Frankfurt — The influx of Ukrainian refugees into the European Union could gradually ease the labor shortage in the euro area, as some of those fleeing the war are likely to be permanently resolved, Europe said. The Central Bank said on Monday.
Since Russia launched its invasion on February 24, about 7 million people, mainly women and children, have fled Ukraine and hope to find permanent employment opportunities in the EU in 27 countries. Many people are leaving every day.
“Under all the assumptions detailed so far, back-of-the-envelope calculations show that the median workforce in the euro area will increase by 0.2% to 0.8% in the medium term,” the ECB said. It is mentioned in the bulletin article. ..
“This is equivalent to an increase in the size of the eurozone workforce by 300,000 to 1.3 million as a result of the Ukrainian refugee crisis,” he added.
According to the ECB, the unemployment rate is at record lows, the euro area is suffering from an increase in labor shortages, and the influx of refugees could “slightly ease” the tight labor market.
Still, the ECB added that it can be difficult to get people to work because of administrative barriers.
“Labor market barriers and other frictions remain significant obstacles for refugees, making it difficult to integrate refugees into the host country’s labor market, especially in the short term.”