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The public sector and the labour market integration

of immigrants and their childrenin the context of recent trends

Thomas LiebigInternational Migration Division

Directorate for Employment, Labour and Social Affairs, OECD

Athens, 3 November 2009

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Overview

I. Introduction: Recent trends in international migration

II. Key issues in the labour market integration of immigrants

III. Integration of immigrants and their children into the public sector

IV. Conclusions

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Prior to the crisis, immigration had grown in the OECD area, and this was partly attributable to increased labour migration, particularly to Southern Europe,

Ireland and the UKImmigration into OECD countries, 1985-2006 (1985=100)

50

100

150

200

250

300

350

400

450

500

1985 1990 1995 2000 2005

Source: Trends in International Migration, OECD, forthcoming.

European Economic Area (excl. Germany) and Switzerland

Japan

Australia and Canada

USA

Germany

France

I. Introduction

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Immigration by entry category, standardised definition, 2007

Despite the recent increase in labour migration, accompanying family and family reunification still make up the bulk of permanent-type migration in

most OECD countries

I. Introduction

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Impact of the crisis on migration flows

Labour migration tends to be affected strongest, impact on family and humanitarian migration is less clear cut

Even if it is still too early to see significant changes in migration flows in most countries…… some countries show signs of a decline in temporary labour

migration (e.g. Australia: -20% in the first four months of 2009; USA)

… a strong decline in labour migration from the new EU member countries is observed (e.g. UK, IR : >-50%)

Evidence of return migration remains limited ...… except between some countries within the European Union

Not all labour needs disappear during a downturn and even in the short term, it is unlikely that labour migration will entirely cease

I. Introduction

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Country reviews for ten OECD countries (« Jobs for immigrants » (Vol. 1 and 2))

Taking a human capital perspective: How do the skills and experience of immigrants compare with

those of the native-born? Are the skills of immigrants « equivalent » to those of the native-

born who have the same formal qualification levels – and does this matter?

What means are available to immigrants to « transmit » / « communicate » their skills and experience to employers?

“Second generation” Growing presence in the labour market in many OECD countries Expectance of outcomes that are at least similar to those of the

children of natives with the same socio-economic background “Benchmark” for labour market integration

The OECD reviews on the labour market integration of immigrants and their

children

II. Labour market integration: key issues

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Lower employment of immigrants (particularly women) in most OECD countries - but great variation of outcomes -

Percentage point differences in the employment/population ratios between native and foreign-born 15-64 years old, 2005/2006 average (Austria: 2007/2008

average)

-15

-10

-5

0

5

10

15

20

Men Women

Employment rate lower for immigrants

Employment rate higher for

immigrants

II. Key issues

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Unemployment rate (national definition) of native Dutch and of immigrants and their children, 15-65 years old

II. Key issues

Migrants’ outcomes are more sensitive to economic conditions…

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Employment/population ratios by migration category 6 months and 42 months after arrival, principal applicants, Australia

(arrival around 1995, aged 15-64 at arrival)

6 months after arrival

42 months after arrival

Employer nominated 98 95

Skilled points tested 65 88

Spouse & prospective marriage

36 51

Refugee 6 48

All migrants (including accompanying family)

34 58

Native-born 75 76

The composition of the migrant intake matters,but outcomes tend to converge somewhat over time

II. Key issues

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Employment/population ratios by qualification level in Belgium, 15-64, women, 2001

0

10

20

30

40

50

60

70

80

90

Native-born Non-EU-15 foreign-born,qualif ications obtained in Belgium

Non-EU-15 foreign-born,qualif ications obtained abroad

Low Medium High

Foreign qualifications acquired in non-OECD countries are largely discounted on the labour

market

The unfavourable results are partly attributable to a lack of linguistic competence and to non-equivalence of degrees

II. Key issues

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Leverage for governments to aid immigrants‘ labour market integration

The public sector may act as a role model for the private sector

Increasing the visibility of immigrants in daily life

Contribution to enhancing the understanding of immigrants‘ needs by public institutions

Immigrants who are employed in the public sector may become a role model for others

Employment of migrants and their children in the public sector

III. Immigrants in the public sector

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When employed, immigrants are underrepresented in the public sector

Employment of foreign-born in the public administration in selected OECD countries, 15-64 years old, 2005/2006

III. Immigrants in the public sector

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The public sector is not a typical « entry sector » for immigrants

Qualification requirements are often higher in the public administration, and immigrants tend to have lower education levels on average

Note that decisions on the recognition of foreign qualifications are often binding for the public sector (only)

Having the host country nationality is a requirement for some occupations in the public sector

But the relative importance of such occupations is quite small in most countries

Possible explanations for the underrepresentation of immigrants in the public

sector

III. Immigrants in the public sector

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Native-born children of immigrants are underrepresented in the public sector in Germany

and FranceEmployment of children of immigrants in the public administration as a % of total employment, selected OECD countries, 20-29 years old, around 2007

III. Immigrants in the public sector

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Netherlands Longstanding monitoring of immigrants’ employment in the public sector,

with clear targets

Diversity concept of the Dutch police, including a « Pre-police academy » 

Additional activities at the municipal level

Belgium Action plan for diversity in the federal public service

Recruitment simulation trainings

Expansion of anonymous CVs

Norway State agencies are required to set targets for the recruitment of

immigrants, and to take active measures to meet them

New pilot on moderate affirmative action in the public sector

Additional actions at the municipal level and for state-owned enterprises

Good practices in European OECD countries

III. Immigrants in the public sector

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In the Netherlands, the public sector has compensated for a decline in private sector employment for the children of immigrants

Changes (in percentage points) in public and private sector employment between 2001/2002 and 2005/2006, 15-39 year old

In Norway, 11% growth in the employment of already resident immigrants from non-OECD countries in the public sector between

2002 and 2007

III. Immigrants in the public sector

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Immigrants tend to be disproportionately affected by the economic downturn

This can have lasting adverse consequences, especially on recent arrivals

Past crises have often been at the roots of the unfavourable labour market outcomes of immigrants in many European OECD countries

The situation is particularly worrisome since the crisis was preceeded by a period of large immigration flows

It is thus important that the labour market integration of immigrants remains a priority for goverments

Concluding remarks

IV. Conclusions

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Employment in the public sector should be a key element in overall integration policy, since it has many beneficial side effects for the integration of immigrants

There are many reasons why immigrants themselves are underrepresented in the public sector, but this is less clear for their native-born children

Experiences from several OECD countries indicate that active policies targeted at employment in the public sector can have beneficial effects

Concluding remarks (cont.)

IV. Conclusions

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Thank you for your attention!

For further information on the OECD's work on migration and the integration of immigrants

and their children:

www.oecd.org/els/migration