people to work can be difficult due to administrative barriers.
“Labor market barriers and other frictions remain significant barriers for refugees, making it difficult for them to integrate into the host countries’ labor markets, especially in the short term,” he said.
Source: Capital
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