Irregular employment of Irregular employment of foreigners in Hungaryforeigners in Hungary

Judit JuhászJudit Juhász

Panta Rhei Social Research Bt.

Budapest

Tel./fax: +(36-1) 200-1942

E-mail: juhasz@hungarnet.hu

Debates related to migrationDebates related to migration

In the last two decades the socio-economic and In the last two decades the socio-economic and political importance of international migration political importance of international migration (including illegal forms) increased, thus the (including illegal forms) increased, thus the importance of the research.importance of the research.

Focal points of debates:Focal points of debates: Evaluation of economic, social and political Evaluation of economic, social and political

significancesignificance Legal/illegal formsLegal/illegal forms RegulationRegulation Possibilities of measurement, use of quantitative Possibilities of measurement, use of quantitative

(hard) and/or soft qualitative methods(hard) and/or soft qualitative methods

EmploymentEmployment of foreigners of foreigners

I. MetI. Methhodological challenge odological challenge

(Definit(Definitiions, measurement)ons, measurement) II. Legal background, regular/irregularII. Legal background, regular/irregular III. Foreigners in the Hungarian labour III. Foreigners in the Hungarian labour

market (situation description and market (situation description and analysis)analysis)

KeyKey questions and some results questions and some results

I.I. Methodological Methodological challengechallenge

Need for measurement Need for measurement meeting rigorous meeting rigorous scientific standardsscientific standards

NatureNature and and complexity of the topic and the complexity of the topic and the illegality itself makes impossiblillegality itself makes impossiblee exact exact measurementmeasurement

Debate: Debate: PossibilityPossibility (if any) (if any) and means and means of measurement of measurement Qualitative / quantitative approaches Qualitative / quantitative approaches Need forNeed for methodological diversity methodological diversity

Contradiction: political, administrative Contradiction: political, administrative requirements – research possibilitiesrequirements – research possibilities

Diversity of definitions Diversity of definitions different different estimatesestimates

Lack of elaborated methodologyLack of elaborated methodology

conceptual conceptual uncertainuncertainityity

Problems of definition, Problems of definition, terminologyterminology

IllegIllegal/irregularal/irregular migr migrantant workerworker

Legal categoryLegal category Economic determinationEconomic determination socio-demogrsocio-demographicaphic interpretationinterpretation

Same activity might be qualified/classified Same activity might be qualified/classified differently differently

Basic ConsiderationsBasic Considerations Methodological diversity gives Methodological diversity gives betterbetter

chance to differentiated description chance to differentiated description of illegal migration, to understand of illegal migration, to understand the the root root causes and processescauses and processes

Infiltration of direct political Infiltration of direct political intentions and prejudices to research intentions and prejudices to research hypothesis, methods and conclusions hypothesis, methods and conclusions must be avoided must be avoided

MethodsMethods Collection, systematisation and analysis of Collection, systematisation and analysis of

existing informationexisting information (research results, statistical and (research results, statistical and administrative data, of press and document analysis) administrative data, of press and document analysis)

Data sourcesData sourcesI. RegistersI. Registers

Illegal border crossingsIllegal border crossings Other illegal acts connected to migration (crimes, criminal offences)Other illegal acts connected to migration (crimes, criminal offences) Data on labour controlData on labour control

II. Empirical researchII. Empirical research ObservationObservation In depth interviews, conversation with key informantsIn depth interviews, conversation with key informants Interviews with migrants, case studiesInterviews with migrants, case studies Content analysisContent analysis Document analysis, videos, photosDocument analysis, videos, photos Cartographic methodsCartographic methods Standard questionnairesStandard questionnaires

II. II. Legal rulesLegal rules

Work permitWork permit EU citizensEU citizens Occasional agricultural employmentOccasional agricultural employment Labour controlLabour control

Work permitWork permit

Request by the employerRequest by the employer Labour requirement reportLabour requirement report Is there domestic (EU) labour force? (30 Is there domestic (EU) labour force? (30

days)days) Obtaining other documents Obtaining other documents (proof of qualification, (proof of qualification,

visa, residence permit, occupational medical certificate)visa, residence permit, occupational medical certificate)

ValidityValidity For given employer, occupation and placeFor given employer, occupation and place Maximum 1 yearMaximum 1 year

Workers from the EUWorkers from the EU

Free movement of workers Free movement of workers (only registration is (only registration is needed)needed) From EU 15: From EU 15:

United KingdomUnited Kingdom Sweden Sweden IrelandIreland SpainSpain PortugalPortugal FinlandFinland

New EU membersNew EU members ReciprocityReciprocity

Occasional labourOccasional labour Since August 2005. special simplified rules Since August 2005. special simplified rules

(only for agricultural seasonal work, for a maximum of 60 (only for agricultural seasonal work, for a maximum of 60 days/year)days/year)

But But seasonal visa is required (maximum for 72 days/year, 30 seasonal visa is required (maximum for 72 days/year, 30

EUR)EUR) Travel (visa at home, occasional labour booklet in Travel (visa at home, occasional labour booklet in

Hungary)Hungary)

Still too complicated!!!Still too complicated!!!Farmers’ recommendation: all administration locallyFarmers’ recommendation: all administration locally

Labour controlLabour control

Fine for employer>=8 * minimal wageFine for employer>=8 * minimal wage Jan-Apr 2006.: 11 139 irregular worker, Jan-Apr 2006.: 11 139 irregular worker,

of which foreigners: 388 without work permit of which foreigners: 388 without work permit 1 164 other irregularity 1 164 other irregularity

Labour controlLabour control Targeted controlTargeted control

SectorsSectors (for example: construction, agriculture)(for example: construction, agriculture) Thematic Thematic (for example: (for example: without registration/permitwithout registration/permit))

Notification/denunciation (neighbours, competitors)Notification/denunciation (neighbours, competitors)

II. II. Foreigners in the Hungarian Foreigners in the Hungarian labour marketlabour market

Situation –Situation – description and description and analysisanalysis

Questions:Questions: How many, who (where from,How many, who (where from, personal personal

characteristics)characteristics) Work (activity, Work (activity, qualification, recruitment, qualification, recruitment, working working

conditions, wagesconditions, wages,, employers) employers) Why? Advantages/disadvantagesWhy? Advantages/disadvantages::

of employing foreignersof employing foreigners of working abroad (in Hungary)of working abroad (in Hungary) FromFrom the the perspectives of other actors perspectives of other actors

Types of foreigners working in Types of foreigners working in HungaryHungary

By occupational qualification:By occupational qualification: Blue/white collar worker (unqualified/qualified)Blue/white collar worker (unqualified/qualified) Professionals/intellectualsProfessionals/intellectuals

By length of employment:By length of employment:

Permanent employee – occasional, seasonal workerPermanent employee – occasional, seasonal worker

By legal status:By legal status:

Regular – irregularRegular – irregular

By sending countries, nationalitiesBy sending countries, nationalities

By personal, demographic characteristicsBy personal, demographic characteristics

Foreigners in the Hungarian Foreigners in the Hungarian labour marketlabour market

Significance and effectsSignificance and effects

Do they take away jobs from Do they take away jobs from Hungarians?Hungarians?

Effect on wagesEffect on wages Filling in labour shortages (certain Filling in labour shortages (certain

jobs, qualifications)jobs, qualifications)

Advantages and Advantages and disadvantagesdisadvantages

MotivationMotivation WagesWages

CultureCulture MobilityMobility

Possible conflicts (locals Possible conflicts (locals – foreigners)– foreigners)

Difficulties in Difficulties in communicationcommunication

Lack of local knowledgeLack of local knowledge Uncertainty on the long Uncertainty on the long

runrun

Advantages and Advantages and disadvantagesdisadvantages

I. Data from registersI. Data from registers

Immigration (1990-2005)

Source: Office for Immigration and Nationality

0

10000

20000

30000

40000

50000

60000

70000

80000

90000Long term residence permits (new ly issuedand prolongatios)Short term permits (new ly issued andprolongatios)Immigrants entering for a long term stay

Applications for permanent residence permits by citizenship, 1996–2005

Source: Office for Immigration and Nationality

Romanian

Jugoslavian

Ukrainian

Chinese

Other

0

2000

4000

6000

8000

10000

12000

14000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Economically active Economically active foreignersforeigners

Settlement Income Workregistered LFS

1995 52927 21009 73936 2,0 14,9 17,71996 50308 18763 69071 1,9 14,5 17,31997 47932 20400 68332 1,9 14,7 19,61998 46244 22400 68644 1,9 17,0 21,91999 47031 28400 75431 2,0 18,4 26,52000 49845 35000 84845 2,2 21,8 32,32001 52267 38600 90867 2,3 25,0 38,82002 53282 4310 42700 100292 2,6 29,1 42,02003 55424 3206 48600 107230 2,7 30,0 43,92004 58715 2232 55136 10996 127079 3,3 33,8 50,22005 63649 658 46329 16463 127099 3,3 31,0 41,8

Year Reg. EU w/o

wp.permit

Active foreigners with Foreign workers as % ofunemployedemployed

Together

Source: HCSO, National Employment Office, Office for Immigration and Nationality

Labour migration (permit holders)

0

10000

20000

30000

40000

50000

60000

70000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Other EU

Other EU

Slovak

Ukrainian

Ex-Jugoslav

Chinese

Polish

Romanian

Source: National Employment Office

Employment by sectorsEmployment by sectors

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Employed

according to

Population census

2001

Foreigners

employed according

to Population

census 2001

Employed in 2005 of which foreigners

with work permit

Other, unknown

Electricity, gas

Public administration

Mining

Financial intermediation

Education

Transport

Real estate, renting and business

Health

Agriculture

Other community, social and personal services

Trade

Manufacturing

Construction

Source: HCSO, National Employment Office

Employment by sectorsEmployment by sectors 2002,20052002,2005

30,8 33,7

22,4 20,9

17,0 17,1

13,6 8,5

5,77,3

0%

20%

40%

60%

80%

100%

2002 2005

Other, unknow n

Electricity, gas

Public administration

Mining

Financial intermediation

Education

Transport

Real estate, renting and business

Health

Agriculture

Other community, social and personal services

Trade

Manufacturing

Construction

Illegal border crossings by directions Illegal border crossings by directions 1990-20041990-2004

Source: Border Guards

0

4000

8000

12000

16000

20000

1990 1992 1994 1996 1998 2000 2002 2004

Out In Out w /o romanian

II. II. Some results of empirical Some results of empirical researches and lessons learntresearches and lessons learnt

In-depth interviewsIn-depth interviewsMIGIWE (2006)MIGIWE (2006)

experts (35)experts (35)migrantsmigrants (35) (35)

Standard interviewsStandard interviewsIrregular labour (ILO, 1998Irregular labour (ILO, 1998-99-99))

Reasons of migrationReasons of migration

1. 1. Income compared to HungariansIncome compared to Hungarians

49

22

74

44

6557

88

6654

32

79

52

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

much better

a little better

the same

a little worse

much worse

--- MALE --- --- FEMALE --- ALTOGETHER

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

29 24 23

26 3525

45 4152

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

at w ork finding job in bureaucracy

no

yes

ow n bad experience

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

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

primary education

apprenticeship

secondary education

higher education

Together

yes same level but different trade no, a low er education w as suff icient

PlansPlans

26

6

14

16

20

28

2233

8

9

3

15

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Romanian Ukrainian

other

w ill stay for good

for good if possible

more than a year but not forgood

for a few months

for a few days

Visual documentsVisual 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 International cooperation should be be strenghtened strenghtened toto exploit the gained experiences and exploit the gained experiences and

the advantages of common the advantages of common

thinkingthinking develop the theory and praxis of develop the theory and praxis of

migration researchmigration research establish international standardsestablish international standards