Freedom of movement for workers: economic, social and demographic aspects for Ukraine
In this article, the likely economic, demographic, and social implications of full or gradual opening of the EU labour market to Ukrainian citizens in the context of prospective membership are analysed. The author emphasises the significant role of labour migrants’ remittances in driving domestic demand expansion, boosting consumption, and spurring entrepreneurship through increased investment and skill development. At the same time, an open labour market raises the risk of a brain drain, potentially slowing technological progress and complicating post-war reconstruction. Drawing on the experience of new EU member states, particularly Poland, the article demonstrates a correlation between rising emigration and both lower unemployment rates and wage growth in labour donor countries. However, negative demographic consequences are also possible, as the outflow predominantly involves young people, which, combined with low birth rates, accelerates the process of population ageing. The article considers two scenarios: one without transitional periods and one with several years of restrictions. The former scenario entails an immediate increase in remittances, faster wage convergence, and prompt access to EU social security. However, a sharp labour outflow could lead to shortages in critical sectors and exacerbate demographic decline. The latter scenario mitigates these risks by enabling the labour market and social security systems to adapt gradually, albeit at the expense of delaying the economic benefits of migration. In summary, the article concludes that freedom of movement for workers offers significant benefits in terms of additional funding, access to higher wages, and knowledge transfer. However, it necessitates a measured approach when negotiating transitional restrictions. For Ukraine, it is important to pair the opening of the European labour market with reforms that help retain qualified professionals and ensure long-term economic sustainability and demographic balance.
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