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Entering the EU labor market: the initial impact

Those countries that did not restrict their labor market entries have all seen a tremendous growth in immigration from the EU accession states. In the United Kingdom between May and September, according to the UK Home Office, approximately 87,000 workers immigrated from the EU accession countries. Of these, more than half-almost 49,000-came from Poland alone.

Positive impact
By almost all accounts the impact on the UK market is positive. Although concerns (mostly political) were expressed by the Conservative Party and by one of the large trade unions over the potential impact on wages, the largest part of the criticism is centered on whether or not the immigrant workers are in fact registering and working legally.

Meanwhile, a strong consensus indicates that the new workers were filling much needed vacancies in the market. There is also evidence suggesting that the migrant workers were helping to keep inflation at bay in the UK. The reasoning is that instead of wages rising to meet demand, new workers are filling positions. It is clear that many migrants from Poland and other accession countries are filling structural vacancies. In other words, they are not taking work away from British citizens.

For instance, Polish bus drivers are being actively recruited in the UK. British employers have found them to be an attractive potential employment base and they are being offered the same wages as their British counterparts. According to Home Office statistics, approximately 24,000 of the vacancies filled have been in hospitality and catering, with the second largest group in administration and business management.

Personal stories
Polish television station TVN has been following the efforts of a number of Poles seeking and finding jobs in the UK (and elsewhere). It shows the personal side of the difficulties that many of the would-be migrant workers are facing. They need to find housing and learn the language, not to mention finding the job in the first place.

According to the TVN reports, along with a variety of newspaper reports, it appears that many of the migrant workers are unemployed or underemployed, and are often from smaller towns around Poland.

These people are often sending money home and, obviously, moving out of the powerlessness of structural unemployment.

Impact on the labor markets
Many economists see the success and size of the immigration to the UK as a sign that the other EU members should loosen their labor markets. It is clear that in the longer term Poland could benefit from an even larger labor force of qualified employees.

Eventually, further market deregulation along with the employability of Poles outside Poland will also lead to wage inflation and increased competition for talented employees at all levels and of all types, fundamentally changing the current employers' market.

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