The European Union and Immigration from New Member Countries

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Case Details:

Case Code : ECON017
Case Length : 20 Pages
Period : 1945-2005
Pub Date : 2006
Teaching Note :Not Available
Organization : -
Industry : -
Countries : EU countries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Immigration in Post Enlargement EU

While other countries imposed various kinds of quotas and restrictions, the UK, Ireland, and Sweden allowed workers from the new member countries access to their labor markets. The UK implemented a Worker Registration Scheme, and required all immigrants from the new member countries to obtain a work permit. Since the accession, till December 31, 2005, nearly 345,000 applicants from the new member countries registered with the Worker Registration Scheme to work in the UK. Of these, around 329,000 applicants were issued worker registration certificates and cards. The Polish were the largest group of all (204,895) followed by the Lithuanians (44,715).

More than 80% of the immigrant workers were aged between 18 and 34. (Refer to Exhibit VIII for details on immigrants to the UK between May 2004 and December 2005)...


Though many of the older EU members have imposed restrictions on immigration from the new member states, it is believed that these countries will eventually have to take in an increasing number of immigrants to offset the growing number of vacancies in their labor markets caused by ageing populations and exacerbated by the declining fertility rates in Europe. The Total Fertility Rate in Europe was estimated to be below 1.5 since 1995 through 2003, making an eventual decrease in the EU population inevitable. This decrease in population is expected to have serious consequences for EU's future in terms of growth rates and development...


Exhibit I: Map of European Union in 2005
Exhibit II: Real GDP Growth Rates in the Old and New Member States in %
Exhibit III: Hourly Labor Costs in Industry and Services in 2000 &
Labor Productivity in the EU in 2002
Exhibit IV: Unemployment Rates in Select Old Eu Members
Exhibit V: Economic Indicators of the EU and its member states
Exhibit VI: Area and Population Statistics of the EU and its Member States
Exhibit VII: Unemployment Rates in Select New EU Member States
Exhibit VIII: Nationality of Applicants by Quarter Applied in the UK May 2004 - December 2005
Exhibit IX: Sectors in which Registered Workers are employed in the UK, by Quarter Applied May 2004 - December 2005
Exhibit X: Applications for Tax-funded, Income-related benefits in the UK May 2004 - December 2005
Exhibit XI: GDP Growth Rates of Select EU Member States


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