LFS AD HOC MODULE ON MIGRANTS AND THE LABOUR MARKET

LFS AD HOC MODULE ON MIGRANTS AND THE LABOUR MARKET Fred RAMB Eurostat - Directorate F: Social Statistics and Information Society Unit F-2: Labour Market Statistics 1. Political orientations 1.1. Background The issue of immigration to meet the demographic and economic challenges the EU is facing, especially regarding labour supply, has gained renewed importance over recent years. At its Thessaloniki session of June 2003, the European Council considered that a successful integration of migrants contributes to social cohesion and economic welfare as well as to addressing the demographic and economic challenges that the EU is now facing, and called for further progress in this respect. Furthermore, it explicitly called for an accurate and objective analysis of these issues to help develop and promote policy initiatives for more effective management of migration in Europe. The need for effective integration policies was again stressed in the "Hague Programme" adopted by the European Council that met in November 2004 in Brussels. Following on from this a policy plan on legal migration 1, including admission procedures capable of responding promptly to fluctuating demands for migrant labour in the labour market, was presented by the Commission in 2005. In the context of a shrinking and ageing labour force more sustained immigration flows are likely and necessary. In light of this there is an urgent need for a forward-looking approach encompassing action to promote better integration of new and established immigrants and to prepare for future economic immigration. As underlined in the Commission Communication of June 2003 on immigration, integration and employment 2 closer monitoring of the situation of migrants is a necessary condition to assess migrants' contribution to the EU economy and society and the effectiveness of policies. 1 COM(2005) 669 final 2 COM (2003) 336, http://europa.eu.int/eur-lex/en/com/cnc/2003/com2003_0336en01.pdf 1

As shown in the Commission's first Annual Report on Migration and Integration 3 lack of access to employment has been identified as the greatest barrier to integration and thus the most important political priority within national integration policies. The proposed Basic Common Principles for Integration 4 clearly recognise employment and efforts in education as key elements of the integration process as well as being central to the active participation of immigrants and their descendants in society. There is a clear need to improve the knowledge base concerning integration of migrants and their immediate descendants in the labour market and on the factors affecting their integration, while the availability of accurate, comparable information and data at Community level is crucial to allow for better monitoring of the impact policies have on migrants. 1.2. Demands from the revised Lisbon Strategy The European Employment Strategy fully reflects the need to take into account labour aspects of immigration. The Employment Guidelines (2005-2008) adopted by the Council in July 2005, which are an integral part of the Integrated Guidelines Package designed to spur growth and jobs in Europe in the context of the re-launched Lisbon Strategy, include as a general objective that particular attention be paid to significantly reducing the employment gaps for people at a disadvantage as well as between non-eu and EU nationals. In the considerations with regard to Guideline 19 (Ensure inclusive labour markets, enhance work attractiveness, and make work pay for job-seekers, including disadvantaged people, and the inactive), it is explicitly stated that combating discrimination, promoting access to employment for disabled people and integrating immigrants and minorities are particularly essential. Moreover, Guideline 20 refers, among other measures, to appropriate management of economic migration to improve the matching of labour market needs, reflecting that full consideration must also be given on the national labour markets to the additional labour supply resulting from immigration of third country nationals. In addition, apart from these specific references, a number of other guidelines contain elements relevant to the situation of migrants. Data to monitor these issues are therefore extremely important and relevant in the framework of the EES. In addition, particular attention is paid to the situation of migrants in the context of the Social Inclusion Process. Reducing poverty and social exclusion of immigrants and ethnic minorities 3 COM (2004) 508, http://europa.eu.int/eur-lex/en/com/cnc/2004/com2004_0508en01.pdf 4 Draft Conclusions of the Council and the representatives of the Governments of the Member States on the establishment of 2

is one of the six key priorities of the social inclusion exercise. In this respect, more data on the specific situation of migrants and their immediate descendants are also useful for monitoring the social inclusion process. In December 2002, the Employment, Social Policy, Health and Consumer Affairs Council recommended in its revised common objectives for the fight against poverty and social exclusion "to highlight more clearly the high risk of poverty and social exclusion faced by some men and women as a result of immigration". This supports any effort to improve the reporting and monitoring of the specific situation of immigrants. 1.3. The need for information on migrant descendants It is necessary to obtain information not only on migrants but also on their immediate descendants. Collection of information on descendants of migrants is important firstly in the context of the ageing of society. As it is considered to attract new migrants to the labour market in order to counter the long-term effects of the ageing of society, it is also important to have data about the labour market participation of their descendants to guide assumptions as to what extent attracting new migrants will have an effect in the long run. Such data is also important from a social inclusion perspective, where there exists partial data that children of migrants also have more difficulties to access the labour market and face discriminatory barriers. Children of immigrants are in a different situation from their parents in that they have grown up in the host country and have been through the host country education system. Yet, they are potentially faced with the same problems linked to discrimination, socioeconomic characteristics, and to a lesser extent cultural background. Data on the situation of descendants of migrants would support the social inclusion dimension of the EES as well as the social inclusion process. 1.4. The gender dimension Attention should also be paid to the difference between migrant women and men. Employment rates for non-eu national women are much lower than for non-eu national men. The gap increases with qualifications meaning that the EU does not fully utilise the skilled female employment potential among migrants. Special attention needs to be paid to avoiding gender segregation in the labour market and to reducing the gender pay gap, in particular as regards immigrant women, and to promoting employment of immigrant women, recognising Common Basic Principles for immigrant integration policy in the EU. 3

their important role in the integration process. It is therefore important to also be able to distinguish between the labour market situation of women and men. 2. Focus of the LFS module 2008 In the context of the political debate on the management of immigration to increase labour supply in the European Union, it is crucial to dispose of accurate data on the labour market participation and situation of migrants and their immediate descendants in the EU Member States and on the factors affecting their integration. For the time being too little accurate and comparable data exists at EU level on these aspects. Therefore the 2008 LFS module would constitute an important source of valuable information which would be extremely relevant and useful for policy fields which are central to the issue of labour migration. 2.1. General data on employment As regards to policy demand, data to be provided on migration should allow for comparison of labour market characteristics/outcomes of different groups of interest such as EU nationals versus non-eu nationals, Non-migrants versus EU migrants versus non-eu migrants, Non migrants versus migrants versus immediate descendants of migrants, long-established migrants versus other migrants versus immediate descendants of migrants. In particular, it should enable to provide for each group: - indicators on the labour market situation, in particular employment, unemployment and participation rates by sex, age groups, skill/qualification level and by other variables of interest (e.g. type of migrants, length of residence, residence status, language skills). - Structural labour market information including sectoral employment structure, occupational employment structure and skill/qualification composition. For this purpose, the core LFS already provides a wide range of relevant and necessary labour market related variables. Moreover, it provides variables that would assist in the identification of the groups of interest (e.g. Country of birth, Nationality, Years of residence in this country, Country of residence one year before the survey). However, the 2008 LFS module should develop specific variables that will ensure the complete identification of the groups of interest mentioned above and that will allow flexibility at the analysis stage to refine groups to meet specific needs (e.g. limit the migrant population to those born abroad with a different nationality at birth) and to allow analysis on a more internationally comparable basis. 4

Some examples for the use of the core LFS to analyze migration are the employment rate gap (Figure 1) 5, the analysis of occupation (Figure 2) as well as the analysis of education (Figure 3). Figure 1: Employment rate gaps (2006 LFS data) 25 20 15 10 5 0-5 -10-15 BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK EU-25 between born in the country and born outside the country between born in country and born outside EU between born in country and born in another EU country Figure 2: Level of education in selected countries (2006 LFS data) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% DE (Nationals) DE (EU-25 Non-Nationals) DE (Other Non-Nationals) ES (Nationals) ES (EU-25 Non-Nationals) ES (Other Non-Nationals) FR (Nationals) FR (EU-25 Non-Nationals) Fr (Other Non-Nationals) IT (Nationals) IT (EU-25 Non-Nationals) IT (Other Non-Nationals) UK (Nationals) UK (EU-25 Non-Nationals) UK (Other Non-Nationals) Low level Medium level High level 5 Used for instance in the Joint Report on Social Inclusion 5

Figure 3: Occupation in selected countries (2006 LFS data) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% DE (Nationals) DE (EU-25 Non-Nationals) DE (Other Non-Nationals) ES (Nationals) ES (EU-25 Non-Nationals) ES (Other Non-Nationals) FR (Nationals) FR (EU-25 Non-Nationals) Fr (Other Non-Nationals) IT (Nationals) IT (EU-25 Non-Nationals) IT (Other Non-Nationals) UK (Nationals) UK (EU-25 Non-Nationals) High skilled non manual Skilled manual Low skilled non manual Elementary occupations UK (Other Non-Nationals) 2.2. Data on integration of migrant in the labour market As regards to policy demand, data to be provided on migration should allow analysis on the integration in and adaptation to the host country labour market and on the factors affecting the integration/adaptation The focus of the module is better information on the labour market situation of migrants and their immediate descendants. It should cover specific labour market related issues of particular relevance for migrants, such as access to the labour market and participation in labour market integration and training programmes. The sort of issues to be examined would include such items as the presence of labour market access restrictions and the possibility to be mobile in the labour market, access to and use of employment services, issues concerning recognition of skills and qualifications, and participation in professional labour market training or measures to assist in labour market integration. The examination would also include the identification of differences between migrant women and men relating to problems with labour market access. It could also be envisaged to include issues applicable rather to the labour market situation of descendants of migrants. The aims of the LFS module 2008 agreed are the following: 1. To provide a complete identification of the population of migrants and their immediate descendants, which allows flexibility at the analytical stage, 6

2. To provide comparable data on the labour market situation of migrants and their immediate descendants, especially to allow for comparison of labour market outcomes with other groups, and on their integration in and adaptation to the labour market, 3. To analyse the factors affecting this integration in and adaptation to the labour market (e.g. labour market access restrictions, issues concerning recognition of skills and qualifications, measures to assist in labour market integration). 2.3. The 2008 ad hoc module The following section will be shortly summarize the objectives and aims of the questions included in the 2008 ad hoc module. Question 1: Year of citizenship The aims are the following: To be able to distinguish between Nationals at birth and Nationals by acquisition. It will allow getting an idea of the impact of naturalisation/citizenship by being able to compare the situation of naturalised versus non-naturalised migrants. Indeed, national born migrants and naturalised migrants may be differently integrated in the labour market compared to nonnaturalised migrants (maybe less unemployment, more jobs possibilities e.g. in the education and public administration sectors ). To get information on the "Year of naturalisation". National policies may consider naturalization as either a tool of integration or as a recognition/award for integrated migrants. It will be interesting to analyse at the individual level if timing of naturalization depended on other variables (such as education or geographical origin) and whether naturalization timing had an impact on labour integration. This variable will also allow identifying persons born national abroad (e.g. persons born national in colonies or to parents on overseas military service or posted abroad by their employers). Question 2 and question 3: Country of birth of father and mother 7

The aim is to define immediate descendants of migrants (i.e. at least one of parents born abroad) in order to describe the situation of children of migrants on the labour market and their integration. It is important to have separately the country of birth of the father and of the mother since there may be differences between descendants with one parent born abroad and those with two parents born abroad. It is also important that these variables detail geographical/national origins since there may be differences to be observed in terms of labour market integration. Question 4: Total number of years of residence in the host country The aim is to get the total time of exposure in the host country. Indeed, it is important to know about the existence of first migrations since it can favour integration (e.g. knowledge of language, culture ). This variable is important in addition to variable C19/20 (YEARESID) for two main reasons: - The variable C19/20 (YEARESID) Years of residence in this country would give information since the last establishment. Only taking the last entry as reference risks mis-classifying those that have in fact much longer exposure to the host nation due to prior migrations as having much more limited exposure, and indeed those who have already lived in the host country may not face the same obstacles to labour market entry as the true recent arrivals. - Mobility and circular migration (entrance, exit, re-entrance ) is expected to increase in the future. The aim is get an approximation for the total number of years of residence in the host country. Compared with C19/20 (YEARESID), this will allow for the identification of migrants who experienced previous migration(s) and for an approximation of the total time of exposure. Question 5: Reason the person mostly had for migrating (last migration) The aim is to identify different types of migrants: persons who migrated for employment, for studies, to join family This seems to be a key variable in order to understand the nature and composition of the migrant populations, and an explanatory variable for labour market integration and related employment rates. For example, it may be a determinant of 8

employment variations for migrants across Member States, as there are probably variations in the composition of migrant populations according to reasons for migrating, as the labour market situation is likely to be different for people in the different reasons classes. Question 6: Whether the duration of the current resident permit/visa/certificate is limited The aim is to get information on the duration of the authorisation to stay in the host country. Such information is important for the following reasons: - The residence situation is a key "pre-cursor" to integration in society and long term integration in the labour market. - It is important for social inclusion policy analysis to know if a person has a permanent or temporary residence permit. - It obviously sets a limit on the duration and type of employment/contract that can be taken. It could also have an impact on the employer's likelihood to invest in the migrant employee (e.g. via training) or place him/her in a position of responsibility (as there is a risk the migrant might not be able to stay). Question 7: Whether current legal access to the labour market is restricted In the perspective of analysing barriers to the integration in the labour market, it is important to be able to identify the legal/work permit restrictions on the migrant's access to the labour market. This variable seeks to clarify what official restrictions on labour market access the migrant is subject to (e.g. legal/work permit restrictions) and hence limitations on migrants' possibilities to be mobile in/integrate into the labour market. Question 8: Use of means for establishing what highest qualification equates to in the host country system Recognition of qualifications is one of the main obstacles to migrants gaining employment or employment which is commensurate with their skills and level of education. The aim is to know whether migrants have tried to obtain a certificate (or other documentary evidence) that established what their highest qualification equates to in the host country system, and whether 9

they were successful in this. Indeed, such a certificate could help migrants searching for employment in the sense that they can present something to employers allowing the latter to have an assessment of the migrants' qualifications in terms understandable to the employer (i.e. with regard to the host country system). 10

Question 9: Need to improve host country language skills to get an appropriate job Lack of skills in the language(s) of the host country constitutes a key barrier to labour market integration. Language skills are one of the main obstacles to migrants gaining employment or gaining employment commensurate with their skills or previous work experiences. Such an approach will give the respondent's own impression on whether his/her language skills constitute an obstacle to an appropriate integration in the labour market. Question 10: Main help received in the host country in finding the current job or setting up own business Information on the way migrants obtained their current job (network of relations, PEO ) could highlight better ways to focus assistance for labour market integration. The key issue is what pathways/routes migrants mainly use to find work. This variable will allow comparisons between migrants, children of migrants and other native born, as well as by phases of residence (e.g. recent arrivals versus migrants who migrated a longer time ago). Question 11: Use of services for labour market integration in the 2 years following the last arrival The aim is twofold: - To analyse the use of services to assist integration in the labour market following the arrival. In particular, it is important to analyse whether labour market integration schemes reach the migrant populations. - To know how far these measures contribute to the labour market integration of migrants and the impact on their long-term labour market outcomes. Under the new Employment Guidelines (2005-2008), Guideline 19 (Ensure inclusive labour markets, enhance work attractiveness, and make work pay for job-seekers, including disadvantaged people and the inactive) calls for active and preventive labour market measures including early identification of needs, job search assistance, guidance and training as part of personalised action plans, provision of necessary social services to support the inclusion of those furthest away from the labour market and contribute to the eradication of poverty. 11

The following sorts of measures are distinguished: - Intensive counselling and job-search assistance - Professional labour market training (incl. vocational/workplace training, work experience schemes and special support for apprenticeship) - Tuition and training in the/a national language (speaking, reading and writing) What is of interest is whether the person has made use of services (special courses, training, guidance) to help adapt to and integrate into the labour market. Participation in training assisting in integration in the labour market as well as the kinds of training should be addressed. Light module For countries with less than 1500 migrants within the population is it possible to use the so called "Light module". This includes only four variables and may be implemented by: Bulgaria, Czech Republic, Denmark, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovenia, Slovakia, Finland and Iceland 6. The variables are the following: Year of citizenship acquisition Country of birth of father Country of birth of mother Total number of years of residence in the host country However, the countries allowed for the light module keep the possibility to conduct the entire module if they wish to. In particular, some of these countries are under the threshold when using average quarter data but above this threshold when using independent observations over the year. Moreover, the associated aim to improve the coverage of migrants in the LFS through addressing such issues as problems of non-coverage, non-response etc. (as recommended in the conclusions from the Task Force studying the feasibility of the module) including through pilot studies aimed at developing common guidelines for good practice in this regard, could raise the sample size, as well as ongoing developments in the underlying migration levels themselves towards Member States. 12

2.4. Milestones of the module 2008 During 2007 some countries (e.g. UK) conducting a pretest. The experiences will be shared with all member states. In 2008 all participating countries collect the datasets. Data transmission is until the end of March 2009. In the 2nd and 3rd quarter 2009 Eurostat will be working on data processing and validation (together with NSIs). The data will be available during the 4th quarter 2009. Note, no data will be published without a careful analysis of the quality and warnings will be included for data considered of less quality! Whether the module will be repeated is not yet decided, but it is not possible before 2012. 6 This represents only 5.2 % of the migrant population in Europe. 13

ANNEX Labour Force Survey Specifications of the 2008 ad hoc module on "the labour market situation of migrants and their immediate descendants" 1. Member States and regions concerned: all. 2. The variables will be coded as follows: The numbering of the variables of the labour force survey in the column 'Filter' (C11/14, C17/18, C19/20, C24, C99, C116, C162/165 and C170/171) refers to Annex II to Commission Regulation (EC) No 430/2005. The coding to be used for columns 207/208 and 209/210 shall be the same as for columns 17/18, 21/22, 39/40 and 150/151 of the Annex II to Commission Regulation (EC) No 430/2005. 14

Column Code Description Filters 203/206 Year of citizenship acquisition 4 digits 9996 Year unknown but national by acquisition 9997 National at birth 9998 National since the creation of the country/redefinition of borders 9999 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C17/18 C170/171)) 207/208 Country of birth of father For coding, see ISO country classification 98 Country unknown but father born abroad 99 Not applicable (person aged less than 15 or more than 74) 209/210 Country of birth of mother For coding, see ISO country classification 98 Country unknown but mother born abroad 99 Not applicable (person aged less than 15 or more than 74) Everybody aged 15-74 and C17/18=C170/171 Everybody aged 15-74 Everybody aged 15-74 211/212 Total number of years of residence in the host country Everybody aged 15-74 and C19/20 00 01-98 2 digits 99 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C19/20=00)) 213 Reason the person mostly had for migrating (last migration) Everybody aged 15-74 and C19/20 00 and (C162/165 C11/14 C19/20)>=15 1 Employment, intra corporate transfer 2 Employment, job found before migrating other than code 1 3 Employment, no job found before migrating 4 Study 5 International protection 6 Accompanying family/family reunification 7 Family formation 8 Other 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C19/20=00) or (person aged 15-74 and C19/20 00 and (C162/165 C11/14 C19/20)<15)) 15

214 Whether the duration of the current resident permit/visa/certificate is limited Everybody aged 15-74 and C17/18 C170/171 0 Yes, less than 1 year 1--5 Yes, number of years 6 Yes, limited duration of more than 5 years 7 Yes but do not know the duration 8 No 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C17/18=C170/171)) 215 Whether current legal access to the labour market is restricted Everybody aged 15-74 and C17/18 C170/171 and (C24=1,2 or C99=1,2,4 or (C99=3 and C116=1)) 1 Yes, access restricted to employment for specific employers/sectors/occupations 2 Yes, access restricted to self-employment 3 Yes, access not allowing self-employment 4 Yes, combination of 1 and 2 5 Yes, combination of 1 and 3 6 Yes, other legal access restrictions 7 No 8 Does not know 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C17/18=C170/171) or (person aged 15-74 and C17/18 C170/171 and C116=2, blank)) 216 Use of facilities for establishing what highest qualification equates to in the host country system 1 Yes, established what qualification equates to 2 Yes, but not established what qualification equates to or procedure not yet completed 3 No, no need because highest qualification obtained in the host country 4 No, no need for other reason than code 3 5 No because of other reason 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C19/20=00) or (person aged 15-74 and C19/20 00 and C116=2, blank)) Everybody aged 15-74 and C19/20 00 and (C24=1,2 or C99=1,2,4 or (C99=3 and C116=1)) 217 Need to improve host country language skills to get an appropriate job Everybody aged 15-74 and C19/20 00 and (C24=1,2 or C99=1,2,4 or (C99=3 and C116=1)) 1 Yes 2 No 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C19/20=00) or (person aged 15-74 and C19/20 00 and C116=2, blank)) 218 Main help received in the host country in finding the current job or setting up own business 1 Relatives/friends 2 Public employment office 3 Private employment agencies 4 Migrant or ethnic organisation 5 Other 6 None 9 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C24=3, 4, 5)) Everybody aged 15-74 and C24=1, 2 16

219 Use of services for labour market integration in the 2 years following the last arrival 01 Yes, contact with an adviser for job guidance/counselling or job search assistance 02 Yes, participation to labour market training/programmes 03 Yes, participation to host country language tuition 04 Yes, combination of 1 and 2 05 Yes, combination of 1 and 3 06 Yes, combination of 2 and 3 07 Yes, combination of 1, 2 and 3 08 No, not entitled to 09 No, for reason other than code 08 99 Not applicable (person aged less than 15 or more than 74 or (person aged 15-74 and C19/20=00) or (person aged 15-74 and C19/20 00 and C19/20>10) or (person aged 15-74 and C19/20 00 and C19/20<=10 and (C162/165 C11/14 C19/20)<15)) Everybody aged 15-74 and C19/20 00 and C19/20<=10 and (C162/165 C11/14 C19/20)>=15 220/225 Weighting factor for the LFS module 2008 (optional) Everybody aged 15-74 0000- Columns 220-223 contain whole numbers 9999 00-99 Columns 224-225 contain decimal places 17