The labor market is a strong magnet

Leo Lucassen is Research Director of the International Institute of Social History (IISH) and Professor at Leiden University. This summer he wrote an essay commissioned by the Scientific Council for Government Policy (WRR) on the future of migration. According to Lucassen, the political discussion is often full of factual inaccuracies. Especially the great importance of labor migration for the Dutch economy is misunderstood, he argues.

What does immigration look like in numbers?

"We see from 2013 that immigration is going up, with the peak year being 2017, when it reached 234,000 immigrants. In that year there were 154,000 people who emigrated, so on balance 81,000 more people came to the Netherlands. In this regard, it is good to realize that nine out of ten immigrants come to the Netherlands to work here."

Our labor market needs these people?

"We desperately need them. Economic growth creates a high demand for labor. Moreover, in the coming years the available labor supply is decreasing as the labor force ages. Furthermore, you see that certain types of work are not liked by Dutch people. Think of work in slaughterhouses or in agriculture and horticulture. At the top end of the labor market, too few young people are choosing technical studies. So there too you see that companies are forced to bring in workers from Asia. A high-tech company like ASML currently employs thousands of foreigners."

So our open economy cannot exist without labor migration?

"No, that has always been true throughout our history. You do see differences per period. From 1975 to 2000, immigration was mainly determined by the arrival of Surinamese, the family reunification of guest workers and asylum migration. From the beginning of this century, labor migration takes a much more prominent place, and certainly in the last five years we see this trend. Our labor market is an increasingly powerful magnet."

Germany chooses to be an "immigration country. Is that wise?

"That is indeed the official policy of the German government. Given the shrinking labor force, I can well imagine that choice. Germany is systematically pursuing labor recruitment. Even among rejected asylum seekers is recruited. We are not that far along in the Netherlands yet."

But politicians like Wilders and Baudet especially warn of a wave of immigrants

"Historically, the number of asylum seekers has decreased tremendously. We are now at a relatively low level. That kind of statement is pure polling, which is full of factual inaccuracies. It undermines support for immigration, while because of demographics labor migration is dire necessity. I see a lot of cowardice in politics. Angela Merkel is one of the few who is not afraid. In the Netherlands, too, I sometimes wish for bolder politicians."

A Labor Migrant Survey was recently commissioned by the ABU and NBBU. What did you notice in it?

"The figures show that the share of Polish temporary workers has dropped significantly, from over 79% to 72.8%. Poland's economy is growing, making it more difficult to attract Poles. And Germany is also an attractive alternative for Polish workers: close to home and economically prosperous. Pull factors for migrant workers are the level of wages, working conditions and good housing. For the temporary employment industry, these are the knobs to turn. With that you can distinguish yourself from other countries."

Of ABU and NBBU members who mediate labor migrants, as many as three-quarters experience a shortage of housing places. Does this shock you?

"That's hefty. In fact, more than a quarter of broadcasters say they need more than a hundred housing places. So for the staffing industry there is a task to convince local governments that much more commitment is needed. And to show the economic importance for the regions. The white paper released by the ABU last year shows this very clearly. At the same time, municipalities need to be aware that doing nothing is not an option. Because if you do nothing, labor migrants will end up living in ramshackle barns and on dilapidated vacation parks. That ultimately creates more problems locally and is very bad for the image of the Netherlands."

Do you see other excesses when it comes to migrant workers?

"For example, you see that there are transport companies that have their headquarters in, say, Bucharest, because social security contributions are much lower there. The drivers then just work in the Netherlands, though. That is a form of unfair competition that puts Dutch drivers at a disadvantage. It is legal for the time being, but European legislation means that from 2021 this will no longer be possible. I think that's a good step forward."

So it is important to remain critical?

"Certainly. For example, a new distribution center may be built right in the middle of the countryside. The local labor supply is thus sidelined because it is difficult to travel there. Then cheaper labor from Eastern Europe is used. Such improper practices, unfortunately, do labor migration no favors. But that does not change the fact that labor migration has been of great importance to the Netherlands in the past and will continue to be of great importance in the coming decades."

Source: Flex & Figures, January 2019