MUTUAL
LEARNING PROGRAMME:
„Renewed procedures for employing migrant
workers with the emphasis on favouring highlyqualified labour“
TALLIN, ESTONIA, 11-12 May 2009
MILADA HORÁKOVÁ
CZECH REPUBLIC
MAY 2009
1
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;
2
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;
3
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);
4
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;
5
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;
6
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.
7
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;
8
Czech Statistical Office, 2009
2008
2007
2006
2005
2004
10 322 689
10 266 646
10 234 092
10 206 923
10 201 651
10 200 774
10 150 000
2003
10 272 503
10 282 784
10 294 943
10 224 192
10 200 000
2002
2001
2000
1999
10 315 353
10 450 000
10 400 000
10 429 692
10 330 759
10 336 162
10 303 642
10 250 000
1998
1997
1996
1995
10 300 000
10 330 607
10 350 000
1994
1993
Population Development
MID-YEAR POPULATION DEVELOPMENT
10 100 000
10 050 000
9
GDP development
Published: 27.3. 2009 The data are valid as of the release date of the publication. © Czech Statistical Office, 2009. 10
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.
11
Employment Development by
Czech Statistical Office
12
Czech Statistical Office, 2009
Registered Unemployment and
Vacancies Development
500 000
450 000
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
1
2
3
4
5
6
7
8
9 10 11 12 1
2
3
2007
4
5
6
7
2008
Unemployment
8
9 10 11 12 1
2
3
4
2009
Vacancies
Source: Ministry for Labour and Social Affairs ( MoLSA) graph Milada Horáková
13
Unemployment Rate Development
January 2008 - April 2009
Source: Ministry for Labour and Social Affairs ( MoLSA) graph Milada Horáková
April
May
February
January
December
November
October
September
August
July
June
May
April
March
February
9,0
8,0
7,0
6,0
5,0
4,0
3,0
2,0
1,0
0,0
January
%
MONTHLY UNEMPLOYMENT RATE DEVELOPMENT 2008 - 2009
14
Source: MoLSA, graph Milada Horáková
0,0
As at 31 December 2008
others
Agency in real
estate and lease;
corporate activities
Transport, storage
and
telecomunicationas
Accomodation and
Board
Trade; repairs of
motor vehicles and
products for
personal needs
Building inndustry
Processing
industry
Agriculture, game
keeping, forestry
%
Vacancies by Selected Sectors
December 2008 versus March 2009
Shares of vacancies by selected sectors
30,0
25,0
20,0
15,0
10,0
5,0
As at March 2009
15
KZAM 9 Laborers and unqualified
workers
status as at 28 February 2009
KZAM 8 Operators of machinery
and equipment
KZAM 7 Craftsmen and qualified
manufactures
status as at 31 January 2009
KZAM 6 Qualified workers in
agruiculture and forestry
KZAM 5 Operating personnel in
service and trade
KZAM 4 Lower administrative
workers
status as at 31 December 2008
KZAM 3 Technical health care
and pedagogical workers
KZAM 2 Scientific and
professional knowledge
KZAM 1 Legislators, supervisors
and managers
Vacancies by Employees Groups
Vacancies by employees groups
status as at March 2009
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
Source: MoLSA, graph Milada Horáková
16
Foreigners Registered at Labour Offices and
Registered Unemployed Persons in March
2009
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
KZAM 1
Legislators,
supervisors and
managers
KZAM 2 Scientific KZAM 3 Technical
and professional health care and
knowledge
pedagogical
workers
KZAM 4 Lower
administrative
workers
KZAM 5
KZAM 6 Qualified
Operating
workers in
personnel in
agruiculture and
service and trade
forestry
foreigners registered at labour offices
KZAM 7
C raftsmen and
qualified
manufactures
KZAM 8
Operators of
machinery and
equipment
registered unemployed persons
Source: MoLSA, graph Milada Horáková
17
Employed Foreigners Registered at Labour
Offices and Registered Unemployed Persons
by Employees Groups KZAM
KZAM 1
KZAM 2
Legislators, Scientific and
supervisors
professional
and managers
knowledge
KZAM 3
Technical
health care
and
pedagogical
workers
KZAM 4 Lower
administrative
workers
KZAM 5
Operating
personnel in
service and
trade
December 31 2008
90 317
94 905
40 856
49 738
59 248
2 673
2 593
13 548
13 483
8 503
8 534
19 108
19 478
19 568
19 452
7 258
7 084
100 000
90 000
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
68 775
Foreigners registered at labour offices by employee groups KZAM
KZAM 6
Qualified
workers in
agruiculture
and forestry
KZAM 7
KZAM 8
KZAM 9
Craftsmen and Operators of Laborers and
qualified
machinery and unqualified
manufactures
equipment
workers
March 31 2009
Source: MoLSA, graph Milada Horáková
18
0
December 31 2008
Transport, storage
Information and
telecommunications
Administrative
suporting activities
Agency in real
estate and lease;
corporate activities
20 000
Science, research,
technology
40 000
6 953
7 909
7 586
7 267
8 489
8 746
10 706
9 119
17 585
19 846
23 638
23 794
84 966
65 521
69 076
80 000
Trade; repairs of
motor vehicles and
products for
personal needs
60 000
102 922
100 000
Building industry
Processing industry
Foreigners Registered at Labour Offices
by Main Sectors
120 000
March 31 2009
Source: MoLSA, graph Milada Horáková
19
Labour Market Development and
Employment of Foreigners
Labour market development in a context of foreigners' employment
as at December 31
2009 31.3.
2008
2007
2008 30.6.
Share of foreigners at labour force of the CR in %
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
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
20
Employment of Foreigners and
Residence Permits Development
resident permit holders
March
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
employment of foreigners
Source: Directory of Alien and Border Police Ministry of Interior (DABP-MI), Group of Analyses); MoLSA, MIT,
calculations and graph Milada Horáková
21
Development of Labour Migration Structure
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
foreigners registered at labour offices
total employment of foreigners
March 2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0
trade licence holders
Source: MoLSA, MIT, graph Milada Horáková
22
Latest Development of Labour Migration Structure
400 000
350 000
79 498
77 158
38 298
40 868
50 000
93 346
100 233
14 516
100 000
14 818
150 000
114 809
200 000
128 934
250 000
340 769
361 709
300 000
0
valid work
permits
third country
nationals
registered at
labour office
who need not
work permit
SR ciztizens
registered at
labour office
31.12.2008
other
EU/EEA/Swiss
citizens
(without SR)
trade licence
holders
total
employment of
foreigners in
the CR
31.3.2009
Source: MoLSA, MIT, graph Milada Horáková
23
EU Nationals at the CR Labour Market
120 000
100 000
80 000
60 000
40 000
20 000
Slovakia
Poland
Bulgaria
Germany
Romnaia
31.3.2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0
United Kingdom
Source: MoLSA, MIT, graph Milada Horáková
24
Non EU Nationals at the CR Labour Market
120 000
Ukrajine
100 000
Vietnam
80 000
Mongolia
60 000
Moldavia
Russia
40 000
Uzbekistan
20 000
USA
31.3.2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0
Source: MoLSA, MIT, graph Milada Horáková
25
Unemployed Foreigners Registered at Labour Offices
8000
7000
6000
5000
EU/EEA/ Swiss citizens
4000
third countries nationals
3000
2000
IV.09
III.09
II.09
I.09
XII.08
XI.08
X.08
IX.08
VII.08
VI.08
0
VIII.08
1000
Source: Unpublished data created by Information “OK system” of MoLSA for the purpose of Peer
Review at 18.5.2009
26
Employment of Foreigners and Residence
Permits Development
500
450
400
350
300
250
200
150
100
50
000
000
000
000
000
000
000
000
000
000
0
2004
2005
2006
total employment of foreigners
2007
2008
2009 marc h
total resident permit holders
Source: Directorate of Alien Police MoI, MoLSA, MIT, graph Milada Horáková
27
Share of Resident Permit Holders on the
CR Population
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
4,5
4
3,5
3
2,5
2
1,5
1
0,5
0
1993
%
THE SHARE OF RESIDENT PERMIT HOLDERS ON THE CR POPULATION IN PER
CENT
(as at December 31)
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
28
Resident Permit Holders Development
April 2009
175 020
268 850
March 2009
174 837
268 431
February 2009
174 365
268 329
January 2009
173 807
267 898
2008
172 927
265 374
2007
158 018
2006
234 069
139 185
2005
182 271
110 598
2004
167 714
99 467
2003
80 844
2002
75 249
2001
69 816
2000
66 891
1999
66 754
1998
63 919
1997
154 827
159 577
156 359
140 978
134 060
162 108
155 836
56 281
1996
153 516
45 837
1995
152 767
38 557
1994 32 468
1993 31 072
0
120 060
71 230
46 070
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
500 000
cizinci s povolením k trvalému pobytu v Č R/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
29
educational attainment
required
unspecified
doctorate
university (masters)
university (bachelor)
upper vocational
complete middle
vocational with LAC but
vithout LVC
complete middle
vocational with LVC and
LAC
grammer school
middle or middle
vocational without
Leaving Certifikate
middle vocational with
Leaving Vocational
Certificate
lower middle vocational
lower middle
basic lower vocational
incomplete basic
no education
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
120 000
100 000
80 000
60 000
40 000
20 000
0
education
Source: MoLSA, graph Milada Horáková
30
educational attainment
Source: MoLSA, graph Milada Horáková
required
unspecified
doctorate
university (masters)
university (bachelor)
upper vocational
complete middle
vocational with LAC but
vithout LVC
complete middle
vocational with LVC and
LAC
grammer school
middle or middle
vocational without
Leaving Certifikate
middle vocational with
Leaving Vocational
Certificate
lower middle vocational
lower middle
basic lower vocational
50
45
40
35
30
25
20
15
10
5
incomplete basic
no education
Attained and Required Education of the EU
Nationals Registered at Labour Offices
ATTAINED AND REQUIRED EDUCATION OF THE EU NATIONALS
December 2008
000
000
000
000
000
000
000
000
000
000
0
education
31
0
EU/EHP REGISTRATION
Source: MoLSA, graph Milada Horáková
unspecified
doctorate
university (masters)
university (bachelor)
upper vocational
complete middle
vocational with LAC but
vithout LVC
complete middle
vocational with LVC and
LAC
grammer school
middle or middle
vocational without
Leaving Certifikate
middle vocational with
Leaving Vocational
Certificate
lower middle vocational
lower middle
basic lower vocational
incomplete basic
no education
Required Education of the EU and non EU
Nationals Registered at Labour Offices
REQUIRED EDUCATION OF FOREIGNERS REGISTERED AT LABOUR OFFICES
December 31 2008
120 000
100 000
80 000
60 000
40 000
20 000
WORK PERMITS
32
Work Permit Holders Registered at
Labour Offices by Age
Work permit holders by age 31.12.2008
2%
0%
0%
23%
3%
-19
21%
20 - 24
25 - 39
40 - 54
55 - 59
60 - 64
65 +
51%
Source: MoLSA, graph Milada Horáková
33
EU/EEA/Swiss Citizens Registered
at Labour Offices by Age
EU/EEA/Swiss citizens registered at labour offices 31.12.2008
5%
2%
0%
1%
15%
-19
27%
20 - 24
25 - 39
40 - 54
55 - 59
60 - 64
65 +
50%
Source: MoLSA, graph Milada Horáková
34
Trade Licence Holders by Age
Trade licence holders 31.3.2009
1%
2%
5%
0%
10%
-19
20 - 24
25 - 39
40 - 54
55 - 59
60 - 64
36%
Source: MIT, graph Milada Horáková
46%
65+
35