Challenges of labour-market integration of third country nationals in Hungary

Research summary

Készült az Európai Unió Európai I ntegrációs Alapjának támogatásával

Eszter Makara

Main reason for emigration (%) (N=440)

63% got support to fid a job 50% got financial support 66% accomodation

personal contacts, networks electronical communication, printed media

Emigration

EmploymentStrengthening role of specific pull factorsDecreasing importance of primary economic factors

0 20 40 60 80

Ismerős, barát, rokon ajánlása Hirdetéseket olvas interneten

Személyesen jelentkezik amunkaadónál

Hirdetéseket olvas újságban Engem keresnek, mert ismernek

MunkaközvetítőkHirdetést ad fel interneten

Korábbi munkáltatója küldteMunkaügyi központ

Hirdetést ad fel újságban Emberpiac (pl.: Moszkva tér)

%

Over half of non-Hungarians came with

written contract (26% were promised)

A munkavállalás körülményei[m1] 

 [m1]Rossy cím

Munkahely és rétegződésMunkahely és rétegződés

Workplace

0

10

20

30

40

50

60

70

80

90

100

egyéb

önálló

alkalmi munka/árusítás

rész/rövid/bizonytalanmunka

teljes munkaidősalkalmazott

• Variation, strong differentiation and inequality• 60% permanent contract; 30% fixed-term contract

Education

•27% acquired highest level of education in Hungary (mostly: neighboring countries, Arab countries)

• higher position holders, intellectuals have studied in H long term effect on integration 0

10

20

30

40

50

60

70

80

90

100

nem magyar magyar

Nem tanult Mo.-n

Mo.-n és másutt is

Csak Magyarországon

2,6 8,7

10,4

17,3

10,24,07,4

11,5

20,3

7,6

Mezőgazdaság

Ipar

Építőipar

Kereskedelem

Vendéglátás,szórakoztatóiparIgazgatás, önkormányzat,igazságszolgálatatásEgészségügy

Oktatás

Egyéb szolgáltatás

Egyéb

Structure of employment

Type of workplace:

•Micro (20%)- small (15%) enterprises/big companies (15%)•17% in public sector•“two end of hierarchy”•Job types•Men/Women

Undeclared work

• 4/5 of workers have written contract• (Asians 2/3, Africans-Arabs-Ukranians ¾)• Micro-self employment 50% • manual/-qualified manual worker less than 2/3

• “black work”1/4• “grey work” 1/10• Legal work 2/3 (education level:60%-78%)• Others: legal workers 78,5%;marketers 63,2% non-

declared; e.g. film industry• 12% has no tax nr. (minimum level)• E.g. construction industry 50%> 60%• 40-45% of Ukranians

Other typical forms of work

• 41% has done incidental work• Seasonal work (esp. agriculture, construction)

Reasons for employment of 3rd country nationals (prof):1. Cheaper (29,5%)2. Not enough Hungarians with the required

qualifications3. Hungarians would not do the work

Other: More flexible and mobile Low mobility among HungariansLanguage

Effects on the economy

Positive:Flexible workforce (3,3)Supply of workers for “bad” jobs (3,7)As enterpreneurs, creating work for Hungarians (3)Contributes to the development of some economic sectors (3,3%)

Negative:Conserves bad working conditions (3)Increases discrimination (2,9)Increases domestic unemployment (2,5)Intensifies labour-market discrimination (2,3)Increases crime (1,8)

igen12%

részben18%

nem70%

63

37

0

10

20

30

40

50

60

70

van nincs

%

Qualification60,7% think, they find work according to

qualification :• university 63,5%• EU 69,3% not find adequate job:• 20-24 years 52,9%• Chinese and African

• Professionals: EU 90,2;3rd country 52%• Required competences can not be projected (skills

prognosis needed)• More important are general competences• Difficulty of matching qualifications

Living/working conditionsDifferences in living standards according to nationality and qualifications (average satisfaction 3,82)

• Salaries (average 176.000) max=2.5xmin (3,39)• Other benefits (2,75)• Colleagues (4,17)• Boss (3,83)• Working conditions (3,86)

• Working hours(30% less than 8 hrs 33% 8 hrs, 33% more)Asians 50% over 10 hrsLeave days specific to nationality• Supporting family at home(9000-22000)• Housing (19,5-21,5-30,4-22,2-6,5)

Discrimination

Discrimination:•Unqualified workers•Seasonal workers•Irregular/undeclared workers•Africans, Asian, Ukrainian

Non-discrimination for compatriots:•At workplace 55%•Administration 46%•Other 71%

0

20

40

60

80

100

%

Nem

igen. de saját rossztapasztalata nem volt

igen. és saját rossztapasztalata is volt

To find job Salary

Little worse 47% 38%

Same 31,4% 45%

Chances compared to Hungarians

Experience on Hungarian labour-market

3,1

3

2,9

2,9

2,8

2,7

2,7

2,5

2,2

2,2

2,2

2,1

1,9

1,8

0 1 2 3 4

Család hiánya

Anyagi bizonytalanság

Papírok intézése

Távolság. honvágy

Túl sok munka. kevés szabadidő

Emberi kapcsolatok. mentalitás

Megfelelő munkát találni

Otthoni problémák

Lakás. szállás

Munkakörülmények

Rendezetlen körülmények, munkaviszonyok

Utazás. vándorlás

Munkahelyi légkör. beil leszkedés

Nyelv

How problematic are the following?

What are the main barriers for integration?

• Those, who migrate, would rather go to the West (3,84)• Legal administration for employment is difficult (3,2)• Employment for 3rd country nationals is too difficult

(3,16)

• Have to work more for the same money

Social integration• Structural integration is goodNeed for civil society organizations (93%)Problems for unskilled, undeclared workers

Cognitive integration:• Language knowledge is essential (few exceptions)34% of non-Hungarians experienced problem23% experienced not getting a job for language problems• Problems in administration

Segregation and social discrimination is low

Future

We are at the beginning of a migration cycle (changing patterns)

• Migrants dominantly stay here for more years• 50% over 1 year, but not forever• 2/5 would stay in Hungary• Over 50% of 3rd country migration is temporary

• High qualified: ¾ long term(positive structure for domestic economy)Average duration of stay decreased

Forecast1. Hungary will be the target of migrant workers

from less developed, developing countries2. Development of communication technologies will

decrease costs of migration, but will not help integration

3. Demand for migraant workers will not show structural differences in coming years, but more qualified workers will be needed in the long-run

4. Structure of nationality of migrants will change5. Number of small enterprises will grow6. Irregular work will decrease7. Discrimination will be more intense

Depending on migrant and employment policy

pantarhei@iif.hu

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Készült az Európai Unió Európai I ntegrációs Alapjának támogatásával

A munkaerő-piaci integráció kihívásai

27th June,2011.