Where have all the workers gone?

Where have all the workers gone?There are plenty of stories around about the scarcity of workers in many of the eastern European and Baltic State countries, most of whom joined the European Union in May 2004. I have been writing about this for the new edition of EconoMax which is due out next week. In nations such as Latvia, Lithuania and Estonia - all countries enjoying rapid economic growth - over 2 per cent of the labour force has upped sticks and migrated elsewhere. The result is a growing labour shortage and in some instances rampant wage inflation.This BBC news article offers a good perspective on the issue and the specific problems facing Slovakia, which has attracted huge amounts of foreign direct investment notably in car manufacturing. Will the new member states of the EU themselves have to look eastwards for a fresh supply of workers?http://news.bbc.co.uk/1/hi/world/europe/7058803.stmThe Financial Times had a piece on the broader problem of labour shortages (published in June 2007)‘Western Europe is not the only part of the EU suffering from a shortage of labour. Companies in the east are finding it difficult to recruit qualified workers, and wages in some sectors have risen up to 50 per cent in the past 12 months. Increased investment in the east, emigration, a poor distribution of skills and low mobility have combined to create a growing shortage of skilled labour from Poland to Bulgaria. Investors in the region are finding they have to look much further east for staff or pay more’European economy presentations on Tutor2u