Title: Future Trends on the European Labour Market
1EURES IS Mobility Conference, May 30th 2008
- Future Trends on the European Labour Market
- Increased Competition for and Shortage of Skilled
Key-Workers - Søren Kaj Andersen
2EURES IS Mobility Conference, May 30th 2008The
European perspective
University of Copenhagen
- The regulation
- Freedom of movement on the EU-labour market
- Beyond 2009 / 2011
- All transitional regimes are phased out
- Increased competition for (skilled) workers e.g.
consequences of an open German labour market! - Increased pressure on Nordic / Western European
labour market regulation? Posted workers (the
Vaxholm/Laval case), temporary work agencies - Wage and welfare gap between east and west
- The win-win scenario (brain circulation)?
- The win-loose scenario (brain drain)?
3University of Copenhagen
EURES IS Mobility Conference, May 30th 2008 The
Nordic countries Work permits to individual job
seekers from the EU-8 (2) source, Fafo
2004 (1 may-31 dec.) 2005 2006 2007 (1 Jan-31 July) Total 1 May 2004- 31 July 2007
Denmark (issued work and residence permits 2.097 4.923 10.353 10.367 2008 25.000 27.740 (incl. renewals)
Finland (decision by the Labour Agency 2.169 2.633 - (6.273) -
Iceland (work Permits granted/registration by employer 515 (666) 2.764 (844) 6.004 (1.496) 3.091 (1.136) 12.374 (4.142)
Norway (EEA permits granted) 16.975 (3.558) 19.301 (17.902) 29.275 (25.510) 23.879 (22.230) 2008 60.000 89.430 (69.200)
Sweden (registered new EEA applications, work) 3963 (128) 4.805 (2.133) 5.692 (289) 2.440 16.900 (2.550)
Total 25.719 (4.352) 34.426 (20.879) 51.324 (27.295) 39.777 (23.366) 151.246 (75.892)
The numbers in brackets are renewals
4EURES IS Mobility Conference, May 30th 2008The
Nordic countries Posted workers from EU-8 (2)
University of Copenhagen
- Sweden 20.000 posted workers in construction
(Swedish LO 2006) - Finland More than 10.000 (Finnish
authorities/E101, 2006) - Norway 21.000 (Norwegian tax authorities, 2007)
- Denmark 13.000 posted workers in construction,
December 2007 - Iceland 20 active service providers (May 2008)
- Everyone agrees that the actual numbers of
posted workers are (significantly) higher
5EURES IS Mobility Conference, May 30th 2008
European work migration skilled key-workers
University of Copenhagen
- Immigration/return migration Doctors and nurses
from Eastern Europe to the Nordic countries - A still more mobile European work force!
- Circular migration so far mostly unskilled and
skilled workers skilled key-workers and
high-skilled workers in the future? - Weekly commuters
- Poles and Germans in Danish industries
(engineers via TWAs?) - Commuting from Poland
- GPs in Poland 300 per month in The UK 80
per hour, source IPPR - Posted Workers / Foreign service providers
- Impact of the Service Directive
6EURES IS Mobility Conference, May 30th
2008European challenges the declining work
force
University of Copenhagen
- Between 2010 and 2030, at current immigration
flows, EU-25s working age population will be
reduced by some 20 million EU Commission - Share of working population as share of total
population is expected to decrease from 67.2 in
2004 to 56.7 in 2050, a fall of 52 million
Eurostat projections
Unemployment in EU-27 is decreasing however
around 16 million EU-27 citizens are still
unemployed
7EURES IS Mobility Conference, May 30th 2008The
third-country perspective
University of Copenhagen
The regulation New policy initiatives EU-level
and national level (incl. the Nordic countries)
Third-country highly qualified workers as percentage of total work force Third-country highly qualified workers as percentage of total work force
European Union 1.7
Australia 9.9
Canada 7.3
US 3.2
Switzerland 5.3
Source European Commission Source European Commission
- EU Commissioner Frattini in the European
Parliament - 85 of unskilled labour migration goes to the EU
and 5 to the US, whereas - 55 of skilled labour goes to the US and only 5
to the EU
8EURES IS Mobility Conference, May 30th
2008Attracting skilled key-workers
University of Copenhagen
- The relatively large inflow of EU8 (2) migrant
workers/posted workers to the Nordic countries - based on the comparatively high wage levels
and favourable working conditions for unskilled
and skilled workers in the Nordic countries - The comparatively lower wage levels for highly
skilled workers in the Nordic countries a
barrier for attracting highly skilled migrants? - Skilled and highly skilled workers from EU-8
(2)/third-countries are doing unskilled and
semi-skilled work in the Nordic countries (brain
waste) - Barriers Language, level of taxation
9EURES IS Mobility Conference, May 30th
2008Recruitment experiences so far
University of Copenhagen
- Recruiting EU-8 (2) migrants
- Personal contacts
- Business partners
- Temporary work agencies, new agents
- A rapidly growing business area. Nordic wage
levels, working - conditions in many cases violated (TWAs the
worst and the best) - Public employment services play a limited role
- Maybe more important for the overall migration
- Existence of networks community of Poles
- Potential recruitment patterns concerning skilled
third-country workers?
10EURES IS Mobility Conference, May 30th 2008How
to reduce the lack of skilled key-workers?
University of Copenhagen
- Encourage circular/return migration or
immigration of EU workers and/or workers from
outside the EU (brain circulation vs. brain
drain) - We should not forget other initiatives
- Discourage early retirement
- Raise the legal retirement age
- Encourage part-time workers to change to
full-time work - Increase the number of legal weekly working hours
- (Encourage non-working women to participate in
the labour market) - These initiatives will target all groups on the
labour market from low skilled to high skilled
workers
11EURES IS Mobility Conference, May 30th 2008 Some
questions on future trends
- Can we avoid the development of secondary labour
markets in the Nordic countries? - Brain drain, waste or circulation?
- To recruit skilled key-workers or highly skilled
workers in developing countries any dilemmas? - Sustainable migration!
- Cooperation between authorities in sending and
receiving countries on securing wages and social
contributions on education and training, etc