The Economist says, Hurrah for labour shortages:
“Labour shortage” is one of the most nonsensical phrases ever coined. Real shortages happen outside the market economy: armies run short of ammunition; sailing ships may lack wind. But with six billion people on the planet, labour is not in short supply. What “labour shortage” means is that employers can’t find workers with the right skills at a price they like. Similar shortages are reported of Rembrandts, lobsters and nice houses in London.Nonetheless, the news that British farmers are complaining of a “labour shortage” is excellent news. For the past five years, eastern European workers have been pouring into Britain — perhaps as many as a million Poles, and hundreds of thousands of other nationalities, legal and illegal. The result has been a triumph of European integration. The diligent new arrivals have boosted economic growth in Britain, and many have gained money and know-how to help rebuild home countries ruined by communism.
That supply seemed inexhaustible. But it wasn’t. Most economies of eastern Europe are now booming, so pay and conditions at home are improving. The “discount” on staying put and the premium on going abroad have both shrunk.
Secondly, the new Europeans are realising that tedious and monotonous agricultural work is not the only way into life in Britain. Waitressing at a country pub is a better job than picking strawberries in the surrounding fields: you improve your English, don’t get dirty, and meet nicer people. Figures published last month showed 41% of registered workers from the eight eastern European countries that joined the EU in 2004 applying to work in administration, business or management, compared with 25% three years ago. The hospitality industry accounted for 19% and agriculture only 11%.