Recruiting Immigrant Workers EuRopE Recruiting Immigrant The OECD series Recruiting Immigrant Workers comprises country studies of labour migration policies. Each volume analyses whether migration policy is being used Workers effectively and efficiently to help meet labour needs, without adverse effects on labour markets. It focuses mainly on regulated labour migration movements over which policy has immediate and direct oversight. This particular volume looks at the efficiency EuRopE of European Union instruments for managing labour migration. Contents Chapter 1. The context for labour migration in Europe Chapter 2. How attractive is the European Union to skilled migrants? Chapter 3. Where does the European Union bring added value in labour migration? Chapter 4. What have EU labour migration Directives changed and how can they be improved? Chapter 5. What is missing from the EU labour migration policy framework? Chapter 6. Recommendations for EU labour migration policy R e c r u it in g Im m ig r a n t W o r k e r s E u R Consult this publication on line at http://dx.doi.org/10.1787/9789264257290-en. o This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and p E statistical databases. Visit www.oecd-ilibrary.org for more information. Isbn 978-92-64-25728-3 81 2016 05 1 p Recruiting Immigrant Workers: Europe 2016 ThisworkispublishedundertheresponsibilityoftheSecretary-Generalofthe OECD.Theopinionsexpressedandargumentsemployedhereindonotnecessarily reflecttheofficialviewsofOECDmembercountriesortheEuropeanUnion.. Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand boundariesandtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECDandEU(2016),RecruitingImmigrantWorkers:Europe2016,OECDPublishing,Paris. http://dx.doi.org/10.1787/9789264257290-en ISBN978-92-64-25728-3(print) ISBN978-92-64-25729-0(PDF) Series:RecruitingImmigrantWorkers ISSN2225-7950(print) ISSN2225-7969(online) EuropeanUnion ISBN978-92-79-58041-3(print) ISBN978-92-79-58040-6(PDF) Cataloguenumber DR-01-16-418-EN-C(print) DR-01-16-418-EN-N(PDF) NotebyTurkey Theinformationinthisdocumentwithreferenceto"Cyprus"relatestothesouthernpartoftheIsland. ThereisnosingleauthorityrepresentingbothTurkishandGreekCypriotpeopleontheIsland.Turkey recognisestheTurkishRepublicofNorthernCyprus(TRNC).Untilalastingandequitablesolutionis foundwithinthecontextoftheUnitedNations,Turkeyshallpreserveitspositionconcerningthe "Cyprusissue". NotebyalltheEuropeanUnionMemberStatesoftheOECDandtheEuropeanUnion TheRepublicofCyprusisrecognisedbyallmembersoftheUnitedNationswiththeexceptionof Turkey.Theinformationinthisdocumentrelatestotheareaundertheeffectivecontrolofthe GovernmentoftheRepublicofCyprus. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities.TheuseofsuchdatabytheOECDiswithoutprejudicetothestatusofthe Golan Heights, East Jerusalem and Israeli settlements in theWest Bank under the terms of internationallaw. Photocredits:Cover©JonathanEvans/Immagineltd. CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/about/publishing/corrigenda.htm. ©OECD/EuropeanUnion2016 Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECD publications,databasesandmultimediaproductsinyourowndocuments,presentations,blogs,websitesand teachingmaterials,providedthatsuitableacknowledgmentofthesourceandcopyrightownerisgiven.All requestsforpublicorcommercialuseandtranslationrightsshouldbesubmittedtorights@oecd.org.Requests forpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbeaddresseddirectly totheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdudroitde copie(CFC)[email protected]. 3 FOREWORD – Foreword At a time when the attention of policy makers and public opinion is so focused on the humanitarian refugee crisis, it might appear odd to consider issues of legal migration. The urgency of the humanitarian crisis faced by Europe and the need for a common, bold and comprehensive response from Member States do not, however, diminish the importance of addressing the challenges related to the management of legal labour migration in Europe. This Review of Labour Migration Policy in Europe seeks to contribute to thinking on one of the current Commission’s priorities – namely, how best to manage labour migration in the context of population ageing and the global competition for skills. Public concern and policy attention with regard to migration have intensified with the focus on forced migration and co-operation over asylum and borders in Europe. The European Union’s central migration management institutions face new challenges, and there is agreement that they need to be strengthened if they are to provide a concerted, effective response to the new situation. At the same time, however, the European Union needs to look at those new challenges in the context of the growing competition to attract and retain talented migrants. Indeed, legal migration channels remain a key building block in any comprehensive migration policy. This review seeks to contribute to efforts to improve the European legal migration policy framework. The central objective of labour migration policy is to meet labour market needs which cannot be satisfied by the domestic labour supply in a reasonable timeframe without adversely affecting the domestic labour market and development prospects in vulnerable origin countries. Although the objective itself can be easily stated, it is a complex matter to determine the criteria for assessing how successfully policy meets that objective. It involves evaluating how well labour market needs have been identified and whether migration has had an impact on the domestic labour market. Both evaluations are analytically difficult. RECRUITING IMMIGRANT WORKERS: EUROPE © OECD/EUROPEAN UNION, 2016 4 – FOREWORD The issues in labour migration to the European Union as a whole differ from those which impinge on individual Member States, as it has no powers of decision over admissions and does not directly manage admission processes and procedures. To date, it has contributed to the governance of labour migration chiefly through standards and regulations which it negotiates with Member States to ensure they meet shared objectives. This review considers how, in accordance with its mandate, the European Union can improve labour migration management at the Union level and what it could do to make the EU more attractive to highly skilled migrants. The review asks the specific question of how EU rules can help make the EU single market a more appealing destination for skills and talents. It also explores how the EU can improve its labour migration framework to meet current and upcoming challenges against the background of an ageing population. This review seeks to analyse two key areas in particular: • the labour migration system’s current policies and the migrant groups that they address; • the extent to which the system is capable of responding to the current and forecast needs of the labour market and safeguarding it from adverse impact. The focus is specifically on discretionary labour migration – i.e. the labour migration movements over which policy has direct, immediate oversight. It also considers other categories of migration – family reunification, for example – but only insofar as they influence decisions to admit workers. As for migrant flows governed by agreements on freedom of movement – which are substantial in many European countries – it addresses them only in relation to discretionary labour migration. This review is part of the joint project between the Directorate General for Migration and Home Affairs of the European Commission and the OECD’s Directorate for Employment, Labour and Social Affairs on “Review of Labour Migration Policy in Europe”. This document has been produced with the financial assistance of the European Union. Grant: HOME/2013/EIFX/CA/002 / 30-CE-0615920/00-38 (DI130895) A. RECRUITING IMMIGRANT WORKERS: EUROPE © OECD/EUROPEAN UNION, 2016 5 ACKNOWLEDGEMENTS – ACKNOWLEDGEMENTS This review is the sixth in a series produced by the OECD Secretariat as a follow-up to the 2009 High Level Policy Forum on International Migration. This review was written by Jonathan Chaloff and edited by Ken Kincaid. The OECD Secretariat would like to thank Laura Corrado of the Directorate-General (DG) Migration and Home Affairs of the European Commission and her colleagues, especially Laurent Aujean, Lieven Brouwers, Hélène Calers, Marie Boscher, Maria Brättemark, Katri Niskanen, Jan Saver and Sebastian Stetter, who worked on preparing, commenting and revising this review. It draws on background work by Anda David, Jean-Noël Senne, Flore Gubert, Sankar Ramasamy Kone, Peo Hansen, Emily Farchy, Friedrich Poeschel, Corinne Balleix, Sophie Robin-Olivier, Tommaso Colussi. It benefited from valuable comments from Jean-Christophe Dumont, Stefano Scarpetta, Mark Pearson, Kees Groenendijk, Jean-Yves Carlier, Marco Manacorda and Pawel Kaczmarczyk. Additional analysis was provided by Cansin Arslan, Marianne Gierow, Véronique Gindrey and Jongmi Lee. RECRUITING IMMIGRANT WORKERS: EUROPE © OECD/EUROPEAN UNION, 2016 7 TABLE OF CONTENTS – Table of contents Assessment and recommendations ......................................................................... 13 Executive summary ................................................................................................ 25 Chapter 1. The context for labour migration in Europe .................................... 29 The context behind labour migration in Europe is one of disparity across Member States .......................................................................................... 30 A common expectation of future skill needs ....................................................... 33 The political context: What is EU labour migration policy and where does it originate? ............................................................................................................. 36 Why Member States see added value in co-ordinating labour migration at the EU level ............................................................................................................... 59 The limits of intervention..................................................................................... 60 The policy development cycle at the EU level is very long ................................. 68 Notes ................................................................................................................... 71 Bibliography ....................................................................................................... 75 Chapter 2. How attractive is the European Union to skilled migrants? ........... 79 The position of the European Union in migration flows to OECD countries ...... 80 The European Union is the single leading destination for international students ................................................................................................................ 98 Surveys of entrepreneurs and executives show a mixed profile of attractiveness ................................................................................................... 99 Many EU residents perceive their countries as good places for migrants ......... 101 The European Union is a destination of interest for potential migrants ............ 102 Notes ................................................................................................................. 113 Bibliography ..................................................................................................... 114 Chapter 3. Where does the European Union bring added value in labour migration? ............................................................................................................ 117 What is added value in labour migration initiatives at the EU level? ................ 118 Attractiveness to migrants.................................................................................. 118 Increasing mobility ............................................................................................ 120 Increasing retention ............................................................................................ 128 RECRUITING IMMIGRANT WORKERS: EUROPE © OECD/EUROPEAN UNION, 2016 8 – TABLE OF CONTENTS Improving matching systems ............................................................................. 129 Avoiding duplication in the recognition of foreign qualifications ..................... 130 Attractiveness for employers ............................................................................. 131 A single labour market test for a single labour market ...................................... 133 Co-operation with third countries ...................................................................... 139 Simplification for compliance ............................................................................ 142 Leveraging competition and preventing a race to the bottom ............................ 142 Summarising factors of attraction and the value of EU intervention ................. 143 Notes ................................................................................................................. 145 Bibliography ..................................................................................................... 147 Chapter 4. What have EU labour migration Directives changed and how can they be improved? ........................................................................ 151 Introduction ........................................................................................................ 152 Students Directive: Promote the EU as a world centre of excellence for studies ........................................................................................................... 152 The Researchers Directive: A new fast-track permit in many Member States ..... 159 The Single Permit Directive: Simplifying and harmonising the rules ............... 166 The EU Blue Card: Almost invariably a new permit category .......................... 172 How does the Blue Card compete with national schemes? ............................... 178 The Seasonal Workers Directive ....................................................................... 204 The Intra-Corporate Transfer Directive ............................................................. 205 What have the Directives discussed changed? ................................................... 207 What are the next possible policy options? ........................................................ 211 Notes ................................................................................................................. 217 Bibliography ..................................................................................................... 220 Annex 4.A1. Labour market mobility for EU Blue Card holders ....................... 223 Chapter 5. What is missing from the EU labour migration policy framework? .......................................................................................................... 227 A broad pool of candidates ................................................................................ 228 A general recognition system............................................................................. 231 Sectors not yet covered under the sector-based approach .................................. 233 Horizontal approach ........................................................................................... 254 Notes ................................................................................................................. 264 Bibliography ..................................................................................................... 265 Chapter 6. Recommendations for EU labour migration policy ....................... 269 Systemic recommendations ............................................................................... 270 Make the Blue Card more effective and attractive ............................................ 278 Boost added value for participating countries.................................................... 280 RECRUITING IMMIGRANT WORKERS: EUROPE © OECD/EUROPEAN UNION, 2016