The two newest members of the European Union, Bulgaria and Romania, are both dealing with wage increases and an exodus of skilled workers.

According to the World Bank, 38 percent of firms in Bulgaria and Romania each are reporting difficulties in finding skilled workers.

At the end of 2006, unemployment in Romania was at 5.2 percent, down from 7 percent in 2003 and continuing to drop. Wages continue to grow at the same time, at approximately 20 percent per year since 2002.

Unemployment numbers in Bulgaria are similar. Unemployment has declined continuously from 19.5 percent in 2001 to 8.9 percent at the end of 2006.

Meanwhile, emigration from both countries is at an all time high, beginning before their accession to the European Union in 2007. Since 2002, when the country gained visa-free access to the EU, Romania has recorded a yearly decline of 12 percent of its workforce.

As wages rise in response to labor shortages, the problem could solve itself, according to Clemens Grafe, economist for the Europe, Middle East and Africa region at the UBS Investment Bank, in an interview with the Financial Times.

"We believe that the speed with which labour costs change will change completely. Migration is driving wage movements. In countries that have seen major migration, wage increases have speeded up dramatically," he said.