GlobalAutoTV
Click to watch Margery Marshall - Global Mobility Strategies
Click to watch Margery Marshall - Global Mobility Strategies
global resources
Need an office somewhere in the world? Office suites, meeting rooms, virtual offices, network access



free downloads
USA: "Michigan is Auto Mobility" report

USA: "Michigan is Auto Mobility" report. 16-page report by MICHAuto.

proceed to download
eJournals




back to index backGLOBALtalk February,  2017


Eastern Europe’s workers are emigrating, but its pensioners are staying

The EU’s newest members face economic decline unless they woo back workers, or recruit immigrants of their own

IN THE Lithuanian town of Panevezys, a shiny new factory built by Devold, a Norwegian clothing manufacturer, sits alone in the local free economic zone. The factory is unable to fill 40 of its jobs, an eighth of the total. That is not because workers in Panevezys are too picky, but because there are fewer and fewer of them. There are about half as many students in the municipality’s schools as there were a decade ago, says the mayor.

Such worries are increasingly common across central and eastern Europe, where birth rates are low and emigration rates high. The ex-communist countries that joined the European Union from 2004 on dreamed of quickly transforming themselves into Germany or Britain. Instead, many of their workers transported themselves to Germany or Britain. Latvia’s working-age population has fallen by a quarter since 2000; a third of those who graduated from university between 2002 and 2009 had emigrated by 2014. Polls of Bulgarian medical students show that 80-90% plan to emigrate after graduating.

Lithuania’s loss of workers is costly, says Stasys Jakeliunas, an economist. Remittances and EU money for infrastructure upgrades have helped, but labour shortages discourage foreign investment and hurt economic growth. According to the IMF, in some countries in eastern Europe emigration shaved 0.6-0.9 percentage points from annual GDP growth in 1999-2014. By 2030 GDP per person in Bulgaria, Romania and some of the Baltic countries may be 3-4% lower than it would have been without emigration.

All of this imperils public finances. Pensions, which take up about half of social spending in eastern Europe, are the biggest worry. In 2013 Latvia had 3.3 working-age adults for each person older than 65, about the same as Britain and France; by 2030 that is projected to fall to just over two, a level Britain and France will not reach until 2060. Countries are raising the retirement age (apart from Poland, which is recklessly lowering it). Benefits are already meagre, leaving little room for cuts. As a share of GDP, social spending in Bulgaria, Romania and the Baltic states is roughly half of that in many richer European countries.

Unable to dissuade people from leaving, governments are trying instead to lure them back, inspired by successful efforts in Ireland and South Korea. Daumantas Simenas, project manager of the Panevezys free economic zone, credits his return from Britain to the country’s Create for Lithuania” programme, which matches educated professionals from the diaspora with government jobs. Having a job already lined up made the decision to return easier, he says. Plus, he adds, home is home.”

To read entire article, please click here.

Source: The Economist - GAI






previous page

go top
search our site


Loading

GLOBALtalk

Other articles from the same issue (February,  2017).

After expat exes fail, global automakers searching for Indians to lead their India operations
play read on

Europe Top 20: motor vehicles produced per worker by country
play read on

Global Automotive Executive Survey 2017
play read on

The move to assemble vehicles in Mexico is about more than low wages
play read on

Facing the storm: Navigating the global skills crisis
play read on

The emerging model shift in global talent mobility
play read on

How to Hire Employees in Mexico, a Quick Glance at Labor Contracts
play read on

Guide to Going Global - Employment 2016
play read on

Will EU nationals be allowed to stay in UK after Brexit?
play read on

Expats highly rate health care in Mexico and Central America
play read on

Benefits of Global Employment Outsourcing
play read on

Asia Employment Law Forecast 2017
play read on

Top priorities for US boards in 2017
play read on

Top priorities for European boards in 2017
play read on

Importance of Business Intelligence on Decision-Makers When Doing Business in China
play read on

Narrowing talent recruitment gap between local and foreign companies in China: Report
play read on

Negotiating In China: 6 Cultural Business Tips For Success
play read on

Doing business in China - about relationships and subtleties
play read on

Canada: Navigating the global benefits marketplace for an increasingly international workforce
play read on

An Integrative Approach to Cross-Border Expansion: The Role of Global Leadership
play read on

Eastern Europe’s workers are emigrating, but its pensioners are staying
play read on

Forbes Insights: Reducing the Impact of Language Barriers
play read on

Germany: The Works Council’s right of co-determination regarding the Employer’s Facebook presence
play read on

What a successful expatriate looks like
play read on

Kentucky’s Right-to-Work Earthquake Reverberates Across State Lines
play read on

Brazil Raises 2017 Monthly Minimum Wage to R$937
play read on

Global Employee Benefits Watch 2016/17 report
play read on

Asia-Pacific employers raise salaries to combat high turnover
play read on

Europe: Skills for tomorrow
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120