Europe’s Labour Shortage Collides with the New Migration and Asylum Pact

On 12 June 2026 the EU’s Migration and Asylum Pact entered into force, introducing “return hubs” outside EU borders, stricter screening, faster deportations and tighter border controls. The timing coincides with record-low unemployment and historic highs in employment rates, while the continent’s working-age population continues to contract, especially in Germany, Italy and Central-Eastern Europe.

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EU labour markets are experiencing acute deficits in healthcare, construction, agriculture, transport, engineering, IT and the green-digital transition. In 2022, roughly 22 percent of the EU population was aged 65 or older, accelerating the need for migrant workers to sustain welfare systems and economic growth.

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• Nicolas Schmit – former European Commissioner for Jobs and Social Rights, current MEP (S&D) and president of FEPS.

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• Tesseltje de Lange – Professor and Director of the Centre for Migration Law, Radboud University Nijmegen.

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• Ylva Johansson – former Migration Commissioner, co-initiator of the EU Talent Partnership and Talent Pool.

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• Since 2019, non-EU nationals have filled over 50 percent of net EU job growth.

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• In Italy, migrant workers contribute ? €8 billion annually to the welfare system while receiving about €3 billion in benefits and support ? 600 000 pensions.

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• The Blue Card scheme was recast for 2023-2025, lowering salary thresholds and expanding qualification criteria, yet uptake remains fragmented across member states.

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The European Commission’s May 8 report acknowledges high political willingness to implement the Pact but notes lagging execution, with IT systems for migrant tracking and border detention facilities behind schedule in Germany, Italy, Greece, Spain and Cyprus. Member states have introduced complementary measures: Italy’s “flows decrees” admit tens of thousands of non-EU workers annually; Germany’s Skilled Immigration Act creates pathways for workers without university degrees. The EU also promotes targeted labour migration schemes for sectors that cannot be left understaffed, while publicly tightening asylum rules to address irregular migration concerns.

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De Lange argues that the “rhetoric of less migration is a false narrative” and highlights procedural barriers: qualification recognition can take up to a year, visa appointments are monopolised by brokers, and labour-market tests delay applications. She warns that tightening family-reunification rules undermines talent retention, as family stability is essential for successful placements. Far-right and centre-right parties continue to foreground overcrowded reception centres, shaping public debate away from organised labour migration, which accounts for the majority of arrivals.

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The Commission report stresses that irregular migration represents less than 10 percent of arrivals, yet political discourse focuses disproportionately on this segment. Implementation gaps persist in IT infrastructure and coordinated processing, creating a mismatch between the Pact’s objectives and on-the-ground capacity.

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• “If Europe goes for zero migration, we will end up in a dead continent.” — Nicolas Schmit, MEP, S&D

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• “We have to transform this toxic discussion on migration into a real one, a debate which is based on facts,” — Nicolas Schmit, MEP, S&D

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• “The rhetoric of less migration is a false narrative,” — Tesseltje de Lange, Professor, Radboud University Nijmegen

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• “It sometimes takes some nine months just to get an appointment at an embassy,” — Tesseltje de Lange, Professor, Radboud University Nijmegen

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• “We have to stress the absolutely positive sides of migration and not just stress the ones which might not always be positive.” — Nicolas Schmit, MEP, S&D

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• “It has to be a win-win. It cannot be just at the advantage of one side.” — Nicolas Schmit, MEP, S&D

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The EU plans to introduce harmonised, expedited visa and qualification-recognition procedures, shortage-occupation lists for fast-track applications, and a digital app to inform migrant workers of their rights. Cooperation with countries of origin on skills development and circular migration is also slated for the next decade, aiming to align labour market needs with migration policy while addressing the current implementation shortfalls.

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