Novi sad - 20 April 2007 Workers’ Mobility Within EU 27 ECAS - European Citizen Action Service Claire Damilano- Legal officer

Novi sad - 20 April 2007 Free Movement rigths Principle: Free movement rights within EU are fundamental European rights; Exception: since 1st May 2004 existing Member States were given the option to apply restrictions limiting the possibilities of gaining access to their labour market;

Novi sad - 20 April 2007 Transitional Measures - “2+3+2-year arrangement”; In 2004 UK, Sweden and Ireland decided to open their labor markets for EU8 citizens; From May 2006 policies relating to the free movement of workers of the EU-15 states could be classified into three categories: Keeping the restrictions in place for at least three more years (i.e. until 2009): Austria, Germany; Lifting the restrictions gradually, within the next three years (i.e. until 2009): Belgium, Denmark, France, Luxembourg, the Netherlands; Keeping labor markets open/removing restrictions: Finland, Greece, Ireland, Portugal, Spain, Sweden, Italy (July), United Kingdom; All countries except Finland have opted for transition periods for workers from Bulgaria and Romania.

Novi sad - 20 April 2007 The dynamic of post- enlargement migratory flows Economic migration remains low; EU -10 nationals make up only 0.2 % of the total EU-15 population;

Novi sad - 20 April 2007 But some countries have seen a more important influx of workers from the new Member States. Nevertheless this is not a phenomenon that only affects those countries, which apply fully community rules on free movement of workers.

Novi sad - 20 April 2007 Some figures  Germany, hosted 490,000 migrant EU-10 nationals  United Kingdom  Ireland  Recent survey from Poland suggests that about 1 million people are working abroad, of which about one-third were already doing so before accession

Novi sad - 20 April 2007 Mobility inside the enlarged EU is mainly a regional mobility: - Short distance mobility - Commuting mobility or Cross bordered - For Example, Slovakians work in Hungary and Hungarians work in Slovakia No direct link can be drawn between the migratory flows and the application of the Transitional Arrangements. Traditional destinations (linked to history, culture, language…) continue to impact on migrants’ choices.

Novi sad - 20 April 2007 Migrants’ Profile EU-15 “Mobile“: young (but rising share of mobile above 34), single without kids, highly educated and working in skilled and high-skilled occupations EU-10 “Mobile“: younger than EU-15 mobile, without kids (but more likely to be married), medium education, but many work in low-skill jobs Romanians and Bulgarians resident in EU-15: roughly similar age profile as EU-10 mobile, medium education, but lower overall skill level than EU-10 mobile, even more likely to be in low-skill jobs

Novi sad - 20 April 2007 Example of Polish Migrants Migrants from Poland are relatively young and well educated Polish migrants tend to be over-qualified for the jobs they perform abroad Many seasonal workers, but increasing demand for higher skilled labor (e.g. doctors and engineers)

Novi sad - 20 April 2007 Impact on receiving economies The fears of EU15 citizens concerning free movement of workers did not materialize:  No evidence of “welfare tourism”  No increase in the unemployment rate  Little evidence of any impact on wages  Foreign workers mostly filled vacancies rather than replaced domestic workers and helped to sustain high growth with low inflation

Novi sad - 20 April 2007 Impact on sending economies Outflow of workers may lead to labor shortages, particularly in the Baltic States Outflow of workers may lead to labor shortages, particularly in the Baltic States Bottlenecks also becoming severe in certain sectors in Poland (e.g. construction) Bottlenecks also becoming severe in certain sectors in Poland (e.g. construction)

Novi sad - 20 April 2007 Impact on sending economies Outflow of workers has resulted in accelerating wage growth in the healthcare, retail sales, construction and agriculture Brain drain is a concern for some countries - but how permanent?

Novi sad - 20 April 2007

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