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Rotterdam Business-City Partnership

Final Research Report

2015

0

Copyright 2015 The Hague Process on Refugees and Migration

ALL RIGHTS RESERVED

This report or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of The Hague Process on Refugees and Migration except in the case of brief quotations embodied in critical reviews and certain other non-commercial uses permitted by copyright law.

1

The Hague Process on Refugees and Migration (THP)

E-mail: [email protected] | website: www.thehagueprocess.org

Laan van Meerdervoort 70, 3rd floor, 2517AN, The Hague, The Netherlands

Tel: (31) (0)70 711 8989, Fax: (31) (0)70 711 8990

2

This report was developed and lead by THP in consultation with a multidisciplinary expert steering group consisting of:

• Göran Hultin, Chairman and CEO, Caden Corporation S.A. since 2004. Mr. Hultin has extensive international experience in labour markets and employment, and specialises in labour issues, industrial relations and human resources.

• Prof. Dr. Han Entzinger, Migration and Integration Studies, Erasmus University. Previously, Professor at Utrecht University and affiliated to the Scientific Counsel of Government Policy and the United Nations in Geneva.

• City of Rotterdam

• Port of Rotterdam Authority

• Strategy&

THP Research Coordinator: Teressa Juzwiak

Acknowledgements

THP would like to thank all the stakeholders that shared their expertise throughout the research process.

3

Contributors

4

THP launched a Migrant Training and Placement Programme via a Business-City Partnership in Rotterdam

5

Approach

• Research methods used:

– Migrant survey (1000 respondents)

– Migrant community interviews (23 interviews)

– Company survey (80+ respondents)

– Company interviews (35 interviews with large

companies and SME’s)

– Training institutes interviews (20 interviews)

• In the research process THP received support from:

– Motivaction

– Strategy& (formerly Booz & Company)

– The scientific community, e.g. Prof. Han Entzinger

(Erasmus University)

Examples of interviewed parties

Migrants

Companies

Educational

& training

institutes

We conducted extensive quantitative and qualitative research by gathering data on migrants and the labour market

1. Unemployment is significantly higher among migrants, across all education levels and generations. Migrants are disproportionately hired under temporary contracts or via agencies, underscoring the barriers to their development in the labour market

2. Shifts in the labour market pose additional challenges: employers are increasing job requirements based on technological changes and a greater need for soft skills

3. Unemployed migrants are primarily unemployed due to lack of (hard & soft) skills rather than due to labour market barriers – upskilling is required

4. There is a lack of soft skills among unemployed migrants, particularly ‘flexibility’, ‘cooperation’ and ‘creativity’. For example, analysis by education level shows that all levels lack ‘flexibility’, but lack of other soft skills is concentrated in MBO educated migrants

5. Migrants often work for parochial (local) businesses, which makes them an attractive target group for municipal employment projects

6. Unemployed migrants are more ‘ambitious’ than unemployed non-migrants

7. Migrants are entrepreneurial, but need help to become more successful. Migrant entrepreneurs are an attractive target group because they support local economy and create more jobs than non-migrants

8. Migrants face a number of structural issues in accessing the labour market: lack of networks, resistance from mid-level management to diversity, and stereotypes/discrimination

6

The main research findings include:

7

CONTENTS 1. The Case for Change (pg. 8)

2. Methodology (pg. 21)

3. Interview and Survey Results (pg. 27)

4. Research on other trainings and initiatives (pg. 56)

5. Our opportunity (pg. 61)

Our research showed that greater economic independence of migrants is fundamental for improving the social fabric of cities

8

Problem statement

1. The case for change

• With urban populations becoming increasingly diverse, cities need a strong social fabric that is inclusive for all citizens, keeps welfare costs low, and creates an attractive business environment

• A healthy social fabric acts as a backbone of a strong, vibrant and prosperous local society

• Increasing economic independence of migrants is fundamental for this, as it has strong spin-off effects on other societal stakeholders (businesses, local government)

Summary

Migrants: economic

independence and self-

worth are critical

factors to integration

and participation

Local government:

lower welfare, political

and humanitarian costs

(e.g. crime, integration,

intergenerational

effects)

Businesses: supply of

sufficient qualified

talent and benefits of a

healthy, diverse socio-

economic urban

environment

Social fabric

as backbone

of strong

local society

Self-reliant position

reduces integration

tensions and welfare

Self-reliant position

increases healthy socio-

economic environment

By improving the self-reliant position of migrants, welfare costs can be reduced and integration and cohesion can be increased

9

Impact of improving the self-reliance of migrants

3 - 5

10% 11%

>52

17% 16%

6 - 11

19%

27 - 51 12 - 26

13%

<2

% of unemployed treated for depression Number of weeks after job loss

149177

t = year 0

100

t = year 20

100

Cohe-

sive

Inco-

hesive

Indexed GDP growth ‘Incohesive’ vs. ‘cohesive’ economy

6%9%

Western Non-migrant Non-W.

17% 13.2m

2.2m

12.8m

1.6m

2045

3.0m

2015

2.0m

% unemployment NL, 2015

Population growth NL

Direct

costs

Indirect

costs

2

1 Welfare costs

of migrants1)

Lack of

integration

3 Lack of

cohesion in the

economy

Example of cost drivers

• Avoidance of welfare costs and higher tax income

• Increased labor productivity and participation

• Increased individual well-being

• Societal benefits resulting from healthier social-economic urban environment

• Diverse corporate environment; better matching of supply and demand

1) Migrant defined as ‘allochtoon’ (1st and 2nd generation migrants; 2nd if at least one parent born abroad)

Source: CBS, Society for the psychological study of social issues, OECD/Harvard

Migrants +48%

+33%

-3%

See next

pages for

more detail

Potential benefits


The rising number and high unemployment rates of migrants will increase welfare costs over time if nothing is done

10

12%

Non-

Western

migrants1)

17%

2045

Non-Migrants

18.0

Western

migrants1)

71%

15%

2035 2025

76% 78%

11%

17.9

17.5

16.9

10%

73%

11%

14%

2015

12%

Population growth forecast Netherlands, in millions, 2015 - 2045

Unemployment Netherlands, %, 2014

1) Migrant defined as ‘allochtoon’ (1st and 2nd generation migrants; 2nd if at least one parent born abroad)

Source: CBS

6% Non-migrants

Western

migrants 9%

Antillian 19%

21% Moroccan

17% Surinamese

16%

Other Non-W.

Turkish

14%

• Relative to the total population, the percentage of non-Western migrants 1) will rise from 12% in 2015 to 17% in 2050 (abs. from 2m to 3.1 people)

• Current unemployment rates among non-Western migrants are above average (17% vs. non-migrants 6%)

• Assuming differences in unemployment are structural, these trends will likely result in increasing welfare costs

Summary

Drivers of welfare cost increase

1 The case for change

Scientific research indicates that lack of integration has

strong negative effects on well-being of the unemployed:

– Mental health: Poorer mental health reflected in lower

self-esteem, increased alcohol use, higher rates of

depression, and lower life satisfaction

– Life expectancy: Mortality rates in year after job

displacement are 50 to 100 percent higher than the

employed population, lasting up to 20 years after job loss

– Intergenerational: Mental stress lowering well-being of

children, affecting their mental stability, reflected in

moodiness, hypersensitivity, and feelings of inadequacy

A lack of integration negatively impacts individuals’ mental and physical health

11

Lack of integration – indirect effects1)

https://www.spssi.org/index.cfm?fuseaction=page.viewpage&pageid=1457

1) Source: Society for the psychological study of social issues; 2) Among US citizens (source: Gallup); 3) Based on stress impact on health for 300 men, comparing men becoming

unemployed after study with equal number of men, matched for age and race, continuing to work (source: US National library of medicine)

19%17%16%13%10%11%

<2 wks 3 - 5 12 - 26 27 - 51

Number of weeks after job loss

6 - 11 >52

% of unemployed

treated for depression After number of weeks2)

http://www.theatlantic.com/business/archive/2014/06/the-mental-health-consequences-of-unemployment/372449/ http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1646287/

1,90,91,21,83,6

5,05,91,9

Physician

visits

# of

diagnoses

Days

in bed

Number of

medications

Employed Unemployed

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1646287/pdf/amjph00281-0056.pdf Page 504

Occurrence of physical health issues Employed vs. unemployed, over six months3)

2

Effects on individuals

also impact wider

communities, affecting

safety and community

well-being

1

2

3

Examples


http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1646287/pdf/amjph00281-0056.pdf




A working and healthy social fabric has substantial value to the overall economy

12

Macro-benefits of social cohesion

http://www.oecd.org/development/pgd/46908575.pdf

149

100

177

100

+28% ppt

t = year 20 t = year 0

Economy A (’Incohesive’) Economy B (’Cohesive’)

1) Cohesion measures based on level of intergroup discrimination and intergroup violence per country

Source: OECD, Harvard University

GDP growth over 20-year period Cohesive vs. incohesive economy (index = 100)

• Research from OECD and Harvard, based on a cross-country index of social cohesion measures1), estimates that a two-point increase on this index, produces a 28% ppt difference in cumulative economic growth over a 20-year period

• A two-point increase is equivalent to the social cohesion gaps between e.g. Botswana and Angola, Sweden and Italy, or the United Arab Emirates and Yemen

• This highlights the value of having a strong, cohesive civil society with sufficient representation of marginal groups and a collective identity into which these groups can identify

Summary

3 1. The case for change

At the same time, recent technological shifts and globalization are causing shifts in the hard and soft skills demanded in Rotterdam

13

Impact of technological shifts & globalization on job market

Source: THP interviews, O&BI/SEOR Arbeidsmarktanalyse Rijnmond 2015 (p. 67-69)

• Technology causes a major shift in

the labor market from ‘industrial’ to

‘post-industrial’, which increases the

focus on:

– ICT (to control the new technology)

– soft skills (to perform activities that

cannot be taken over by

technology)

• Globalization increases the demand

for intercultural soft-skills and

enhances the competition in the labor

market

• Combined these two trends will lead

to a rise in the number of jobs on both

the highest and lowest/elementary

skill levels; redundant middle-

educated employees will as a result

‘crowd’ the low/elementary-skill jobs

• In Rotterdam, this leads to an

increasing share of ‘semi-

professional’ workers (e.g. teachers,

nurses, and technical designer)

Summary

Below MBO-4 there is

increasing competition from

eastern Europe

Financial services provider

Technical jobs will require

higher education level as

shift occurs from manual work

to ‘process oversight’”

O&BI/SEOR

Focus in the coming years will

be on greater hospitality –

need for more soft skills

(interpersonal contact)

Large business

More flexibility will be required

as we have more and more

project-based work

Large business owner

Digitization and technology

will have a great role in

replacement. Out of 5 MBO

jobs, 3 will remain on HBO level

Large business

Most important skills in the

near future: providing service,

cross-selling, personality

and language

Small business owner

Hard skills Soft skills


…and an increased demand for employees that are social, flexible, and well-rounded

14

Growing importance of soft skills

Source: THP interviews

Most important skills:

providing service, hard

working, cross-selling,

personality and language Small business owner

All employees must have

all skills; not have them

divided over individuals Small business owner

Flexibility is very important,

as is being culturally open Small business owner

More flexibility will be

required for

project-based work Large business owner

Flexibility, team work skills

and motivation are our

prime focus Large business

Focus in the coming years

will be on greater hospitality

– need for more soft skills

(interpersonal contact) Large business

Companies want the T-

profile: specific hard skills

and a range of soft skills Trade organization

Fit with our culture is very

important, we have drinks

outside the office and

weekend outings – requires

soft skills and “personality” Small business owner

Soft skills are the most

important, as well as

personality and finding a

good fit with the team Intermediary

Social Flexible Well-rounded


This is reflected in skills demanded in Rotterdam: typically higher educated labor with an emphasis on soft skills and ICT

15

Source: O&BI/SEOR Arbeidsmarktanalyse Rijnmond (p. 131-132, 187-189), Strategy& analysis

Rotterdam labor market: split by

sector and education level Number of jobs, December 2012, 000s

17

23

28

19

16

8

28

51

37

31

27

24

20

20

8

17

51

33

32

12

8

16

10

29

5

27

10

6

Health and

social 101

91

Other

38

106

2

Low High Intermediate

30

Education

Construction

Wholesale 39

Government 42

Industry and

utilities 58

Retail and

repair 62

48 Transport

4

Business

services

Exp. job

growth Expected shifts in skill mix

↑

→

↑

↓

↓

→

→

→

• At least MBO 3 needed for jobs with shortages, but typically also MBO4, HBO+

• New competencies: programming for e-health, skills to cultivate self-reliance

• Demand shift from MBO to HBO

• Competency shift: MBO1/2 jobs more ICT; overall more service-oriented

• Education mix to become hourglass-shaped, lower demand for Intermediate

• Competencies: soft skills / hospitality more important, technological knowledge

• Increase in education level to at least MBO3

• Next to technical skills, more knowledge-based: teamwork, problem-solving

• Growing demand for employees with MBO3 or higher

• Competencies: customer-oriented, results-oriented, teamwork

• Higher demand for HBO level, especially in technical roles

• Competencies: more customer-oriented due to increased citizen expectations

• Growing importance of ICT, higher demand for employees with HBO or higher

• Broader competencies needed, incl. foreign languages and advisory tasks

• Demand to remain in HBO and higher, shortages for beta / language teachers

• Competencies: interaction with parents, dealing with specific context of MBO

• Demand for Low/Intermediate to remain stable, increased demand for HBO

• Competencies: teamwork and ICT due to more complex construction process

→


This technological shift, combined with slow population growth, is slowing down job growth in Rotterdam

16

1) Data covers cities including their metropolitan areas

Source: O&BI/SEOR Arbeidsmarkt prognose 2015-2016; Strategy& analysis

0.8%

The Hague

0.8%

Amsterdam Rotterdam

1.6%

0.5%

Utrecht

Summary

• Growth of Rotterdam labor market forecasted to

be smaller versus other NL metropolitan areas

• This difference is driven by sector mix and

demographics:

– Sector mix: larger impact of automation trends

due to Rotterdam’s focus on industry and

transportation (other metropolitan areas more

oriented on services)

– Demographics: lagging population growth in

Rotterdam vs. other cities, resulting in lower

demand for services and hence lower growth

• However, differences exist across main

Rotterdam employment sectors:

– Job shrinkage in industrial and financial jobs

– Job increase in construction and business

services (mainly driven by ageing workforce

replacement)

Growth in demand for labor: Rotterdam vs. other NL cities1) % job increase, 2017 vs. 2015 (CAGR)


The number of migrants, especially non-Western, is growing while the non-migrant population is in decline

17

1) Persons of which at least one parent is born outside NL

Source: CBS, COS bevolkingsprognose Rotterdam 2013-2030, Strategy& analysis

1.2

(32%)

0.5

(15%)

2020 2025

20-40

4.0 3.6

0-20 0.9

(26%)

2014

4.3

40-60 1.0

(27%)

60+

Age

group

80

(27%)

2030

343

302

2014

32

(11%)

393

2020

78

(26%)

112

(37%) Youngsters (0-40)

overrepresented in

Rotterdam vs. NL

The Netherlands in millions

Rotterdam in thousands

16.9m

Western

migrants 1.6m

2045

3.0m

13.2m

2.0m

Non-

migrants

18.0m

Non-

Western

migrants

12.8m

2.2m

2015

+48%

+33%

-3%

Demo-

graphic

group

Number of Western/non-Western migrants The Netherlands and Rotterdam, by age class1)

Population growth NL, 2015 vs. 2045


Within this group, education is low, sector employment differs substantially from non-migrants, and labor participation is low

18

Education mix per ethnic group Rotterdam, 2008, percentages of total population

29

44

51

63

66

38

41

38

30

26

31

30

13

11

7

8

31

43Surinamese

Non-

migrants

Western

migrants

Middle Low

Turks

100%

Moroccans

High

Antillians

Source: CBS/Staat van integratie (p. 79, 94)

14

10

12

11

17

3

3

3

8

2

2

4

5

2

3

3

2

5

10

11

10

4

20

19

9

9

13

16

6

5

7

6

7

5

4

3

4

7

5

18

25

22

9

14

9

7

8

7

7

7

8

10

10

5

2

13

14

7

9

14

13

4

7

20

8 14 9

4

100%

2

2

2

Logistics

Trade

Financial services

Horeca

Government

Business services

Other

Education

Healthcare

Construction

Industrial

ICT

Service jobs Industry jobs Public/other jobs

Sector employment per ethnic group Rotterdam, Ø 2008-2010, percentages of labor force

69%

65%

60%

48%

47%

44%

Labor

participation


Unemployment rates among non-Western migrants are above the average, especially in the 1st generation

19

17%

Non-

migrants

7.10m

16% Turks 0.19m 19%

Other

non-Western

0.34m 14%

Moroccans 0.15m 21%

Ø non-Western 17%

Surinamese

0.19m

Size of area represents

absolute group size

Western

migrants

0.87m

Antillians 0.08m

9%

6%

% unemployment

Share of

total labor

population

Source: CBS, O&BI/SEOR Arbeidsmarktanalyse Rijnmond 2015 (p. 92)

Unemployment by ethnic group NL, Q1 2015, excluding passive unemployment

12% 15%

17%

44%

71%

41%

2nd gen

migrants

Non-migrants

Unemployed

(part of labor force)

100%

1st gen

migrants

100%

Full-time employed

1st gen migrants

overrepresented

among jobless

Employed/unemployed pools: non-migrant vs. migrant split Rotterdam, 2015


20






21

Rotterdam Business-City Partnership STEP 1

Mapping the labour market

Focus: SUPPLY

Incorporating the migrant

dimension

Understanding businesses

Focus: DEMAND

STEP 1

STEP 2

Step 1 in the Rotterdam Business-City Partnership Project aims to understand the future labour shortages and skills gaps in the Rotterdam region. This step has two goals: •Explore the business [demand] dimension •Incorporate the migrant [supply] dimension

This phase allows us to build bridges between the businesses’ needs and the migrant community in the Rotterdam region. While the two research strands may be initially addressed as two parallel processes, they will eventually come together and lead the path into step 2 of the project.

Summary

2. Methodology

22

A large migrant survey was conducted to detect root causes of unemployment for migrants

= sub-group of respondents

with comparable skill level

• Goal of survey: highlight skill differences

between migrants vs. non-migrants and

employed vs. unemployed migrants

• Respondents: 1000

• Focus on differences for these two

subgroups on eight clustered skill

clusters1):

– Problem solving

– Cooperation

– Autonomy

– Elementary skills

– Communication

– Flexibility

– Integrity

– Creativity

Approach

= sub-group with significant

skill differences in scope for

further deep-dive

Dimension 2

Dimension 3

Emp. Unemp.

MBO-

MBO

HBO+

non-migrants

Focus on largest skill

gap between migrants

and non-migrants…

Dimension 1

Migrants

… and between

employed and

unemployed migrants

Approach migrant survey

1) Skill clusters based on desk research and expertise of Motivaction, Strategy&, and THP

2. Methodology

23

A business survey was conducted to identify the main skills gaps in the labour market

•Goal of survey: identify skills gaps (hard and soft skills) for businesses; identify labor market trends;

identify business approach to migrants.

•Respondents: 80+

•Focus on eight skill clusters:

– Problem solving

– Cooperation

– Autonomy

– Elementary skills

– Communication

– Flexibility

– Integrity

– Creativity

Approach

1) Skill clusters based on desk research and expertise of Motivaction,Strategy&, and THP

2. Methodology

# Cluster Sub-Cluster Skill

1 Problem solving Problem analysis

Problem solving

2 ‘cooperation’

Leadership Coaching

Group-oriented leadership

Individual oriented leadership

Teamwork Conflict management

Confronting others

Working together

3 Autonomy

Judgement Decisiveness

Judgement

Vision

Planning Discipline

Planning and organizing

Self starter Initiative

Independence

Entrepreneurship

Drive

Perseverance (1/2)

Dedication

Result oriented

Perseverance (2/2)

4 Ambition Ambition

Development of oneself

24

Classification of soft skills – Migrant and company surveys Approach migrant survey

2. Methodology

25

Classification of soft skills – Migrant and company surveys

# Cluster Sub-Cluster Skill

5 Elementary skills

Reading proficiency

Writing proficiency

Speaking proficiency

Computer proficiency

Proficiency in the Dutch language

6 Communication

Listening Listening skills

Sociability Sociability

Sensitivity to others

Conversation skills

Persuasiveness

Persuasiveness

Oral expression

Dare

Assertiveness

7 Flexibility Flexibility

Adaptability

8 Integrity Integrity

9 Creativity Creativity

Innovation

2. Methodology

26






27

3. Interview and Survey Results

Key Findings

Employment findings

Company survey findings

28

We evaluated five hypotheses for unemployment among migrants and found that “upskilling” offers potential to improve employment

Practical

barriers 2 Choose for

unemployment 3 Lack of

motivation 4 Lack of

required skills 5 1) Relative importance of driver in explaining higher unemployment among migrants, based on evaluation of survey results

Source: Motivaction & THP migrant survey, Strategy& analysis

Labour market

barriers 1 • Migrants are often employed through temp. contracts or via agencies

• 1st Gen (< 5 yrs) probably miss network or ability to navigate market

• Lack of skills appears more important than labour market barriers

• A substantial share of women indicate that unavailability of day-care is a key reason for unemployment, especially among MBO-2 or lower educated

• However, this issue does not appear to be migrant specific

• Inactive unemployment is higher among migrants, esp. 1st Gen (> 5 years)

• Migrants don’t have a lower perception of job chances than non-migrants

• A significant share of migrant females wants to stay at home, esp. 1st Gen

• Unemployed migrants are more ambitious than unemployed non-migrants

• Unemployed migrants are inflexible and will need to adjust to find a job

• Migrants cite “lack of skills or diplomas” as a key reason for unemployment

• 1st Gen lack elementary skills; 2nd Gen lacks ‘flexibility’ and soft skills

• All education levels lack ‘flexibility’ and MBO-ers primarily lack soft skills

Relative importance1) Migrant survey findings Hypotheses / Drivers

Low High


29

Unemployment (% of respondents, 2015)

Unemployment is significantly higher among migrants than among non-migrants, across all education levels and migrant generations

• Survey results confirm official CBS & UWV statistics of higher unemployment among migrants vs. non-migrants

• Both 1st and 2nd generation migrants have higher unemployment vs. non-migrants (at equal education levels)

• This indicates labour market participation problems specific to migrants

• Problems can be due to quality of migrant labour supply (e.g. ‘ambition’, skills) or due to demand side problems (e.g. discrimination)

Summary

Note: Unemployed is defined as actively looking for work; survey methodology precludes definitive conclusions on unemployment for total population


37%

52%

37%

11%

18%21%

8%

1%

MBO-2 MBO-3/4 High School HBO+

Migrants

Non-migrants

INDICATIVE

3. Interview and Survey Results 1 Labour market barriers

30

Employment contract (% of respondents, 2015)

Migrants are more often employed through temporary contracts or via agencies – This might be indicative of labour market barriers

• Migrants have lower share of fixed contracts at equal education levels and age-group

• This can be caused by multiple reasons:

– Employer preference for non-migrants

– Inefficiencies between supply and demand (e.g. migrants lack an informal network)

– Migrant preference or better fit with temporary jobs

– Age structure of the migrant vs. non-migrant population

– Migrants lack the necessary skills

• It is likely that 1st Gen <5 yrs have difficulty navigating the Dutch labour market due to unfamiliarity and lack of network

Summary

72%67%

79%

11%

21%27%

17%

7%

11%

78%

6% Agency work

Non-

migrants

2nd Gen.

Migrant

1st Gen.

Migrant

(>5 years)

1st Gen.

Migrant

(<5 years)

Fixed

contract

3%

Temporary

contract


1 Labour market barriers 3. Interview and Survey Results

31

Fixed contracts (% of employed respondents, 2015)

Highly educated migrants work more in temporary jobs than non-migrants

• Higher educated migrants more often have more temporary contracts than non-migrants

• For MBO-2 and lower, prevalence of fixed contracts is at a similar for migrants and non-migrants

• The lack of fixed contracts among migrants may be hindering their development in the labour market, as well as their acquisition of relevant skills

• Learning how to effectively navigate the Dutch labour market and training could improve migrant labour market development

Summary


76%75%

64%

58%

78%80%

83%

78%

High School MBO-2 MBO-3/4 HBO+

Migrants Non-migrants


32

Employment contract (% of respondents, 2015)

Unemployed migrants are primarily unemployed due to lack of skill rather than due to labour market barriers – upskilling is required

• Working migrants are more skilled than working non-migrants, which could be indicative of market barriers for migrants

• However, unemployed migrants are lower skilled than employed non-migrants

• Lack of skills probably prevents migrants from finding a job, rather than labour market barriers

• Companies indicate that they are looking for, but struggling to find cooperative, creative, and flexible employees

• Migrants lack in exactly these dimensions, so targeted upskilling could improve migrant employment

Summary


+0.2

Cooperation

0.0 Integrity

Creativity

+0.2

Autonomy

+0.3

+0.1

Problem solving +0.2

Communication

Elementary skills +0.5

Flexibility +0.1

Working migrants

vs. working non-migrants

Unemployed migrants

vs. working non-migrants

+0.1

-0.1

-0.1

-0.1

+0.4

0.0

0.0

-0.2

Migrants score lower Migrants score higher


33

Unemployed due to unavailability of day-care (% of respondents, 2015)

Practical issues like day-care prevent some women from working, but migrants are no more or less affected than non-migrants

2 Practical barriers

12%

3%

10%

Female Male

• Some migrant and non-migrant women indicate that unavailability of day-care is a reason for unemployment

• However, migrants seem equally affected as non-migrants, which suggest that this issue is not migrant specific

• Especially lower educated women (MBO-2 & lower) often cite this as a problem

• This could be due to insufficient economic incentive to work, as income increase doesn’t compensate additional costs of day-care

Summary

Note: Sample size at this detail level is sufficient for indicative but not for definitive conclusions


Non-migrants

Migrants

INDICATIVE


34

Employment situation (% of respondents, 2015)

Inactive unemployment is higher among migrants than non-migrants, especially for 1st generation migrants (> 5 years)

3 Choose for unemployment

35%

13% 8%

5%

39%

39%

8%

36%

57%

48%

80%

7%8%13%

4%

1st Gen.

Migrant

(<5 years)

2nd Gen.

Migrant

1st Gen.

Migrant

(>5 years)

Non-migrant

• Inactive unemployment is concentrated among MBO-2 and lower educated migrants

• Inactive unemployment is balanced across sex and age

• Only older (30-45) 1st Gen males and 2nd Gen females are more inactive, probably due to lower education levels

• Almost all inactive unemployed are Turkish, Moroccan, or Antillean

• Possible reasons for higher inactive unemployment are:

– Lower perception of job chances vs. non-migrants

– Relatively more deliberately choose to stay at home (e.g. to take care of children)

Summary

Unemployed Not Active Employed Entrepreneur Unemployed Active



35

Reasons for unemployment1) – Inactive unemployed (% of respondents, 2015)

Reasons for unemployment are similar for migrants and non-migrants, where many choose to stay home to take care of family

• Inactive unemployed migrants are inactive due to similar reasons as non-migrants

• Many choose to stay home to take care of children or other family members

• Other important reasons are health problems and lack of (language) skills

Summary

I need to care for my family

Other

Partner wants me to stay home

I want to stay home for children

I have health problems

I lack language skills

I lack required skills / diplomas

Work I did doesn’t exist anymore

Discrimination

I can’t find suitable work

I don’t have transport

Available jobs don’t pay enough

My work has been automated

I can’t stick to a working rhythm

I don’t have children daycare

11%

11%

16%

11%

16%

5%

5%

5%

16%

5%

11%

16%

38%

21%

8%

33%

13%

8%

33%

4%

1) Multiple answers possible, excluding students


17%

22%

11%

28%

6%

11%

11%

11%

6%

6%

6%

6%

HBO+ 1st Generation

(> 5 years) 2nd Generation non-migrants

3 Choose for unemployment 3. Interview and Survey Results

36

Active unemployed migrants don’t perceive lower job chances than non-migrant unemployed, except for 1st generation MBO 3/4

Employment expectation difference between unemployed migrants vs. non-migrants (self-reported score on 1-7 scale, 2015)

High School MBO-2 HBO+ MBO-3/4

+1.0

-0.5

+0.9

0.0

+1.0

+0.4

+3.3

+1.0

-0.1

+0.8

1st Generation (<5 yrs) 1st Generation (>5 yrs) 2nd Generation

• Unemployed migrants don’t have a lower perception of job chances than non-migrants

• Therefore, perception of job chances cannot explain migrant unemployment

• Only 1st Gen MBO migrants and migrants without accredited diploma have low job chance perception

• Both groups likely have lower actual job chances due to other reasons (e.g. skill-gap, no diplomas)

• This means that MBO migrants need a combination of upskilling and motivation training

Summary

Note: Unemployed is defined as actively looking for work



37

Reasons for unemployment (% of respondents, 2015)

Some active unemployed migrants prefer to stay home – they might seek jobs due to external reasons such as “sollicitatieplicht”

• A significant share 1st Gen female migrants prefer to stay at home, even though they actively look for work

• They might be active due to external reasons that don’t provide the right motivation (e.g. “sollicitatieplicht”)

• Stronger economic incentives or awareness of working benefits may have better stimulating effects

I want to stay at home for my children

Note: Sample size at this detail level is sufficient for indicative but not for definitive conclusions


50%

28%

6%4%

13%14%10%

20%

4%

13%

5%

13%

Female

20-29

Male

30-45

Female

30-45

Male

20-29

Summary

My partner prefers that I stay home

1st Gen. migrants (>5 yrs)

Native

1st Gen. migrants (<5 yrs)

2nd Gen. migrants

2nd Gen. migrants

1st Gen. migrants (>5 yrs)

Native

1st Gen. migrants (<5 yrs)

INDICATIVE

INDICATIVE


38

‘Ambition’ level difference between unemployed migrants vs. non-migrants (self-reported score on 1-7 scale, 2015)

Unemployed migrants are more ambitious than unemployed non-migrants

4 Lack of motivation

+0.5

+0.4

High School

+0.5

+0.7 +0.7

+0.3

+0.4

MBO-2

+0.2

HBO+

0.0

-0.1

MBO-3/4

+0.6

1st Generation (>5 yrs) 1st Generation (<5 yrs) 2nd Generation Summary



• Unemployed migrants are generally more ambitious than unemployed non-migrants

• This makes them an attractive target group for improving employment

• Young female migrants (20-29) are more ambitious than older females and men

• All ethnicities have higher ‘ambition’ levels than non-migrants, except for Antilleans

• Too high ‘ambitions’ could indicate unrealistic expectations, which might be an obstacle to finding a job

• Managing ‘ambition’ and expectations with a realistic career planning will be key


39

‘Flexibility’ level difference of migrants vs. non-migrants (self-reported score on 1-4 scale, 2015)

Unemployed migrants score low on ‘flexibility’ and may need to adjust significantly in order to find a job

• Unemployed migrants lack ‘flexibility’ vs. working migrants and vs. non-migrants

• Antilleans and men (20-29) are the least flexible of all

• Only 1st Gen (<5 years) show equal ‘flexibility’ to non-migrants

• Companies are searching for flexible employees, but actually struggle to find them

• Companies see a growing importance for a flexible and multi-skilled workforce

• Raising awareness with migrants that lack of ‘flexibility’ is a key obstacle to finding a job is important, as well as training to improve ‘flexibility’

Summary

Source: Motivaction & THP migrant survey, THP company survey, Strategy& analysis

Unemployed migrants vs. working migrants

-0.1

-0.4

-0.1 -0.1

-0.6

-0.3

-0.8

-0.4

-0.1

MBO 2 High School MBO 3/4 HBO+

+0.1

0.0

+0.2

-0.8

-0.1

-0.5 -0.4 -0.1

-0.4

Unemployed migrants vs. unemployed non-migrants

1st Generation (<5 yrs) 2nd Generation 1st Generation (>5 yrs)

4 Lack of motivation 3. Interview and Survey Results

40

Reasons for unemployment1) (% of unemployed respondents, 2015)

Migrants cite “lack of skill & diplomas” as a prime reason for unemployment – 1st generation differs from 2nd generation

5 Lack of skills

• All migrant generations perceive a lack of skills or diploma’s as a main reason for their unemployment

• However, relative importance of skills and type of missing skills differs per generation

• Only 2nd generation migrants perceive discrimination as a reason for unemployment

• Companies confirm that key issues in finding/retaining migrants are cultural differences, skills/diplomas, and lack of language skills

• This highlights the opportunity of “upskilling” and the need for a tailored approach to improving migrant employment

Summary

54%


Other

8%

The work I did doesn’t exist anymore

I can’t find children daycare

8%

Discrimination




46%

I can’t find suitable work 23%

15%


I lack required skills

21%

15%

19%

2%

2%

8%

2%

6%

17%

17%

17%

7%

13%

4%

5%

10%

18%

12%

35%

5%

1%

16%

1st Gen. Migrants

(<5 years in NL) 1st Gen. Migrants

(>5 years in NL)

2nd Gen.

Migrants

Note: Unemployed is defined as actively looking for work; 1) Multiple answers possible, excluding students



41

Migrants unemployed vs. working – skill score differences (1-4 scale, 2015)

Skill analysis shows that new 1st Gen migrants primarily lack elementary skills while 2nd Gen lacks ‘flexibility’ and soft skills

Integrity

0.0

Ambition

Cooperation

-0.3

0.2

Creativity

-0.2

Communication

Autonomy

-0.1

0.0

0.0

-0.2 Flexibility

Elementary skills -0.3

Problem solving

• Migrants lack skills across the board vs. working peers and vs. unemployed non-migrants

• There is a clear difference in skills between generations; a differential approach is required to close skill-gaps

• 1st Gen (<5 yrs) needs to improve elementary skills, soft skills and ability to navigate the labour market

• 1st Gen (>5 yrs) has a large skill-gap and needs training in soft skills and ‘flexibility’

• 2nd Gen has the smallest skill-gap, but needs to improve ‘flexibility’ and ‘cooperation’

Summary



-0.2

-0.3

-0.1

-0.2

-0.2

-0.4

-0.3

-0.4

-0.2

1st Gen. Migrants

(<5 years in NL)

-0.2

-0.1

-0.1

0.0

0.0

-0.3

-0.2

-0.2

0.0

1st Gen. Migrants

(>5 years in NL) 2nd Gen. Migrants

Unemployed score lower Unemployed score higher

5 Lack of skills 3. Interview and Survey Results

HBO+ MBO-3/4 MBO-2 High School

42

Migrants unemployed vs. working – skill score differences (1-4 scale, 2015)

Analysis by education levels shows that all levels lack ‘flexibility’, but lack of soft skills is a key issue among MBO educated migrants

0.3

0.1

Integrity

0.3

Autonomy

0.1

Cooperation 0.4

Communication

Ambition

Creativity

0.2

0.1 Elementary skills

-0.2 Flexibility

Problem solving 0.2

• Migrants lack in ‘flexibility’ across all education levels and generations

• HBO only lacks in ‘flexibility’, but not in other skills

• HBO has high ‘ambitions’ and expectations of pay-level and may need to broaden search

• MBO needs upskilling in ‘cooperation’ and 'creativity'; MBO-2 also needs to improve 'problem solving'

• High school, especially 1st Gen, needs upskilling in elementary language skills

• Soft-skill gaps are prevalent among migrant males as well as Turks, Antilleans and Surinamese (1st & 2nd Gen)

Summary



-0.3

-0.3

-0.1

-0.1

0.1

-0.1

-0.2

-0.1

-0.1 0.0

-0.4

-0.4

-0.3

0.0

0.0

-0.2

-0.4

-0.1

Unemployed score lower Unemployed score higher

0.1

-0.3

-0.1

-0.2

-0.3

-0.3

-0.2

0.0

-0.2


43

Companies look for, but struggle to find creative, flexible, and cooperative, employees – migrants need upskilling in these areas

1) A higher score means it is more difficult to find employees with that skill; 2) A higher score means that skill is more important to employers

Source: THP company survey, Strategy& analysis

2.3

2.4

2.1

2.5

2.6

Flexibility

Autonomy

Integrity

Communication

Creativity

2.5

2.4

Cooperation

Problem solving

Skills companies have difficulty to find

(1-4 scale, 2015)1)

Importance of elementary skills

(1-4 scale, 2015)2)

• Companies struggle to find employees that are: – Creative – Flexible – Cooperative

(leadership & teamwork)

• These are exactly the skills which unemployed migrants appear to be missing

• This shows the opportunity of upskilling migrants to fulfill the demand of employers

• Companies rate speaking as the most important of elementary skills

• This shows the importance of elementary skills training, primarily for 1st gen migrants in customer facing jobs

Summary

3.5

3.6

Dutch

language

Writing

proficiency

Computer

skills 3.3

3.7

Reading

proficiency 3.6

Speaking

proficiency


44


Key Findings

Employment findings


45

Employment situation (% of respondents, 2015)

A relatively large share of migrants is entrepreneur, but interviews suggest that they need help to become more successful

• Migrants are more often entrepreneurs than non-migrants, across all educational levels

• Migrants have entrepreneurial ventures in similar sectors as non-migrants

• However, interviews indicate that they are less successful than non-migrants.

• Migrants often have problems with professionalizing their businesses.

• Migrants lack important skills such as navigating the Dutch system, financial education, personnel management, venturing into new markets, expanding customer base.

Summary

38% 36%

8%

12%8%

5%

39% 48%

80%

12% 8% 7% Entrepreneur

Employed

Unemployed Active

Unemployed Not Active

2nd Gen.

Migrant

Non-

migrant

1st Gen.

Migrant



46


Unemployed migrants state “lack of required skills or diplomas” as the most important reason for unemployment

4%

6%

7%

8%

8%

9%

9%

11%

17%

17%

32% Other




Discrimination




I lack required skills / diplomas



• Migrants perceive a lack of skills or diploma’s as a key reason for unemployment

• This highlights an opportunity to “up-skill” migrants to improve employment rates

• Discrimination is perceived as only a minor factor in unemployment

• In fact, only 2nd generation perceives discrimination as an issue, especially MBO & lower and Moroccan & Antillean ethnicities

Summary



Migrants


47


Migrant unemployment reasons are different per education level…

• “Lack of required skills or diplomas” is perceived as a key issue for migrants with MBO-3/4 or lower education

• Language skills are key issues for MBO-2 and lower

• Insufficient pay is primarily an issue for higher educated

• This suggests that economic incentives are badly aligned or migrants have unrealistic expectations of pay levels

• The above highlights the importance of a tailored approach to solving migrant employment issues

Summary HBO+ MBO-3/4

1

2

3

Jobs don’t pay enough (40%)

Work is now automated (20%)

Other reasons (20%)

1

2

3

I lack required skills (14%)

4

5

I can’t find suitable work (14%)


Can’t find children day care (10%)

Discrimination (10%)

MBO-2

1

2

3

I have health problems (18%)

4

5


I can’t stick to work rhythm (13%)


I lack language skills (9%)

High School

1

2

3

I can’t find suitable work (35%)

4

5


I lack language skills (16%)






48


…and also for migrant generation – This suggests that a differential approach is required to increase migrant employment

• All migrant generations perceive a lack of skills or diploma’s as the main reason for their unemployment

• However, relative importance of skills and type of missing skills differs per generation

• Only 2nd generation migrants perceive discrimination as a reason for unemployment

• This highlights the opportunity of upskilling and the need for a tailored approach to improving migrant employment

Summary

Other




Discrimination

8%


54%

8%




15%

46%


I lack required skills

23%

2%

19%

15%

2%

21%

8%

2%

6%

17%

17%

17%

10%

18%

4%

16%

5%

35%

1%

13%

12%

5%

7%

1st Gen. Migrants

(<5 years in NL) 1st Gen. Migrants

(>5 years in NL)

2nd Gen.

Migrants




49

I don’t work for an international company (% of respondents, 2015)

Migrants often work for parochial (local) businesses, which makes them an attractive target group for municipal employment projects

89%92%92%

85%

93%

82%85%

76%79%

73%73%74%

HBO+ High School MBO-2 MBO-3/4

2nd gen. migrants Non-migrant 1st gen. migrants

• Migrants more often work in local businesses compared to non-migrants

• Almost all 1st Gen migrants work in local businesses, irrespective of education

• This makes migrants an attractive target group for municipal employment projects, due to local spin-off (multiplier) effects

• Parochial businesses don’t have as many resources for advanced solutions to their skills gaps.

Summary



50

Migrant entrepreneurs might be an attractive target group because they support local economy and create more new jobs than non-migrants

• Migrant entrepreneurs often have local, non-international business

• Furthermore, both 1st and 2nd generation entrepreneurs are 2-3 times as likely as non-migrants to have personnel, and thus create jobs

• This makes it attractive to stimulate and help migrant entrepreneurs, because they support local economy through job creation and local expenditures

Summary

50%

2nd Gen.

migrants

20%

Non-

migrants

55%

1st Gen.

migrants

75%

85%

2nd Gen.

migrants

100%

Non-

migrants

1st Gen.

migrants

Entrepreneurs with employees (% of respondents)

Entrepreneurs with local businesses1) (% of respondents)

1) Defined as the inverse of “Do you have an international business?”



51


Key Findings

Employment findings


52

Difficulty to find employees with following profiles (% of respondents, 2015)

Companies struggle to find people at MBO-3/4+, especially in Technology and IT fields – Upskilled migrants could fill this gap

Note: Multiple answers possible


High school

MBO-2

3%

HBO / WO Master 37%

2%

3%

MBO-3/4

VMBO / MBO-1

VMBO

8%

7%

39%

10%

Elementary education

HBO / WO Propadeutic

19%

No formal education

HBO / WO Bachelor

5%

Education level Field of work

• Companies have difficulty finding MBO-3/4+ employees, especially in technical and IT fields

• Upskilling migrants with these backgrounds in soft skills or re-educating migrants from other fields could fill this opportunity

• Companies have least difficulty to find MBO-2 educated employees

• Therefore, companies looking for MBO-2 can be very selective

• Unemployed migrants at MBO-2 level have a big skill gap vs. non-migrants, so they need significant upskilling to be attractive for employers

Summary

Nursing

23%

Economic & Admin

7%

13%

IT 15%

Techn. / Industrial

Retail

44%

Transport

Other

Farming

Cleaning

Medical

Construction

Educational

3%

Cultural

Safety

7%

2%

2%

2%

2%


53

Trends impacting job openings in next 2-5 years (% of respondents, 2015)

Companies expect a growing importance for a flexible, multi-skilled workforce – Upskilling migrants is key for their future employability

10%

14%

14%

24%

26%

28%

36%

44%

Improvement of work processes

Other

New skills due to automation

New laws & regulations

Pension of employees

More flexible work

(multi-skilled; more types of work)

New skills due to new technologies

Company growth



• Companies expect a growing importance for a flexible and multi-skilled workforce that is familiar with new technology

• >40% of companies expect an increase in temporary workers, while only ~20% expect a decrease

• Unemployed migrants are especially impacted by these trends as they are behind on ‘flexibility’ and latest skills

• Upskilling of migrants, especially in ‘flexibility’, will be even more important for future employability

Summary


54

Reasons for hiring foreigners from outside NL (% of respondents, 2015)

25% of companies look for foreigners to fill jobs that require specific skills, but they are not actively searching for migrants (in NL)

20%

20%

40%

60%

Foreigners are cheaper

Other

Can’t find people that want this type of work in NL

Foreigners are more flexible

Can’t find people with required skills in NL

Can’t find people with required experience in NL



• 25% of surveyed companies hire foreigners from outside of the Netherlands

• Skills, experience, and ‘flexibility’ are the main reasons for hiring foreigners

• None of the companies are specifically looking to recruit migrants (1st or 2nd Gen)

• This shows that migrants get no “easier ride” than non-migrants; they need to actively find a job themselves

• In fact, companies may even have similar expectations of migrants as of foreigners (more skilled & flexible)

• Upskilling migrants is key to improving their employment

Summary


55






Local initiatives that address changed demand do exist, but the migrant dimension seems underexposed

56

Rotterdam initiatives for labor market mismatches

Description

Examples

• Organization that brings

together companies (mainly

port/construction), educational

institutions and the

government

• Targets entire Rijnmond

region; deploys initiatives

primarily related to Rotterdam

Zuid

• Bouwen aan Zuid,

collaboration between

construction company,

housing cooperative, and

vocational school to facilitatie

practice-based learning

• Rijnmond Reïntegratie, re-

employment of people in WW/

WWB with municipality

• Foundation that aims to

reduce the distance of

young unemployed in

Rotterdam to the labor

market

• Currently planning to move

towards becoming a social

enterprise

• Improving qualifications of

jobless youngsters and

supporting their job search

with workshops, trainings and

networking events

• Buddy program that links

unemployed youngsters with

working adults for exchange of

knowledge and experience

• ‘Bootcamp’, program with

multiple port companies to

train new employees and

solve job mismatches

• Partnership of the port,

municipality and Deltalinqs

(organization representing

over 700 Rotterdam

companies)

• Intensive 2 month full-time

training program aimed at

job-specific skills for

companies in the port of

Rotterdam

• First edition aimed at

metallurgical jobs; plans for

future bootcamps in e.g

maintenance or logistics

Source: Company websites

NOT EXHAUSTIVE

4. Research on other trainings and initiatives

Bright Ideaz NUFFIC Port of

Rotterdam Siemens

Careermaker Ottoworkforce Gemeente SPIOR

Citizen M Hotel PBR Hamrah + JWC STC

DELI Project Promen Deltalings Tafel Van Zeven

Erasmus

University Rabobank NS Utrecht Talents XL

Deltalinqs Randstad In Holland Tornante Trainingen

DoordeWijks Red Fabric Zadkine VluchtelingenWerk

ELM RET Ministry of

Social Affairs Werkgevers service

punt

HOGIAF Rotterdam - The

Hague Airport SBB WMO Radar

IPC Rotterdam Zuid

Project JINC Young Up

McDonalds Rotterdamse Zorg PRIO ChemGroep

57

Trainings and initiatives in the Rotterdam region

• 90+ trainings and initiatives were identified in the Rotterdam region

• 48+ organizations were identified as acting in the region

• Despite the high number of existing trainings and initiatives, the migrant dimension is still lacking.

Summary

Other organisations did not want to be mentioned


• The Integrated Basic Education and

Skills training (I-BEST) model was

launched by the SBCTC (Washington

state’s college center) in 2004

• The programs are aimed at migrants

or people with a migrant

background with basic skill gaps

• Basic-skill teachers and

professional/technical skill teachers

co-teach an integrated course of

basic (math and English skills) and

vocational skills (including workforce

certifications) training at the same time

• I-BEST programs exist for +170 areas

(e.g. nurse assistants and early

childhood education)

• Numerous I-BEST spin-off programs

have emerged in the USA, combining

basic education and skills training

• I-Best was found to have a positive

effect on employability (# hours) and

average salary

Abroad there are several successful initiatives improving the employability of migrants, but in NL the migrant focus is missing

58

Successful employability initiatives worldwide

Source: Company websites, Interviews

NOT EXHAUSTIVE

• ChemProjects, based in Rijnmond

area, offers training to unemployed

youngsters with a distance to the

labor market

• One-year program combines working

and learning. Selection is based on a

thorough assessment procedure

(i.e.. competency test) and participants’

progress is periodically measured

• Specific focus on training of soft

skills (mental attitude), using self

developed materials in collaboration

with Schouten & Nelissen (a learning

and development company)

• Simultaneously participants are

trained in job specific skills for

technical jobs in collaboration with

ROVC (specialized in technical

education) and linked to a tutor

(apprenticeship) for personal guidance

• Last 4 years, 27 people were trained

successfully and are still employed

• Swedish for Professionals (SFX) is

run by a consortium of Swedish

municipalities

• SFX offers a range of intensive

courses for immigrants with a

background in certain occupations

(e.g. truck driving, carpentry,

programming or engineering) and

focusses on professional Swedish

language related to the area of work

• It combines accreditation,

occupational language, work

placements and occasional

mentoring

• Collaboration between the

municipalities creates scale and

makes investing in occupation-specific

programs worthwhile

• Outcomes are highly successful,

majority of participants have found

work two years after participating

3 4. Research on other trainings and initiatives

59

Trainings and initiatives worldwide

• International trainings were researched, for soft and hard skills, both with and without the migrant dimension.

Summary

Other organisations did not want to be mentioned


Federal

Emergency

Management

Agency

Work Life

Balance

Lihua Primary

School,

organization

Workers Family

Workplace

Answers, The

Value of Ethics

in Business

Business

Training Works

National Center

for Farmworker

Health

Business and

Legal Resources HR Train

The

Performance

Management

Academy

Singapore

Workforce

Development

Agency

Pinoy Media

Center

National

Association of

Social Workers

Training Station Woodfold Marco UNICEF SBCTC

Examples

60






see the benefits of diversity, but cope

with negative perceptions of migrants

and shy away from long-term issues

seem not to be fully able to tap into

available labor market opportunities

61

Although the supply of labour & skills does not match with demand, stakeholders are struggling to address this challenge…

are not typically focused on migrants

This is reflected in skills demanded in Rotterdam: typically higher educated labor with an emphasis on soft skills and ICT

17

Source: O&BI/SEOR Arbeidsmarktanalyse Rijnmond (p. 131-132, 187-189), Strategy& analysis

Rotterdam labor market: split by

sector and education levelNumber of jobs, December 2012, 000s

Shifts in the labor market

17

23

28

19

16

8

28

51

37

31

27

24

20

20

8

17

51

33

32

12

8

16

10

29

5

27

10

6

Health and

social101

91

Other

38

106

2

Low HighIntermediate

30

Education

Construction

Wholesale 39

Government 42

Industry and

utilities58

Retail and

repair62

48Transport

4

Business

services

Exp. job

growth Expected shifts in skill mix

↑

→

↓

↑

↓

↓

→

→

→

• At least MBO 3 needed for jobs with shortages, but typically also MBO4, HBO+

• New competiencies: programming for e-health, skills to cultivate self-reliance

• Demand shift from MBO to HBO

• Competency shift: MBO1/2 jobs more ICT; overall more service-oriented

• Education mix to become hourglass-shaped, lower demand for Intermediate

• Competencies: soft skills / hospitality more important, technological knowledge

• Increase in education level to at least MBO3

• Next to technical skills, more knowledge-based: teamwork, problem-solving

• Growing demand for employees with MBO3 or higher

• Competencies: customer-oriented, results-oriented, teamwork

• Higher demand for HBO level, especially in technical roles

• Competencies: more customer-oriented due to increased citizen expectations

• Growing importance of ICT, higher demand for employees with HBO or higher

• Broader competencies needed, incl. foreign languages and advisory tasks

• Demand to remain in HBO and higher, shortages for beta / language teachers

• Competencies: interaction with parents, dealing with specific context of MBO

• Demand for Low/Intermediate to remain stable, increased demand for HBO

• Competencies: teamwork and ICT due to more complex construction process

Supply is not matching with demand… …and stakeholders struggle to address it

• Supply side: increasing demand for soft skills and higher education levels among employers

The number of migrants, especially non-Western, is growing while rest of the population is in decline

19

1) Persons of which at least one parent is born outside NL

Source: CBS, COS bevolkingsprognose Rotterdam 2013-2030, Strategy& analysis

1.2

(32%)

0.5

(15%)

2020 2025

20-40

4.03.6

0-200.9

(26%)

2014

4.3

40-601.0

(27%)

60+

Age

group

The migrant dimension

80

(27%)

2030

343

302

2014

32

(11%)

393

2020

78

(26%)

112

(37%)Youngsters (0-40)

overrepresented in

Rotterdam vs. NL

The Netherlandsin millions

Rotterdamin thousands

16.9m

Western

migrants1.6m

2045

3.0m

13.2m

2.0m

Native

Dutch

18.0m

Non-

Western

migrants

12.8m

2.2m

2015

+48%

+33%

-3%

Demo-

graphic

group

Number ofWestern/non-Western migrantsThe Netherlands and Rotterdam, by age class1)

Population growthNL, 2015 vs. 2045

• Demand-side: unemployed migrants with low education and not possessing skills such as [pending survey]

See next pages for

more detail

1 Companies

2 Migrants

3 Existing

labor

market

initiatives

5. Our opportunity

Having white, old, Dutch men

as the dominant group in our

company poses a challenge,

as they perceive people from

other backgrounds differently Large business

Companies see the benefits of diversity, but cope with negative perceptions of migrants and shy away from long-term issues

62

Source: THP interviews, O&BI/SEOR Arbeidsmarktanalyse Rijnmond 2015 (p. 192)

Our current management is

almost all-white; it should be a

reflection of the actual

population Large business

We seek for a mix of cultures

– alters the culture of the team

and makes people more open

to receive feedback Small business owner

There are large differences in

mindset between different

ethnic groups; some are just

willing to work more hours Intermediary

As entrepreneur, my hiring

preferences are driven by

perceived skills and qualities

of each ethnic group Small business owner

Some migrant groups are seen

as more rough on the edges Large business

Importance of diversity Negative migrant perception Focus on short term

Employers, esp. smaller ones,

are not bothered by mid-/

long-term labor market

issues O&BI/SEOR

In the short term, employers

fulfill most of their labor needs

by attracting workers that are

already employed O&BI/SEOR

Companies are not taking the

role they should take in

further training Intermediary

1 5. Our opportunity

Migrants seem not to be fully able to tap into available labor market opportunities

63

5. Our opportunity

We do not have many applicants from

the migrant labour pool Small business owner

In our hiring labour pool, we don’t see

many CVs/applicants from non-Dutch

nationalities, even though we have a

shortage of around 20 interns each year Large business

Lack of awareness among migrants

Source: THP interviews

Young migrants typically lack

a good professional network Minority organization

Educational institution rarely

give good guidance and

support to students on

findings internship placements Minority organization

2

64

Local initiatives that address changed demand do exist, but their approach is incomplete to provide a comprehensive solution

Target Group Activities

Against

unemploy

-ment

Tailored

to

business

Migrant

dimension Placement

ELM International

employees

Soft skills-, reintegration-, networking-

& cultural training, also for Dutch

employees going to work abroad

Hamrah New migrants &

unemployed youth

Training on how to function in the

Dutch labor market by having the

target group work in one of the 5 mini-

co-operations (e.g. lunch room, gym)

Red

Fabric People with distance

to labor market

Hard and soft skills training, courses,

coaching & internships to meet

company needs

STC Employees

Company-tailored training programs for

employees in the Port & Logistics

sector

Deltalinqs Technical (future)

employees

8-week boot camp for (potential)

employees of companies that need

professionals with specific technical

skills

5. Our opportunity 3

Training

Based on our research, THP developed a tailor-made solution answering to the needs of cities, businesses, and migrants

65

• Soft skills can make a difference in getting (and

staying) in a job.

• Migrants are particularly prone to experiencing

difficulties in developing these skills

• Soft skills are often determined by the socio-

cultural context and meanings.

• Provide score work experience and training

required to meet business demand.

• Trainees work in small groups, with those of

comparable levels.

• Practical skills training is combined with thorough

instructor led training.

Placement

• Successful trainees are immediately placed in

vacancies with the client company.

• THP provides clients with support after

placement, aiming to ensure retention of newly

trained migrants.

• THP Engages in long-term relationship- and trust-

building with clients and city officials, including

the signing of a MOU;

• Communicates the benefits of migrants and

diversity in-company to clients;

• Offers tailor-made in-company diversity training

aimed at managers and existing staff.

Soft Skills

Hard Skills

In-Company Placement

Company Preparedness

5. Our opportunity

66

THP’s tailor-made solution is easily scalable

Meets Business Demand

Caters to City-Specific

Context

Addresses Challenges

Faced by Specific Migrant

Groups

• Tailor-made training addresses each client’s specific

needs.

• The right balance between developing hard and soft

skills is always ensured.

• Trainees are fully prepared to be placed within the

client company upon completion of the training.

• The target group for training is determined in with

local government, and according to their priorities.

• Tailor-made solutions can be implemented together

with existing initiatives in the city.

• The two-step solution of training and placement

results in fewer welfare costs and long-term benefits.

• Trainees are selected based on requirements in line

with company needs.

• All trainees are migrants, refugees, or have a migrant

background*.

• Training is tailored based on assessment of trainees

to enhance learning experience.

*THP does not consider country of origin or ethnicity a selection requirement.

5. Our opportunity

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