Mobilising migrants’ skills and resources

- Romania -

Conference on the Economic Impact of EmigrationRiga, 17 December 2012

Content

• work migration of Romanian nationals• the effects on origin and destination labour

markets• impact on social and economic development

Main migration aspects - Romania• a very low mobility during 1950-1990 due to totalitarian regime

restrictions;• the emigration phenomenon (predominantly definitive) suddenly

increased in 1990-1991.– ’90s - the main mobility reasons were based on ethnicity (significant

flows to Germany, Hungary and Israel), business mobility (small scale border trade), students’ international mobility, and brain-drain in mathematical, IT and technical fields.

• new millennium - an important change in mobility pattern in terms of migration scale, professional fields and destination countries– Italy and Spain gained high profile among Romanians seeking work, – the number of Romanians who settled the definitive domicile abroad

has steadily decreased

Evolution of Romanian citizens who settled their definitive domicile abroad (Romanian Statistical Yearbook)

Migration for work• Since 2000, a growing trend of emigration for work;• Main triggers:

– wage differentials between EU-15 countries and Romania (the Romanian minimum wage represents 15-20% of the minimum wage in certain destination countries);

– sharp decrease of job opportunities due to deep effects of the economic restructuring process and transition to a modern economy.

• an “escape strategy” for solving individual problems primarily related to low wage earned in Romania.

• motivations related to family situation, study, wish to change lifestyle and to acquire life and work experience are also present among migration determinants.

Migration scale and distribution• Labour Force Survey data - migrant workers from Romania mainly

went to Italy and Spain (around 40% each country) and to a lesser extent to United Kingdom, Germany and France (around 12% in total).

• Romania became the biggest provider of migration outflows, more than 2 million Romanians being registered as residents in other EU countries, over 70% concentrated in Spain and Italy (Eurostat, 2010).

• Romanian citizens living in the EU have registered the highest increase among foreign citiziens (7 times increase during 2001-2010).

• Romanians represent the largest EU-foreign group living in EU countries (6.6% out of total foreigners; second place after Turkish with 7.2%).

RO migration – skills perspectiveHighly graduated/skilled head North

Germany, France, UK• ICT sector• business sector;• social sectors.

Vocational or lower secondary education head South

Spain, Italy, Greece• construction, • domestic care, • housekeeping, • hospitality, • agriculture• manufacturing.

Migration effects on the Romanian labour market

• initial “relief” effect: an opportunity to reduce unemployment and alleviate the negative effects of sharply restructuring economic process;

• the explosive migration for work determined several negative effects:– labour shortages, skills gaps, wage demand distortion;– depopulated areas, deepening of regional

discrepancies;– social problems with dependants remained at home

(especially children);– inflationary pressure (due to remittances).

Promoting return migration

The response to massive workforce mobility and return stimulation mainly focused on three axes: – Information and awareness, – entrepreneurship and large-scale investments,– diversified public intervention.

Only preliminary phases to build a special policy for return encouragement and management were achieved (2007-2008).

Since 2009, the crisis domestic impact lowered the governmental preoccupation on this subject.

The negative unemployment rate evolution in the last part of 2008 and 2009 redirected the public policy focus on the domestic labour market and on finding solutions to tackle crisis effects.

Information and awareness among migrant communities members

Why: Many migrant Romanians lack important information and updates on the new developments in their origin regions, the opportunities to start up a business or to find back home a similar job.•Several information campaigns and job fairs have been organised by the Romanian Ministry of Labour, Family and Social Protection in Italy and Spain in order to achieve increased information and to provide a concrete step for return decision – a job in Romania. •A total of 4 events (information and job fair) were organised in 2008: Castellon de la Plana (12-13 April) and Alcala de Henares (28 June) in Spain; Rome (24 February) and Turin (June 21st) in Italy. The locations were selected in accordance with the highest concentrations of Romanian workers in Italy and SpainAlthough the main impediment to matching was the wage differential compared to host countries, the increased level of information was a good basis for a re-assessment of the migration option by Romanian citizens who had left the country many years before.

Action Plan on promoting the return of Romanian migrant workers

Adopted in 2008, focused on the following targets:1) establishing, maintaining, and updating

databases periodically;2) carrying out an information campaign on the job

opportunities in Romania as well as the active recruitment of Romanian migrant returnees on the domestic labour market;

3) elaborating a system to stimulate return and professional reintegration of Romanian migrant workers by promoting circular migration.

Department for Romanians Abroad • established in 1995 directly subordinated to the Prime Minister;• develops and implements the state’s policy towards the Romanian

communities outside the borders;• follows the national strategy regarding the relations with the Romanians

abroad;• The Department’s policy regarding the relation with Romanians abroad

focuses on– the multiplication of contacts between Romanian personalities or

organizations from the Diaspora and the institutions of the Romanian state;– the intensification of co-operation aimed at supporting the efforts of

consolidation of the European Union membership;– the promotion of Romanian cultural values and the strengthening of bilateral

relations between the states in which they live and Romania.• Funding programs set for 2012:

1. Culture – „Constantin Brâncuşi”2. Mass–media – „Mihai Eminescu”3. Education – „Nicolae Iorga”4. Spirituality and tradition – „Andrei Şaguna”

EntrepreneurshipWhy: the experience of working abroad is positively associated with the entrepreneurial initiativesSupport for returning entrepreneurs:•Unicredit Group (Unicredit Tiriac Bank in Romania) managed, under the supervision of the Italian Ministry of Foreign Affairs, a special fund to support business start-ups in Romania by Romanian migrants who want to return back home. •The project provided special banking tools to support investments in the origin country using the money earned by migrants in the destination country. •The program was mainly focused on youth and female entrepreneurship and supported business start ups in health and care sector (35%), service and companies (25%), craftmanships (25%) wellness/rural tourism - individual or family enterprises (15%).

Large scale investmentsWhy: new investments expand quality jobs availability in RomaniaSuccessful foreign investments in Romania- automotive industry• Development of a Renault research center near Bucharest, and a

new Ford car factory in Craiova allowed for implementation of training programs and temporary work experience abroad for Romanian specialists and a solid transfer of their knowledge and practice on domestic market.

- IT sector• Important IT companies choose Romania as base for their regional

centers covering entire South-East Europe thanks to a well-qualified workforce and a dynamic business environment

Public interventions diversificationWhy: key source of information and support is the EURES network and information provided by the Romanian Public Employment Service (National Agency for Employment)The MEDIT project•The MEDIT project was initiated by the Romanian Agency for Employment in cooperation with Italia Lavoro (Veneto region). •Developed during 2009-2011, the project was co-funded by the European Social Fund. •The aim was to create a model for transnational cooperation for the return of Romanian migrants by development and establishment of tools to inform Romanian migrants in Italy concerning the real situation in Romania and capacity improvement at local institutions level to support Romanian returnees once they decide to come back in Romania.

Concluding remarks• Migrants can act as “catalysts for the transformation of the

Romanian society and for the convergence of Romanian values and lifestyles towards European ones”.

• The massive migration emerged in a very short period of time with an unbalancing effect on domestic labour market and a strong individual pattern of emigration.

• Romania holds a lot of development opportunities and employment growth especially in sectors that register the highest disparity compared to the EU level and match the skill orientation of Romanian migrants (infrastructure, construction, agriculture).

• Based on efficient employment and economic stimulation policies and also on strong information campaigns among Romanian communities abroad, these development opportunities could be used as channels for stimulating Romanian migrants’ return and integration.