Free movement of labour in EU – myth or reality?

1. Free movement of labour in EU – myth or reality? Contribution to the preparation of lecture series at Centre for European Studies, Chulalongkorn University, Thailand H.E. Ambassador Friedrich Hamburger, Delegation of the European Commission to Thailand

2. What is mobility and why is it important? • EU context: the free movement of workers • To move freely within the European Economic Area (EEA) for work purposes is a basic right for European citizens • Mobility forms part of the 4 freedoms contained in the Treaty of Rome: free movement of goods,of services and establishment, of persons (citizenship and labour), and of capital. • Mobility is crucial to increase Europe’s competitiveness and growth, and to tackle unemployment. Ex.: 59% of those who move while unemployed actually find a job within a year as opposed to 35% of those remaining in their country (Source: Eurobarometer)

3. Mobility in Europe • Only 2% of EU working age population lives in a country other than their own. 0,1% per year move to another EU country. • Workers in the EU stay in the same job for an average of 10,6 years (US: 6,7 years), and only 16.4% have been with their employer for less than a year (US: 30%). • Yearly job-to job mobility 8,2% on average (Denmark, UK 13% - Sweden, Greece 5%) • 7,2% of the citizens change their place of residence (US: 16,2%) per year – 15-17% of them for job reasons • 600.000 (0,2% of working age population) are cross-border commuters

4. Mobility after the EU enlargement: • Geographic mobility is still a relatively limited phenomenon in Europe: no evidence of significant replacement of national workers (complementarity) and no visible signs of “welfare tourism“ • Mobility Flows are measured by work permit/ registration data • Positive effects on the economies of the receiving countries (main flow to Ireland, UK, Germany, Austria) • Sending countries: Brain drain a concern for some countries – but how permanent?

5. Mobility Profile: • Who are the movers? • EU-15: young (but rising share of mobile above 34), single without kids, highly educated and working in skilled and high-skilled occupations • EU-10: younger than EU-15 mobile, without kids (but more likely to be married), medium education, but many work in low-skill jobs • Why do people move? - Socio-economic reasons: Because they must (’new’ member states) - ’Lifestyle’ factors: Because they want - better career opportunities, curiosity (’old’ member states)

6. Mobility Issues Key issue: Demographic changes and Economic migration • in 2030 Europe can expect a lack of 20 - 30 million workers, thus increasing demand for third country workers Present and future obstacles for mobility: • Legal and adminstrative obstacles • Practical obstacles • Linguistic and socio-cultural obstacles • Lack of information

7. EU: The Lisbon Strategy • Background of the strategy: • 2-3 million jobs are vacant while the rate of unemployment is around 8% (17% for the youth) • EU needs to be competitive in terms of GDP per capita, employment and productivity rates • Facing up demographic change and global economic integration, and enlargement • Need for coordinated action at EU level (governance) → need for a new overall economic and social policy agenda: - Launch of the Lisbon Strategy (March 2000) for growth and jobs - aims to make Europe “the most competitive and dynamic knowledge-based economy in the world”

8. What does the European Commission do to promote mobility ? • Action plan for Skills and Mobility 2002-2005 • European Year of Workers’ Mobility 2006 – information, exchange of good practices, studies and surveys. • New Action plan on mobility • Coordination of social security schemes • Transfer of pension rights • European Employment Services (EURES)

9. EURES(1) Background One-stop European Mobility Information site to provide comprehensive and easily accessible information to citizens on key aspects of jobs, mobility, learning opportunities and transparency of qualifications in Europe What is EURES? A network of organisations established in 1993 that works in the field of employment, and operates in 31 countries (EEA + Switzerland). Main purpose is to support the mobility of workers at trans-national & cross-border level

10. EURES (2) Partners: • National level (Public Employment Services of the EEA and other similar organisations • Cross-border level (Local Public Employment Services; Social Partners such as trade unions, employers’ organisations, etc.; Other relevant organisations such as regional and local administrations, universities, etc.) Mobility Facilitation: • By providing information and advice on different aspects of mobility • By monitoring the labour markets in cross-border areas • By networking between the public employment services in the EEA

11. Conclusion: What prospects for mobility in the EU? • To leave one’s home country for an interesting job opportunity is still the exception to the rulein Europe • No real ’mobility culture’ among European workers • Awareness-raising and mainstreaming are important tools to instill a mobility culture, in addition to legal and administrative measures • Mobility is not only about crossing geographical borders, but also the mental ones

12. Thank you for your attention! Relevant links: • EURES http://eures.europa.eu • Employment analysis (DG Employment) http://ec.europa.eu/employment_social/employment_analysis/index_en.htm • Employment in Europe 2006 report http://ec.europa.eu/employment_social/employment_analysis/employ_2006_en.htm