Irregular employment of foreigners in Hungary Judit Juhász Panta Rhei Social Research Bt. Budapest Tel./fax: +(36-1)

Debates related to migration In the last two decades the socio-economic and political importance of international migration (including illegal forms) increased, thus the importance of the research. Focal points of debates: Evaluation of economic, social and political significance Evaluation of economic, social and political significance Legal/illegal forms Legal/illegal forms Regulation Regulation Possibilities of measurement, use of quantitative (hard) and/or soft qualitative methods Possibilities of measurement, use of quantitative (hard) and/or soft qualitative methods

Employment of foreigners I. Methodological challenge I. Methodological challenge (Definitions, measurement) II. Legal background, regular/irregular II. Legal background, regular/irregular III. Foreigners in the Hungarian labour market (situation description and analysis) III. Foreigners in the Hungarian labour market (situation description and analysis) Key questions and some results

I. Methodological challenge Need for measurement meeting rigorous scientific standards Nature and complexity of the topic and the illegality itself makes impossible exact measurement Debate: Possibility (if any) and means of measurement Possibility (if any) and means of measurement Qualitative / quantitative approaches Qualitative / quantitative approaches Need for methodological diversity Need for methodological diversity Contradiction: political, administrative requirements – research possibilities

Diversity of definitions different estimates Lack of elaborated methodology conceptual uncertainity Problems of definition, terminology Problems of definition, terminology

Illegal/irregular migrant worker Legal category Legal category Economic determination Economic determination socio-demographic interpretation socio-demographic interpretation Same activity might be qualified/classified differently

Basic Considerations Methodological diversity gives better chance to differentiated description of illegal migration, to understand the root causes and processes Methodological diversity gives better chance to differentiated description of illegal migration, to understand the root causes and processes Infiltration of direct political intentions and prejudices to research hypothesis, methods and conclusions must be avoided Infiltration of direct political intentions and prejudices to research hypothesis, methods and conclusions must be avoided

Methods Collection, systematisation and analysis of existing information (research results, statistical and administrative data, of press and document analysis) Collection, systematisation and analysis of existing information (research results, statistical and administrative data, of press and document analysis) Data sources I. Registers Illegal border crossings Illegal border crossings Other illegal acts connected to migration (crimes, criminal offences) Other illegal acts connected to migration (crimes, criminal offences) Data on labour control Data on labour control II. Empirical research Observation Observation In depth interviews, conversation with key informants In depth interviews, conversation with key informants Interviews with migrants, case studies Interviews with migrants, case studies Content analysis Content analysis Document analysis, videos, photos Document analysis, videos, photos Cartographic methods Cartographic methods Standard questionnaires Standard questionnaires

II. Legal rules Work permit Work permit EU citizens EU citizens Occasional agricultural employment Occasional agricultural employment Labour control Labour control

Work permit Request by the employer Request by the employer Labour requirement report Labour requirement report Is there domestic (EU) labour force? (30 days) Is there domestic (EU) labour force? (30 days) Obtaining other documents (proof of qualification, visa, residence permit, occupational medical certificate) Obtaining other documents (proof of qualification, visa, residence permit, occupational medical certificate) Validity Validity For given employer, occupation and place For given employer, occupation and place Maximum 1 year Maximum 1 year

Workers from the EU Free movement of workers (only registration is needed) Free movement of workers (only registration is needed) From EU 15: From EU 15: United Kingdom United Kingdom Sweden Sweden Ireland Ireland Spain Spain Portugal Portugal Finland Finland New EU members New EU members Reciprocity Reciprocity

Occasional labour Since August special simplified rules (only for agricultural seasonal work, for a maximum of 60 days/year) Since August special simplified rules (only for agricultural seasonal work, for a maximum of 60 days/year) But But seasonal visa is required (maximum for 72 days/year, 30 EUR) seasonal visa is required (maximum for 72 days/year, 30 EUR) Travel (visa at home, occasional labour booklet in Hungary) Travel (visa at home, occasional labour booklet in Hungary) Still too complicated!!! Farmers’ recommendation: all administration locally

Labour control Fine for employer>=8 * minimal wage Fine for employer>=8 * minimal wage Jan-Apr 2006.: irregular worker, of which foreigners: 388 without work permit other irregularity Jan-Apr 2006.: irregular worker, of which foreigners: 388 without work permit other irregularity Labour control Labour control Targeted control Targeted control Sectors (for example: construction, agriculture) Sectors (for example: construction, agriculture) Thematic (for example: without registration/permit) Thematic (for example: without registration/permit) Notification/denunciation (neighbours, competitors) Notification/denunciation (neighbours, competitors)

II. Foreigners in the Hungarian labour market Situation – description and analysis Questions: How many, who (where from, personal characteristics) How many, who (where from, personal characteristics) Work (activity, qualification, recruitment, working conditions, wages, employers) Work (activity, qualification, recruitment, working conditions, wages, employers) Why? Advantages/disadvantages: Why? Advantages/disadvantages: of employing foreigners of employing foreigners of working abroad (in Hungary) of working abroad (in Hungary) From the perspectives of other actors From the perspectives of other actors

Types of foreigners working in Hungary By occupational qualification: Blue/white collar worker (unqualified/qualified) Blue/white collar worker (unqualified/qualified) Professionals/intellectuals Professionals/intellectuals By length of employment: Permanent employee – occasional, seasonal worker By legal status: Regular – irregular By sending countries, nationalities By personal, demographic characteristics

Foreigners in the Hungarian labour market Significance and effects Do they take away jobs from Hungarians? Do they take away jobs from Hungarians? Effect on wages Effect on wages Filling in labour shortages (certain jobs, qualifications) Filling in labour shortages (certain jobs, qualifications)

Advantages and disadvantages Motivation Motivation Wages Wages Culture Culture Mobility Mobility Possible conflicts (locals – foreigners) Possible conflicts (locals – foreigners) Difficulties in communication Difficulties in communication Lack of local knowledge Lack of local knowledge Uncertainty on the long run Uncertainty on the long run Advantages and disadvantages

I. Data from registers Immigration ( ) Source: Office for Immigration and Nationality

Applications for permanent residence permits by citizenship, 1996–2005 Source: Office for Immigration and Nationality

Economically active foreigners Source: HCSO, National Employment Office, Office for Immigration and Nationality

Labour migration (permit holders) Source: National Employment Office

Employment by sectors Source: HCSO, National Employment Office

Employment by sectors 2002,2005

Illegal border crossings by directions Source: Border Guards

II. Some results of empirical researches and lessons learnt In-depth interviews MIGIWE (2006) experts (35) migrants (35) Standard interviews Irregular labour (ILO, )

Reasons of migration

1. Income compared to Hungarians --- MALE FEMALE ---ALTOGETHER

2. Do you think there is any discrimination against foreigners:

3. Does your present work match your qualification? (answers according to highest degree of education)

Plans

Visual documents Labour control

Accommodation of Romanian irregular workers at the edge of Budapest

The accommodation inside „They are rather grateful for it ”

International cooperation should be strenghtened to International cooperation should be strenghtened to exploit the gained experiences and the advantages of common thinking exploit the gained experiences and the advantages of common thinking develop the theory and praxis of migration research develop the theory and praxis of migration research establish international standards establish international standards