Business Recorder
Labour drought in Europe’s east as workers go west

Labour drought in Europe’s east as workers go west




BUDAPEST: A decade ago, business was booming for Hungarian construction firm owner Geza Borgulya.

He was making an annual profit of some five million euros ($5.4 million) and had around 60 staff including surveyors and bricklayers.

Now, the 44-year-old has barely a dozen employees left. “I’m glad if I make a million in earnings,” he told AFP in the central town of Rackeve.

Borgulya largely blames the decline on Hungarian workers heading to neighbouring Austria where wages are significantly higher.

Once an eldorado of cheap labour, companies in eastern and central Europe are struggling to fill thousands of jobs as workers up sticks and head to wealthier EU nations.

A staggering 20 million people have moved from the region to western Europe since the early 1990s, many of them headed for Germany and Britain, according to the International Monetary Fund (IMF).

The exodus, coupled with low birth rates and rapidly ageing populations, has left gaping holes in job markets across the region.

From healthcare and computer technologies to manufacturing and food industries, few sectors have been exempt from the drought.

The diaspora, which began with the fall of the Iron Curtain, was exacerbated by ex-communist countries’ accession to the EU and the financial crisis.

Some 400,000 Hungarians have emigrated from the nation of 10 million since 2008, official figures show.

“I have lost at least twelve people over the past three years, who have gone to England, Austria and Sweden,” said a restaurant owner in Budapest, who did not want to be named.

The situation is even more acute in neighbouring Romania, the EU’s second-poorest country after Bulgaria.

Three million Romanians, or 15 percent of the population, have left in recent years, with a majority of working age. Hospitals are particularly hard hit.

“We don’t know what to do anymore to attract new recruits,” said Ionela Danet, who runs a hospital in the city of Curtea de Arges in southern Romania.

She has been trying to hire at least 20 doctors.

The exodus from the region has “exacerbated shortage” of labour and “lowered potential growth” in workers’ home countries, the IMF found in a report last year.

Although eastern and central states have the EU’s fastest-growing economies and unemployment rates are relatively low, employers fear that the labour shortage will soon turn into a serious obstacle for foreign investment.

While the Czech Republic has 140,000 vacant jobs primarily in the manufacturing sector, car-making hub Slovakia needs technicians while Bulgaria is desperate for engineers.

An estimated one million Ukrainians are residing in Poland, making up a large chunk of restaurant and shop employees in the capital Warsaw.—AFP



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