20 years ago the EU was expanded eastwards. According to a study by the Ifo Institute, fears that people from there could push Germans out of the labor market have not been fulfilled.
20 years after the EU’s eastern expansion, 820,000 people from the Central and Eastern European countries that were added at the time, as well as Malta and Cyprus, work in Germany. That is 670,000 more than in mid-2010, before restrictions on the free movement of workers were lifted, according to figures from the Ifo Institute.
Contrary to what many feared, this did not lead to the displacement of German employees from the labor market, said the deputy head of the Ifo Dresden branch, Joachim Ragnitz, according to a statement. “People from the Central and Eastern European accession countries work primarily in sectors and professions that are not very attractive for local workers due to low wages or unfavorable working conditions.”
According to Ifo, the employees from the accession countries in 2004 work primarily in certain sectors. 14 percent work in transport and logistics companies, another 11 percent each in temporary employment and in the construction industry. Here they also make up a significantly higher proportion of employees than the total of 2.4 percent that they have in the German labor market.
Almost two thirds come from Poland
Looking at the country of origin, Poland dominates, with almost two thirds of the employees coming from. This is followed by Hungary with 14 and the Czech Republic with 8 percent. Malta, Cyprus and Estonia, each with less than half a percent, play practically no role.
However, the workforce from the accession countries does not solve the shortage of highly qualified specialists. “The contribution of employees from these countries to covering bottlenecks in demanding jobs is currently quite low,” said Ragnitz. “This may have something to do with the fact that people with higher qualifications also have good labor market opportunities in their home countries and, if in doubt, are paid above average there.” According to Ifo, this does not apply to the majority of employees from the accession countries currently working in Germany. With an average income (median) of 2,580 euros per month, they are a good 1,000 euros below the comparative value for all employees in Germany.
Source: Stern
