Cultural language and economic barriers prevent qualified workers

Qualified workers from Central and Eastern Europe are being prevented from helping to fill an estimated 11% shortfall in skills within the UK labour market because of barriers relating to cultural, regulatory, language and economic differences. This is one of the main findings of a new report looking at labour mobility, which was today issued by Vedior, one of the worldís largest recruitment companies, and the School of Environment and Development at The University of Manchester.

According to the UK Home Office, the engineering, healthcare and education sectors are currently suffering a chronic shortage of skilled workers. In addition, it is expected that the information technology sector may soon lack the necessary number of qualified candidates. The Department for Education and Skills reported that in 2003, 22% of employers had skills gaps in their workforce, representing 11% of total employment in England with the percentage as high as 15% in the most acute sector, communications*. With a quarter of the population expected to be over 65-years-old by 2050, this situation can only get worse and the UK will increasingly depend on its ability to attract skilled workers in order to remain competitive.

The UK has the most relaxed approach of all European countries to immigration from among new members of the EU. The recent accession of 10 Central and Eastern European countries to the EU, the success of Foreign Direct Investment (FDI) and the collapse of communist regimes have also led to substantial market growth in Central and Eastern Europe and the opportunity for cross-border migration. Nevertheless, the report has identified barriers to immigration which, unless addressed, could prove detrimental to the economy.

Based on detailed interviews with business associations, government agencies and recruitment agencies in the region, the report suggests that the following barriers must be overcome if the EU is to improve labour mobility; one of the key priorities of the 2003 Lisbon Agenda:-

Inconsistencies among academic and professional qualifications within the EU

Fear that local employment needs will not be met if skilled practitioners migrate overseas

Language difficulties

Legislation that is unfavourable to temporary staffing in accession countries

Concern among Central and Eastern European countries that temporary work is not a respectable and secure form of employment

Commenting on the report, Zach Miles, Chief Executive of Vedior said: ìTemporary recruitment can play a key role in facilitating greater labour mobility and supporting the EUís goal of enhanced labour mobility throughout Europe. The recruitment industry is keen to play its part in this process, however, once short-term transitional legal barriers come down, it is clear that unless other shortcomings are addressed, progress will be slowed.î

Labour markets in Central & Eastern Europe have recently witnessed widespread economic, social and political changes as they transition from socialist to market-based economies. More flexible labour alternatives such as placement through a temporary recruitment agency have only recently become an acceptable ñ in social and legal terms ñ employment category.

While migratory flows both within and beyond Central and Eastern Europe are relatively low, the report found that emigration from Central Europe does take place in a general movement from East to West. Over 50% of emigrants from the Czech Republic, Poland and Romania go to EU countries while immigrants from Bulgaria and other countries in the region tend to migrate to the three comparatively ëwealthierí countries of the Czech Republic, Poland and Hungary.

In addition, cross-border flow can be characterized as one of two main types; at the high end, there is evidence of continuing migration of more highly qualified professionals from Central and Eastern Europe to Western Europe. At the lower skills end, workers tend to move on a more short-term basis across borders within the region itself. Initial fears of a flood of cheap, unskilled labour to Western Europe upon accession of 10 new members to the EU in 2004 have not materialised and, even once transitional arrangements expire, widescale migration seem highly unlikely, at least in the medium term.

Nevertheless, as border restrictions are relaxed, the nature and extent of migration across Europe is likely to change, says the report. The exact nature of this change depends on the pace and depth of progress made in developing more liberal labour market policies within Central and Eastern Europe as well as the willingness in Western Europe to reduce barriers to mobility.

Zach Miles concluded: ìThe lack of recognition of foreign qualifications remains a major hurdle in facilitating greater labour mobility. In this one area, the EU does not operate with anything like the efficiency of a single market. While there are a number of ongoing harmonisation initiatives and some ad hoc arrangements between certain countries, little real impact is likely without a fundamental shift in attitudes from European academic institutions, professional associations and government.î
*Source: National Employers Skills Surveys, 2003 sponsored by the Department for Education and Skills, the Learning and Skills Council and the Sector Skills Development Agency.