The labor market is a strong magnet

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

What does immigration look like in numbers?

"We've seen immigration increase since 2013, with 2017 as the peak year, when the number of immigrants reached 234,000. In that year, 154,000 people emigrated, resulting in a net increase of 81,000 people in the Netherlands. It's important to realize that nine out of ten immigrants come to the Netherlands to work."

Does our labor market need these people?

"We desperately need them. Economic growth is creating a high demand for labor. Moreover, the available labor supply will decrease in the coming years due to the aging workforce. Furthermore, you see that certain types of work are not favored by Dutch people, such as work in slaughterhouses or in agriculture and horticulture. At the higher end of the labor market, too few young people are choosing technical studies. So, there as well, companies are forced to recruit employees from Asia. A high-tech company like ASML currently employs thousands of foreigners."

So, our open economy cannot function without labor migration?

"No, that has always been the case throughout our history. However, you see differences per period. From 1975 to 2000, immigration was mainly determined by the arrival of Surinamese people, family reunification of guest workers, and asylum migration. Since the beginning of this century, labor migration has become much more prominent, and we have certainly seen this trend in the last five years. Our labor market is an increasingly strong magnet."

Germany is choosing to be an 'immigration country.' Is that wise?

"That is indeed the official policy of the German government. Given the shrinking working population, I can well imagine that choice. Germany is systematically committed to recruiting workers. They even recruit among rejected asylum seekers. We are not that far in the Netherlands yet."

But politicians like Wilders and Baudet mainly warn against a wave of immigrants...

"Historically, the number of asylum seekers has decreased enormously. We are now at a relatively low level. Such statements are pure scaremongering, full of factual inaccuracies. It undermines support for immigration, while labor migration is a dire necessity due to demographic developments. I see a lot of cowardice in politics. Angela Merkel is one of the few who is not afraid. I would sometimes like to see more courageous politicians in the Netherlands as well."

An labor migrant survey was recently conducted on behalf of the ABU and NBBU. What stood out to you?

"The figures show that the share of Polish temporary workers has fallen sharply, from over 79% to 72.8%. The economy is growing in Poland, making it more difficult to attract Polish people. And Germany is also an attractive alternative for Polish employees: close to home and economically prosperous. Pull factors for labor migrants are the level of wages, working conditions, and good housing. For the temporary employment sector, those are the buttons to turn. That's how you can distinguish yourself from other countries."

Of the ABU and NBBU members who mediate for labor migrants, no less than three-quarters experience a shortage of housing. Does that shock you?

"That is significant. More than a quarter of the temporary employment agencies even indicate that they need more than a hundred living spaces. So, there is a task for the temporary employment sector to convince local authorities that much more effort is needed, and to show that the economic interest for the regions is great. The white paper that the ABU released last year clearly shows this. At the same time, municipalities must be aware that doing nothing is not an option. Because if you do nothing, labor migrants will end up in rickety barns and dilapidated holiday 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 labor migrants?

"You see, for example, that there are transport companies that have a head office in, for example, Bucharest, because social security contributions are much lower there. The drivers then simply work in the Netherlands. That is a form of unfair competition, which disadvantages Dutch drivers. It is still legal for the time being, but European legislation will make this impossible from 2021. I think that is 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 sidelined in this way, because it is difficult to travel there. Subsequently, cheaper workers from Eastern Europe are deployed. Unfortunately, these kinds of improper practices do no good for labor migration. But that does not alter 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