EU unemployment of extra-EU inhabitants – work to do! (three graphs)
Eurostat provides us (kudo’s) with data on total unemployment but also on unemployment of people from the EU living in another EU country (an Irishmen living in Italy) and on people from outside the EU living in a EU country (Moroccans or Japanese living in Spain, this excludes people from, say, Turkey who have received citizenship of one of the EU countries).
Let’s start with the silver lining: differences between total unemployment and unemployment of people from another EU country are (to me) surprisingly small (graph 1). Differences with people from outside the EU are however enormous.. Differences between countries are exceedingly large, too (graph 2). Countries like Belgium and France know very high ‘extra-EU’ unemployment rates, rates in Germany and, especially, the UK and surprisingly the Czech Republic are much lower. As a rule of thumb, extra-EU unemployment is twice the level of total unemployment in most countries.
Differences in time are large, too. After 2008 the extra-EU rate increased with about 7%-point in France, while it declined with about 7%-point in Germany. The UK does a bit better than other countries. Even then, the influx of refugees (200.000 in August alone, which is a lot) will pose a problem and labour market policies will have to change. The question ‘how?’ is not the subject of this blog. Here, I only want to point out that we have a labour market problem. But, from the ‘comments’, “For every new mouth that arrives as an immigrant, comes a new pair of hands. We should welcome immigrants and invest in their welfare because the returns on what they will do later on are worthwhile.”