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Euro zone labor shortage could be eased by influx of Ukrainians: ECB

FRANKFURT
2022-06-21 05:51

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FRANKFURT, June 20 (Xinhua) -- The influx of Ukrainians fleeing the Russia-Ukraine conflict could slightly ease the tightness observed in the euro area labor market., according to a monthly report published by the European Central Bank (ECB) on Monday.

Around 7 million people, mostly women and children, have left Ukraine, said the ECB in the report quoting the United Nations High Commissioner for Refugees (UNHCR), adding that a significant proportion of them is expected to reach the euro zone.

Data from the ECB report showed that the Russia-Ukraine crisis has clearly influenced Ukrainians' choice of destination countries as 75 percent of Ukrainian migrants currently live in the euro area, with particularly large numbers in Italy (30 percent), Germany (18 percent) and Spain (13 percent). However, only 24 percent of refugees from Ukraine would choose to settle in the euro zone in the pre-crisis years, according to the report.

The unemployment rate of countries in euro zone drops to a record low since the Russia-Ukraine crisis.

Despite that, refugee access to host country labor markets is often a lengthy process due to the labor market barriers and other frictions, said the report.
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