LABOUR MIGRATION TO THE EUROPEAN UNION COUNTRIES: FACTORS AND CONSEQUENCES

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LABOUR MIGRATION TO THE EUROPEAN UNION COUNTRIES: FACTORS AND CONSEQUENCES

Journal Title: Зовнішня торгівля: економіка, фінанси, право - Year 2018, Vol 5, Issue 100

Abstract

Background. In conditions of deepening European integration processes and integration of Ukraine to the world labor market is demanding the analysis of the external labor migration to the European Union countries with defining of its influence on the Ukrainian economic development. Sharp increase of the scales of external labor migration from Ukraine during 2014–2018 inconditionals of opposition to Russian Federation contributed to Ukrainian workers differentiation abroad which depended on the level of theirs professional qualification and readiness to do some types of work. At the same time, the visa-free regime with the EU countries significantly facilitated the performance of Ukraine from the search for work. The analysis of recent research and publications. Some aspects of the chosen topic of the research are presented in the writings of Yu. Gumenyuk, O. Malinovskaya, T. Melnyk, M. Pytyulych. The researchers have focused on identifying the motivation of migrant workers and the relationship between the material situation of those wishing to leave and the possibilities for implementing such a desire. The scientists have begun to increase the threat to Ukraine due to an increase in the rate of migration of skilled labor. The aim of the research is to identify the main factors and nature of labor migration from Ukraine to the European Union and to estimate the consequences of this process for the Ukrainian economic development. Materials and methods. Statistical research data, data from the State Migration Service of Ukraine, certain legal acts and speeches by representatives of the top management of Ukraine with general reports on the state of affairs in the state are used in the research. By observing the principles of objectivity, a combination of historical and logical analysis, statistical and behavioral methods of scientific research and methods of scientific abstraction are used. Results. The growth of external labor migration has been influenced by the introduction of pension reform in Ukraine. Without having the prospect of obtaining a decent pension and not expecting the state to be able to change the situation for the better, a significant part of citizens were forced to take this into account when determining the terms of staying abroad and planning how to use the earned funds. Transfers of money earned from abroad by labor migrants have gradually become a significant factor in the stability of the Ukrainian economy. However, the nature of the use of funds received from Ukrainian foreign labor migrants indicates their importance for Ukrainian commodity producers and, above all, for large financial and industrial groups. Growing incomes from external labor migrants, which are many times higher than foreign investment, in the short term allow for a flexible policy regarding the requirements of the International Monetary Fund related to the continuation of lending to Ukraine, the maintenance of the national currency, the needs of large financial-industrial groups in maintaining the purchasing power of the population, mitigating the problem of unemployment and providing the population with housing. Conclusion. The nature of social ladders within large financial and industrial groups of Ukraine has exhausted itself. A large reduction in the number of workers will inevitably lead to a reduction in GDP. Growth of the volume of cash receipts from labor migrants as a means of keeping the hryvnia exchange rate, delaying the sharp increase in social problems, ensuring the growth of purchasing power of the population and stabilizing the internal market of goods and services cannot be considered expedient for a long-term perspective. The increase in the share of transfers of foreign labor migrants in Ukrainian GDP indicates an increase in the dependence of the state on their profits, as well as on unbalanced personnel policy and unproductive use of the labor potential of Ukrainian workers. The dependence of the state’s economy, the stability of the national monetary unit on the predominantly unskilled work of Ukrainian foreign labor migrants testifies to the difficult situation on the Ukrainian labor market. Such affairs can be a serious challenge to the national security of the state, whose stability depends, among other things, on fluctuations in the world and European labor markets.

Authors and Affiliations

Kate NIKOLAETS

Keywords

EP ID EP535044
DOI 10.31617/zt.knute.2018(100)07
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