Historical archive

The role of migration in alleviating labour shortages

Historical archive

Published under: Bondevik's 2nd Government

Publisher: Ministry of Local Government and Regional Development

Introduksjonsinnlegg av statssekretær Kristin Ørmen Johnsen til Workshop 48 på Metrolpoliskonferansen

State Secretary Kristin Ørmen Johnsen

The role of migration in alleviating labour shortages

Workshop 48: The 7th international Metropolis conference, Oslo 9.–13. Sept. 2002

Introduction

If we want the processes of globalisation to continue and include all parts of the world, we must be prepared for an increase in labour migration. It will involve skilled as well as for unskilled work, and people will also come from non-western countries. If regulated such migration is first of all positive for sending as well as receiving countries. Brain-drain is not a major concern, as long as skilled persons are unable to find work according to their talents, in many countries. Migration also generates a return flow of remittances/money, know-how and information that will contribute to economic and political development. Our own experience as a sending country 100 years ago is illustrating in this respect.

There are of course challenges and dilemmas that we have to handle when implementing a more liberal policy in relation to labour migration. The debate will probably focus on some relevant aspects.

As a starting point for the debate on the role of migration in alleviating labour shortages, a summary of the Norwegian policy on labour immigration could be useful.

Background – recent history

Since 1954 residence or work permits were not required for Nordicnationals. Free flow of labour has been possible. The Nordic countries have provided a flexible source of both skilled and unskilled labour, responding fairly quickly to changes in the labour market. However, at times it has not supplied enough labour.

After a liberal period during the 1960s and early ‘70s restrictions on all other labour immigration into Norway were introduced in 1975. At the same time as several European countries introduced similar restrictions. Immigration for unskilled work was stopped, but exceptions were made for certain types of foreign labour. In general only temporary work-permits could be granted, with the exception of highly skilled labour or ‘specialists’.

This labour immigration regime has generally been maintained since 1975, but the law and regulations have been changed and amended several times. Gradually the control of labour migration has become more liberal, especially over the last few years. The EEA-agreement between the EU-countries, Iceland, Lichtenstein and Norway contains liberal provisions, and labour migration takes place almost without restrictions.

Main regulations now

A skilled foreigner can be granted a work permit as a specialist (Skills/vocational training on high-school level as minimum). Permits granted to specialists may constitute the grounds for permanent residence in Norway when s/he has resided continuously in the country for three years with a valid permit.

Other categories than specialists may be granted types of temporary work permits - seasonal workers, trainees, au pairs, working guests, researchers, athletes, missionaries, transfer-employees of multinational companies etc. There is also a special permit category for unskilled Russians from the Barents-region, finding employment in the fishing industry in northern Norway.

The largest number of permits are granted to seasonal workers. Such permits can be granted for work within seasonal activities, most typically in/agriculture, as well as in all other sectors during holidays. Permits for seasonal work may be given for a period of 3 months per calendar year, and in special cases be prolonged with up to one month. After a minimum of six months’ stay outside Norway a new season permit can be granted. Further liberalisation is presently considered.

Active recruitment policy

The Public Employment Service in Norway has been very active in providing assistance to employers who want to recruit staff members from other European countries. Assistance has been provided particularly with regard to recruiting medical doctors, dentists, nurses and engineers. Training programmes in the Norwegian language and society in the home country for persons interested in working here have also been provided. The EURES network, the European network for co-operation on placement services, is actively supporting Norwegian employers who want to recruit from EU countries.

Recent changes of regulations to facilitate recruitment

January 1st 2002 several amendments to the immigration legislation entered into force. The purpose is to make the handling of applications for work permits, particularly for specialists and seasonal workers, more efficient, and generally make it easier to recruit labour also from non-EEA countries .

Specialists may be granted a visa to look for employment in Norway.

Specialists receiving an offer of employment while staying here, may apply for a work permit from Norway.

The police may grant a temporary work permit which is valid while the Directorate of Immigration processes the application.

Work permits for specialists within an annual quota, currently fixed at 5000, are granted without individual screening of applications in relation to labour market needs.

Some Norwegian foreign service missions have been given the authority to grant work permits to specialists, when applications are clearly merited.

Plans for further liberalisation

The government has declared that recent changes of the regulations are not sufficient in order to fill the labour shortages in Norway. Not only is there a shortage of specialists/ skilled workers. Lack of unskilled labour might hamper growth within some industries and also make it difficult to provide healthcare and other vital services in future. Even in the present situation with increasing unemployment in some sectors, there are recruitment problems.

Possible ways of liberalising the regulations for unskilled labour immigration are under consideration. The government has outlined its position in a document on this subject, but leaving many issues open for discussion. After a public hearing of the document new regulations will be presented through a proposal to parliament.

New regulations should be flexible, making recruitment abroad possible when there is a need, while discouraging applications when there is ample supply of labour. However, we do not want a guest-worker system. Permanent residence should be possible also for unskilled labour when general requirements (3 years of residence etc.) are met. Displacement of parts of the domestic labour force and all forms of social dumping must be avoided. Efforts to mobilise domestic reserves, for example among unemployed immigrants, will go on unabated. A new introduction program is intended to make it easier for newcomers to learn Norwegian and enter the labour market more quickly. When recruiting from abroad, employers must be willing to cover more of the costs, especially for language training.

The scheduled expansion of the European Union to include all or most of the present 10 applicant countries is an important factor that must be considered. Inclusion of countries like Poland, Hungary and the Baltic states will most probably lead to a significant growth in labour migration. We don’t know how many will come to Norway, which is outside the EU itself. Some marketing will probably be necessary, but there are already some important networks (seasonal workers etc.). In the proposal on the need for unskilled labour, one option is to limit such regulations to the EU-candidate countries until they become members, as a test.

Summary

We need more flexible rules for labour immigration to be able to recruit labour from abroad when it is not possible to recruit in Norway or within the EEA. Whether the work concerned is skilled or unskilled, should not matter.

Regulations must ensure that such immigration does not lead to displacement of parts of the domestic workforce. All other options must have been exhausted before turning to recruitment from outside the EEA. Active measures in relation to newcomers and unemployed immigrants/minorities must be implemented.

The expansion of the EU might have a significant impact on the future supply of labour in Norway and will influence our policies. We want to be active in relation to new member countries.