Wednesday, 4 July 2012

Migration Flows Make The World Go Round

The 27-nation European Union is one of the main catalysts for international economic exchanges, including migration. Its prospects of growth and employment have a direct bearing on global migration flows. What is happening in Europe today is therefore one determining factor for international migration flows in the coming years.

In fact, as OECD Secretary General Angel Gurría says, labour market developments and migration flows are closely linked. "The decline in labour demand has been the driving force behind the fall in migration during the crisis, not restrictions imposed by migration policies, as our 2012 International Migration Outlook shows," he said presenting the report in Brussels on June 27. 

"Countries should therefore pay more attention to their long-term labour market needs, focus on skills and devise policies for the integration of migrants, particularly the young, whose competencies will be needed as the global economy recovers," he added.

The OECD report finds that the global financial and economic crisis and the subsequent Great Recession had a tremendously negative impact on employment globally. Migrants, along with youth, were particularly affected by the global jobs contraction – and even more so young migrants. The impact was so strong, that migration flows into OECD countries experienced important declines during 2008 and 2009.

In 2010, migration inflows declined again, for a third year in a row. However, as the recovery started gaining momentum in several OECD countries, this decline was modest (of around -3% compared to 2009) and the number of migrants in the 23 OECD countries measured (plus Russia) totalled just over 4.1 million, a higher number than in any year prior to 2005. The preliminary figures for 2011 show that immigration flows started to increase again in 2011 in several OECD countries." We will have to see if this trend holds, given the new bout of economic weakness," said Gurría.

Interestingly, these new increases are not related to the particularly hard times that some Southern European countries are going through. In fact, emigration from countries like Greece, Italy, Portugal and Spain increased only very modestly.

Free mobility of labour

A second key message of the study, said Gurria, is that free mobility of labour enhances its adaptability to changing labour market conditions.

"Take the case of Europe. Free mobility within the region accounted for much of the overall decline in immigration inflows since 2007, almost half a million. Still, free mobility continues to account for almost 40% of migration flows into the European OECD countries," the OECD head pointed out.

This issue of free mobility and its broader implications for the labour market is at the heart of another OECD publication on migration released on June 27: 'Free Movement of Workers and Labour Market Adjustment - Recent Experiences from OECD countries and the European Union'. This study shows how free mobility favours the labour markets adaptability to changing conditions or downturns, and portrays it as a great advantage.

Referring to the salient features of the '2012 International Migration Outlook', Gurria said. the decline in intra-EU migration flows in the post-crisis period has not been driven by policy restrictions, but rather the decline in demand for labour. "This important lesson is reflected in the experience of countries like Sweden, which fully opened up its labour market for migration in 2008 but did not experience a strong increase in labour immigration. This should make us think twice before we consider closing the doors to immigration as an adequate answer to unemployment."

Demographic change

Another determinant factor for migration policies is the demographic change, said Gurria. "It is highly important to gauge the implications of the current crisis on migration flows and to review our policies under this challenging dynamic. But it is also crucial that we take into account longer term trends, like the demographic transformations in our societies. And this is not just a question of how many new workers there are to replace those who retire. As the 2012 International Migration Outlook reflects, labour markets are changing too rapidly to consider demographic imbalances alone as a reliable indicator of future occupational needs."

The report projects that by 2015, immigration – at the current level – will not be sufficient to maintain the working age population in many OECD countries, especially in the EU. But the coming labour and skills shortages are not a simple function of demographic imbalances, they also depend on the changing nature of demand for particular skills and the extent to which they can be filled from existing sources of supply.
"The links between occupational growth and decline, demographic imbalances and the need for immigrant workers are therefore far from obvious," noted Gurria.

Over the past decade, new immigrants represented 15% of entries into strongly-growing occupations in Europe, and 22% in the United States. They are thus playing a significant role in responding to labour demand in the most dynamic sectors of the economy. Many jobs which migrants are entering are new jobs, while many jobs from which older workers are retiring are being cut.

But even in occupations where overall employment is declining, there is still recruitment.  New immigrants account for around 25% of new entries in these occupations in Europe and the United States, as these jobs are often less attractive to native workers. In other words, labour migration is not so much about replacing retiring workers, but about satisfying the changing needs of the labour market.

According to Gurria, one particularly interesting trend analysed in the latest International Migration Outlook is the changing role of Asia in international migration:

Migration dynamics in, from and to Asia are becoming more and more important for OECD countries. Asia's share in migration flows to OECD countries has grown impressively: In 2010, Asia has been the leading source region of new migration and accounted for 35% of all immigration flows. This represents more than 1.8 million persons, an increase of 56% over 2000.

According to the report, the share of migrants from Asia among immigrants to OECD countries rose from 27% in 2000 to 31% in 2010, with China alone accounting for about 10%. China and India between them also account for 25% of international students in OECD countries. In the long-term, as Asia develops and offers more attractive jobs locally and itself attracts more skilled workers from abroad, OECD countries will be less able to rely on this steady stream of skilled workers.

"So if OECD countries want to rely on a steady stream of skilled workers from Asia in the future, they must take steps to maintain or rather improve their attractiveness as a destination for Asian skilled workers and students," averred Gurria.

Tuesday, 26 June 2012

Damian Green tells foreign students: Please come to UK

The UK has been forced to launch a global charm offensive to convince foreign students it is not against immigration, Damian Green has said.

The Home Office minister said it was "essential" to shift the perception, after recent rule changes, that the doors were closed to non-EU students.

"Please come, we have got some of the world's best universities," he said.

Mr Green is under pressure from business and university chiefs to relax visa restrictions.

They want foreign students to be exempted from the government's target of reducing net migration from its current level of about 250,000 a year to "tens of thousands" by 2015.

But MPs on the Commons business select committee were told it was too early to say with certainty that the government's policy had significantly damaged UK universities.

'Stringent'
 
And it was often the perception that Britain was now tough on immigration - rather than the reality of its actual policies - that was acting as a deterrent to elite foreign students.

Simon Walker, director general of the Institute for Directors, said: "Remarks that are made in Westminster, or around the country, that go do down quite well locally are often on the front page of The Times of India and the New Straits Times the next day, because of the internet, and the impacts on this on perceptions of Britain are quite strong."

Nicola Dandridge, chief executive of UK Universities, said she could "live with" with any one of the government's immigration policies taken in isolation even if some, such as a minimum salary of £20,000 for post-study work visas, appeared overly tough to some potential undergraduate or graduate students.
But, she argued, it was the "aggregate" of the changes and the way they had been implemented that was in danger of putting Britain at a disadvantage to its major higher education competitors such as the US, Canada, Australia and New Zealand.

"We are viewed as being at the more stringent end of the spectrum and that's a question of substance as well as perception," she told MPs.

She said there had been a 10% increase in applications from non-EU students to British universities this year but future projections and "anecdotal" evidence from recruitment fairs suggested the rate of increase would slow.

"The 10% increase, or whatever it may be, is of course positive and it's wholly welcome but that's against the background of us having had a very dominant and wonderfully successful market position and we are slipping.

"The international student market is growing and we want to be part of that."

'Atmospherics'
 
She said a lot of the increase had come from Chinese students "which is completely wonderful" but they tended to study business and management and there were signs that students from Brazil and India, who tended to study scientific and technical subjects, were increasingly choosing countries that appeared more welcoming.

"We cannot say it's only the government's policies but the atmospherics, the way this is playing internationally, which is, I think, causing real problems," she added.

Mr Green insisted that Britain's universities would not be harmed by the government's visa restrictions, which he said were mainly aimed at closing down bogus colleges and preventing students without a job from staying in the country and claiming benefits after they had finished their course.

But he also appeared to concede that the government's anti-immigration rhetoric was going down badly in Britain's target higher education markets.

Asked how much work was being done by the government to change the perception that the UK had turned against foreign students, he said: "A lot." 

"And it's slightly swimming against the tide because, if the thought is out there that we have changed the system to make it more unfriendly, then reversing that perception is important and difficult but very, very essential.

"We have changed the system to cut out the abuse, we have changed the system to skew it towards the best students, skew it towards universities.

"But doing that at the same time as cutting out abuse is a nuanced message to send out."

He said now that the changes were in place "I think the sensible thing to do is to let the system bed down while we relentlessly go round the world saying the brightest students and the best are as welcome as ever to Britain".

Monday, 25 June 2012

New points-based system for expats going to Australia

A new system for selecting would-be Australian migrants will not be as restrictive as originally feared, it seems.

The Australian government has relaxed its points system for skilled migrants, in the face of a labour shortage and a booming economy.
A new points-based system will be introduced by Australia’s Department of Migration and Citizenship on July 1 and is expected to put more emphasis on sponsorship. There will be a new SkillSelect scheme for skilled migrants who have not been sponsored.
Last week, it cut from 65 to 60 the number of points required as a pass mark for migrants under this scheme. According to Paul Arthur, director of UK migration specialists the Emigration Group, this move will allow more would-be migrants to apply under SkillSelect and is a sign Australia is embarking on one of its biggest recruitment drives for skilled migrants for 30 years.
”Under the SkillSelect scheme, would-be migrants without an employer sponsor first have to provide an Expression of Interest in order to be points graded," he said. "Those who score the most points are then allowed to apply for a visa.”
The new system enables the Australian government to match would-be migrants more easily with the number of jobs available.

Tuesday, 12 June 2012

Most big companies to hire foreign workers

More than two-thirds of large Australian companies are willing to hire foreign workers as the effect of the skills shortage is felt across a broad range of industries, a survey shows.

An Australian Institute of Management (AIM) National Salary Survey shows managers are having the most difficulty recruiting for technical and trade, sales and marketing and construction and engineering jobs.
AIM head of research Matt Drinan said the recent decision to grant mining billionaire Gina Rinehart's Roy Hill project an enterprise migration services agreement (EMA) had placed the spotlight on skills shortages in WA, particularly on the mining sector.

"However, mining companies comprise a comparatively small proportion of Australia's employers and our data indicates that the effects of the skills shortage is being felt across a broad range of industry sectors and job functions, nationally," Mr Drinan said.

"In addition to organisations casting their net beyond our shores to help meet skills shortfalls, or as an alternative to this practice, companies might be wise to look at developing existing staff to help fill skill gaps within their business."

While the strength of the mining sector was likely to be having some impact, international recruitment difficulties could be partly explained by the higher proportion of organisations which reported an increase in permanent staff numbers over the past 12 months.

More than 70.2 per cent of large companies across the nation indicated that they would consider hiring staff from overseas in order to fill skills shortfalls while more than half the companies reported that they already employ overseas workers.

More than half the 511 companies surveyed across the nation said they already employ overseas workers.
Last month the federal government announced more than 1,700 foreign workers could be brought in under an EMA for Gina Rinehart's Roy Hill iron ore project in the Pilbara, sparking controversy from unions and the public.

The government said it appreciates the mining industry's concerns about the rising costs of doing business in Australia.

In terms of wages, the AIM survey revealed 93.5 per cent of large companies paid salary increases in the 2011/2012 year for at least some employees.

Western Australia recorded the largest salary increases while Victoria and Tasmania recorded the smallest.

Thursday, 7 June 2012

Constant recruitment drive in resource sector

THERE is such a high demand to train oil and gas workers in how to escape ocean helicopter crashes and in other emergency and safety skills that companies such as Perth's ERGT Australia are on a constant recruitment services drive. 
 
It's a reflection of Western Australia's demand for labour, overwhelmingly in the resources sector. A further 6000 people were employed last month as the state easily retained the nation's lowest unemployment rate at 3.8 per cent.

Brett Hartley moved out west from the Gold Coast a year ago looking to fill some holes in his resume as a commercial diver. Within five days he had a job, and has since worked everywhere from the Pilbara town of Karratha to Albany on the south coast.

But he was so impressed after he completed a course in basic offshore emergency training with ERGT that he thought of trying his hand as a trainer.

He applied and got the gig about four weeks ago, partly thanks to the emergency training he had done and his diving skills.

"They harnessed what I'd done and retrained me," he said.

Mr Hartley said it was not always easy to work in resource-related jobs, despite the high demand for workers.

"The higher end of the market, where people need to be extremely skilled, like top-end oil and gas -- you won't walk into it unless you're extremely experienced," he said.

"The bottom end of the market, especially with diving, the smaller operators, you'll find they're turning over a lot of staff. It's an easier get-in."

ERGT managing director Shane Addis estimated that the company took on one or two new trainers a month. "We're in the process of recruiting at the moment, and in fact we're constantly recruiting," Mr Addis said.

It was not easy to find new staff, but it was still better than before the global financial crisis, when people had "unrealistic" expectations. "I think everyone felt they could drive a Haulpak and get paid $150,000 a year, and if they could do that they should be paid similar money for almost any role.

"That's changed. I think people are far more realistic now."

He said the company took advantage of the fact people could live and work in Perth when it sought to recruit new people.

Wednesday, 6 June 2012

Most Australians against Uranium sale to India

The Australian government might have overturned a ban on uranium sale to India but a majority of people in the country still appear opposed to the idea of selling the mineral to New Delhi. In a new survey, a majority of Australians were found to be against the recent Labor party decision of lifting ban on Uranium sale to India with 61% opposing it.

"More than 60% of Australians say they are against 'Australia selling uranium to India', with 39% saying they are 'strongly against'," according to the eight annual Lowy Institute poll 2012.

In December 2011, the Australian Labor Party had overturned a ban on the sale of uranium to India following a heated national conference debate.

The results were published by the Lowy institute Poll after a nationally representative opinion survey of 1,005 Australian adults was done.

Key issues covered in the poll included uranium sale to India, relations with Fiji, the Bali bombings, climate change, the war in Afghanistan, migration services, US Presidential elections, US military bases, and attitudes towards democracy and human rights.

The poll also included questions of migration, a perennially controversial topic.

It revealed that Australians recognised the need for short-term migration to address worker shortages with 62% saying they were in favour of 'the government allowing in extra workers from foreign countries' when 'there are shortages of workers in Australia and companies in Australia cannot find enough skilled workers'.
However, it was found that there was major oppositiion against large-scale foreign investment.

The poll also included several new questions about Australia's image and engagement with the neighbourhood.

It was found that Australians believe it was important to be liked by neighbours, with 68% saying it was 'very important' for 'Australia to be seen in a positive light by people from countries in  region', with another 26% saying it is 'somewhat important'.

They also supported government efforts to communicate with countries in the region.

Over 81% said they were in favour of 'the Australian government funding broadcast services or other programmes to communicate with people from countries in our region, with the aim of improving relations with those countries', with 38% saying they are 'strongly in favour'. In the context of Australia in the Asian Century White Paper, the poll presented Australians with six possible responses from the Australian government 'as the Asian region grows and becomes more significant'.

There is strongest support for doing more to get 'Australia included in Asian political forums' with 37 per cent saying it was 'very important'.

Only 24% said the government should 'increase the number of Australian diplomats sent to Asia, but there was less support for doing 'more to attract Asian investment into Australia' at 16% or increasing 'the number of migrants Australia accepts from Asia' at 13%.

In an open-ended question, on a query of which country 'will be Australia's most important security partner over the next 10 years', 74% of Australians picked the US.

Interestingly, 10% said it will be China, the survey said.

The institute's executive director, Michael Wesley, said the poll gives some indication of what Australians might think about the plan, and shows many people are worried about foreigners buying Australian assets.
"We found that 81% of people we asked are against foreign companies buying Australian farmland," Wesley said.

"Australians continue to be worried about the amount of Chinese investment the government is allowing in - 56% think the government's allowing too much Chinese investment into Australia.

"I think people are well aware that some of the big projects in Australian history like the Snowy Mountains scheme were built using skilled labour, because the labour wasn't available from within the Australian population.

"So they're aware that our prosperity and our progress as a nation does depend on allowing in people with the skills that we need.

"The survey has also found support for Australia's alliance with the United States has reached its highest level since the poll began in 2005. But support for tough action on climate change has continued to fall, with 63% of respondents opposed to the government's carbon tax".

Wednesday, 30 May 2012

Genuine students don't need to fear crackdown on overseas recruitment, says immigration minister

The immigration minister yesterday insisted genuine foreign students have nothing to fear from a crackdown on overseas recruitment.

Damian Green spoke out after university leaders warned that the Government’s student immigration policy is damaging British universities. Universities rely heavily on tuition fees paid by overseas students, whose numbers have edged upwards over the past 15 years.

In a letter to the Prime Minister, the heads of 68 universities attacked policies they claim will deter thousands of genuine foreign students and cost the economy billions.

However Mr Green said: ‘There is no limit on the number of genuine students who can come to the UK and our reforms are not stopping them.

‘But we are determined to prevent the abuse of student visas as part of our plans to get net migration down. Students coming to the UK for over a year are not visitors – numbers affect communities, public services and infrastructure.’

Meanwhile, umbrella group Universities UK admitted a fifth of foreign students remain in Britain once their studies have ended.