THE EFFECTS OF EMIGRATION FROM YUGOSLAVIA AND THE PROBLEMS OF RETURNING EMIGRANT WORKERS EUROPEAN DEMOGRAPHIC MONOGRAPHS II The Effects of EmiBration from YUBoslavia and the Problems of ReturninB EmiBrant Workers by V I IVO BAUCIC University of Zasreb • MARTINUS NIJHOFF / THE HAGUE / 1972 © 1972 by Martinus Nijhoff, The Hague, Netherlands All rights reserved, including the right to translate or to reproduce this book or parts thereof in any form ISBN-13:978-90-247-1305-9 e-ISBN-13: 978-94-01 0-2809-7 DOl: 10.1007/978-94-010-2809-7 This study has been prepared for the Organization for Economic Co-operation and Development (OECD), Paris, which has also authorized its publication. The author of the study is Head of the Department for Migration Studies at the Institute of Geography, Zagreb University (19/II Marulicev trg, YU 41001 Zagreb). The present proportions of labour emigration and emigratory trends since the War The total number of about 9 million foreign workers tempo rarily employed in European countries at the beginning of 1971 included about 660,000 workers from Yugoslavia (Table I), while another 200,000 workers from Yugoslavia were in employment in overseas countries (chiefly in Australia, the U.S., New Zealand, and Canada). The number of Yufoslav emigrant workers continues to increase, and at present (autumn 1971) totals about 920,000. Table I Estimated numbers of Yugoslav workers in European * countries in early 1971 Country of Number per cent immigration German Federal Republic 436,000 66.1 Austria 90,000 13.6 France 57,000 8.6 Switzerland 27,000 4.1 Sweden 22,000 3.3 Italy 6,500 1.0 Holland 6,500 1.0 Belgium 3,500 0.5 Luxemburg Denmark 3,500 0.5 Great Britain 3,000 0.5 Other European countries 5,000 0.8 Total 660,000 100.0 * Estimates based on statistical records of countries of immigration and the Yugoslav employment authorities. 1 Yugoslavia's latest census (March 31, 1971) enumerated 671,908 workers "in temporary employment abroad" (source: Persons in Temporary Employment Abroad According to the 1971 Census of Population and Houses, Statistical Bulletin No. 679, Savezni zavod za statistiku - Federal Statistical Institute, Belgrade 1971). Accor ding to the methodology applied in the census, only those emi grants were to be enumerated who were regarded as staying abroad temporarily, i.e. who were expected to return to Yugoslavia sooner or later. According to the same methodology it had also been as sumed that a certain proportion of the emigrant workers would not be covered by the census since there would be nobody to supply data on them. There is ample evidence that a considerable number of Yugoslav emigrant workers were not covered by the country's latest census. The bulk of Yugoslav emigrant workers are employed in West European countries, especially in the German Federal Republic (66.1 0/0; Table 1)1, although there are considerable numbers of Yugoslav workers in Austria, France, Sweden and Switzerland. Labour emigration from Yugoslavia began about 1954 with workers leaving chiefly for France and Germany. This spontane ous, and to begin with mainly illegal, emigration in search for em ployment and higher earnings took on significant proportions in 1962 (Table II). By 1964 the Yugoslav political and state authori ties had accepted the practice of labour emigration as a necessity in view of the country's current socio-economic conditions. Since then the Yugoslav employment services have been co-operating increasingly with foreign employers and labour exchanges in organ izing the employment of Yugoslav workers in foreign countries. As the number of Yugoslav workers in European countries in creased, Yugoslavia entered into inter-state employment agree ments with the individual countries of immigration in order to regulate the employment and ensure the rights of Yugoslav workers in these countries. To date, the Yugoslav Government has entered into such agreements with the following countries: Austria (1965), France (1965), Sweden (1967), Germany (1969), Australia (1969), Holland (1970), Luxemburg (1969) and Belgium (1970). 1) In the following text: Germany 2 With a popUlation of 20,504,516 (figure for March 31, 1971) and a total of 860,000 external migrants, Yugoslavia has an emi gration rate of 4,2%, - i.e. Europe's highest after Portugal (Por tugal 5.7%, Italy 3.4% ). With the number of persons employed abroad (860.000 at the beginning of 1971) and the total number of employed within the country (3,850,000 average 1970), Yugoslavia has a total of 4,510,000 employed persons (an employment rate of 22% ), 19.1 % of whom are employed abroad.2 Table II Number of Yugoslav workers employed in the German Federal Republic, total number of persons registered with the Yugoslav employment services as employed abroad, and estimated total number of persons from Yugoslavia employed in European countries from 1954- 1971 Number of Yugoslav Total number of persons Estimated total workers in the German registered with the Yugo- number of per- Year Federal Republic * slav employment services sons from Y ugo- as employed abroad * * slavia employed in European countries* * * 1954 1,801 3,000 1955 2,085 3,500 1956 2,297 4,000 1957 2,778 4,500 1958 4,846 10,000 1959 7,310 15,000 1960 8,826 18,000 1961 30,000 1962 23,608 50,000 1963 44,428 90,000 1964 53,057 7,019 115,000 1965 64,060 38,019 140,000 1966 96,675 84,159 210,000 1967 97,725 93,825 220,000 1968 99,660 145,231 230,000 1969 226,290 247,266 420,000 1970 388,953 355,345 550,000 1971 415,466 660,000 3 * Source: Ausliindischer Arbeitnehmer 1970, and Amtliche Nachrichten No 3,1971, Bundesanstalt fUr Arbeit, Niirnberg. State: till 1960, as per end of June; 1961-1970, as per end of June; 1971, as per end of January. ** Source: Employment in foreign countries in 1964 and 1965; dtto. for 1966, 1967, 1968, 1969 and 1970; Federal Bureau for Employment Affairs, Belgrade. State as per 31 December. *** Estimates based on statistical and other data collected by the Department for Migration Studies of the Institute of Geogra phy, Zagreb University. State: as per end of June, and for 1971 as per end of January. Some basic causes of labour emigration The difference between labour-importing and labour-exporting countries lies primarily in the structure of activity of their working populations. A comparison of the economic activity of Yugoslavia's population with that of Germany's, will show that in 1961 almost 57 of Yugoslavia's population was employed in agriculture, % while only 11.4 of Germany's working population in 1964 was % employed in the primary sector of the economy (Table III). De spite the notable successes in the country's industrialization since the war, by the end of 1970 about 50 % of Yugoslavia's total working population was still employed in agriculture. In addition, Yugoslavia had only 2.2 hectares of arable land per one active agricultural worker compared with Germany's 4.9 hectares. The tendency to give up farming as a difficult and increasingly unprofitable activity has been growing among the Yugoslav farming population faster than new jobs in non-agricultural activities have been created. Since the wish to find employment in non-agricultur al sectors of the economy cannot be satisfied within the country, it is easy to understand the growing readiness of Yugoslavs to seek employment abroad. The emigration of labour from Yugoslavia can thus be regarded as a form of the movement of the inadequately employed agricultural popUlation into other sectors of the economy. 2) According to Yugoslav official statistics the term "employed" applies to persons who are employed in the social or the private sector and excludes private farmers. industrial apprentices and persons running a private business (e.g. owners of craft workshops. restaurants. etc.). 4 The economic reform, which was introduced in Yugoslavia in summer 1965, led to increased labour emigration (Table II). Table III Comparison of Yugoslavia's & Germany's populations according to activity Yugoslavia German Federal 1961* Republic 1964* Number in Number in 000 000 Total population 17,400 100.0 58,266 100.0 Supported 9,060 52.1 31,118 53.4 Active 8,340 47.9 27,148 46.4 Agriculture & Forestry 4,748 56.9 3,084 11.4 Industry, Mining and 1,834 22.0 13,022 48.0 Crafts Trade and Transport 560 6.7 4,752 17.5 Other activities 1,021 12.3 6,121 22.5 (services) Unemployed 177 2.1 169 0.6 ---------------------------- Total active 8,340 100.0 27.148 100.0 * Source: Statisticki godisnjak Jugoslavije 1970, Savezni zavod za statistiku, Beograd (Yugoslav Statistical Yearbook 1970, Federal Statistical Institute, Belgrade) p. 78. ** Source: Handbook of Statistics for the Federal Republic of Germany 1970, Federal Statistical Office, Wiesbaden, p.50. 5 One of the objectives of the reform was to open the way for Yugoslav products into the international market. This was to be achieved primarily through the modernization of industries and through more economic methods of production. As a result, the first few years of the reform brought a drop in the number of employed (Table IV, Fig. 1), and it was not until 1969 that the number of employed in Yugoslavia exceeded the employment figures for 1965. From 1966-1970 the country's employment services could provide jobs for only 13.6 % of the people who were seeking employment within the country. The disproportion between the number of vacancies and the number of persons seeking employment would no doubt have been much greater if large numbers of workers had not taken employment abroad (see Table II). In 1968 and 1969 the number of vacant jobs increased but, due to the simultaneous increase in the demand for jobs, the disproportion continued (see Fig. 1). It was not until 1970 that the number of persons seeking employment in Yugoslavia began to decrease for the first time following the introduction of the economic reform (see Table IV). However, this too may be re garded as an effect of labour emigration. An additional explanation for the growing labour emigration in the initial stages of the reform will be found if the number of people reaching working age is compared with the number of people who were able to find jobs within the country (Table V). The number of people who reached working age but could not find employment within the country in the years 1966-1970 totalled 291,000 (an annual average of 58,000). The employment rate after 1965 could not ensure enough jobs for all those who had reached working age, even with the existing small proportion of employed (18.8 in 1965). In addition, % among the inadequately employed agricultural workers there was an increasing realization of the advantages offered by other sectors of economic activity. Since the wages offered by foreign labour markets, especially for certain types of job, considerably exceed those paid in Yugo slavia, Yugoslav emigrant labour includes a considerable proportion of skilled workers and persons with university training, i.e. persons who were employed, or could have easily found employment, in Yugoslavia. 6 h - g z seeking employment throu Number of vacant jobs in proportion to number of persons seeking employment 37.1 29.9 24.4 34.1 39.1 22.5 17.0 12.5 11.4 13.1 14.5 njak Jugoslavije 1971, Save of persons s Chain index 96 101 135 105 64 52 76 81 121 107 sticki godis er ob ati mb nt j (St u a e the n0* Vac mber 092 136 805 605 067 304 677 531 505 202 293 elgrad via, 197 Nu 5957577883534333354346 e, B n Yugoslaobs 1960- Chain index 120 124 97 92 111 109 104 116 106 97 al Institut mployed if vacant j eking ment l Statistic mber of e number o Persons seemploy Number 159230 191283 236563 230272 212486 236969 257607 269067 310997 330626 319586 71, Federa Survey of trends in the total nuthe employment services, and the Total number of employed Number Chain Rate in 000 index of employ-ment 2972 16.2 3242 110 17.4 3318 102 17.6 3390 102 17.8 3608 106 18.7 3662 101 18.8 3582 18.2 98 3561 17.9 99 3587 101 17.8 3706 103 18.2 3850 104 18.9 Yugoslav Statistical Yearbook 19ni zavod za statistiku, Beograd). V e: -l I c Table Year 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. 1969. 1970. * Sour