Social Europe

Labour Mobility in the EU: facts, figures and way forward

How to Improve Intra-European Mobility and Circular Migration? Fostering Diaspora Engagement. Riga,

11-12 May 2015

Jörg Tagger, Deputy Head of Unit: "Free Movement of Workers and Coordination of Social Security Systems"

2

10.6 million economically active third-country nationals living in the EU (4.3% of total labour force in EU)

8 million economically active EU citizens living in another MS in 2013 (3.3% of total labour force in EU)

20% of EU citizens interested to move to another country – but only1.2% with firm intentions (planning to move in next 12 months)

1.2 million frontier workers

1.3 million certificates for posted workers

Mobility

Key Figures

FREE MOVEMENT OF WORKERS

EU rules on labour mobility

EU/EFTA citizens have the right to:

look for a job in another EU/EFTA country    

work there without the need for a work permit

reside there for that purpose

stay there after employment has finished

enjoy equal treatment with nationals in access to employment, working conditions and all other social and tax advantages

as workers, be joined by family members who have derived rights

What about jobseekers?

Same assistance from national employment office

as nationals of that Member State

Right to reside in Member State for job-seeking

Unconditionally during first 6 months

Beyond 6 months: they must prove that they are continuing to

seek employment and that they have a genuine chance of being

engaged

5

COORDINATION OF SOCIAL SECURITY SYSTEMS

EU rules on labour mobility

6

Legal framework

19591959 19721972 2010201019681968

Regulation 1612/68

Social security coordination

Free movement of workers

20042004

Reg 987/2009Reg 987/2009

Reg 1408/71

Reg 883/2004

Regulations 3 & 4

Directive 2004/38

Reg 859/2003

Reg 1231/2010 Extension to 3rd country nationals

Reg 574/72

Directive 68/360Regulation 1251/70

Reg 492/2011Reg 492/2011

Dir, 2014/54Dir, 2014/54

20142014

Social security coordination rules

They protect citizens' social security rights when moving within Europe

They concern statutory schemes (pensions, sickness benefits, family benefits, unemployment benefits, maternity and paternity benefits…)

They cover EU citizens and their family members

They apply also to citizens from Iceland, Liechtenstein, Norway and Switzerland

They apply also to third country nationals who are legally residents and in a cross-border situation

Social Security Coordination Principles

Only one legislation applicable

Equality of treatment

Export of cash benefits

Aggregation of insurance periods

Assimilation of facts

Social Europe

Labour Mobility in 2015

• Labour Mobility overall positive

• Obstacles remain

• New challenges for Member States of origin and destination

• Intense public and political debate

Social Europe

MOBILE EU CITIZENS & WORKERS

Facts & figures

Social Europe

Social Europe

Main reason to move: WORK

Main reasons to move to another MS (% of Eurobarometer respondents)

Social Europe

EU mobile citizens are more likely to be economically active

Source: Eurostat, LFS

Social Europe

… and because of their young age and employment status they tend to be less likely to claim benefits than

nationals

Social Europe

AN OVERALL POSITIVE IMPACT…

Facts & figures

Social Europe

The positive impact of labour mobility

It helps correct imbalances between high and low unemployment regions

It promotes the dissemination of knowledge and innovation across Europe.

Social Europe

Countries of destination…

positive contribution to the skill mix

fill labour shortages

GDP of EU-15 estimated to have increased by almost 1% in the long-term as a result of post-enlargement mobility (2004-2009)

Migrants tend to be financial NET contributors to the budget of host state (true for all migrants, and even more so for EU migrants; source: OECD)

Social Europe

… countries of origin

It helps mitigating unemployment

Gives the possibility to workers:

• to look for better job opportunities;

• to send remittances home; and

• to come back with additional experience, skills or savings to invest.

Social Europe

… BUT CHALLENGES EXISTFacts & figures

Social Europe

In countries of destination…

Pressure on local services Health services Schools Housing Transport

Socio-economic integration of mobile EU workers and their families

Risk of abuse of mobile workers (and consequent risk of social dumping)

Social Europe

… and in countries of origin Can be negative on GDP owing to large population outflows But impact on GDP per capita is smaller

Many young people have left their country of origin But they send remittances to country of origin

And mobility is not necessarily a one-way street: many mobile workers return with additional experience

While there is no overall brain-drain effect Percentage of tertiary educated has increased in the last decade

But impact on certain sectors may be significant (e.g. health sector)

Social Europe

A BALANCED APPROACH TO LABOUR MOBILITY

Recent and upcoming activities by the Commission

Social Europe

Communication on free movement of EU citizens and their families: 5 actions to make a difference (1)

Clarification of EU citizens' rights to free movement and access to social benefits, acknowledging concerns raised by some Member States in relation to the challenges that migration flows can represent for local authorities.

Five concrete actions to support Member States' efforts to uphold EU citizens' rights to live and work in another EU country, strengthening the right to free movement, while helping Member States to reap the positive benefits it brings

Social Europe

Communication on free movement of EU citizens and their families: 5 actions to make a difference (2)

1.Help Member States fight against marriages of convenience (handbook).

2. Practical guide to clarify the application of "habitual residence" test.

3.As from 01/01/2014 : 20% of European Social Fund assigned to promoting social inclusion, combating poverty and discrimination.

4.Address local authorities' needs by promoting exchanges of good

practices (conference with mayors).

5.Help local authorities apply free movement rules on the ground: development of an online training tool on free movement rights; proposal to facilitate exercise of rights of mobile EU workers; proposal to modernise EURES.

Social Europe

Jean-Claude Juncker

Political Guidelines for the new Commission (15 July 2014)

• Free Movement of Workers: one of the key pillars of the internal market

• Right of national authorities to fight abuse of fraudulent claims

• Targeted review of Posting Directive to ensure "that social dumping has no place in the European Union

• Free movement is an economic opportunity and not a threat (vacancies and skill matching)

Social Europe

Commission Work Programme 2015

• "It will be important to support labour mobility, especially in cases of persistent vacancies and skill mismatches, including across borders, while supporting the role of national authorities in fighting abuse or fraudulent claims"

• The action aims• (priority 4 "A Deeper and Fairer Internal Market with a Strengthened Industrial Base",

point 8).

Social Europe

Labour Mobility Package 2015 (1)

A Balanced Approach

Lifting remaining obstacles to free movement of workers and promoting labour mobility, especially in fields with large skill mismatches or unfilled vacancies

Improving Member States' capacity to prevent and fight social dumping, frauds and abuse, as regards the posting of workers and the access to welfare benefits.

Social Europe

Labour Mobility Package 2015 (2) Revision of Social Security Coordination Rules

Targeted Review of the Posting of Workers Directive

Other possible components still to be decided

Subject to a thorough Impact Assessment (collection of data and figures)

Consultation with stakeholders (Member States, social partners, public consultation…)

Planned adoption date: December 2015