The Effects of the EU's Eastern Enlargement on the Austrian Labor Market

In the wake of the EU's Eastern enlargement the high disparity in wages is likely to result in a considerable influx of foreign workers. If freedom of movement were to be implemented in the year 2005, Austria would have to reckon with about 42,000 migrants and cross-border workers in the first year. In the medium term (5 to 7 years), Austria could expect an inflow of 150,000 to 200,000 persons, with cross-border workers making up the majority. If, by way of transition periods (similar to those used in the EU Southern enlargement), the freedom of movement can be postponed until the year 2015, the number of migrants and cross-border workers will be reduced by one fourth, owing to the economic catching-up process of the Eastern countries. This inflow would be more easily absorbed, indeed welcomed, by the Austrian labor market, because, for demographic reasons, the supply of labor in Austria will fall by 420,000 persons during the period 2015 to 2030.