S K I L L S A N D S I T U A T I O N I N B R A I N T H E U K D R A I N Migration: rich countries worry about low-paid workers who come to compete, developing countries worry about brain-drain (The Economist, 2011) I M M I G R A T I O N Benefits Growth, technology advancement, innovation, net budget contributions. • Immigrants are twice as likely to start a company; more than 40% of the Fortune 500 were founded either by an immigrant or the child of one. (Economist, 2018). Education • In order to compete with universities in the US, Netherlands, Australia, China, the UK should attract the brightest minds (FT, 2018). Especially in the context of reduced budgets due to the cessation of research of funding from the EU - prevents from attracting the best staff. • Businesses need bright graduates, and Sir Dyson was against immigration cap on skilled (FT, 2012) – Dyson and the recent move to Singapore is partially explained by the skills shortage. Implications • Brexit - >The future skills-based immigration system. • It is recommended that migrants should not be discriminated against nationality and focus should be on the level of skills (Economist, 2018). • Educational system and graduate supply, e.g., French engineers. • Healthcare, e.g., head nurses from Spain. E M I G R A T I O N Current issues • Recent expats from A8 tend to get lower wage and be overqualified for their jobs. • Poorer countries pay for emigrants education, but there is some evidence that remittances overweight this. • High-levels of migration from EU10 • Romania (19.7%), Lithuania (15.0%), Croatia (14.0%), Portugal (13.9%), Latvia (12.9%) and Bulgaria (12.5%) (Eurostat). Migration of prime age citizens harms demographics. • For example, most emigrated students from Bulgaria pursue IT, engineering and medicine studies abroad, though, only 1/3 returns after graduation (FT, 2018). • Greece lost 18,000 doctors and still struggles to return its expats and fill skill gaps. • Non-EU countries • 38% increase in migration of African doctors. African doctors represent 2% of doctors worldwide, but 25% burden of global diseases (FT, 2013). Emigration benefits for the economy • Transfer of knowledge. • Experience and savings allow having a higher quality life at home country. • In Lebanon, Lesotho, Nepal, Tajikistan, remittances are >20% of GDP. Implications: Tackling emigration problems • Improving education system; increasing purchasing power, encouraging high-value-added industries; poverty at old age; economic stability (FT, 2018); high taxes (e.g. France). • ‘Skilled young Italian graduates are underemployed (35%) and underpaid, but frustrated by a society and a labour market that hinge on relationships and seniority over competence’. (FT, 2017) • People who return are judged harshly as unsuccessful.
