Rise in labour market participation of migrant workers
Published: 29 July 2007
The Employment Service of Slovenia (Zavoda Republike Slovenije za zaposlovanje, ESS [1]) states that the main reasons for increasing employment of workers from third countries in Slovenia are related to the structural imbalances between labour demand and supply in some sectors of the economy, especially in construction, metal manufacturing, certain services and international transport. Moreover, lower labour costs for foreign workers and their willingness to work in difficult working conditions also contribute to the increasing employment of migrant workers.[1] http://www.ess.gov.si/
Demands from employers for work permits for workers from outside the European Union, from so-called ‘third countries’, have increased substantially in the last two years. Such demands have risen largely in the construction sector and in metal manufacturing where it is difficult to attract domestic workers. The majority of foreign workers in Slovenia are from countries of the former Yugoslavia, are mostly men and have a low level of education.
The Employment Service of Slovenia (Zavoda Republike Slovenije za zaposlovanje, ESS) states that the main reasons for increasing employment of workers from third countries in Slovenia are related to the structural imbalances between labour demand and supply in some sectors of the economy, especially in construction, metal manufacturing, certain services and international transport. Moreover, lower labour costs for foreign workers and their willingness to work in difficult working conditions also contribute to the increasing employment of migrant workers.
Employers’ demand for foreign labour to fill in the deficit in certain occupations is higher than the government’s annually appointed quotas for work permits. In the last few years, the quotas have been regularly adjusted and increased over the year. In recent times, social partners have been discussing the issue of increasing numbers of work permits. They agree that a detailed analysis of the employment of migrant workers, as well as a strategy on economic migration, would be prepared before the end of 2007.
Availability of work permits
The Act on Employment and Work of Foreigners (AEWF) passed in 2000, with amendments in 2005 and 2007, defines three types of work permits for workers from third countries, all of which are issued by ESS:
a personal work permit – temporary or permanent – is issued on the application of the individual, who has a temporary or permanent permit to reside in Slovenia and has lived in the country for at least one year without interruptions before submitting the application;
an employment permit is issued for a limited period of normally a year on the application of the employer and is related to an increased demand for labour that cannot be filled by domestic workers, and to fill deficits in certain occupations;
a temporary work permit, which is issued on the application of the employer and is used for seasonal work (especially in the construction and agricultural sectors), training of foreign workers in Slovenian companies, the work of foreign managers and similar situations.
AEWF defines the highest annual quota for the employment of workers from third countries as 5% of the active population of Slovenia – this takes into account only limited-period employment permits and permits for temporary work, while personal work permits are not subject to quotas.
The amount of work permits has been increasing since 2001, with the highest rise in 2006 and this trend continuing in 2007 (see Table). This increase was mostly on account of permanent personal work permits until 2005 given the fulfilment of the application criteria after years of living and working in Slovenia. However, in 2006 and during the first part of 2007, limited-period employment permits and work permits that are both of a temporary nature and depend on the employers’ demand contributed to the increase of permits on a larger scale. Demand for foreign labour has increased most in the construction sector.
| Personal work permits | Employment permits | Permits for work | Total work permits | |
|---|---|---|---|---|
| December 2003 | 20,794 | 12,381 | 6,352 | 39,527 |
| December 2004 | 22,712 | 12,233 | 4,085 | 39,030 |
| December 2005 | 25,782 | 12,360 | 4,825 | 42,967 |
| December 2006 | 29,871 | 14,501 | 6,362 | 50,734 |
| April 2007 | 30,775 | 17,779 | 9,769 | 58,323 |
Source: ESS, Monthly information, December 2006 and April 2007
The highest number of all types of work permits is issued to the construction sector, which accounted for about 60% of all work permits in 2006, followed by the manufacturing sector with 16% of total work permits and business services with 8% of total work permits. Deficit occupations most often filled with workers from third countries are those in the construction sector, in metal manufacturing (such as welders and similar occupations), mechanics and machine technicians.
Characteristics of foreign workers
Traditionally, Slovenia has been receiving mostly migrant workers from areas of the former Yugoslavia which was dissolved in February 2003. This trend has not changed since Slovenia joined the EU on 1 May 2004. In 2006, 88.9% of all migrant workers in Slovenia, including those from EU countries, were from countries of the former Yugoslavia, with the large majority coming from Bosnia and Herzegovina (26,030 workers), followed by Serbia and Montenegro (8,873 workers), Croatia (7,200 workers) and the Former Yugoslav Republic of Macedonia (4,701 workers). About 5% of all migrant workers are from other countries outside the EU, such as the Ukraine, the Russian Federation and China, among others. About 6% of migrant workers come from EU countries, mostly from the new Member States and predominantly from Slovakia. These workers do not need work permits and are entitled to the same work and employment rights as Slovenian citizens.
The large majority of workers from third countries in Slovenia are men – only about 15% are women. The average age of migrant workers is around 40 years, with about 60% of workers aged 25–44 years. Most workers have a low level of education, which is not surprising given the structure of labour demand for these workers; however, educational levels among migrant workers have increased in recent years. In 2006, about 59.7% of migrant workers did not have any qualifications – only elementary education or less – in comparison with 64.1% in 2001, 35.7% of them had a secondary-level education or qualifications compared with 31.1% in 2001 and only around 5% had a third-level education.
About the data
ESS collects data and reports on the work and employment of migrant workers, including those from third countries and from EU Member States. Information is regularly published in monthly reports, available in Slovenian on the ESS website.
Further information
Additional information can be obtained from the Slovenian contribution to the 2007 EWCO comparative report on Employment and working conditions of migrant workers in the European Union.
Martina Trbanc, Organisational and Human Resources Research Centre (OHRC), University of Ljubljana
Eurofound recommends citing this publication in the following way.
Eurofound (2007), Rise in labour market participation of migrant workers, article.
