Accession state workers aided economy
Friday, 4 September 2009 09:56ESRI research has found that almost 6% of Ireland's economic growth since 2004 was generated by the inflow of workers from the eastern European states which joined the EU that year.
The economic think tank also found that immigration from the accession states helped contain the problem of Ireland's deteriorating competitiveness, by dampening pressure for wage increases over much of that period.
Over the six years to 2008, 190,000 immigrants came to Ireland from new EU states, an inflow the ESRI describes as dramatic.
The research found that they were mostly skilled workers and had a participation rate in the workforce one-third higher than Irish adults.
However, the study also claims the immigrants experienced disadvantages relative to Irish workers, receiving wages up to 45% lower and failing to get work in areas in which they were qualified.
The analysis also found their presence dampened wage increases, helping contain declining competitiveness in the Irish economy.
The study is published in a new book of papers by European labour market experts, which examines migration in the union since enlargement.
The book concludes that free migration helps rather than hinders Member States' strained social welfare systems.
It found no evidence that migrants from accession states displaced native workers, lowered their wages or were more dependent on welfare.
It also claims the economic crisis is unlikely to drive large numbers of migrants home, because the effects in their own countries are similar or worse than in their host states.
