Workforce Movement: Latvia and the European Union

Since the European Union Eastern enlargement in 2004, the free movement of labour and labour migration have become largely controversial issues both for the new member states and the EU-15 countries. This thesis uses Latvia as a case study to discuss labour migration trends in the EU. Latvia serves as an example of a small size economy with lower wages and poorer working conditions. Due to its small size, the migrant number from Latvia is well below the number of immigrants from other sending countries. This makes it unlikely that migrants from Latvia will have a considerable impact on the receiving country. Nevertheless, the intensity of migration flow from Latvia can be rated as one of the highest in the EU-8. That is why, this thesis will focus on the effects of migration on the sending country by explaining possible causes of labour migration in Latvia and the consequences of this trend. In Latvia’s case, due to the aging of society and the so-called brain-drain caused by migration, demographic forecasts are negative. The thesis will focus on the policy recommendations for the Latvian government that could help in developing an efficient migration policy. Theoretical issues of labour migration are described in the first part of the thesis. The second part deals with labour migration within EU territory. In the third part, special attention is drawn to labour migration from Latvia to the EU-15 by analyzing three case studies. Finally, the thesis attempts to frame labour migration in a more positive experience by developing policy recommendations for an effective migration policy.