Labour Migration in Ireland: Overview of trends and recent policy

changes

Labour Migration in Ireland: Overview of trends and recent policy

changes

The Irish National Contact Point of the European Migration Network is funded by the European Commission and the Irish

Department of Justice and Law Reform.

1. Overview of trends in migration and immigrant employment in Ireland

2. Labour migration policy and non-EU employment permits system

3. Migrant workers and the crisis

4. Features of immigrant labour market experience in Ireland

Trends in Migration 1987-2010

-60

-40

-20

0

20

40

60

80

100

120

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Emigration Immigration Net Migration

Tho

usan

ds

Central Statistics Office, Population and Migration Estimates

Central Statistics Office, Population and Migration Estimates

Immigration by National Group 2000-2010

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Rest of World

EU10/12

EU 13

UK

Irish

Th

ou

san

ds

Non-Irish Nationals in Employment 2004-2010

Source: Central Statistics Office: QNHS

Employment 2004-2010 (000s)

0

500

1000

1500

2000

2500

2004 2005 2006 2007 2008 2009 2010

Irish in employment Non-Irish in Employment

Total in employment

Occupational Skill Groups of Non-Irish in Employment

Source: QNHS, 2004:Q3; 2005-2010:Q2 Calendarised data

Per Cent Non-Irish in Highly Skilled Occupations

4% 5% 6% 5% 5% 5%

2% 2% 2%2% 3%3% 4% 4% 3%

1%

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006 2007 2008 2009

Other EU15 EU10/12 Non EU

Occupational Skill Groups of Non-Irish in Employment

Source: QNHS, 2004:Q3; 2005-2010:Q2 Calendarised data

Per Cent Non-Irish in Skilled Occupations

3% 4% 4% 4% 3% 4%2%

4%6% 9% 10% 8%3%

3%3%

3% 4%3%

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006 2007 2008 2009

Other EU15 EU10/12 Non EU

Per Cent Non-Irish in Low SkilledOccupations

3% 3% 3% 2% 3% 3%

4%

10%

20% 21%

4%

4%

5%

4% 5%

4%

17%15%

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006 2007 2008 2009

Other EU15 EU10/12 Non EU

Slovakian Nationals Working in Ireland 1

Department of Social Protection

Slovakian Nationals Working in Ireland 2

Census 2006

Development of Irish Labour Migration Policy

• Prior to early 2000s little management of economic migration

• Work visa/ authorisation programme introduced in 2000

• Work permit allocations increased x7 between 1999-2003 to peak at 47,500 in 2003. Mainly low skilled occupations

• From 2002 state sought to exercise some control of work permit allocations. Labour market needs test introduced. ‘Ineligible Occupation Sectors’. Employment Permits Act 2003

• State started pursuing the now well established policy of sourcing all but highly-skilled and/or scarce labour from within the EU

• EU Enlargement 2004. EU10 nationals granted full access to the Irish labour market

Development of Irish Labour Migration Policy

• Unprecedented rates of migration 2004-2007

• State became increasingly active regarding management of non-EU labour migration

• Restrictions on non EU students’ access to labour market in 2004

• Employment Permits Act 2006

– Further restrictions on lower-skilled work permit allocations

– Introduced Green Card to attract highly-skilled non-EU workers

• Work permit requirement for Romanian and Bulgarian nationals following accession in 2007

Non-EU Employment Permits System

• Employer-led system

– State licenses arrangement between employer and potential migrant worker after job offer has been made

• Controls that may be exercised by state include application of Labour market needs test, list of occupations ineligible for permits

• Identifying Shortages: Expert Group on Future Skills Needs, National Skills Database

• National Skills Bulletin 2010: No labour shortages and only limited skills shortages exist

Non-EU Employment Permits System

Type of Permit

Conditions Associated

Green Card Work Permit Intra Company Transfer

Spousal/Dependent Permit

Permit Availability

Most occ. with annual salary >€60k

Restricted list of occupations €30 - €60k

Mainly for occ. €30k-€60k annual salary

Also under €30,000

List of ineligible occupations

Senior management, key personnel, trainees

Annual Salary > €40,000

Spouse/dependent of GC holder

Spouse/dependent of WP holder provided original WP holder made first application before 1 June 2009.

Labour Market Needs Test

None Strengthened labour market test

None Applies where original WP holder made first application after 1 June 2009.

Family Reunification

Immediate Must be legally in the State for 1 year with

None None

The Recession- Ireland’s GNP Growth Rate

Ireland’s Rate of Unemployment

Recent Adjustments to non-EU Employment Permits System

• Reduction in occupations eligible for green cards in <€60,000 category (quantity surveyors, building managers, and engineers and architects)

• Extension of list of occupations ineligible for new work permit including childcare workers; hotel tourism and catering workers

• Labour market needs test extended

• Increased processing fees for new work permit applications

• Restrictions on spousal permits

• Proposed reform of student immigration regime

Recent Adjustments to Immigration System

• Redundant employment permit holders scheme

• Administrative long term residency scheme extended to

workers made redundant after 5 years

• Undocumented workers scheme

• Third level graduate scheme

0.0

5.0

10.0

15.0

20.0

25.0

Q32004

Q12005

Q32005

Q12006

Q32006

Q12007

Q32007

Q12008

Q32008

Q12009

Q32009

Irish Non-Irish EU10/12

Unemployment Rates by Nationality

Alan Barrett and Elish Kelly (2010) “The Impact of Ireland’s Recession on the Labour Market Outcomes of its Immigrants.” ESRI Working Paper

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Q32005

Q12006

Q32006

Q12007

Q32007

Q12008

Q32008

Q12009

Q32009

Irish Non-Irish

Annual Percentage Change in Employment

Q3 2009 annual rate of employment loss: Non-Irish nationals almost 20%. Nationals 7%

-80.0

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

Irish Non-Irish

Employment Loss by Sector, Q1 2008 to Q4 2009

Key point: loss of employment for non-Irish not solely related to an over-concentration in construction.

Barrett and Kelly, 2010

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

Employment Unemployed Inactive Population

How was the employment loss among non-Irish nationals distributed across unemployment, inactive

and out-migration? Q1 2008-Q4 2009

Barrett and Kelly, 2010

Some Features of Immigrant Labour Market Experience in Ireland

• Immigrant earnings disadvantage of 18% relative to comparable natives, on average (Barrett and McCarthy, 2007)

– For EU10 nationals, the disadvantage was 45%; larger than for any other group

• Lower occupational attainment: EU10 nationals about 20% less likely to be in higher-skilled jobs relative to comparable Irish nationals (Barrett and Duffy, 2008)

• Some evidence of labour market discrimination:

– Field experiment found that candidates with Irish-sounding names more than twice as likely to be called to interview than those with African/Asian/German names. McGinnity et al (2009)

• Not all negative! EU10/12 workers making informed choice. Relatively low incidence of racism

Integration Policy

• Integration policy development (as applies to all migrants rather than only refugees) relatively recent;

• Office of the Minister for Integration established in 2007; First policy statement 2008, Migration Nation :

– Two-way process

– Partnership approach between government and NGOs

– Strong link between integration policy and social inclusion measures

– Mainstreaming approach to service delivery to migrants

– Commitment to effective local delivery

• Budget of OMI cut in 2010, likely to be reduced further.

Main Emerging Issues

• Ireland’s recession appears to have impacted severely upon its immigrant population and the most severe impact appears to have been for the EU10/12

• Recent employment fall has coincided with an outflow (Barrett and Kelly, 2010)

• Increasing unemployment means issuing employment permits to non-EU workers potentially problematic, especially in lower salary bands (spousal permits). Little evidence of serious unrest in this regard

• Challenge for policymakers of finding balance between limiting further labour migration and integration of workers already here

• Ireland has opted out of Long Term Residence Directive and Blue Card Directive. Delays in enacting the Immigration, Residence and Protection Bill 2010. Long-term residence not yet a statutory status