Positive overall effect of migration on the national budget

Migration to Austria has a positive impact on employment, investment and economic growth. "As a result of immigration, gross domestic product is much higher than it would be without migration," says Tobias Thomas, Director of the economic research institute EcoAustria. However, the increased supply of labor can also lead to a certain dampening of wages in the short term and a slight increase in unemployment, particularly among low-skilled workers. "The extent of the economic and fiscal effects of immigration depends crucially on the qualification structure and labor market integration," explains Thomas.

An analysis published today based on EcoAustria's PuMA macro model shows the detailed impact on public revenue and expenditure. The effects of migration to Austria from 2013-2018 on public revenue and expenditure up to 2020 were examined: Due to immigration from EU15 countries such as Germany, France and Italy, the public budget will be EUR 2.6 billion higher on balance by 2020 than would be the case without immigration. Immigration from EU13 countries such as Romania, Slovakia and Hungary will have an even more positive effect due to the higher number of cases, increasing the budget balance by EUR 5.8 billion by 2020. Immigration from third countries such as Turkey will also make a positive contribution of EUR 1.2 billion to the Austrian national budget in the same period.

Asylum migration should again be viewed primarily from a humanitarian rather than an economic perspective. The budget will be burdened with EUR 8.1 billion by 2020, particularly due to poorer labor market integration. However, this also becomes apparent over time: The more effective qualification measures are and the faster integration into the labor market is achieved, the faster the positive economic and fiscal consequences of migration will be felt. Across all migration groups, immigration to Austria will make a positive contribution by 2020

1.4 billion euros to the public budget, according to a study conducted by EcoAustria in cooperation with the Austrian Institute for Family Research at the University of Vienna on behalf of the Austrian Integration Fund.