EURES Mobility Conference, June 2007 Praca Islandia Increased inflow of foreign workers on the Icelandic labour market.

Slides:



Advertisements
Similar presentations
LABOUR FORCE SURVEY The aim is to show that only an integrated approach to these data makes the contribution of Italian women to the economy more visible.
Advertisements

The Economic Consequences of U.S. Immigration: Part 1.
Moving on to Unit 2 Now that you have completed the first three chapters and understand supply and demand, we must move on with the course. This unit.
The Icelandic labour market in numbers Eures Conference in June 2007 Karl Sigurdsson.
3.4 Understanding work in the national and global economy.
What are the causes of inequality of income and wealth in the UK? To see more of our products visit our website at Tony Darby, Head of.
Free movement of workers: legal basis and EURES as a tool to promote it Marco FERRI Deputy Head of Unit Employment Services, Mobility Ankara, October.
International Finance
University ”Ss Cyril and Methodius” in Skopje INSTITUTE OF ECONOMICS Emigration of Macedonia to Switzerland – changes and current situation Verica Janeska.
Economic Turbulence & Employment Trends Dr. Fragouli Evaggelia (HARVARD, COLUMBIA) Lecturer, University of Athens, Dpt. of Economics & Senior R&D Dpt.
UNIVERSITY OF ICELAND – DEPARTMENT OF HISTORY 1 Immigrants in Iceland – Realities and Political Discourses Guðmundur Hálfdanarson EURES Mobility.
1 BA 187 – International Trade Krugman & Obstfeld, Chapter 7 International Factor Movements.
In this chapter, we will cover:
Immigration and the labor Market: Facts and Policy Professor Zvi Eckstein School of Economics, Tel Aviv University May 2006.
Bjarni Már Gylfason The economic effect of The economic effect of free movement of labour free movement of labour Intustry perspective Intustry perspective.
The Netherlands, José Hilgersom Supporting collaboration in local labour markets Conference Managing Accountability and Flexibility Aarhus, 5 April 2011.
Chapter 13 Unemployment Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Labor Economics, 4 th edition.
Role of Migration in Meeting Ireland's Skills Needs Trinity Immigration Initiative: Migration Research Fair 24 September 2007 Martin Shanahan.
Employment in SEE Main Challenges and the Regional Perspective Skopje, April 2015.
Immigration as a Supply Side Policy.
Future Trends on the European Labour Market Increased Competition for and Shortage of Skilled Key-Workers Søren Kaj Andersen EURES IS Mobility Conference,
OGT SESSION 1 ECONOMICS.
The Housing Market. Content Housing market Regional differences in house prices Changes in pattern of housing tenure Market failure and government intervention.
Supply Side policies AS Economics.
Social Europe The European job search network (EURES) Citizen and business mobility across regions and cities Committee of the Regions 9 October 2013,
Europeans on the intercultural labour market Second Meeting Kristianstad 14 – 18 July 2014 Tord Hansson.
Estonia Another crises country. Background and History Details of the relevant history, pertinent to its economic condition. Position of the.
EU Enlargement: Impact On The Social Policy and Labour Markets of Accession and Non- accession Countries BACKGROUND FOR ESTONIA Epp Kallaste PRAXIS Center.
Chapter 8: Economic integration, labour markets and migration As the extent of economic integration approaches that of the United States, labour market.
First edition Global Economic Issues and Policies PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western/Thomson Learning. All rights reserved.
Recent trends and economic impact of emigration from Latvia OECD/MFA Conference Riga, December 17, 2012 Mihails Hazans University of Latvia Institute for.
Unemployment ● Causes of Unemployment ● The Phillips Curve ● Natural Rate of Unemployment ● Okun's Law.
Economic, Social, and Political Environments Chapter 3 © 2012 Nelson Education Ltd.
SOCIAL DIMENSION OF THE ECONOMIC AND MONETARY UNION MINIMUM UNEMPLOYMENT ALLOWANCE MANUEL CALDEIRA CABRAL | UNIVERSITY OF MINHO EUROPEAN PARLIAMENT, BRUSSELS,
1 Employment in the European Union: Perspectives and threats Labour markets, Ageing labour force, migration International Conference “Days of Socio-Economy:
Class Slides for EC 204 Spring 2006 To Accompany Chapter 6.
The European Union The economic case for further enlargement of the EU, with special reference to Turkey By Isabelle Rieder.
Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and.
Regional Economic Integration
Macroeconomics Lecture 18. Review of the Previous Lecture Purchasing Power Parity (PPP) Unemployment –Natural rate of unemployment Frictional Unemployment.
0 CHAPTER 6 Unemployment U P D A T E Chapter 6 Unemployment.
Developing a methodological framework for developing Local and Regional Plans for Social Inclusion Immigrants’ integration in the Portuguese Labour Market.
© 2007 Thomson South-Western. In this section, look for the answers to these questions: Why does productivity matter for living standards? What determines.
MACRO ECONOMIC GOVERNMENT POLICY. NATIONAL ECONOMIC POLICY GOALS Sustained economic growth as measured by gross domestic product (GDP) GDP is total amount.
The European Union & Business A2 Business Studies Unit 4.
ECONOMICS CE.9A-12E Chapters “Daddy’s Hands” (16)
F U T U R I S M E II New Economy: Adaptability and Employability Final Conference 2 nd and 3 rd October 2003 Brussels.
Novi sad - 20 April 2007 Workers’ Mobility Within EU 27 ECAS - European Citizen Action Service Claire Damilano- Legal officer.
Trade Union Sustainable Strategies -the future of Energy ETUI Conference David Tarren ADAPT International Manchester, 24 th October 2012.
“BLACK OR WHITE?” SEMINAR BUDAPEST, 9-11 FEBRUARY 2009 Michael Fähndrich Y.E.S. Forum / BAG EJSA.
EURES network in Europe and Estonia Jelena Pashkova EURES adviser Employment Board of Tallinn 29 June 2006.
Topic 1.5 – PESTLE ANALYSIS Political & Economic Influences on Business Activity External Environment MR GREENBANK 1.
European Union Test This test consists of 10 questions designed to test your understanding of the EU, the single market and the Euro. The links provide.
EU Labour Mobility – A Gift or a Burden? 27 October 2015 EESC Building, Brussels Presentation by Kinga JOO, EESC member.
Principles of Macroeconomics Lecture 5 UNEMPLOYMENT.
Chapter 26- Comparing Economic Systems. Why Nations Trade Exported goods are sold to other countries; imported goods are purchased from abroad; the US.
INTERNATIONAL FINANCE Lecture 6. Balance of Payment (Accounting of transactions) – Current Account – Capital Account Current Account (Purchase Summary)
Circular Flow of Money. 1. Low and stable inflation in the general level of prices. 2. High and stable employment. 3. Economic growth in the national.
How far do you agree with this view?
International Conference ADDRESSING QUALITY OF WORK IN EUROPE Sofia, Bulgaria October 2012.
Investment Opportunities in Bosnia and Herzegovina Oct 27 th, 2009 Eldin Kajevic Consul General Consulate General of Bosnia and Herzegovina in Chicago.
Florian Moritz - Economic, Finance and Fiscal Policy Department - German Confederation of Trade Unions Economic and wage development in Germany in a European.
EXTERNAL INFLUENCES These are factors that the business can not control (External constraints) PESTEL Analysis is a part of the external analysis that.
Free mobility Germany and Europe.
Will the Nordic Model Survive?
Chapter 8: Economic integration, labour markets and migration As the extent of economic integration approaches that of the United States, labour market.
3.5.1 and unit content Students should be able to:
QUESTION ONE
Directorate-General for Employment, Social Affairs and Inclusion
Regional Characteristics
Presentation transcript:

EURES Mobility Conference, June 2007 Praca Islandia Increased inflow of foreign workers on the Icelandic labour market

Small homogenous society in the outskirts of civilisation

Greatly increased flow of workers to Iceland How come? One of Europe´s most overheated labour markets by the time of EU enlargement. The large projects in East Iceland: construction of Karahnjukar hydroelectric project and Fjardaal Aluminium smelter. New conditions in the credit market, increased credit supply. State Housing Financing Fund raised it´s loan to value ratio, the banks followed in competition with the fund in order to keep their share on the credit market. Mortages issued by banks increased by 340% > increased appartment buildings, increased demand and consumption. The fact that housing construction demands labour with similar skills as does the construction of power-intensive industry projects exaggerated the impact of the latter on the labour market.

Greatly increased flow of workers to Iceland Variations in immigration completely coinside with fluctations in the economy and the demand for labour. The inflow from EU-8 started before the transitional restrictions were repealed > labour demand mainly directs the flow By the end of 2006 foreign citizens constituted 9% of the population and 10% of the labour force.

Economic consequences of the inflow Positive impact on the economy. Without foreign workers contribution the inflation would be higher (up to 1,5%), as would the policy interest rates, economic growth up to 2,5% lower, private consumption up to 6% lower, business investments lower and purchasing power up to 4,5% lower. Because of the foreign worker´s contribution the average family gained € in 2006, also if not for the inflow their debts would have been € higher. But difficult to say what would have happened without the inflow; less economic activity, less tension and negative effects thereof?

Fears have not materialized Unemployment has decreased Labour participation increased No signs of increased demand for benefits Unemployment lower and labour participation rates higher amongst immigrants. Salaries rose by 10,3% in average 2006, for skilled construction workers only by 8,8%. Without the inflow of foreign workers, the wage drift would probably have been greater. On the other hand because of the inflow the immense tension last years has not caused serious imbalances on the labour market.

Race to the bottom? Impregilo: for the first time we witnessed social dumping because of a foreign contractor. Impregilo also paved the way for TWA. The conditions offered by Impregilo seem to have influenced salaries in general in the construction industry. Enlargement increased the supply of low-cost labour force and service import (not least through TWA) enabled strategic circumvention of rules and collective agreements. Indications of a submarket with service import and increase in illegal practises. Social dumping and distortion of competition. Still every reason to be optimistic as the authorities and the social partners have managed to adjust well to new conditions on the labour market. Laws on TWA and other service import has decreased service import.

Race to the bottom? Icelandic labour market is sensitive to social dumping due to the market wage system; market salaries 30 – 40% higher than union rates. Dual labour market - general attitude developed that it is acceptable to pay foreign workers according to union rates, while Icelandic workers get market salaries. According to Icelandic laws 55/1980 it is illegal to discriminate workers on grounds of nationality but not illegal to pay according to union rates. Important to narrow the gap between union rates and market salaries.

Current debate in Europe Demographic change > labour shortages Foreseen competition of labour Immigration from third countries Not an issue yet in Iceland Young population Foreign workers still regarded as a short term solution to temporary labour shortages Stricter rules for granting work permits to 3-rd country nationals Though certain demand for specialists from 3rd countries

EURopean Employment Services Set up in 1993, EURES aims to facilitate and promote the free movement of workers to counter regional imbalances on the EEA. All 30 countries of the European Economic Area + Switzerland take part in EURES. Partners in the network include Public Employment Services, Trade Unions and Employer Organizations. The partnership is coordinated by the European Commission. EURES has a human network of more than 700 EURES advisers across Europe. EURES started it´s operation in Iceland in 1995 under the Directorate of Labour.

Applications received by EURES IS Applications per week

Applications by nationality

Applications in 2007

EURES IS vacancies

Recruitments