Labour migration in Austria Dr. Katerina Kratzmann, IOM Vienna EMN National Contact Point Austria The National Contact Point Austria in the EMN is financially

Labour migration in Austria

Dr. Katerina Kratzmann, IOM ViennaEMN National Contact Point Austria

The National Contact Point Austria in the EMN is financially supported by the European Union and the Austrian Federal Ministry of the Interior. The EMN was established via Council Decision 2008/381/EC.

Nationale EMN Contact Point AustriaIOM ViennaNibelungengasse 13/41010 [email protected]

Outline

Labour market policy in AustriaMigration context in Austria– Population stock and flows– Immigration groups

Foreign work force in Austria– Skills & Qualification– Employment & Unemployment– Major occupations

Impact of the crisis in AustriaOutlook

Labour market policy in Austria: influential factors

Historical so-called “guest worker system”Labour mobility in Austria is driven by free mobility of labour within the EUAustria undergoes the transition from an industrial society to a knowledge society: need for high qualified workersStrong population ageing; migrants tend to be younger than AustriansRed-White-Red Card is currently under discussion (criteria based immigration system for highly skilled TCN)

Current key worker: “Schlüsselkraftverfahren”

Requirements: – Job offer– Special skills and qualification– Prior work experience– Minimum salary of 2466 Euro gross (difficult e.g. TCN

students after their studies)

Subject to quota (2450 in 2009), which is not exhausted (1206 in 2009), only 50% usage

Labour market test – test, if no other worker is available

Red-White-Red Card

Austrian Association of Industrialists/ Economic Chamber (Employers’ associations) – Support and push intake of highly skilled migrants– Lack of high-qualified work force– “controlled immigration”

Chamber of Labour/ Austrian Federation of Trade Unions (Workers’ associations)– Strong reservations due to wage and social dumping

– Integration of migrants already living in Austria comes first

(increased investment in education and training)

Red-White-Red-Card

According to different interest, a two-pronged policy is envisaged: encourage the inflow of highly skilled TCN and investing in education/ training of low skilled workersAgreement against wage and social dumping includedTarget groups: 1.) High-qualified migrants

2.) Medium qualified migrants with skills needed in Austria

3.) High and medium qualified migrants who fill positions where no

replacing work force can be provided within Austria

Combination of residence and labour permit

Outline




Migration context in Austria: Migration flows

Source: migration & integration, Statistik Austria, 2010

Who is coming to Austria?Immigration Groups 2009


Internal migrationwithin the EU

Persons

Asylum seekers

Return of Austrian citizens

Family reunificationfrom non-EU States

Seasonal workersfrom non-EU States

Studentsfrom non-EU States

Skilled Workersfrom non-EU States

First residence permits (TCN) by reason, 2009

14572; 51%

3233; 12%

2692; 10%

7538; 27%

Family reasons

Education reasons

Remun. activities reasons

other reasons

Source: Federal Ministry of the Interior / Eurostat.

Outline




Total stock of workers* by groups of citizenship, 2009

Countries of citizenship

Nationals 3.571.034 89,4%

Foreign nationals 422.910 10,6%

EU 15 105.245 2,6%

EU 10 55.008 1,4%

EU 2 20.428 0,5%

TCNs 242.229 6,1%

Total 3.993.944 100%

Source: Labour Force Survey 2009. * without military personnel (ISCO Group 0)

The 10 major migrant nationalities: 76 % of all migrant workers in 2009

Source: Labour Force Survey 2009.

Skills of migrant workers

Main categorization Nationals EU 15 EU 10+2 TCNs Total

Highly skilled 39% 59% 26% 17% 38%

Skilled 52% 37% 51% 47% 51%

Low skilled 9% 4% 23% 37% 11%

TOTAL 100% 100% 100% 100% 100%

Source: Labour Force Survey 2009.

Skills by Gender

0

10

20

30

40

50

60

70

Men Women Men Women Men Women Men Women Men Women

Highly skilled Skilled Low Skilled

Natives EU-15 EU-10 EU-2Third

Country Nationals

Source: Labour Force Survey 2009

Problem: De-qualification

Migrants are more often overqualified then Austrians;– the first generation is especially overqualified– the second generation is close to general population

Reasons:– Problems with the recognition of certifications

(“Austrifizierung”)– Missing language skills– Local ligation of knowledge (e.g. law)– Discrimination

De-qualification leads to rising unemployment

Grade of education

Highest completed education

University, FH, Academy

AHS, BHS

Vocational training

Compulsory school

Austrians

Foreigners


Employment ratesLower employment rate of migrants:– 74% Austrians– 64% Migrants

Divers employment rate of women:– 69% Austrian women– 61% Former Yugoslavia women– 39% Turkish women

Divers employment rate of second generation:– 82% for 35-44 years old (Austrians 86%)– 38% for 15-24 years old (Austrians 55%)


Unemployment rates

Higher unemployment rate of migrants:– 6,7% Austrians– 10,2% Migrants– 14% Turkish migrants

Differences in youth unemployment rate: – 10% Austrians– 11% Migrants– 21,6% TCN

Differences in long term unemployment:– 2,9% Austrians– 1,4% Migrants


Major occupations of migrants

Labourer in manufacturing, construction, transport and mining: highest proportion of migrants.

Highly skilled professionals in engineering and related professions: mainly from another EU-15 country.

Housekeeping and restaurant services: 21% of all employees are migrants. The major group areTCN.

Health professionals except nursing: 9% are migrants, basically from EU-15 and EU-10.

Nursing personnel: 11% of all workers had a foreign citizenship in 2009.

Personal care work: 8% are migrant workers, mostly female, evenly spread over the various source countries.

Outline


Foreign work force– Skills & Qualification– Employment & Unemployment– Major occupations

Impact of the crisisOutlook

Impact of the crisis

Only small decline of immigration to Austria as a consequence of the economic crisisSmall decrease in demand for foreign labourIncrease of the number of unemployed migrants, especially young persons with migration background (2. generation) However, the rate of employees with migration background decreased nation wide for the first time since ten years by 1,3%Viennese labour market is not effected in a strong way by the crisis (the number of foreign employees increased about 0,5%)

Outlook: strategies to meet labour shortages

Invest in education system and training

Elevation of women’s employment rate

Elevation of the employment age from currently 57 to 65 years

Qualification of migrants who are already living in Austria

Support of new immigration channels, like the Red-White-Red Card

THANK YOU!

“Guest worker system”

Until 1960 trade unions were against foreign labour1961: Raab-Olah Agreement – established a rotational system– 1964: Recruitment Agreement with Turkey (Agency Istanbul 1964)– 1966: Recruitment Agreement with Yugoslavia (Agency Belgrad 1968)

1973: Oil crisis, Austrians from CH and DE returned 1974: first steps against „tourist labour” 1976: Aliens Employment Act– to reduce foreign work force– 8 years to freedom on labour market

Consequence: – stagnation of migration flows– Family reunification follows– Integration paradigm follows

Lessons learned

An active recruitment for labour force is necessary Facilitation/ administration of migration necessaryDifficult to restrict to an economical role („We called for manpower and it was people that came.“)Regulations might be difficult, as different actors with possible contradictory interests are involved (employers, workers, sending/receiving countries)Temporary migration might become long-term immigration - people stayIf people stay, integration measures have to be provided

Population Ageing

Overall population will increase by 14 % between 2008 and 2050*

Number of people 60+ will climb from 22.6% in 2008 to 34.2% in 2050*

In the same period the working population will decline by -2.2%**

Austria sees the need for more immigration from the year 2020 onwards, when the baby boom generation will reach retirement age

Sources:

* STATISTIK AUSTRIA - Bevölkerungsprognose 2009. Medium variant. Erstellt am 6. Oktober 2009 ** STATISTIK AUSTRIA - Erwerbsprognose 2006

Demographic Situation:Austrians

Population of Austrian origin

Men Age in years Women


Demographic Situation:Migrants

Population of foreign origin

Men Age in years Women

Foreigners

Austrians

Foreigners

Austrians


Demographic Prognosis

Main ScenarioScenario without population movementsHigh rate of migrationLow rate of migration


Migration context in Austria: Population stock


Total stock of 17% Persons with foreign originTotal stock of 17% persons with foreign background

Migration background

82,2%

17,8%

Population withoutmigration backgroundPopulation with migrationbackground

2.Generation;385.477; 4,7%

1.Generation;1.082.624; 13,1%


Skill distinction by occupational groups - ILO ISCO-88

Highly skilled: refers to a person falling within Major groups 1, 2 and 3 (manager, executive, professional, technician or similar)

Skilled: includes – Major Group 4: Clerks– Major Group 5: Service Workers and Shop and Market

Sales Workers– Major Group 6: Skilled Agricultural and Fishery Workers– Major Group 7: Craft and Related Trades Workers– Major Group 8: Plant and Machine Operators and

Assemblers

Low skilled: Major Group 9: elementary occupations

Skill composition of Austrians and migrants

0

10

20

30

40

50

60

70

Natives EU-15 EU-10 EU-2 Third Country


Skills by major nationality

0

10

20

30

40

50

60

Germany Serbia-Montenegro

Bosnia-Hercegovina

Turkey


Overqualified employees 2009

13%

10%

28%

11%

8%

25%

15%

12%

32%

0%

5%

10%

15%

20%

25%

30%

35%

All No migrationbackground

Migrationbackground

All

Men

Women


Unemployment in EU contextN

ethe

rland

s

Aus

tria

Luxe

mbo

urg

Slo

veni

a

Den

mar

k

Cze

ch R

epub

lic

Bul

garia

Mal

ta

Rom

ania

Ger

man

y

UK

Italy

Bel

gium

Pol

and

Fin

land

Sw

eden

Gre

ece

Fra

nce

Por

tuga

l

Hun

gary

Irel

and

Slo

vaki

a

Lith

uani

a

Est

onia

Latv

ia

Spa

in

Cyp

ress

Source: AMS Arbeitsmarktlage 2009

Mechanisms to identify labour shortages

Since the 70th employer surveys were by order of the Ministry for Labour by a market analysis institute (IFES) – planning was short term and did not allow for long term prognosis

Enterprise panels as forecasting instruments in place between the mid 1980s and the late 1990s

The Austrian Institute of Economic Research (WIFO) is running regular employer surveys

Industry-Occupation Matrices (by Federal State-Bundesland), which are based on Census data and annual social security employment data, are an integral part of econometric forecasting models

Skills monitor of the Labour market Service (AMS-Qualifikations- barometer): online service for enterprises/ persons looking for jobs

Comprehensive employer surveys along a common grid among the EU-MS are very recent – in 2009.by Statistik Austria

Job vacanciesOf the 52,700 job openings in 2009 the largest number referred to the medium skill segment (54% of all vacancies) followed by highly skilled workers (31% of all job openings). But there is also unsatisfied demand for unskilled workers

The major occupations for which job openings were recorded were in services tasks, in particular sales personnel (27% of all vacancies), followed by trades persons, i.e. technicians and similar skill level (21.4%) and crafts skills (13.5%). Vacancies for unskilled workers amounted to 12.3%

Very low vacancy rate of 1.3%, compared to an unemployment rate of 4.8%

Shortages in some occupations

Social and health care services: deficiencies in Austrian education system

High skill segment of engineering and the natural sciences: lack of investment and incentives

Demand is high for migrants in these occupations

“Lack occupations”: List of 67 occupations in 2008 – only little immigration

Work of asylum applicants:

In the first three month after the application: no work at allAfterwards with a work permit (BB) – by employer, de facto Seasonal workersTheoretical independent work is possible under certain criteria (Gewerbe) – not usedMinor work in care facilities (cleaning, kitchen, transport, etc.)Public sector (Gardening, Administration, guards in parks- and sport facilities, etc.)Sexwork is allowed – registration and medical visits required

Skill developments 2004-2009

The share of migrants:– in highly skilled jobs increased from 6.4% in 2004

to 8.1% in 2009, mainly due to a larger EU-14 and TCN inflow

– remained stable for skilled (9.3%) and unskilled migrants (25%)

Between 2004 and 2009:– TCN are in percentages increasingly better skilled

– citizens from EU-10 increasingly less skilled

Documents

Labour migration in Austria Dr. Katerina Kratzmann, IOM Vienna EMN National Contact Point Austria The National Contact Point Austria in the EMN is financially