Where do we get workers if all are grey?Waar halen we werknemers vandaan in een tijd van vergrijzing?Where do we get workers if all are grey?Where do we get workers if all are grey?
About 30-40 years ago, some entrepreneurs came up with ways to make the labor markets in Europe more flexible. Because labor laws in most European countries are very strict, it’s hard for companies to fire people. To solve that problem, employment agencies and staffing solutions were ‘invented’. Today, it’s common to engage people on short term contracts through an external company to remain more flexible. Or by hiring freelancers.
Ongeveer 30 tot 40 jaar geleden ontwikkelden een aantal ondernemers manieren om de arbeidsmarkt in Europa flexibeler te maken. Omdat arbeidsvoorwaarden in de meeste Europese landen erg streng zijn is het moeilijk voor bedrijven om mensen te ontslaan. Om dat probleem op te lossen zijn employment agencies en staffing solutions ‘uitgevonden’. Vandaag de dag is het gebruikelijk mensen aan te nemen op basis van korte termijn contracten die door een extern bedrijf geregeld worden om zo flexibeler te blijven. Of door freelancers aan te nemen.
About 30-40 years ago, some entrepreneurs came up with ways to make the labor markets in Europe more flexible. Because labor laws in most European countries are very strict, it’s hard for companies to fire people. To solve that problem, employment agencies and staffing solutions were ‘invented’. Today, it’s common to engage people on short term contracts through an external company to remain more flexible. Or by hiring freelancers.
About 30-40 years ago, some entrepreneurs came up with ways to make the labor markets in Europe more flexible. Because labor laws in most European countries are very strict, it’s hard for companies to fire people. To solve that problem, employment agencies and staffing solutions were ‘invented’. Today, it’s common to engage people on short term contracts through an external company to remain more flexible. Or by hiring freelancers.
The next decades, Europe will face a much bigger issue: we won’t have enough people. The population is growing old. By 2030, Europe will have twice as many seniors older than 65 than children under 15, while the population is stagnant. In the US, this figure is different: by 2030, there will be 65 million more Americans, while children keep on outnumbering seniors (source: ‘The post-American world’, Fareed Zakara).
The US is also open to immigrants. As Fareed Zakara puts it: ‘Without immigration, U.S. GDP growth over the last quarter century would have been the same as Europe’s. America’s edge in innovation is overwhelmingly a product of immigration. Foreign students and immigrants account for 50 percent of the science researchers in the country… In 2010, foreign students get more than 50 percent of all Ph.D’s awarded in every subject in the US’.
At the same time, the US is embracing offshoring. They pioneered offshoring and they still dominate the industry, sending much more work offshore than Europe.
The US has one main objective: grow and stay competitive in a globalized world. Europeans tend to think in another way. Some governments are coming to power who try to limit immigration (recently, in Holland and in Sweden, right wing parties have entered the government). When foreign workers from Eastern Europe come to our countries to work in construction and similar fields, people wonder ‘why are they taking our jobs at much lower rates?’. And offshoring is still in its infancy.
For Europe, the main way to remain competitive and to keep on growing in the decades to come, is to embrace offshoring on a big scale. Our population will become grey, there is no doubt about that. We don’t like to invite large groups of foreigners to our country (as has been done in the 50’s when Northern Africans joined our labor forces to fill the gaps), because it causes ‘integration problems’. So if we don’t have enough local people, if we don’t want to take people to the jobs, then we should take the jobs to other people in other countries.
I believe that companies in Europe should start today with learning how offshoring works. They should start working with people abroad because there is no other way to remain competitive. IT has been the pioneering industry in showing that offshoring brings benefits, but in many other business processes, Europe should start involving colleagues from around the globe into their teams.
It would be nice to receive some views from others on this topic. Do you think that Europe has a challenge? How do you think Europe can face this challenge? What can we do today in order to remain competitive in the ‘global village’ of today?
Europa zal in de aankomende decennia een veel groter probleem hebben: we zullen niet genoeg mensen hebben. De populatie wordt oud. In 2030 zal Europa twee keer zo veel senioren ouder dan 65 hebben dan kinderen onder de 15, terwijl de populatie stagneert. In de Verenigde Staten is dit anders: in 2030 zullen er 65 miljoen meer Amerikanen zijn, maar er zijn meer kinderen dan senioren (bron: ‘The post-American world’, Fareed Zakara).
De Verenigde Staten verwelkomen ook immigranten. Zoals Fareed Zakara zegt: “Zonder immigratie zou de GDP groei van de Verenigde Staten over de laatste kwart eeuw hetzelfde zijn als in Europa. Amerika’s voorsprong in innovatie is een product van immigratie. 50 procent van de wetenschappelijke onderzoekers in het land zijn buitenlandse studenten en immigranten …In 2010 krijgen buitenlandse studenten meer dan 50 procent van alle doctorale graden die in elk vak uitgereikt worden in de Verenigde Staten.
Tegelijkertijd maakt de VS gebruik van offshoring. De VS was een pionier in het gebied van offshoring and domineert nog steeds de industrie, het land zendt veel meer werk offshore dan Europa.
De VS heeft één hoofddoel: groeien en competitief blijven in een geglobaliseerde wereld. Europeanen denken vaak op een andere manier. Sommige nieuwe overheden proberen immigratie te limiteren (recentelijk zijn in Nederland en Zweden rechtse partijen toegetreden tot het kabinet). Als buitenlandse werknemers uit Oost-Europa naar onze landen komen om in de bouw en vergelijkbare gebieden te werken vragen mensen zich af ‘waarom doen zij ons werk voor een veel lagere prijs?’. En offshoring staat nog steeds in de kinderschoenen.
De enige manier voor Europa om competitief te blijven en te blijven groeien in de komende jaren is om op grote schaal gebruik te maken van offshoring. Onze populatie zal vergrijzen, dat is zeker. Wij houden er niet van om grote groepen buitenlanders naar ons land te halen (zoals gedaan is in de 50’er jaren toen Noord-Afrikaanse werknemers onze arbeidsmarkt betraden om de gaten te vullen) omdat het ‘integratie problemen’ veroorzaakt. Dus als we niet genoeg lokale mensen hebben, als we de mensen niet naar het werk willen halen, dan moeten we het werk naar andere mensen in andere landen brengen.
Ik vind dat bedrijven in Europa vandaag nog moeten beginnen met leren hoe offshoring werkt. Ze moeten gaan werken met mensen in het buitenland omdat er geen andere manier is om competitief te blijven. IT is de eerste industrie geweest die heeft laten zien dat offshoring voordelen met zich meebrengt, maar in veel andere werkgebieden moet Europa ook beginnen met het betrekken van collega’s van over de hele wereld in hun teams.
Het zou fijn zijn om wat meningen van anderen over dit onderwerp te horen. Vindt u dat Europa een uitdaging heeft? Hoe denkt u dat Europa deze uitdaging kan aanpakken? Wat kunnen we vandaag de dag doen om competitief te blijven in het ‘global village’ van tegenwoordig?
The next decades, Europe will face a much bigger issue: we won’t have enough people. The population is growing old. By 2030, Europe will have twice as many seniors older than 65 than children under 15, while the population is stagnant. In the US, this figure is different: by 2030, there will be 65 million more Americans, while children keep on outnumbering seniors (source: ‘The post-American world’, Fareed Zakara).
The US is also open to immigrants. As Fareed Zakara puts it: ‘Without immigration, U.S. GDP growth over the last quarter century would have been the same as Europe’s. America’s edge in innovation is overwhelmingly a product of immigration. Foreign students and immigrants account for 50 percent of the science researchers in the country… In 2010, foreign students get more than 50 percent of all Ph.D’s awarded in every subject in the US’.
At the same time, the US is embracing offshoring. They pioneered offshoring and they still dominate the industry, sending much more work offshore than Europe.
The US has one main objective: grow and stay competitive in a globalized world. Europeans tend to think in another way. Some governments are coming to power who try to limit immigration (recently, in Holland and in Sweden, right wing parties have entered the government). When foreign workers from Eastern Europe come to our countries to work in construction and similar fields, people wonder ‘why are they taking our jobs at much lower rates?’. And offshoring is still in its infancy.
For Europe, the main way to remain competitive and to keep on growing in the decades to come, is to embrace offshoring on a big scale. Our population will become grey, there is no doubt about that. We don’t like to invite large groups of foreigners to our country (as has been done in the 50’s when Northern Africans joined our labor forces to fill the gaps), because it causes ‘integration problems’. So if we don’t have enough local people, if we don’t want to take people to the jobs, then we should take the jobs to other people in other countries.
I believe that companies in Europe should start today with learning how offshoring works. They should start working with people abroad because there is no other way to remain competitive. IT has been the pioneering industry in showing that offshoring brings benefits, but in many other business processes, Europe should start involving colleagues from around the globe into their teams.
It would be nice to receive some views from others on this topic. Do you think that Europe has a challenge? How do you think Europe can face this challenge? What can we do today in order to remain competitive in the ‘global village’ of today?
The next decades, Europe will face a much bigger issue: we won’t have enough people. The population is growing old. By 2030, Europe will have twice as many seniors older than 65 than children under 15, while the population is stagnant. In the US, this figure is different: by 2030, there will be 65 million more Americans, while children keep on outnumbering seniors (source: ‘The post-American world’, Fareed Zakara).
The US is also open to immigrants. As Fareed Zakara puts it: ‘Without immigration, U.S. GDP growth over the last quarter century would have been the same as Europe’s. America’s edge in innovation is overwhelmingly a product of immigration. Foreign students and immigrants account for 50 percent of the science researchers in the country… In 2010, foreign students get more than 50 percent of all Ph.D’s awarded in every subject in the US’.
At the same time, the US is embracing offshoring. They pioneered offshoring and they still dominate the industry, sending much more work offshore than Europe.
The US has one main objective: grow and stay competitive in a globalized world. Europeans tend to think in another way. Some governments are coming to power who try to limit immigration (recently, in Holland and in Sweden, right wing parties have entered the government). When foreign workers from Eastern Europe come to our countries to work in construction and similar fields, people wonder ‘why are they taking our jobs at much lower rates?’. And offshoring is still in its infancy.
For Europe, the main way to remain competitive and to keep on growing in the decades to come, is to embrace offshoring on a big scale. Our population will become grey, there is no doubt about that. We don’t like to invite large groups of foreigners to our country (as has been done in the 50’s when Northern Africans joined our labor forces to fill the gaps), because it causes ‘integration problems’. So if we don’t have enough local people, if we don’t want to take people to the jobs, then we should take the jobs to other people in other countries.
I believe that companies in Europe should start today with learning how offshoring works. They should start working with people abroad because there is no other way to remain competitive. IT has been the pioneering industry in showing that offshoring brings benefits, but in many other business processes, Europe should start involving colleagues from around the globe into their teams.
It would be nice to receive some views from others on this topic. Do you think that Europe has a challenge? How do you think Europe can face this challenge? What can we do today in order to remain competitive in the ‘global village’ of today?
Hi
The biggest challenge is political then any thing else, for e.g. In Sweden this time little more then 4% of votes went to SD which are opposed to immigration and I feel bit of pain for them, since as a country I would like preserve the culture rather then loose it, the advantage with America is that it speaks English but in Europe there are so many small country each having their own language America was made out of immigrants it would also be good to look at UK where people are not happy with open arms immigration i.e. invite anyone to fill in (that’s not my personal view) I think Europe should be open to selective immigration i.e. invite best of the best in each field.
Only way to solve integration problem is to have job in hand or temporary job where you learn the language for e.g. My wife has a degree in economics when we moved to Sweden she didn’t knew a single word of Swedish and no body was interested in giving her job because of lack of language skills. She gave quite a lot of time to learn the language but in my view you need to work or study to actually learn the language but nobody was willing to give her a chance before she could speak the language. She applied to like 500 jobs after struggling for 1 year she finally got a job in same field and guess what she is best performer in her office. She got awards multiple time for being hardworking and always willing to extra mile to make sure things get done. There are so many like her in different fields who are not fluent but willing to learn but nobody is willing to give them a chance.
Europe should build a society where R&D is main source of economy it is the only way of surviving. India and China is strong work force but they lack in R&D. It doesn’t matter who codes application like facebook what matters is that its a person in US who thought of this concept and is making money out of it that too from countries like India. Future is in building knowledge and not in manufacturing.
Regards
Akhilesh
As always, interesting articles. Is this demographic shift toward an older population uniform throughout Europe? Or are some countries in central and east Europe still growing? That may be an opportunity within the challenge for Europe.
While immigration had been a boon to US it’s a problem for Europe and that’s why it’s gaining so much political and social mileage.
Immigration to US had primarily been of skilled personnels. Scientists, engineers, doctors, creme of the students all had gone to US for work or continuing their studies and some decided to stay. It had contributed immensely on positive side to all involved i.e. the
1) Native’s nation : by remittances, better learned manpower, cultural exchange
2) Immigrant themselves : better quality of life, more opportunistic
3) Host nation : better skilled population
Unfortunately, not all of above is true of Europe. In ultra liberal laws and social acceptance, European nations adopted ailing population of many countries and put them in welfare. How are these two sceneries similar? Because most of the immigrants like these are illiterate, don’t speak native tongue (Indians migrating to US has years of English learning) and are culturally too different to respect local laws. I would say these two sceneries are incomparable and Europe should revamp whole idea of immigration before passing on judgments around it. They certainly should learn from US.
Ultimately robots and software will ease the demand-supply gaps.
Extending the retirement-age to beyond 58/60 will be the common thing in future.
So far, illegal immigrants and next generation of immigrant population are taking care of much demand of the society.
African continent has the highest population growth and has good number of young people ready to serve the continent. Similarly, one can expect young immigrants from under-developed economies of other continents.
Hello Hugo:
Is Under impression that we have workers with Grey cell which are meeting the deadlines.
Cheers,
-Dinesh
I’m not sure I get what your question above is, other than an invite for reading your blog.
But there are a few things I disagree with what you write:
1. US is NOT open to immigrants.
Unless you are lucky and get a blanket H1-B, or can wait for years for a regular H1-B, OR are lucky to have USC siblings, OR you are lucky to win the green card lottery, they are not open.
That includes spousal visas. You’d think it wouldn’t take 5 years to get a green card when married to a US citizen? Think again. That’s the kind of “openness” to immigration that’s more closer to reality, unless one is willing to go “gray” and undocumented, limiting oneself to the jobs in the gray market.
2. EU is not going to suffer for the lack of young population.
The borders (especially South) are not exactly immigration proof, and both the “locals” and immigrants (including those of any other EU country) keep the population growth high enough, resulting in population growth. Look at birth rates of e.g. UK or Finland for the past few years.
If you mean outsourcing with “offshoring” there’s no reason why EU should go “offshoring” as far as India. Currently there are plenty of service industry (phone) jobs that are outsourced in countries where it’s a) cheaper to hire people and in temporary basis and b) easy to get people speaking fluently enough the languages that are being requested by the vendor. So instead of the classical choices such as Ireland, there are plenty of companies that want the same jobs “offshored” to Greece, Portugal, Romania… it tends to be easier to find e.g. German speakers in those countries.
By the way, if you outsource everything you can, what do you need those workers for? The people with skills tend to want to go where they can get the best and best paid jobs if they can, so if those jobs are available in other countries, there isn’t really incentive for the skilled to stay.
That’s where the politics come in play.
Personally, I don’t care where someone comes from for a job, as long as they are legal, and are the best person for the job in question.
I liked your article. I think Europeans (in this case including Ukrainians) underestimate the influence of ageing on their life. In the nearest future younger people will not be able to pay for all senior citizens. Ukrainians already suffer… from overly high taxes, and instead of creating good business environment and inviting immigrants, our government raises taxes even more. With such a policy Ukraine will face the decay in the nearest future. Western Europe has more time to think about this problem, but if EU chooses to keep the borders closed – for immigrants, outsourcing and offshoring – European economy will fall, and it will fall tremendously.