Migration and the Labour Market in Ireland Philip J. O’Connell Economic & Social Research Institute, Dublin

Overview ► Introduction – Economy and migration ► Recent inflows ► Current Population ► Who is coming? – Immigrant characteristics ► How are they faring? - labour market outcomes ► What we don’t know

Total Employment (1,000s) and Unemployment Rate (%)

Emigration, Immigration and Net Migration (1,000s)

Work Permits Issued and Renewed,

Estimated Immigration by Nationality

Total Population by Nationality, 2002 & 2006

Immigrant Characteristics ► Immigrants are relatively young  Almost 60% of adults are aged 20-35, compared with 30% for the native population ► Immigrants have higher participation rates  63% versus 58% for native population ► Immigrants have higher unemployment rates  6.8% versus 4.2% (not unusual for immigrant populations) ► Immigrants are over-represented in the hotels and restaurants sector  14% versus 5% of the native workforce

National Ethnic Group by Principal Economic Status (age 20-64) ► Controlling for sex, age and education, all groups from non-english-speaking countries are more likely to be unemployed – blacks much more than others

Education and Occupation ► Immigrants are very well educated  50% of immigrant employees have third-level qualifications compared with 32% for natives ► However, immigrants suffer an “occupational gap”  10% less likely to be in high-level occupations, taking account of education and age

The Occupational Gap O’Connell et al ► Controling for age, sex and education, those from non-english- speaking countries are less likely to be managers or professionals Barrett et al ► The occupational gap differs by region of origin  Zero for EU-13  23% for EU-NMS ► And by education level  33% to 53% for third-level qualification holders from the EU-NMS ► No evidence of the gap declining over time for immigrants from the EU-NMS, so no evidence of “labour market integration”

The Wage Gap Barrett et al., controlling for sex, education and experience: ► Immigrants earn 15% less on average relative to comparable natives ► Wage disadvantage across immigrants from non-English speaking countries is 20% ► For immigrants from EU-NMS, the disadvantage is 29% ► Immigrants with third-level degrees experience the biggest wage disadvantage, relative to comparable natives  (25% for immigrants from non-English speaking countries) ► Immigrant women suffer a double disadvantage  14% less than native women  12% less than men

Immigrant Experiences of Racism 2006 Survey of Immigrants (McGinnity, O’Connell and Quinn) ► 35% of migrants report harassment on the street, in public transport ► 53% of Black Africans report such harassment ► 32% report insults or other harassment at work ► Non-EU East Europeans generally report less discrimination ► Asians report the lowest incidence of discrimination ► Asylum seekers much more likely to report discrimination than work permit holders. ► Immigrants most likely to socialise with people from their own country, and socialise least with other ethnic/national groups ► Racism lower in Ireland than in other countries

The Experience of Discrimination in Ireland: Analysis of 2004 QNHS Module (Russell, Quinn, King O’Riain & McGinnity) ► Nationality and ethnicity are associated with high rates of reported discrimination in work and in receipt of services ► Subjective experience of work related discrimination:  19% of respondents from new EU Member States  23% of Black respondents  21% of Asian respondents  6% of Irish respondents ► Subjective experience of discrimination in accessing services:  40% f Black respondents  18% of Asian respondents  23% other ethnic groups  8% of Irish respondents

Macro-economic Impact Based on the labour-market characteristics of immigrants, using the ESRI macro model (Barrett et al )  GNP + 3%  GNP per head + 0.5% Little evidence of displacement of domestic labour (Begg)

What We Don’t Know ► Duration of stay ► Intentions – circular migration? ► Demographics  Family formation  Where & with who  Children?