Migration, Labor Markets, and Integration of Migrants: An Overview for Europe

This paper discusses the size of Europe's migrant population, its demographic structure, and the socio-economic position of migrants. The European Labor Force Survey (LFS) as well as Eurostat, Organisation for Economic Co-operation and Development (OECD) and United Nation (UN) migration data are used as the main databases. In most sections of the paper the geographic unit of analysis is European Union (EU15) as the so-called old EU Member States are home or host some 94 percent of all migrants and some 97 percent of all legal foreign residents living in EU27. But general information on stocks of international migrants and recent migration flows are given for all countries of Western, Central and South-Eastern Europe. In this paper the criterion place of birth is used to distinguish between foreign-born vs. native-born residents of the EU. At the same time the paper looks into differences by citizenship comparing EU nationals vs. legal foreign residents. This exercise shows both lower employment rates, higher unemployment and the concentration of immigrants and foreign nationals from middle- and low-income countries in certain sectors of the economy and in low-pay jobs. In this context Europe has to consider pro-active migration policies and measures to identify future labor and skills gaps. In the medium- and long-term the EU and its member states will have to compete with other OECD countries for attractive potential migrants. In this context Europe has a genuine incentive to compare its efforts and experiences with those of traditional countries of immigration-in particular with the US, Canada and Australia. And Europe should develop a genuine interest in becoming both more attractive for highly skilled migrants as well as more inclusive towards all employable migrants.