Labour migration in Austria

1. Labour migration in Austria Dr. Katerina Kratzmann, IOM Vienna EMN National Contact Point Austria Nationale EMN Contact Point Austria IOM Vienna Nibelungengasse 13/4 1010 Vienna www.emn.at ncpaustria@iom.int 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.

2. Outline • Labour market policy in Austria • Migration 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 Austria • Outlook

3. 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 EU • Austria undergoes the transition from an industrial society to a knowledge society: need for high qualified workers • Strong population ageing; migrants tend to be younger than Austrians • Red-White-Red Card is currently under discussion (criteria based immigration system for highly skilled TCN)

4. 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

5. 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)

6. 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 workers Agreement against wage and social dumping included Target 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

7. Outline • Labour market policy in Austria • Migration 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 Austria • Outlook

8. Migration context in Austria: Migration flows Source: migration & integration, Statistik Austria, 2010

9. Who is coming to Austria?Immigration Groups 2009 Return of Austrian citizens Skilled Workers from non-EU States Internal migration within the EU Students from non-EU States Asylum seekers Seasonal workers from non-EU States Family reunification from non-EU States Persons Source: migration & integration, Statistik Austria, 2010

10. First residence permits (TCN) by reason, 2009 Source: Federal Ministry of the Interior / Eurostat.

11. Outline • Labour market policy in Austria • Migration 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 Austria • Outlook

12. Total stock of workers* by groups of citizenship, 2009 Source: Labour Force Survey 2009. * without military personnel (ISCO Group 0)

13. The 10 major migrant nationalities: 76 % of all migrant workers in 2009 Source: Labour Force Survey 2009.

14. Skills of migrant workers Source: Labour Force Survey 2009.

15. Skills by Gender Source: Labour Force Survey 2009 Third Country Nationals Natives EU-15 EU-10 EU-2

16. 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

17. Grade of education Austrians Foreigners Highest completed education University, FH, Academy AHS, BHS Vocational training Compulsory school Source: migration & integration, Statistik Austria, 2010

18. Employment rates Lower 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%) Source: migration & integration, Statistik Austria, 2010

19. 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 Source: migration & integration, Statistik Austria, 2010

20. 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.

21. Outline • Labour market policy in Austria • Migration context in Austria • Population stock and flows • Immigration groups • Foreign work force • Skills & Qualification • Employment & Unemployment • Major occupations • Impact of the crisis • Outlook

22. Impact of the crisis Only small decline of immigration to Austria as a consequence of the economic crisis Small decrease in demand for foreign labour Increase 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%)

23. 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

24. THANK YOU!

25. “Guest worker system” • Until 1960 trade unions were against foreign labour • 1961: 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

26. Lessons learned • An active recruitment for labour force is necessary • Facilitation/ administration of migration necessary • Difficult 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 stay • If people stay, integration measures have to be provided

27. 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

28. Demographic Situation:Austrians Population of Austrian origin Age in years Women Men Source: migration & integration, Statistik Austria, 2010

29. Demographic Situation:Migrants Population of foreign origin Age in years Women Men Foreigners Austrians Foreigners Austrians Source: migration & integration, Statistik Austria, 2010

30. Demographic Prognosis Main Scenario Scenario without population movements High rate of migration Low rate of migration Source: migration & integration, Statistik Austria, 2010

31. Migration context in Austria: Population stock Total stock of 17% Persons with foreign origin Total stock of 17% persons with foreign background Source: migration & integration, Statistik Austria, 2010

32. Migration background 2.Generation; 385.477; 4,7% 1.Generation; 1.082.624; 13,1% Source: migration & integration, Statistik Austria, 2010

33. 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

34. Skill composition of Austrians and migrants

35. Skills by major nationality

36. Overqualified employees 2009 Source: migration & integration, Statistik Austria, 2010

37. Unemployment in EU context UK Italy Malta Spain Latvia Ireland Poland Estonia Austria Belgium France Sweden Finland Greece Hungary Slovakia Portugal Bulgaria Cypress Slovenia Lithuania Romania Denmark Germany Netherlands Luxembourg Czech Republic Source: AMS Arbeitsmarktlage 2009

38. 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

39. Job vacancies Of 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%

40. 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

41. Work of asylum applicants: In the first three month after the application: no work at all Afterwards with a work permit (BB) – by employer, de facto Seasonal workers Theoretical independent work is possible under certain criteria (Gewerbe) – not used Minor 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

42. 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