1 MUTUAL LEARNING PROGRAMME: „Renewed procedures for employing migrant workers with the emphasis on favouring highly- qualified labour“ TALLIN, ESTONIA,

1

MUTUAL LEARNING PROGRAMME:

„Renewed procedures for employing migrant workers with the emphasis on favouring highly-

qualified labour“

TALLIN, ESTONIA, 11-12 May 2009

MILADA HORÁKOVÁ

CZECH REPUBLICMAY 2009

2

Labour Market Situation in the CR After accession of the CR into the EU the CR economy

experienced significant growth (6.5% per annum); In 2008 GDP increased by 3.2 %. GDP per capita in 2008

reached 82% of the EU 27 value; Czech economy has the highest share of secondary sector

employment on total employment in the entire EU27 (40.3 %) (manufacturing 28.2 %, construction 9.3 %) in IV.Q.2008 ;

An atypical structure of the CR employment: self-employed made 16.6 % of total employment in 1Q 2009; from some points of view it is easier to be self-employed than an employee;

Long-term and repeated unemployment is the most significant problem; 35 % of all unemployed in I.Q.2009;

The CR economy is predominantly oriented on export. The employment rate of the age group 15-64 yrs was 66.8 % in

4Q 2008;

3

Latest Economic Development

In the period IQ 2008 – IQ 2009, the CR GDP decreased by 3.4 %. It was the largest fall of GDP in the history of the independent Czech Republic since 1993;

It was due to unfavourable situation especially in manufacturing which for months has been facing sales crisis for months mostly in external markets;

Exports and imports of goods and services felt about 20 % because of the foreign demand decline.

Total employment decreased from IQ 2008 to IQ 2009 by 11 600 (-1.1%);

A significant decrease of vacancies in secondary sector (building industry from 28.4% to 20.6%; processing industry from 24.3% to 17.8 %);

A significant decreases in vacancies occurred (about 95 900 between March 2008 and March 2009)) in all professions, especially for unqualified workers, but also for qualified workers, craftsmen and qualified manufactures;

4

Labour Migration and Residence Permits Developments

The share of foreigners on population increased from 2.5 % up to 4.2 % in period 2004-2008;

The share of legally registered foreigners on the CR labour market increased in the same period from 3.3 % to 6.4 % of the labour force;

Number of residence permit holders slightly increased between December 2008 and April 2009 (+ 5 569);

Employment of foreigners decreased from 361 709 in December 2008 to 340 769 in March 2009 (- 20 940);

Number of foreigners registered at labour offices decreased in the same period from 284 551 to 261 271 (-23 280), on the contrary, number of foreigners holding trade licence slightly increased (+2 340);

Number of work permit holders decreased from 128 934 to 114 809 (-14 125); number of non EU nationals with non mandatory work permits increased from 14 516 to 14 818 (+302); number of Slovak citizens decreased from 100 233 to 93 346 (- 6 887); number of other EU citizens decreased from 40 868 to 38 298 (-2 570);

5

How to Identify and Attract Highly Skilled Migrant Workers?

Is it necessary? Labour migrants in the CR ere often over-skilled or over-qualified compared to requirements of their employers;

Provide equal conditions for migrant workers as for local ones;

Do not block mobility of migrant workers at the labour market;

Give migrant workers an opportunity to search for jobs without personal agencies or clients;

Advertise new system of green cards; Use information technologies in process of

brokering work places;

6

How can Member States best respond to current crisis and changes in demand to balance their labour markets? Are more restrictive approaches appropriate towards migrant workers? How could the qualified foreign labour be effectively used for recovering economic crises and reviving the EU economy?

Keep level of employment for as long as possible; use more restrictive instruments for new work migrants only;

Keep work migrants who are already integrated; Create new jobs in under-saturated sectors such as health care or

social care, even though they are not well paid; Create atypical new work places induced by local needs (for local

communities, both firms and individuals); Combine financial means for new work places from different

resources: e.g. unpaid unemployment benefits plus financial support of recipients to be provided, plus ESF funds;

Modify qualification and skills of unemployed and integrated migrant workers to respond better to changing labour market needs;

Simplify the process of validation of migrant workers’ education; Support flexibility and mobility of migrant workers at labour market. Build infrastructure for mobile workers and their families; Balance economic and social politics; Simplify self-employment and other form of entrepreneurial activities;

7

Migrant Workers’ Impact on Host Labour Markets- Meeting Labour Market Needs and Conditions

Increase of total employment in receiving country;

Better balance of supply and demand on labour markets;

Competition of migrant workers pushes wages down; clashes between local and foreign labour could happen;

The unemployment of specific groups could increase (low educated and unskilled);

The work condition could deteriorate because foreigners often accept worst work conditions.

8

How Is the Current Economic Crisis Affecting Migration Flows/Migrants Already Employed in Member States and Long Term Migration Trends?

Long-term migration trends are only slightly affected so far; Short-term labour migrations trends are affected; reduction of migrant

workers registered at labour offices occurred (mostly employees), slight increase of self-employed foreigners working on a basis of trade licence has been observed;

Stop new migration. Migrations have inertia and policies react with delays;

Vacancies’ decrease is significant. The economic crisis hit mostly unskilled and low-skilled people, including migrant workers who were employed in unskilled position;

Keep already integrated immigrants and help them to search for new jobs;

Help to those who lost their jobs to acquire new skills or reorient their education and skills;

Help them to prove their qualification and skills and certificate them; Adopt flexible work time; Use all instruments of active employment policy;

9

Population DevelopmentMID-YEAR POPULATION DEVELOPMENT

10 3

30 6

07

10 3

36 1

62

10 3

30 7

59

10 3

15 3

53

10 3

03 6

42

10 2

94 9

43

10 2

82 7

84

10 2

72 5

03

10 2

24 1

92

10 2

00 7

74

10 2

01 6

51

10 2

06 9

23

10 2

34 0

92

10 2

66 6

46

10 3

22 6

89

10 4

29 6

92

10 050 000

10 100 000

10 150 000

10 200 000

10 250 000

10 300 000

10 350 000

10 400 000

10 450 000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Czech Statistical Office, 2009

10

GDP development

Published: 27.3. 2009 The data are valid as of the release date of the publication. © Czech Statistical Office, 2009.

11

Contributions to the GDP Growth

Published: 27.3. 2009 The data are valid as of the release date of the publication.© Czech Statistical Office, 2009.

12

Employment Development by Czech Statistical Office

Czech Statistical Office, 2009

13

Registered Unemployment and Vacancies Development

Source: Ministry for Labour and Social Affairs ( MoLSA) graph Milada Horáková

050 000

100 000150 000200 000250 000300 000350 000400 000450 000500 000

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

2007 2008 2009

Unemployment Vacancies

14

Unemployment Rate DevelopmentJanuary 2008 - April 2009

MONTHLY UNEMPLOYMENT RATE DEVELOPMENT 2008 - 2009

0,01,02,03,04,05,06,07,08,09,0

Janu

ary

Feb

ruar

y

Mar

ch

Apr

il

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nov

embe

r

Dec

embe

r

Janu

ary

Feb

ruar

y

May

Apr

il

%

Source: Ministry for Labour and Social Affairs ( MoLSA) graph Milada Horáková

15

Shares of vacancies by selected sectors

0,0

5,0

10,0

15,0

20,0

25,0

30,0

Agr

icul

ture

, ga

me

keep

ing,

for

estr

y

Pro

cess

ing

indu

stry

Bui

ldin

g in

ndus

try

Tra

de;

repa

irs

ofm

otor

veh

icle

s an

dpr

oduc

ts f

orpe

rson

al n

eeds

Acc

omod

atio

n an

dB

oard

Tra

nspo

rt,

stor

age

and

tele

com

unic

atio

nas

Age

ncy

in r

eal

esta

te a

nd le

ase;

corp

orat

e ac

tiviti

es

othe

rs

%

As at 31 December 2008 As at March 2009

Vacancies by Selected Sectors December 2008 versus March 2009

Source: MoLSA, graph Milada Horáková

16

Vacancies by Employees Groups

Vacancies by employees groups

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

KZ

AM

1 L

eg

isla

tors

, su

pe

rvis

ors

and

ma

nag

ers

KZ

AM

2 S

cie

ntif

ic a

nd

pro

fess

ion

al k

no

wle

dg

e

KZ

AM

3 T

ech

nic

al h

ea

lth c

are

and

pe

da

go

gic

al w

ork

ers

KZ

AM

4 L

ow

er

ad

min

istr

ativ

ew

ork

ers

KZ

AM

5 O

pe

ratin

g p

ers

onn

el i

nse

rvic

e a

nd

tra

de

KZ

AM

6 Q

ua

lifie

d w

ork

ers

ina

gru

icu

lture

and

fo

rest

ry

KZ

AM

7 C

raft

sme

n a

nd

qu

alif

ied

ma

nu

fact

ure

s

KZ

AM

8 O

pe

rato

rs o

f m

ach

ine

rya

nd

eq

uip

me

nt

KZ

AM

9 L

ab

ore

rs a

nd

unq

ualif

ied

wo

rke

rs

status as at 31 December 2008 status as at 31 January 2009 status as at 28 February 2009 status as at March 2009


17

Foreigners Registered at Labour Offices and Registered Unemployed Persons in March 2009


0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

KZAM 1Legislators,

supervisors andmanagers

KZAM 2 Scientificand professional

knowledge

KZAM 3 Technicalhealth care and

pedagogicalworkers

KZAM 4 Loweradministrative

workers

KZAM 5Operating

personnel inservice and trade

KZAM 6 Qualifiedworkers in

agruiculture andforestry

KZAM 7Craftsmen and

qualifiedmanufactures

KZAM 8Operators of

machinery andequipment

foreigners registered at labour offices registered unemployed persons

18

Employed Foreigners Registered at Labour Offices and Registered Unemployed Persons by Employees Groups KZAM


Foreigners registered at labour offices by employee groups KZAM

7 08

4 19 4

52

19 4

78

8 53

4

13 4

83

2 59

3

68 7

75

49 7

38

7 25

8 19 5

68

19 1

08

8 50

3

13 5

48

2 67

3

59 2

48

40 8

56

94 9

05

90 3

17

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

KZAM 1Legislators,supervisors

and managers

KZAM 2Scientific andprofessionalknowledge

KZAM 3Technical

health careand

pedagogicalworkers

KZAM 4 Loweradministrative

workers

KZAM 5Operating

personnel inservice and

trade

KZAM 6Qualified

workers inagruicultureand forestry

KZAM 7Craftsmen and

qualifiedmanufactures

KZAM 8Operators of

machinery andequipment

KZAM 9Laborers andunqualified

workers

December 31 2008 March 31 2009

19

69 0

76

23 7

94

19 8

46

9 1

19

8 7

46

7 2

67

7 9

09

65 5

21

23 6

38

17 5

85

10 7

06

8 4

89

7 5

86

6 9

53

102 9

22

84 9

66

0

20 000

40 000

60 000

80 000

100 000

120 000

Pro

cess

ing i

ndust

ry

Buildin

g i

ndust

ry

Tra

de;

repair

s of

moto

r vehic

les

and

pro

duct

s fo

rpers

onal

needs

Sci

ence

, re

searc

h,

tech

nolo

gy

Agency

in r

eal

est

ate

and l

ease

;co

rpora

te a

ctiv

itie

s

Adm

inis

trati

ve

suport

ing a

ctiv

itie

s

Info

rmati

on a

nd

tele

com

munic

ati

ons

Tra

nsp

ort

, st

ora

ge

December 31 2008 March 31 2009

Foreigners Registered at Labour Offices by Main Sectors


20

Labour Market Development and Employment of Foreigners

Labour market development in a context of foreigners' employment as at December 31

0,02,04,06,08,0

10,012,014,016,0

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

30.

6.

2008

2009

31.

3.

Share of foreigners at labour force of the CR in %

Registered unemployment rate in %

Number of job aplicants per 1 vacancy

Source: MLSA (Ministry for labour and Social Affair), MIT (Ministry of Industry and Trade), calculations and graph Milada Horáková

21

Employment of Foreigners and Residence Permits Development

Source: Directory of Alien and Border Police Ministry of Interior (DABP-MI), Group of Analyses); MoLSA, MIT, calculations and graph Milada Horáková

050000

100000150000200000250000300000350000400000450000500000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Marc

h2009

resident permit holders employment of foreigners

22

Development of Labour Migration Structure

Source: MoLSA, MIT, graph Milada Horáková

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 00019

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

Marc

h 2

009

foreigners registered at labour offices trade licence holderstotal employment of foreigners

23

Latest Development of Labour Migration Structure

128 9

34

14 5

16

100 2

33

40 8

68

77 1

58

114 8

09

14 8

18

93 3

46

38 2

98

79 4

98

361 7

09

340 7

69

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

valid workpermits

third countrynationals

registered atlabour office

who need notwork permit

SR ciztizensregistered atlabour office

otherEU/EEA/Swiss

citizens(without SR)

trade licenceholders

totalemployment offoreigners in

the CR

31.12.2008 31.3.2009


24

EU Nationals at the CR Labour Market

0

20 000

40 000

60 000

80 000

100 000

120 000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

31.3

.200

9

Slovakia Poland Bulgaria Germany Romnaia United Kingdom


25


Non EU Nationals at the CR Labour Market

0

20 000

40 000

60 000

80 000

100 000

120 000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

31.3

.2009

Ukrajine

Vietnam

Mongolia

Moldavia

Russia

Uzbekistan

USA

26

0

1000

2000

3000

4000

5000

6000

7000

8000

VI.

08

VII

.08

VII

I.08

IX.0

8

X.0

8

XI.

08

XII

.08

I.09

II.0

9

III.

09

IV.0

9

EU/EEA/ Swiss citizens

third countries nationals

Source: Unpublished data created by Information “OK system” of MoLSA for the purpose of Peer Review at 18.5.2009

Unemployed Foreigners Registered at Labour Offices

27

Employment of Foreigners and Residence Permits Development

050 000

100 000150 000200 000250 000300 000350 000400 000450 000500 000

2004 2005 2006 2007 2008 2009 march

total employment of foreigners total resident permit holders

Source: Directorate of Alien Police MoI, MoLSA, MIT, graph Milada Horáková

28

Share of Resident Permit Holders on the CR Population

THE SHARE OF RESIDENT PERMIT HOLDERS ON THE CR POPULATION IN PER CENT

(as at December 31)

00,5

11,5

22,5

33,5

44,5

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

%

Share of resident permit holders on population

Share of long-term resident permit holders and visa over 90 days on population of the CR

Share of total resident permit holders on population of the CR

Source: Directorate of Alien Police MoI, RILSA, graph Milada Horáková

29

Resident Permit Holders Development

31 072

32 468

38 557

45 837

56 281

63 919

66 754

66 891

69 816

75 249

80 844

99 467

110 598

139 185

158 018

172 927

173 807

174 365

174 837

175 020

46 070

71 230

120 060

152 767

153 516

155 836

162 108

134 060

140 978

156 359

159 577

154 827

167 714

182 271

234 069

265 374

267 898

268 329

268 431

268 850

0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 500 000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

J anuary 2009

February 2009

March 2009

April 2009

cizinci s povolením k trvalému pobytu v ČR/permanent resident permit holders

cizinci s povolením k dlouhodobému pobytu a s vízem nad 90 dnů/ long-term residet permit holders and visa over 90 days

Source: Directorate of Alien Police MoI, RILSA, graph Milada Horáková

30


Attained and Required Education of non EU Nationals Registered at Labour Offices

ATTAINED AND REQUIRED EDUCATION WORK PERMITS HOLDERS FROM THIRD COUNTRIES

December 31 2008

0

20 000

40 000

60 000

80 000

100 000

120 000

no

ed

uca

tio

n

inco

mp

lete

ba

sic

ba

sic

low

er

vo

cati

on

al

low

er

mid

dle

low

er

mid

dle

vo

cati

on

al

mid

dle

vo

cati

on

al

wit

hLe

av

ing

Vo

cati

on

al

Ce

rtifi

cate

mid

dle

or

mid

dle

vo

cati

on

al

wit

ho

ut

Lea

vin

g C

ert

ifik

ate

gra

mm

er

sch

oo

l

com

ple

te m

idd

lev

oca

tio

na

l w

ith

LV

C a

nd

LAC

com

ple

te m

idd

lev

oca

tio

na

l w

ith

LA

C

bu

tv

ith

ou

t LV

C

up

pe

r v

oca

tio

na

l

un

ive

rsit

y (

ba

che

lor)

un

ive

rsit

y (

ma

ste

rs)

do

cto

rate

un

spe

cifi

ed

educational attainment required education

31Source: MoLSA, graph Milada Horáková

ATTAI NED AND REQUI RED EDUCATI ON OF THE EU NATI ONALS December 2008

05 000

10 00015 00020 00025 00030 00035 00040 00045 00050 000

no

ed

uca

tio

n

inco

mp

lete

ba

sic

ba

sic

low

er

vo

cati

on

al

low

er

mid

dle

low

er

mid

dle

vo

cati

on

al

mid

dle

vo

cati

on

al

wit

hLe

av

ing

Vo

cati

on

al

Ce

rtifi

cate

mid

dle

or

mid

dle

vo

cati

on

al

wit

ho

ut

Lea

vin

g C

ert

ifik

ate

gra

mm

er

sch

oo

l

com

ple

te m

idd

lev

oca

tio

na

l w

ith

LV

C a

nd

LAC

com

ple

te m

idd

lev

oca

tio

na

l w

ith

LA

C

bu

tv

ith

ou

t LV

C

up

pe

r v

oca

tio

na

l

un

ive

rsit

y (

ba

che

lor)

un

ive

rsit

y (

ma

ste

rs)

do

cto

rate

un

spe

cifi

ed

educational attainment required education

Attained and Required Education of the EU Nationals Registered at Labour Offices

32Source: MoLSA, graph Milada Horáková

REQUIRED EDUCATION OF FOREIGNERS REGISTERED AT LABOUR OFFICES December 31 2008

0

20 000

40 000

60 000

80 000

100 000

120 000

no e

duca

tion

inco

mple

te b

asi

c

basi

c lo

wer

voca

tional

low

er

mid

dle

low

er

mid

dle

voca

tional

mid

dle

voca

tional

wit

hLe

avin

g V

oca

tional

Cert

ifica

te

mid

dle

or

mid

dle

voca

tional

wit

hout

Leavin

g C

ert

ifikate

gra

mm

er

school

com

ple

te m

iddle

voca

tional

wit

h L

VC

and

LAC

com

ple

te m

iddle

voca

tional

wit

h L

AC

but

vit

hout

LVC

upper

voca

tional

univ

ers

ity (

bach

elo

r)

univ

ers

ity (

mast

ers

)

doct

ora

te

unsp

eci

fied

EU/EHP REGISTRATION WORK PERMITS

Required Education of the EU and non EU Nationals Registered at Labour Offices

33

Work Permit Holders Registered at Labour Offices by Age


Work permit holders by age 31.12.2008

51%

21%

0% 0%3%

2%

23% -19

20 - 24

25 - 39

40 - 54

55 - 59

60 - 64

65 +

34

EU/EEA/Swiss Citizens Registered at Labour Offices by Age


EU/EEA/Swiss citizens registered at labour offices 31.12.2008

50%

15%

27%

0%1%2%

5%

-19

20 - 24

25 - 39

40 - 54

55 - 59

60 - 64

65 +

35

Trade Licence Holders by Age

Source: MIT, graph Milada Horáková

Trade licence holders 31.3.2009

46%36%

0%1%

2%5% 10%

-19

20 - 24

25 - 39

40 - 54

55 - 59

60 - 64

65+

Documents

1 MUTUAL LEARNING PROGRAMME: „Renewed procedures for employing migrant workers with the emphasis on favouring highly- qualified labour“ TALLIN, ESTONIA,