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EU Struggles with Worker Shortages Amid Rising Anti-Immigrant Sentiment

by Hyacinth

As immigration remains a dominant issue in European politics, particularly with the rise of the far right, governments are under increasing pressure to reduce the influx of migrants. However, many countries, even those with openly anti-immigrant stances, are actively seeking foreign workers to fill critical labor shortages and sustain their economies.

The European Union has identified 42 occupations facing significant labor shortages and has developed an action plan to attract foreign workers. Nearly two-thirds of small and medium-sized businesses in the EU report struggling to find qualified employees.

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While many European leaders, particularly those on the far right, have pushed for policies to limit immigration or deport migrants, there are growing signs of a policy shift recognizing the need for foreign labor.

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Italy’s Push to Hire Foreign Workers

In Italy, under the far-right government of Prime Minister Giorgia Meloni, the country is turning to foreign workers to fill significant labor gaps. The government plans to allow 452,000 foreign workers to enter Italy between 2023 and 2025, though officials have admitted that this number falls short of the estimated need for 833,000 workers during the same period.

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Italy faces labor shortages in 37 occupations, with healthcare, agriculture, and tourism most affected. The country needs 280,000 foreign workers annually through 2050 to meet demand. To address the shortage, Italy recently announced plans to recruit 10,000 nurses from India, where there is an oversupply of healthcare professionals. Italian Health Minister Orazio Schillaci stated that India has 3.3 million nurses, and the country plans to bring 10,000 of them to Italy once their Italian language skills are assessed.

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Professor Maurizio Ambrosini, an expert in migration at the University of Milan, explained that Italy’s employers, once hesitant to engage in the migration debate, have now pushed the government to take action to meet their staffing needs.

Despite criticism from some within her own coalition, including Lampedusa Deputy Mayor Attilio Lucia, who argues that the right-wing government is becoming more anti-immigrant than the left, Meloni’s administration has been forced to confront the reality of labor shortages.

Netherlands Seeks to Retain Skilled Migrants

In the Netherlands, businesses have influenced the government’s stance on immigration. ASML, the country’s largest company and a major player in semiconductor manufacturing, has been vocal about the need for foreign talent. CEO Christophe Fouquet emphasized that the company’s success depends on attracting skilled workers from around the world, with nearly 40% of its workforce being foreign nationals.

Despite the far-right rhetoric surrounding immigration, Dutch lawmakers recognize the importance of skilled migrants. To retain talent, the government has introduced tax breaks for foreign workers, reducing the tax incentive only slightly, from 30% to 27%. Researchers argue this change will have little impact on migrant arrivals, as the tax scheme remains attractive to skilled workers.

Germany’s “Opportunity Card” for Skilled Workers

Germany is also addressing its labor shortages by opening its doors to skilled foreign workers. The country plans to issue 200,000 visas to skilled workers in 2024, a 10% increase from the previous year. This is part of the “Opportunity Card” scheme, which allows non-EU nationals to come to Germany and seek employment.

Chancellor Olaf Scholz recently visited India, announcing plans to streamline bureaucracy and increase the annual number of work visas for Indians from 20,000 to 90,000. Germany needs approximately 400,000 new skilled workers each year, particularly in engineering, IT, and healthcare. Despite the rise of the far-right Alternative for Germany (AfD) and anti-immigrant sentiment, Germany is still focused on attracting skilled workers to meet its labor demands.

A Tension Between Public and Private Immigration Policies

Across Europe, governments are grappling with the challenge of balancing public anti-immigration rhetoric with the private sector’s demand for foreign workers. While leaders publicly advocate for stricter border controls and immigration restrictions, such as agreements with transit countries like Tunisia or the new asylum deal between Italy and Albania, many countries are quietly adjusting their policies to bring in more workers.

Ambrosini notes that European nations are adopting two conflicting immigration policies: one aimed at limiting migrant arrivals and another focused on attracting workers for essential sectors. The latter is often kept low-profile and is more visible to employers than the general public.

Ultimately, European governments are struggling to reconcile the need for foreign labor with political pressure to control immigration. However, the reality is that, for many sectors, skilled foreign workers are vital to maintaining economic stability.

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