Migration and the Economic Crisis: Implications for Labour Market Policies in the European Union and the Post-2010 Lisbon Agenda Expert Seminar

Transcription

1 Migration and the Economic Crisis: Implications for Labour Market Policies in the European Union and the Post-2010 Lisbon Agenda Expert Seminar 10 December 2009 Management Centre Europe, Rue de l'aqueduc 118, Brussels SEMINAR REPORT The IOM Expert Seminar on Migration and the Economic Crisis: Implications for Labour Market Policies in the European Union and the Post-2010 Lisbon Agenda was held in Brussels on 10 December 2009 and attracted more than 100 participants from across the European Union, as well as Croatia, Norway and Turkey, including governments delegates, representatives of the EU institutions, international organizations, private business, trade unions, academia and the civil society. The seminar served as an opportunity to present the preliminary findings of the IOM thematic study on Migration and the Economic Crisis: Implications for Policy in the European Union that was initiated in October 2009 and will be finalized in February Moreover, the seminar facilitated a debate on policy measures, particularly in the field of employment and labour market relevant at the time of economic crisis and in view of post-2010 Lisbon Agenda. The seminar was the first event organized by IOM to promote the research carried out by its Independent Network of Labour Migration and Integration Experts funded by the DG Employment, Social Affairs and Equal Opportunities of the European Commission. OPENING REMARKS Mr. Xavier Prats-Monné, Director, DG Employment, Social Affairs and Equal Opportunities of the European Commission Mr. Prats-Monné welcomed the participants of the seminar and marked the substantial contribution made by immigrants to both employment and economic growth, but also the expected vulnerability of migrants in the context of the economic crisis. He described the importance of tackling economic migration and integration policies in the post-lisbon context. Mr. Prats-Monné underlined the need to attenuate the decline of labour supply in the European countries, stressed the importance of labour mobility and investment in human resources, the need to make the best use of the existing migrant labour and to better combat discrimination and empower people in inclusive societies. He also emphasized the need to study the gender dimensions of migration and to tap into the underused potential of women migrants.

2 2 Mr. Bernd Hemingway, Regional Representative, Regional Mission to Belgium, Luxembourg, the European Union and NATO of the International Organization for Migration Mr. Bernd Hemingway welcomed the participants and thanked DG Employment for the support and the partnership on the new initiative of the Independent Network of Labour Migration and Integration Experts. He noted that migration was an important instrument for filling labour and skill shortages in the labour markets and alleviating demographic tendencies of ageing and decreasing population, while also contributing to entrepreneurship, diversity and innovation in host economies. Mr. Hemingway emphasized that labour market access was the main, though not the only condition for successful integration of migrant workers. Migrants also represented a disadvantaged group to be supported in its inclusion process in the labour markets and host communities, especially as they were often disproportionately affected by the economic crisis. Moreover, in order to raise the competitiveness of Europe policies would need to take into account the long-term labour market needs and factor migration in the strategy for economic recovery. Ms. Pervenche Berès, Member of the European Parliament, Chairperson of the Committee on Employment and Social Affairs of the European Parliament Ms. Pervenche Berès stated that in a time of economic downturn, migration and employment policies were at the rick to be affected by protectionism and xenophobia. She stressed the critical role that IOM could play in deconstructing the myth about migration. Ms. Pervenche Berès noted the existing demand for both high- and low-skilled migrants and the particular attention that would need to be paid to integration issues to succeed with 2020 strategy. She also emphasized the importance of the goal of full employment in this strategy alongside competitiveness and sustainable development. Ms. Berès also noted the multidisciplinary nature of migration that necessitated a comprehensive approach across various policy areas and assured that migration issues will play a prominent role in the upcoming EP hearings of Commissioner designates in January INTRODUCTION Migration, Economy and Employment in the Context of the Economic Downturn and the post-2010 Lisbon Agenda Address on behalf of the Swedish Presidency of the European Union Mr. Lars Johan Lönnback, Counsellor for Migration and Asylum Policy, Permanent Representation of Sweden to the European Union (on behalf of Ms. Åsa Carlander, Deputy Director, Department for Migration and Asylum Policy, Ministry of Justice of Sweden, Chair of Working Party on Migration and Expulsion) Mr. Lars Johan Lönnback emphasized the belief for the Swedish Presidency of the crucial importance of managing migration in a sustainable way, avoiding protectionism and fostering labour market dynamism. He added that one of the main priorities of the Swedish Presidency was the negotiation of a new multi-annual program for (Stockholm Programme) that looks at a comprehensive European migration and asylum policy based on solidarity amongst the Member States and a true partnership with countries of origin and transit. He noted the key important issues for the coming years, such as the creation of flexible admission 2

3 3 systems for labour migration that are responsive to MS needs and allow migrants to take full advantage of their skills and competences and the establishment of comparable rights for all third countries nationals legally residing in the EU by He remarked on the Swedish experience in managing migration in recent years that despite the crisis improved the possibilities for mobility for legal migrants and promoted mechanisms aimed at facilitating a better match in labour markets. Mr. Lönnback welcomed the IOM study on migration and the economic crisis as very timely. Keynote Speech Prof. Bimal Ghosh, Emeritus Professor at the Columbia Graduate School of Public Administration, Former Special Adviser/Senior Consultant to the UN, ILO, IOM, Commission on Global Governance and Council of Europe Prof. Bimal Ghosh presented data on the present economic crisis. The ILO expects the worldwide unemployment to rise by 38 million by the end of this year. Some 90 million additional people will join the labour force by Unemployment in 30 OECD member countries is set to reach 10 per cent or 25 million by In the Eurozone joblessness has reached 9.5 per cent. Moreover, even if the world economy found its way back to recovery by mid-2010, labour market conditions were not likely to improve significantly any time soon. Prof. Ghosh noted that if migration was not wisely managed during the crisis and became a source of serious tension and conflict within and between nations, it could threaten political and social stability and hinder recovery. Prof. Ghosh warned about indiscriminate restrictions on immigration as a knee-jerk reaction to the crisis and the general decline of tolerance towards foreigners. He suggested proactive and concerted policy measures to avoid these and other pitfalls and to ensure economic recovery and political stability. These should include amongst others flexible immigration policies attuned to the changing labour market conditions, vigilance against abuse of migrants labour and human rights and financial/fiscal measures to help job creation. The success of many of these measures critically depends on joint action by migrant sending and receiving countries. Findings of the IOM Study on Migration and the Economic Crisis: Implications for Policy in the European Union Dr. Frank Laczko, Head of the Research and Publications Division, IOM Geneva introduced the panel of the IOM Study on Migration and the Economic Crisis: Implications for Policy in the European Union. The panel presented the preliminary findings of the case studies carried out by IOM in order to evaluate the impact of the economic crisis on migrants across the EU. The study would be finalized by February 2010 and would eventually include data on the 27 EU MS, Croatia, Norway and Turkey, as well as eight case studies on the Czech Republic, Germany, Ireland, Italy, Poland, Spain, Sweden and the UK. Dr. Martin Rozumek, IOM Expert, Director, Organization for Aid to Refugees, Prague, Czech Republic Dr. Martin Rozumek described the situation in the Czech Republic where migrants represented 4% of the population. In the last five years the number of migrant workers has increased from in 2004 to in Migrants are one the most affected group in the population by the current crisis as they are dependent on intermediaries, subjected to exploitation and employed in the informal economy. Moreover, corruption persists with regard to visa issuance and migrants are often dispatched for temporary assignments by the labour agencies that ensure only limited level of protection. About migrants lost their 3

4 4 work permits during the last year, and approximately migrants disappeared from official records. Dr. Rozumek described the limited success of the proposed voluntary return programmes. Dr. Anna Myunghee Kim, IOM Expert, Institute for the Study of Labour (IZA), Bonn, Germany Dr. Anna Kim underlined a dramatic shift that took place in Germany from the guest-worker regime to the immigration regulation regime. Active state-run migrant integration programmes have evolved since the mid-2000s and the first fully-fledged immigration law came into effect in Dr. Kim added that labour market impacts of the global downturn are reflected differently in the various industry sectors, the most affected sectors being industry and trade, which are represented especially by native workforce. In turn, rise in unemployment rates among the minority skilled-native workforce has been more salient than among the majority low-skilled migrant workforce population of the German economy. Dr. Torben Krings, IOM Expert, Research Fellow, Employment Research Centre, Trinity College Dublin, Ireland Dr. Torben Krings presented data on the economic crisis in Ireland. The country was severely hit by recession and economy was expected to shrink by 13% between , while unemployment was likely to reach 15% in 2010 (5% in early 2008). He noted a significant decline of migrant inflows; however, outflows seemed to be relatively insensitive to the crisis. Almost ¾ of the migrant population was composed by EU nationals with relatively high qualifications. Dr. Krings also added that migrants were more affected by the crisis than the Irish nationals: unemployment of Irish nationals increased from 4% to 11% while the unemployment of non-irish nationals increased from 6% to 16%. Migrants from the new Eu MS have been the worst hit (increase in unemployment from 6% to 19%), especially because of the job losses in the construction sector where they were over-represented. Finally, Dr. Krings presented the government response to this economic crisis: a) to restrict the number of non-eea migrants (e.g. some occupations are no longer eligible for work permits; the labour market needs test has been extended to 8 weeks); b) to improve the situation of current permit holders (e.g. those who lost the job have more time to find new employment and no longer have to satisfy labour market needs test). Dr. Ferruccio Pastore, IOM Expert, Director of International and European Forum of Migration Research (FIERI), Turin, Italy Dr. Ferruccio Pastore described the actual economic situation in Italy and its impact on migrant population. The unemployment gap between native and migrant population was wide, with the migrant s rate constantly higher. He underlined some non-homogeneity when considering gender, economic sectors, nationalities and regions. Especially, he emphasized that the impact on women s occupation was less severe than for men due to the strong feminization of immigration in Italy in the past year and the strong concentration of women in caregiving and domestic work. He also noted that in Italy the perception of immigration as a problem was growing even if the majority did not link this perception with economic reasons. The public opinion was then less volatile than initially assumed. Dr. Pastore discussed the Italian policy responses regarding labour migration management. He underlined a decrease in the number of migrants allowed to join the labour market. In the framework of the new reform of immigration law, some of the important changes are qualifying the illegal entry and 4

5 5 stay as a criminal offence and the systematic weakening of the status of legal immigrants (enactment of a points-based system for the renewal of stay permits; more restrictive housing requirements for family reunification; dramatic cuts on funds available for integration policies at both central and local level etc.). Dr. Izabela Grabowska-Lusinska, IOM Expert, Centre for Migration Research, Warsaw University, Poland Dr. Izabela Grabowska-Lusinska remarked that the economic crisis was a good test for the structural challenges in the labour market. Especially this crisis showed that there was no straightforward relation between the economic situation and migration as such, but migration policy seemed to play a crucial role. Dr. Grabowska-Lusinska also noted that in Poland the employers were very resistant to employ foreigners and treat them as second-best in comparison to local workers. She raised the issue of return migration saying that for the first time since 2004 EU enlargement more people return to Poland than left (net return at rate of 60,000). The majority of returnees were around their 40, they had jobs in secondary labour market in the receiving countries and mostly came back to small town and countryside. Reasons to return were not always connected with economic factors, but especially with personal and family elements. As for the existing policy measures to attract third country nationals, the crisis has not been severe enough on the national level to phase out the instruments in place. To conclude, Dr. Grabowska-Lusinska stated that circular migration seemed to be the future of the Polish labour market. Dr. Torbjörn Lundqvist, IOM Expert, Institute for Future Studies, Stockholm, Sweden In Sweden the crisis was concentrated especially in industry and export industry and the industrial production went down by 20%. However the consumption was still rising and this affected the situation of migrants in the labour market. Unemployed rate rose up to 9% in 2009, but the forecasts consider the possibility of a further increase in the near future. Dr. Lundqvist also noted a gap in unemployment rate between native and foreign born population in 2009 the difference was between 6.9 and He underlined that in the short run unemployment and social exclusion will become more severe both for migrant newcomers and the Swedish young people. Discussion Questions from the audience concerned the access of migrants to unemployment benefits, the influence of employers in securing special measures for attraction of the third country nationals to the labour market, pay-to-go programmes and initiatives to retrain migrants who had lost their jobs. Dr. Pastore noted that the focus of the Italian policy is rather about disincentives to stay than about incentives to leave and also confirmed the inequality of migrant access to benefits. Retraining of workers is taking place at the local rather than national level. Dr. Grabowska-Lusinska commented on the crucial role of employers in negotiating a policy tool for facilitated access of temporary third country workers on the Polish market before the crisis. She also warned about the danger of social tensions if return migrants are eligible for a different level of benefits than those who stayed at home. 5

6 6 In Czech Republic migrants have no access to benefits in the first five years after immigration. Voluntary return programme has been introduced with the crisis. In Ireland voluntary return programmes are under consideration. In Germany no voluntary return measures are in place, the focus is rather on the long-term attraction of high-skilled labour. THEMATIC SESSION I: Employment Policy Initiatives and Institutional Responses to the Current Challenges in Migration Management Ms. Irina de Sancho Alonso, Adviser for Migration, European Trade Union Confederation Ms. Irina de Sancho Alonso stressed the importance of migration for the ETUC. Nowadays trade unions are trying to coordinate and improve their actions in order to support both EU and third national migrants, including undocumented migrants. Serious challenges for migrant workers have been imposed by the crisis such as the reduction of employment opportunities, the deterioration of working conditions, the increase of racism and xenophobia and the reduction of remittances. In this context of crisis, Ms. de Sancho Alonso highlighted four key issues to be addressed in employment and migration policies: a) ensure fundamental rights for migrant workers; b) provide equal employment opportunities; c) improve social protection and access to public services; d) establish social dialogue. Further measures suggested by ETUC included avoiding protectionism, combating xenophobia, ensuring international labour standards and factoring migrants into the economic stimulus packages. Ms. de Sancho Alonso also emphasized that ignoring sector-based demands would lead to the increase of irregular migration. In this regard, legal channels for mid- and low- skilled workers would need to be provided to allow for avenues out of irregularity. Ms. Tina Weber, Vice-Chair of the Social Affairs Committee, European Centre of Employers and Enterprises Providing Public Services Ms. Tina Weber stated that despite the current recession, migration makes a really important contribution to the EU labour markets. The EU faces a long term demographic challenge and it would be dangerous to try and reverse labour migration flows. She also noted that in many ways migration flows were self-regulating. Ms. Weber discussed the necessity of applying ethical standards in recruitment processes, ensuring access to equal rights and opportunities and combating xenophobia, as well as maintaining the responsibility towards sending countries. She also noted a new framework agreement on integrated labour markets concluded by ETUC, CEEP and Business Europe which aims at joint promotion of comparable labour market integration policies for migrant workers across the EU. Discussion Dr. Anna Kim identified the key points for the discussion: a) protection of human and labour rights as well as promoting equal opportunities; b) effective use of skills and preventing of skill degradation; c) social integration comes from labour market integration even in the times of crisis. 6

7 7 Dr. Ferruccion Pastore inquired with ETUC on reasons why despite the pan-european organization s clear pro-migration stance, its national affiliates often voice an opposite opinion. Ms. Irina de Sancho Alonso responded that the European trade unions support migration under condition that equal opportunities for employment are respected in the process. Dr. Izabela Grabowska-Lusinska discussed the issue of treatment of return migrants on the national labour market of the country of origin if they should be treated differently. One of the possibilities would be to tackle their higher propensity to run their own business through initiatives such as enterprise incubators. Ms. Åsa Carlander (Sweden) reiterated that only access to permanent residence status by migrants will make circular migration possible. THEMATIC SESSION II: Labour Market Activation Measures and Combating Discrimination against Migrants during the Economic Crisis Presentation of the EC Study on the Innovative Approaches towards Successful Integration of Third Country Migrants into the Labour Market Mr. Bert-Jan Buiskool and Mr. Bram Frouws, Research voor Beleid, Netherlands Mr. Bert-Jan Buiskool and Mr. Bram Frouws presented the preliminary findings of a Study on the Innovative Approaches towards Successful Integration of Third Country Migrants into the Labour Market. The aims of this study were to identify the barriers that third country migrants may face when finding employment and to examine innovative and practical ways to improve their integration into the labour market from an economic and social point of view. The following conclusions were suggested: a) the economic crisis deeply impacts the European labour markets; b) the labour market position of third country migrants will worsen in the near future since they are on average younger, more often working in temporary employment and in sectors that are especially sensitive for the effects of the current crisis; c) the demographic developments will cause labour market shortages in the long run; d) these developments, although each from a different perspective, call for labour market integration of third country migrants. They also pointed out some of the barriers in the process of seeking, finding, keeping or moving upwards in a job both from third country migrants and host societies perspective. In order to overcome these barriers the speakers suggested several successful practices that include tailored and integrated approach and stakeholders involvement. Ms. María Ochoa-Llidó, Head, Migration and Roma Department, Council of Europe Ms. María Ochoa-Llidó started her presentation by recalling the UN Declaration on Human Rights and the European Convention of Human Rights which were powerful instruments to promote the rights of migrants because they reflected the universality of human rights. She called on consolidating the political will to implement the legislation that already exists. At the 8 th Council of Europe ministerial conference on migration (Kiev, 4-5 September 2008) Ministers from many Member States called on the Council of Europe to develop measures to promote and protect the human rights of especially vulnerable migrants and persons of migrant background. As a result, many of the activities that the European Committee on Migration is putting in place are directly relevant to the global economic downturn and its 7

8 8 impact on migrants. Ms. Ochoa-Llidó warned that even the best policies or strategies and international standards have limited result in the field because of deep-rooted prejudice and stereotypes towards migrants in the majority society. An identity crisis within the economic crisis directly affects the migrant population. Council of Europe is running different campaigns in order to combat discrimination and stereotypes. Ms. Ilaria Savoini, Social Affairs Manager, EuroCommerce Ms. Ilaria Savoini provided an insight on the subject from the point of view of commerce. Migration does not only have an impact on the labour market, but as far as the commerce sector is concerned, has also an impact in changing the habits of the costumers. Ms. Savoini underlined the importance of social dialogue, in issues of common interest such as education and training, health and safety, active inclusion and integration of the weakest groups on the labour market (including migrants). She proposed some good practices implemented at company/national level such as diversity chart in Spain aimed to avoid discrimination on the ground of ethnic origin. The social partners of the commerce sector have also signed in December 2008 a joint statement on the global financial crisis. In particular, the social partners call on the authorities to implement measures aimed to boost consumer s confidence and to increase efforts to support employment. She concluded by stressing the importance of support to the vulnerable employees such as migrant workers in keeping jobs and combating discrimination on the labour market. Discussion Questions from the audience tackled the business case behind employer initiatives mentioned by EuroCommerce, specific labour market initiatives aimed at migrant women and progress in recognition of qualifications. Ms. Ilaria Savoini noted significant interest on the part of sectoral companies in boosting employability of migrants and attracting young migrants in particular. Mr. Bert-Jan Buiskool remarked that recognition of qualifications was only a part of the issue, the labour market outcomes of migrants being largely influenced by discrimination on behalf of employers. Ms. María Ochoa-Llidó warned against the use of requirements such as language proficiency to justify institutional discrimination, as requirements should be commensurate with the skill level demanded by the job. THEMATIC SESSION III: The Role of Migration in Meeting Labour Needs and Fostering the Competitiveness of the European Union beyond the Crisis Mr. Egbert Holthuis, Deputy Head of Unit D.2: European Employment Strategy, CSR, Local Development, DG Employment, Social Affairs and Equal Opportunities of the European Commission Mr. Egbert Holtuis presented some reflections on the role of migration in meeting labour needs and fostering the competitiveness of the European Union. In particular, the future outlook will be determined by the increasing domination of the service sector and the decline 8

9 9 of traditional manufacturing industries. In terms of skills, Europe would face a growing demand for high educational attainment and increasing skills requirements at all levels. In this regard, migrants are currently employed in low and medium-skilled jobs for which they are often over-qualified. Policy implications for 2020 strategy would include better implementation of labour market reforms, including flexicurity, active labour market policies and lifelong learning; improved efficiency and equity of education; promoting equal opportunities and combating discrimination; increasing labour mobility and fostering social dialogue. Managing third country migration should become an integral component of this policy mix. Mr. Pascal Kerneis, Managing Director, European Services Forum Mr. Pascal Kerneis reiterated the demographic concerns that Europe is facing and that manifest themselves already now in many EU countries where the companies find it difficult or impossible to fill vacancies due to labour or skill shortages. He also warned that the EU is already late in the process of attracting highly-skilled migrants in comparison to the traditional immigration countries and the need for an EU economic migration policy is long overdue. ESF welcomes the legislative proposals on the Blue Card and on the single application procedure for a single work/residence permit and a common set of rights despite some areas where improvements could be made. He also commented on the ESF support to better WTO Mode 4 commitments that include conditions for entry and stay of intra-corporate transfers, business visitors, contract service suppliers and independent professionals. Mr. Luc Hendrickx, Director, Enterprise Policy and External Relations, European Association of Craft, Small and Medium-Sized Enterprises Mr. Luc Hendrickx welcomed the IOM research initiative as UEAPME suggested in 2005 to create a pan-european network for monitoring the effects of immigration on the labour market. Further studies would be necessary to evaluate various methodologies for assessing and determining the concrete needs for economic migration. However, any methodology should be based on procedures that are simple and accessible for SMEs. Furthermore, all stakeholders should take a share of responsibility in the integration process. While UEAPME recognizes the need to attract high-skilled migrants, it also argues that that Europe needs different types of legal migrants to tackle bottlenecks in certain sectors. In particular, small companies are facing serious challenges in recruiting workers of any skill level. In this regard, UEAPME supports the demand-driven approach in admission policies. Finally, UEAPME called for support for migrant entrepreneurship, as migrants are often facing specific difficulties in this regard, such as lack of outreach outside the migrant community. Discussion Ms. Åsa Carlander (Sweden) reminded that the main goal of developing the EU migration policy would be to make Europe more competitive, as many policy-makers seem to have lost the sight of the fact that the EU will need to compete for the skills that it needs. Therefore, Europe needs to make itself attractive and stop being stuck in the crisis in its decisionmaking. Dr. Anna Kim (Germany) noted that language proficiency was an important labour market integration requirement also for the low-skilled workers who often are employed in environments where no other but the national language is spoken. 9

10 10 DG Justice, Freedom and Security representative emphasized the need to improve the instruments for gathering the statistics and data (also as included in the draft Stockholm Programme). In 2010 the European Migration Network will study labour shortages in the EU to guide labour migration management. Mr. Pascal Kerneis noted that educating third country students and allowing them to stay and work in the EU would be a viable policy option. Mr. Egbert Holthuis welcomed the position of Ms. Carlander as the one to be supported by DG Employment. Concluding Remarks Dr. Frank Laczko, Head of the Research and Publications Division, IOM Geneva Dr. Frank Laczko summarized the main preliminary findings of the IOM study and the key issues discussed at the seminar. In particular, he discussed the following major effects the economic crisis has had on migration: higher unemployment rate for foreign-born population, decline in the flow of remittances, likely increase in number of migrant workers in irregular employment, increase in some forms of return migration (with little evidence of mass return so far) and negative public attitudes not being primarily related to recession. In terms of policy response Dr. Laczko reiterated the necessity to take up a long-term view in migration management, ensure that migrants are not stigmatized for job losses and protected from acts of discrimination and that migrants are included in the efforts to promote recovery and effective labour market policies. He noted that in the long-term restrictive measures may increase migrant vulnerability and the risk of irregular migration, as well as prolong crisis by reducing ability of the labour market to fill the jobs in a range of sectors. Finally, Dr. Laczko stressed the need to strengthen international co-operation in the area of international migration and development to address the challenges resulting from the crisis. 10