Migration and the Economic Crisis

MIgRATION AND ThE ECONOMIC CRISIS: IMplICATIONS fOR pOlICY IN ThE EUROpEAN UNION SpAIN 63 introduction Spain’s economy was, until very recently, one of the most dynamic in Europe. However, it began to cool in 2007, putting an end to a decade-long economic boom and optimism. The country is now on the brink of recession after its GDP contracted, resulting in the loss of tens of thousands of jobs, mostly in the construction and services sectors. With unemployment at about 20 per cent, Spain is among the countries in Europe that have been worst affected by the economic crisis, and it may struggle to pursue an ambitious economic agenda to recover and change its production model. Spain became an immigration country in the 1980s for the first time in its recent history. This big change was caused by direct and indirect factors. Direct factors: • the country’s rapid economic growth over the past two decades; • the size of the “informal” economy. Indirect factors: • the ageing of both the Spanish population and the active population due to a sharp fall in birth rates; • the limited internal mobility of the population and its irregular distribution across the different regions of the country. 63 Ruth Ferrero-Turrión (Universidad Compultense de Madrid) and Ana Mª López-Sala (Consejo Superior de Investigaciones Cientificas), Spain. COUNTRY CASE STUDIES - segmented labour markets; Spain • the growing demand for unskilled labour, as well as the consolidation of heavily 161 MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY The dynamics of Spanish migration are unique; this distinctiveness stems from the diversity of the countries of origin and the kinds of immigrants seeking to settle in the country. This includes migratory flows of workers from Latin America, Africa, and Eastern Europe, as well as retirees and workers from other EU Member States. In 2009, the largest group of foreigners in Spain was made up of Romanians (758,823). Among nationals of other EU Member States, the British (355,988) and Germans (174,374) accounted for the largest groups. Among nationals of non-EU countries, Moroccans comprised the largest group (627,858), followed by Ecuadorians (409,328), Columbians (296,304), and Bolivians (223,455) (Table 1 and Figure 1). The most recent flows originate from a diverse range of countries that includes Paraguay, Brazil, Ukraine, and Pakistan. Unlike Northern Europe, where it is much more common for immigrants to seek asylum, the Spanish migratory model has mostly been based on economic migration, although there is a component of retirement migration. Migration data Table 1: Stock of foreign population in Spain by nationality, 2009 (main nationalities) Country of origin no. % Germany 174,374 3.1 United Kingdom 355,988 6.3 Romania 758,823 13.4 Bulgaria 158,160 2.8 Morocco 627,858 11.1 Argentina 195,572 3.4 Bolivia 223,455 4.0 Colombia 296,304 5.2 Ecuador 409,328 7.2 Other 2,448,809 43.5 Total 5,648,671 100.0 Source: National Statistics Institute, Municipal Register, Foreign Population February 2010. Figure 1: Stock of foreign population in Spain by nationality, 2009 (main nationalities) Germany United Kingdom Romania Other Bulgaria Morocco Argentina Ecuador Bolivia Colombia Source: National Statistics Institute, Municipal Register, Foreign Population, February 2010. 162 Immigration flows to Spain have been extremely intense over the past decade. The statistics are eye-opening (Table 2). In 1999, there were fewer than 750,000 foreign residents in Spain, representing only 1.86 per cent of the population. In 2009, there were more than 5.5 million immigrants,64 accounting for 12 per cent of the population. Immigrant numbers have grown rapidly from the second half of the 1990s. Growth was particularly intense between the years 2000 and 2003 as well as in 2005, with the percentage of inter-annual variation surpassing 48.36 per cent in some cases. One should also remember that throughout the last decade a third of the new migratory flows towards Europe were directed toward Spain, making it the OECD country with the second largest number of immigrants received after the USA, and the first in relative terms. For several years, Spain was the most important destination country in Europe in absolute and relative terms alike. Table 2: Stock of foreign population in Spain by sex, 1999–2009 Year Total Male Female Male (%) Female (%) 1999 748,954 379,336 369,619 50.6 49.3 2000 923,879 471,465 452,413 51.0 48.9 2001 1,370,657 716,837 653,820 52.3 47.7 2002 1,977,946 1,048,178 929,767 53.0 47.0 2003 2,664,168 1,414,750 1,249,418 53.1 46.9 2004 3,034,326 1,605,723 1,428,603 53.0 47.1 2005 3,730,610 1,992,034 1,738,576 53.4 46.6 2006 4,144,166 2,215,469 1,928,697 53.4 46.5 2007 4,519,554 2,395,685 2,123,869 53.0 47.0 2008 5,268,762 2,802,673 2,466,089 53.2 46.8 2009 5,648,671 2,992,636 2,656,035 52.9 47. 0 The number of residence card holders in Spain increased by 7 per cent between 2008 and 2009 (Table 3). This percentage of inter-annual variation is very low in comparative terms. The increase is six points lower than the 12.9 per cent recorded between 2007 and 2008, and it is the lowest increase since 1991. The economic crisis has reduced the appeal of Spain as a destination country. New flows are mainly due to family reunification and migration networks. 64 Of these 5.5 million immigrants, less than half (2.3 million) are citizens of the EU (National Statistics Institute, 2009a). COUNTRY CASE STUDIES - In 2009, 52.9 per cent of the immigrants were male and 47 per cent were female (Table 2), with female immigrants acting as pioneers in the migration chain. Demand from the labour market, in sectors such as domestic and hotel services, explains the strong presence of female immigrants, with women representing just under half of the arriving flows. Nevertheless, the number of male workers in the labour market is higher. Spain Source: National Statistics Institute, Municipal Register, Foreign Population, 1999–2009. 163 Table 3: Residence card holders in Spain, 2007–2009 MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY Quarter and year no. 1Q2007 2Q2007 3Q2007 4Q2007 3,236,743 3,536,343 3,740,956 3,979,014 1Q2008 2Q2008 3Q2008 4Q2008 4,192,835 4,169,086 4,274,821 4,473,499 1Q2009 2Q2009 3Q2009 4Q2009 4,495,349 4,625,191 4,715,757 4,791,232 Source: Labour and Immigration Ministry of Spain, 2007–2009. Despite the economic crisis, the percentage of permanent work permit card holders has increased over the years (Table 4), due to integration, “regularization” programmes, and the legal stability of immigrants. This type of work permit distribution – the higher percentage of permanent residency permit holders in the entire number of immigrants – ushers in a new phase in the recent history of migration to Spain. Table 4: Type of work permits, 2005–2009 Year Temporary work permit card holders (initial and renewed included) (%) permanent work permit card holders (%) 2005 77.1 22.9 2006 71.2 28.8 2007 64.9 35.1 2008 57.3 42.7 2009 58.1 41.9 Source: Labour and Immigration Ministry of Spain, 2005–2009. Since 2007, immigration flows have decreased slightly due to the economic crisis and improved immigration controls. Residence variation statistics show an important decrease from 920,534 new immigrants in 2007 to 692,228 in 2008. Job offers abroad have also been reduced as a result of labour demand constraints. Immigration flow data for 2009 are not yet available. Our conclusions are therefore tentative and will have to be viewed cautiously. Table 5: Inflow of foreign population in Spain, 2004–2008 Year Total Male Female Male (%) Female (%) 2004 645,844 354,722 291,122 54.9 45.1 2005 682,711 370,562 312,149 54.3 45.7 2006 802,971 422,997 379,974 52.7 47.3 2007 920,534 502,168 418,366 54.5 45.5 2008 692,228 370,432 321,796 53.5 46.5 Source: National Statistics Institute, Residence Variation Statistics, 2004–2008. 164 irregular immigration The most reliable analysis of the scope and patterns of irregular immigration in Spain have been made using available data on documentation processes and ad hoc surveys (see Izquierdo, 2002, 2006). In the absence of regularizations, there are only very rough estimates on the scope of irregular migration (there are only very rough estimates of deportations as an indicator of irregularity). Traditionally, these numbers were calculated by comparing the Municipal Register and residence permits, excluding student permits, temporary permits (less than six months) and renewals (Clandestino, 2009). Available data do not show an increase in the number of immigrants in irregular situations as a consequence of the economic crisis. In the long term, unemployment could have an important effect on new forms of “befallen irregularity” due to difficulties in working permit renewal (Cachón and Laparra, 2009). One would need to wait until the publication and register of 2010 data for further conclusions on the links between the economic crisis and irregular immigration. The economic crisis has reduced irregular immigration by sea, detentions at the border, apprehensions en route, and deportations (Ministry of Interior, 2010). The economic situation and pessimism about the future of the Spanish economy had a dissuasive effect on legal and clandestine inflows (Table 6). Table 6: Deportations Year no 2006 52,814 2007 55,938 2008 46,426 2009 38,129 Source: Ministry of Interior, Annual Reports 2006-2010. COUNTRY CASE STUDIES - Although the factors which explain the establishment and persistence of migratory flows are extremely complex, the intensity of immigration to Spain can be partly explained by the growth of the Spanish economy over the past decade (Spain had the strongest growth rate among the 15 original EU Member States during that time), as well as by the demand from the labour market during a period of intense job creation. However, the development of the Spanish economy has largely relied on services, tourism, and construction. Dependence on these sectors has made the economy structurally weak and created a growing gap in productivity over the years in comparison with the rest of the European economies (FEDEA, 2009). At the same time, this economic situation directly led to increased demand for unskilled workers in construction, services, and tourism, and in other sectors such as agriculture, which offers very seasonal employment. In addition, demand for domestic services has grown as a consequence of the increased level of education of Spanish women and their massive incorporation into the labour market, as well as the ageing of the population and the fact that the Spanish baby-boom Spain Composition of migrants and changes in the labour market 165 generation reached reproductive age.65 In this context, Cachón (2002) concluded that migratory flows towards Spain intensified over the past decade due to growing demand from the Spanish labour market, the attractions held by its informal economy, and the increasing standards of Spanish workers with regard to “acceptable” jobs, a tendency related to the growing social and economic prospects of the country. MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY The most recent economic studies have identified the importance of immigration to Spain’s economic growth between 1994 and 2007, in particular its positive influence on GDP and the public coffers (Oficina Económica del Presidente del Gobierno, 2006). These studies have also shown the advantages that immigration has provided to the Spanish labour market (Dolado and Vázquez, 2007). Migrants have occupied low-paying jobs which are difficult to staff with native workers, thereby promoting the development of businesses and sectors without negatively affecting the employment or wages of local workers (Pajares, 2007, 2008, 2009). 166 The participation of foreign workers in the Spanish labour market has been particularly intense throughout the last decade, as data from the Economically Active Population Survey (EAPS66) show. Unlike in Northern and Central Europe, not only do immigrants in Spain account for a large part of the active population, they also have higher rates of activity than natives (Cachón, 2009). In 1996, the percentage of the active population that was not made up of nationals of an EU Member State was barely above 100,000, or 0.7 per cent of the active population. This data is in stark contrast to statistics available for 2005: during this year, almost 2,000,000 foreign workers from outside the EU were incorporated into the active population, representing 9.3 per cent of all workers in Spain. In 2005, immigrants had a global activity rate of 78.9 per cent, which was almost 24 percentage points higher than the 55.2 per cent rate recorded for the Spanish. As Cachón (2009) pointed out, this difference in global activity was not a random occurrence in the middle of the decade, but rather a persistent tendency, although variable over time. This persistence is clearly seen in the EAPS carried out from 1996 to date (Cachón, 2009). By the end of 2009, the activity rate for immigrants was 76.1 per cent and 57.4 per cent for natives. However, it should be noted that the younger average age of foreigners largely explains this difference. In addition, foreign workers tend to work in the lower categories of the Spanish labour market, especially in jobs which pay the least amount of taxes (unskilled labourers, first-level clerks, and second-level clerks). They are clearly concentrated in the lowest-scale jobs (in construction, hotel services, agriculture, and domestic services). The presence of female immigrants in the labour market has been very important throughout the decade, and the economic crisis has increased their share in the total numbers of 65 66 This labour demand also explains the geographic pattern of immigrant settlement in Spain, which tends to be in the richer regions that have greater productive diversification or greater weight in productive sectors, such as Madrid, Catalonia, Andalusia,Valencia, Murcia, and the two island regions, the Balearic Islands and the Canaries. The Encuesta de Población Activa (EPA), or Economically Active Population Survey (EAPS), is a survey that has been carried out every trimester since 1964 by the Instituto Nacional de Estadística or National Statistics Institute, a government institution which collects and distributes official statistics about Spain. Its goal is to obtain information about the working population and its different labour categories, as well as information about the inactive population. It is the best source of information to understand the Spanish labour market and the employment of foreign immigrants. working immigrants. Unemployment affects men more than women due to the gender distribution of foreign workers in different economic sectors (Table 7). Table 7: Foreign workers by sex, 2007–2009 Year Male Female Total Male (%) Female (%) 2007* 1,246,285 790,297 2,036,582 61.19 38.80 2008* 1,235,892 852,765 2,088,657 59.18 40.82 2009* 1,079,484 812,814 1,892,298 57.04 42.95 *Data as of September. Source: Labour and Immigration Ministry of Spain, 2007–2009. The crisis has also increased the mobility of foreign workers to other economic sectors, especially in the case of male workers. For instance, the severe loss of jobs in construction has prompted the return of male workers to the “safe” sectors of agriculture and services in order to cope with the economic recession. Since 2007, growth has been particularly intense in agriculture (more than 15% in 2009) and services (Table 8). Table 8: Foreign workers by economic sector in Spain, 2005–2009 (%) Sector Agriculture Industry 2005 2006 2007 2008 2009 10.8 9.6 9.1 11.9 15.4 7.6 8.1 8.6 8.1 7.5 Construction 18.8 20.7 21.1 14.3 11.5 Services 62.7 61.5 61.1 65.5 65.4 0.1 0.1 0.6 0.2 0.2 Other Crisis, unemployment, and immigrant workers Severe job losses had serious social repercussions within the country and a very sharp impact on immigrant workers. Over the past two years, there has also been a considerable decrease in the number of people contributing to social security and a growing gap between the shares of unemployed foreigners and natives. In 2008, the unemployment rate for the active population reached 13.91 per cent, but there were huge differences between Spanish citizens and foreigners. For natives, the unemployment rate was 12.52 per cent; among foreigners, it was 8.7 percentage points higher at 21.26 per cent (Table 9). COUNTRY CASE STUDIES - For years, the massive incorporation of migrants into the Spanish labour market, especially into unskilled jobs in construction, hotel services, agriculture, and domestic service, occurred with very little intervention by the Spanish government. During this period, market forces were the main source of internal regulation of foreign workers in the Spanish economy. However, the economic crisis has changed the patterns of integration of immigrants in the Spanish labour market. Spain Source: Labour and Immigration Ministry of Spain, 2005–2009. 167 MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY Table 9: Unemployed population and unemployment rates, 2007–2009 168 Quarter and year Unemployed population Unemployment rate (%) Unemployment rate (native workers) (%) Unemployment rate (migrant workers) (%) percentage difference (native workers -migrant workers) 1Q2007 2Q2007 3Q2007 4Q2007 1,856,100 1,760,000 1,791,900 1,927,600 8.47 7.95 8.03 8.60 7.80 7.29 7.40 7.95 12.61 11.97 11.78 12.37 4.81 4.68 4.38 4.42 1Q2008 2Q2008 3Q2008 4Q2008 2,174,200 2,381,500 2,598,800 3,207,900 9.63 10.44 11.33 13.91 8.73 9.34 10.20 12.52 14.65 16.46 17.45 21.26 5.92 7.12 7.25 8.74 1Q2009 2Q2009 3Q2009 4Q2009 4,010,700 4,137,500 4,123,300 4,326,500 17.36 17.92 17.93 18.83 15.24 16.00 16.12 16.80 28.39 28.00 27.51 29.70 13.15 12.00 11.39 12.90 Source: National Statistics Institute, Economically Active Population Survey, 2007–2009. By the middle of 2009, the statistics were even worse: more than 4 million people were unemployed, representing 17.92 per cent of the active population, and the unemployment rate for natives was 16 per cent and 28 per cent for foreigners. A few months prior to mid-2009, the gap between the unemployment rates for foreigners and natives had been increasing, with the rate for foreigners almost doubling compared to that for natives. However, statistics published by the Labour and Immigration Ministry of Spain showed that in the spring and summer of 2009, the number of foreigners contributing to social security had gone up slightly, but this increase was caused by the highly seasonal nature of activities such as hotel work and agriculture, which allow the temporary activity of unemployed workers. By the end of 2009, 4,326,500 people were unemployed and the national unemployment rate had reached 18.83 per cent. The difference between the unemployment rates for foreigners and natives had increased again to 12.90 percentage points and the unemployment rate for foreign workers was almost 30 per cent (Table 9). The impact of skyrocketing unemployment has been devastating for Spanish households, especially if we consider data from the end of December 2009, which show that more than 1 million households (1,220,000 households) have all of their active members on unemployment rolls. As indicated above, some foreign workers move from construction to agriculture, domestic service, and services in order to cope with the economic crisis. They are also likely looking for new employment opportunities in other sectors. The effect of unemployment on the national and foreign population is not homogeneous. Unemployment affects male migrants more than women migrants, and it has dissimilar impacts on different groups of foreigners. As Godenau (2009a) recently pointed out, “the Spanish labour market is segmented and the effects of the crisis are different for different segments.A large percentage of non-EU migrants work in the secondary economy, with clear signs of horizontal and vertical stratification, in jobs that are more sensitive to economic conditions.” The most recent report published in Spain on immigration and the labour market (with data from the end of 2008) also indicates that Romanians, Ecuadorians, and Moroccans accounted for the greatest numbers of newly unemployed (Pajares, 2009). However, unemployment was especially high among Moroccans (nearly 35%). Although unemployment rates are lower for other immigrant communities, such as Bolivians and Paraguayans, the social conditions in these communities have deteriorated significantly due to the higher rates of irregularity and employment in the informal economy, which has limited their ability to access unemployment benefits (Pajares, 2009). The study by Pajares (2009) also indicates that, in general, unemployment and the economic crisis have significantly worsened the living conditions of many foreign residents. The crisis has made it more difficult for foreign workers to renew their work permits and to meet rent and mortgage payments in shared homes. The living conditions of foreign residents are expected to get even worse when many immigrants run out of unemployment benefits. Job losses have had a sharp effect on some nationalities. For instance, as shown in Table 10, since 2007, the number of Portuguese, Moroccan, Argentinean, and Colombian workers has decreased in absolute and comparative terms due to unemployment. Table 11 shows the huge increase in the number of foreign workers receiving unemployment benefits since 2007, most especially among Moroccan, Colombian, and Peruvian workers. Table 10: Foreign workers by nationality, 2007–2009* (main nationalities) Country of origin 2007 2008 2009 Bulgaria 49,834 51,937 54,488 Italy 68,907 72,709 63,531 Portugal 82,704 75,448 61,841 United Kingdom 60,883 60,038 54,989 Romania 215,521 248,914 283,176 Morocco 272,448 259,471 227,491 Ecuador 262,494 253,604 192,977 Colombia 150,415 153,563 121,915 Peru 79,247 88,048 74,953 China 62,857 70,044 74,569 Bolivia 51,126 63,026 70,187 Argentina 58,225 58,443 48,865 Country of origin 2007 2008 2009 Morocco 27,062 47,913 99,625 Ecuador 13,682 26,114 55,805 Colombia 8,412 14,389 31,688 Peru 3,013 5,612 13,260 Argentina 3,670 5,434 11,358 n.a. 4,352 9,174 2,077 3,448 7,227 Ukraine Algeria COUNTRY CASE STUDIES - Table 11: Foreign workers receiving unemployment benefits, 2007–2009 (main nationalities) Spain * Figures are as of November for the year 2009. Source: Labour and Immigration Ministry of Spain, 2007–2009. Source: Labour and Immigration Ministry of Spain, 2007–2009. 169 Remittance flow and use MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY One of the most significant effects of the crisis has been the decreased ability of foreign workers to save money, which has led to a steep drop in the amount of money being sent to countries of origin. Such decline in remittances is in fact the largest that the Banco de España (the Central Bank of Spain) has recorded since it started compiling statistics on remittances. Table 12 shows that remittances valued at EUR 1.9 billion were sent from Spain between June and September of 2009, representing a decrease of 9 per cent from the EUR 2,075,476 sent during the same period in 2008 (Banco de España, 2009). While remittances have fallen over the past six quarters, a steady recovery is apparent, given the smaller declines since a 20.6 per cent drop was recorded in the fourth quarter of 2008. Colombia has been the main destination of the remittances sent, followed by Ecuador, Bolivia, Romania, Brazil, and Morocco (Table 13). 170 Table 12: Remittances, 2006–2009* Quarter and year % Growth absolute value (EUR millions) 2Q2007 3Q2007 4Q2007 - 2,011 2,210 2,316 1Q2008 2Q2008 3Q2008 4Q2008 -2.6 -4.12 -6.09 -20.6 1,998 1,928 2,075 1,838 1Q2009 2Q2009 3Q2009 -17.1 -13.2 -9.0 1,653 1,673 1,888 *Year-by-year quarterly comparison. Source: Central Bank of Spain and www.remesas.org Table 13: Remittances by destination country, 2008 % EUR millions % (2008–2007) EUR millions (2007–2008) Colombia 18.0 1,411.2 -8.68 -134.1 Ecuador 13.4 1,050.6 -18.15 -232.9 Bolivia 9.2 721.3 -9.13 -72.5 Romania 5.1 399.8 -13.91 -64.6 Brazil 4.9 384.2 -5.22 -21,2 Morocco 4.9 384.2 -12.51 -54.9 Source: www.remesas.org Return migration Voluntary return migration had been taking place in Spain even before the crisis. However, due to the lack of relevant and accurate statistics, it has been very difficult to measure this process. A tool that can be used with great caution is the Residential Variation Statistics elaborated by the National Statistics Institute (INE). These are statistics on foreign emigration that include three groups of people (Pajares, 2009): 1) foreigners who, on departure, inform the Municipal Register that they are leaving Spain; 2) foreigners no longer residing in their indicated location and hence are now part of City Councils’ “institutional delete process”and 3) foreigners deleted from the database by the passdate in force since 2006. This last type is the most important and it is the result of the legal modification of the Ley de Bases de Régimen Local (Local Basic Regime Law) in 2003. This reform obligates all third-country nationals to renew their records at the Municipal Register every two years; otherwise, their records will be deleted by City Councils. A limitation of Residential Variation Statistics is that all persons who have been nationalized and who decided to return to the country of their previous nationality are not in this register, due to the fact that this database only keeps records on foreigners. European citizens are also excluded from these statistics – an important thing to note given the high numbers of Romanians and Bulgarians living in Spain. All of the above basically means that the numbers reflected in the Residential Variation Statistics provide an incomplete outlook on reality. Table 14: Residential Variation Statistics, 2004–2008 2004 2005 2006 2007 2008 41.936 48.721 120.254 198.974 232.007 Source: National Statistics Institute, 2004–2008. Besides spontaneous voluntary return, Spain has two programmes of voluntary return in force: the Voluntary Return Programme for Immigrants in Socially Precarious Situations (PREVIE) and the Programme for the Early Payment of Unemployment Benefits to Foreigners (APRE). COUNTRY CASE STUDIES - Launched in 2003, PREVIE is the first pay-to-go programme in Spain. It has been managed by IOM and NGOs since 2005. This programme is directed at non-EU immigrants with scarce resources living in a precarious social situation. The majority of the applicants are immigrants who have not successfully integrated into the Spanish labour market and society and who have dependants in their countries of origin. PREVIE provides them with a ticket back to their country of origin and covers other travel expenses. Since 2003, more than 9,000 people have taken advantage of this programme, and the number of applicants increased significantly in 2008 and 2009. In the first six months of 2009, the number of persons who participated in PREVIE equalled figures for the entire 2008 and was almost double the number in 2007. Applicants are primarily Argentineans, Bolivians, and Brazilians, and, to a lesser degree, Ecuadorians and Colombians (Table 15). Although initially, more women than men participated in the programme, the number of male applicants has increased over the past two years. This is because the economic crisis has disproportionally affected construction and other economic sectors that employed male immigrants, compared to domestic work and other sectors that mainly employed immigrant women. Spain Voluntary Return programme for immigrants in Socially precarious Situations (pREViE) 171 Table 15: PREVIE applicants, 2003–2009 Country of origin 2003 2004 2005 2006 2007 2008 2009 Total % Argentina Bolivia Brazil Colombia Ecuador Uruguay Other 60 21 6 190 175 17 135 175 127 34 198 172 33 437 108 158 59 63 80 97 363 144 174 114 52 50 61 361 168 313 143 75 36 56 393 313 516 232 62 72 71 555 521 838 429 196 226 272 815 1,489 2,147 1,017 836 811 607 3,061 14.93 21.53 10.20 8.38 8.13 6.08 30.70 Total 604 1,176 928 958 1,184 1,821 3,297 9,968 100 MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY Source: Labour and Immigration Ministry, 2009. 172 programme for the Early payment of Unemployment Benefits to Foreigners (apRE) Approved in November 2008, APRE introduced an important new element to voluntary return assistance: applicants could receive lump payments for any accumulated unemployment benefits. This programme fulfils three main conditions: 1) it is a voluntary programme; 2) it is focused on non-EU citizens; and 3) it is a structural part of the migration policy. Unlike with PREVIE, in order to benefit from APRE, applicants must have legal status in Spain.They must also be nationals of a third country which has a bilateral agreement on social security67 with Spain. In addition to returning to their country of origin, migrants must also promise not to return to Spain to reside or carry out a lucrative or professional activity, whether as an independent or as a contracted worker,68 for a period of three years. Unemployment benefits are received in two payments: 40 per cent is paid in Spain and the remaining 60 per cent is paid in the country of origin a minimum of 30 days and a maximum of 90 days after the first payment. In order to receive the second payment, the beneficiaries must go to the Spanish consulate or a diplomatic representative in their country of origin. Since the programme is relatively new, it is still too soon to provide a detailed analysis of its results. However, during APRE’s first year, 8,724 people applied, plus 1,581 relatives who accompanied these people back home. Therefore, in the early stages of the programme, 10 per cent of the potential beneficiaries have opted to take part in the initiative. More than 90 per cent of APRE applications are from Latin America. The majority are from Ecuador (44%), followed by Colombia (18%), Argentina (9.7%), Peru (8.6%), Brazil (5.3%), Chile (4.1%), and Uruguay (3.6%). The Moroccan immigrant community, which has the greatest number of potential beneficiaries, is not taking advantage of APRE. Accumulated benefits received by a recognized applicant average EUR 9,148, which means that around EUR 52 million since the beginning of this plan. Also, 3,706 beneficiaries have received travel assistance totalling EUR 3,451,510. 67 68 There are agreements with Morocco, Ecuador, Peru, Argentina, Ukraine, Columbia, Brazil, Chile, Uruguay, Andorra, the United States, Canada, Australia, Philippines, Dominican Republic,Tunis, the Russian Federation, and Paraguay. Official estimates indicate that approximately 130,000 people meet these requirements and can potentially benefit from this programme. The main nationalities of these potential beneficiaries are, in order of size, Morocco, Ecuador, Columbia, Peru, Argentina, and Ukraine. Social protection and access to benefits The normative design of the immigration model in Spain is based on equality. Therefore, immigrants enjoy the same level of social and economic rights as the native population. In order to enjoy social rights, immigrants should be registered in the Municipal Register, which is a statistical tool used to obtain the demographic characteristics of the Spanish population. Once the person is registered, then he/she can access public health and education systems. In order to enjoy economic rights, immigrants should have legal status as a resident and worker, which entails paying all Social Security contributions. There are no specific requirements regarding the duration of residence in order for migrants to enjoy their social and economic rights. integration, anti-xenophobia, and antidiscrimination measures integration measures Integration measures in Spain consist mainly of two instruments, which were expected to have received EUR 299.9 million from the central government for its purposes in 2009: 1) Fund to support the reception and social integration of immigrants and its educational reinforcement This fund was created in 2005 with the main goal of promoting social integration. It is approved annually as part of the national budget adoption. Allocation of funding for this tool increased from EUR 120 million in 2005 to EUR 200 million in 2009, but this fund has been cut by 50 per cent in the national budget for 2010. 2) Strategic Plan for Citizenship and Integration 2007–2010 The Strategic Plan aims to be a key element in governing the process of mutual adaptation of immigrants and the native population. It aims to contribute to a two-way integration process by calling for balanced interventions from both government authorities and civil society, interventions which foster social, economic, cultural, and institutional development that is advanced, plural, and lasting for all residents in Spain. COUNTRY CASE STUDIES - The Strategic Plan aspires to become one of the elements driving integration forward. Its philosophy is that public authorities must take action to move society in this direction. Underpinning the Plan is not only the assumption that society at large, including both immigrant and native populations, must be addressed, as integration concerns all members of society, but also the idea that integration policies must be tackled proactively, on a comprehensive holistic basis (Ferrero-Turrión and PinyolJiménez, 2009). Spain The Strategic Plan was approved by the government in February 2007. It is designed as a cooperation framework and its main goal is to promote activities by the administration and civil society organizations that aim to foster immigrant integration based on the principles of equality, citizenship, and interculturality. 173 The budget for this Strategic Plan was EUR 2,005,017,091, paying special attention to the areas of education, employment, and reception. A new plan will be approved in 2010. anti-xenophobia and anti-discrimination measures MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY Although the Observatory on Racism and Xenophobia was created in 2000 by Organic Law 4/2000, it was not until 2006 when this institution started to operate under the Secretary of State on Immigration and Emigration. Its tasks include research and analysis on the fight against racism and xenophobia. The Observatory is also a mechanism that allows the identification of the main threats to the equal treatment of immigrants and their non-discrimination by nationality, race or ethnicity. 174 In addition to the Observatory, a new draft Law on Equal Treatment is being developed, accompanied by the creation of a Council of Equal Treatment and Non-Discrimination. In December 2008, a National Plan on Human Rights that included measures to improve the social integration of migrants and combat discrimination was approved. The Plan has two priority axes: equality, non-discrimination, and integration on the one hand, and upholding of human rights on the other hand. A Follow-up Commission on the Plan, to be chaired by the State Secretary of Constitutional and Parliamentarian Affairs, will include the ministries responsible for the implementation of the National Plan on Human Rights, the Ombudsman, representatives of NGOs, human rights institutes at universities (e.g. the Instituto Bartolomé de las Casas at Universidad Carlos III de Madrid), and independent experts. No specific budget was allocated for this Plan due to the fact that it is basically an evaluation plan for measures taken in other instances. policy responses The past few years have been a period of economic growth and constant creation of new jobs, with the market acting as the principle regulator of demand and providing the stimulus to import foreign labour, both into the formal and informal economies. In this model, which will continue to work well as long as the economy continues to grow, state intervention was never proactive, but was rather limited to regulating the constant influx of foreign immigrants into the labour market. However, the management of migratory flows could require a different approach in the current adverse economic situation, which is characterized by tension between structural objectives and political mechanisms. Demand for workers has clearly contracted, creating a large group of unemployed foreigners who have already settled in Spain prior to the downturn. The Spanish government has launched several kinds of political initiatives to counteract the severe economic downturn. The first set of measures focuses on containing the arrival of migrant workers by reducing the size of the foreign worker quotas and the Catalogue of Vacant Jobs, while also suspending, for all intents and purposes, the bilateral hiring agreements with the countries of origin. The objective of these measures is to limit the number of foreign workers arriving in the country at a time when the economic situation is poor and the labour market is unable to provide jobs for migrants already residing in Spain. In the context of the crisis, the demand from the Spanish labour market is for fewer and more specialized workers (such as domestic workers), and old mechanisms to bring in new workers in from abroad would need to be frozen in order to assist unemployed foreign residents in their job search. The second type of measure seeks to improve the living conditions of immigrants and strengthen their social integration and civic inclusion by supporting the exercise of their social, economic, and political rights. This goal is considered to be particularly important as a way to avoid economic crisis-induced social conflicts between the native population and foreign residents, as well as to ensure that the living conditions of immigrants settled in Spain do not worsen considerably. It is important to add that, although these kinds of measures have not been a direct result of the economic crisis, their implementation has real consequences for the process of maintaining peace and social cohesion. Changes in labour market policies Worker quotas The numbers show how the crisis has negatively affected this process. In 2007, a year of strong economic growth, 27,034 stable jobs were offered through the quota system, 455 visas were issued for domestic work, and 500 visas were granted to the children and grandchildren of Spanish citizens, allowing them to search for jobs in Spain. In 2008, as the economic crisis gradually worsened, the number of stable jobs was reduced to 15,731. This number went down by 90 per cent in 2009, when the quota shrank to a mere 901 job offers. In 2010, the quota is 168 job offers, a fall of 80 per cent in relation to 2009. The main targets are engineers and medical doctors. COUNTRY CASE STUDIES - The changes recently introduced to the quota policy included the possibility to modify the number of available jobs throughout the year, as well as to process only stable job offers (contracts longer than one year).These changes also included the creation of job search visas in two categories: visas for the children or grandchildren of Spanish citizens and visas provided to immigrants specializing in areas experiencing a serious shortage of workers. In 2006, there were 16,878 stable jobs offered through the quota system, 646 job search visas given by a specific occupation or activity, and 570 visas for Spanish descendants. Spain The worker quota is not a new management mechanism (Aparicio and Roig, 2006), but the modalities of its operation have changed as of 2006. This mechanism was originally designed to manage flows by recruiting, in accordance with the needs of the Spanish labour market, foreign workers from their country of origin; that is, the recruits could not be present in Spanish territory or residing there at the time of recruitment. This system was used to guarantee that job openings were not left vacant when they could be filled by native workers, workers from EU Member States, or other foreigners legally residing in Spain. This mechanism is directly linked with a bilateral agreement policy which included new countries of origin in a system for joint management of job offers by the country of origin and the host country (FerreroTurrión and López-Sala, 2009). 175 The Special Catalogue of Vacant Jobs MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY A new recruiting system was included in the 2005 immigration regulation known as the Special Catalogue of Vacant Jobs, which is a list of professions for which the labour market is experiencing shortages of workers. The list is created by the public employment services and is approved and renewed every quarter. The Catalogue was developed to streamline the process of covering vacant positions by eliminating the need to publish job offers, as had been required by the general system. No country of origin is excluded from the process, but potential candidates should meet the requirements listed in the catalogue. Statistics show that this method of channeling workers has been very successful. There were 120,324 initial work and residence permits in 2006, 178,340 in 2007, and 136,604 in 2008. However, there were only 15,000 workers contracted in countries of origin in the first nine months of 2009, mainly in the health care sector, such as doctors or nurses, and in technical engineering. 176 promoting social integration and improving the employability of immigrant workers Reform of the Immigration Law Although in general the Immigration Law has only been moderately reformed, it does include measures to reinforce the social integration of foreign residents. One way to reinforce social cohesion is to promote the civil and social rights of foreigners in Spain and the text of the law includes Constitutional Court judgements that fully acknowledge their rights to associate, protest, form trade unions, and strike (Ruling 236/2007 of the Tribunal Constitucional69). The reformed law also states that all foreign minors in Spain have the right to education up to the age of 18, regardless of their legal status. Before the reform, foreign minors were only entitled to this right until they were 16 years old, which is the age when obligatory education ends. Furthermore, the law recognizes the right of legal foreign residents to have access to housing aid, as well as the right to work of spouses and children older than 16 who have been reunited with family members in Spain. One of the most important measures is to issue work permits to persons coming into country as part of family migration, without taking the national labour market into consideration. This gives these migrants an equal chance to compete with native and European citizens for job offers. However, family migration has been restricted in two cases: 1) in relation to ascendants who are more than 65 years old and 2) in relation to the period of residence in Spain: previously, a migrant was eligible for family reunification after one year of residence, now a permanent residence permit is needed for this process. The final text of the new Immigration Law was approved in December 2009. Reform of immigration regulations Current policy is also trying to improve the situation of unemployed foreign residents by promoting residential and job mobility. This is one of the goals of the amendment 69 The Tribunal Constitutional (Constitutional Court) is the high court that makes final rulings on questions regarding the Spanish Constitution. to the regulation on immigration approved by the Council of Ministers on 10 July 2009. In order to facilitate job searching in Spain, work authorizations have been modified to eliminate geographic or activity restrictions and also to allow foreign workers to transition between employment and self-employment. This mobility was not possible for foreigners under the prior legislation.70 These amendments will make it easier for foreign workers to work in different regions of Spain and change the type of their economic activity. It will also be easier for immigrants to renew work authorizations when their work history shows strong ties to their job, as well as for other foreigners who lack a valid work contract at the time of renewal, if they have relatives who can support them during their stay in Spain. Reciprocity agreements to vote in municipal elections Among the measures aimed at promoting social integration and cohesion, one must include those that seek to encourage foreign residents to exercise their political rights. Since November 2008, Spanish authorities have been negotiating and signing reciprocity agreements regarding the right to vote in local elections with 15 countries that have already introduced similar arrangements for Spanish citizens who reside in their territory. As of July 2009, agreements have been signed with Colombia, Peru, Argentina, Trinidad and Tobago, Ecuador, Iceland, Burkina Faso, Cape Verde, Paraguay, the Republic of Korea, and New Zealand. Spain is still negotiating agreements with Bolivia, Uruguay, and Venezuela, with all three cases currently being reviewed by electoral authorities. These agreements cover the conditions under which foreigners can exercise the right to vote in Spain. Foreigners can vote if they have resided legally in the country for a continuous period of at least five years prior to their application to be included in the electoral census. public opinion Figure 2 shows that immigration was perceived as a main problem for the country in two cases: when the normalization process took place (2005) and during the “cayuco crisis” in summer 2006 (see López-Sala, 2007; Esteban Sánchez and López-Sala, 2007). Since then, public opinion that immigration is a problem has started to wane. 70 COUNTRY CASE STUDIES - With regard to the first question, especially on the topic of immigration, citizens’ responses usually reflect what is presented by the mass media. As for the second question, their responses are much more honest. In January 2010, for instance, the main perceived problem for the country was unemployment (82.7%), followed by economic problems (47%), and terrorism (17.6%). The main problem affecting respondents personally was again unemployment, but this problem accounted for just 43.3 per cent of the responses, or almost half of the answers to the country-focused question. Spain Every month the Sociological Research Center (CIS), a state institution publishes a barometer of public opinion. The respondents are asked to comment on the main problem that Spain is facing and the main problem that is affecting the respondent personally. The contrast between the responses to these two questions is very graphic. Article 49.2 of R.D 2393/2004, December 30. 177 Figure 2: Evolution of public opinion on immigration as a problem for the country, April 2004-January 2010 70 60 50 40 30 178 10 ar M ay -0 4 -0 Ju 4 l-0 O 4 ct D 04 ec -0 Fe 4 b0 Ap 5 rJu 05 nSe 05 pN 05 ov Ja 05 n0 M 6 ar M 06 ay -0 Ju 6 l-0 O 6 ct D 06 ec Fe 06 b0 Ap 7 rJu 07 nSe 07 pN 07 ov Ja 07 nM 08 ar M 08 ay -0 Ju 8 l-0 O 8 ct D 08 ec -0 Fe 8 bAp 09 rJu 09 nSe 09 pN 09 ov -0 Ja 9 n10 0 M MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY 20 Personal Country-level Source: Own elaboration; Centro de Investigaciones Sociológicas (CIS), 2004–2009. Conclusion Despite the developments and changes in migration dynamics and policies that can be observed since 2007, the direct impact of the economic crisis remains difficult to assess. Since 2007, immigration flows to Spain have decreased slightly, with family reunification mainly accounting for new flows. In addition, the number of temporary work permits issued has decreased progressively, but is still at a higher percentage than the number of permanent work card holders. However, the economic situation and pessimism about the future of the Spanish economy seem to have dissuasive effects on legal inflows, and even seem to reduce irregular immigration. The impacts on the labour market in general are far more visible. The gap between the shares of unemployed foreigners and natives is growing rapidly. By mid-2009, the unemployment rate stood at 16 per cent for natives and 28 per cent for foreigners. Foreign workers are mostly concentrated in sectors such as construction, hotel services, agriculture, and domestic services. Construction, in particular, has been severely affected by the crisis; this could be one reason for the high unemployment rate, specifically among male immigrants. The effects of job losses due to the crisis can also be seen in the steep drop in remittance outflows. The Bank of Spain noted a decrease of 9 per cent in September 2009, compared to the same period in 2008. It is unclear to what extent the current economic downturn has led people to return to their countries of origin, due to the lack of accurate statistics. However, PREVIE saw an increase in applicants in 2008 and 2009. The number of persons who participated in this voluntary return programme in the first six months of 2009 equalled the total number of returnees in 2008, and was almost double the number in 2007. With regard to policy responses to the crisis, the government has made changes to social protection and integration measures. The allocation for the “Fund to support reception and social integration of immigrants and its educational reinforcement”, for example, was cut by 50 per cent in the national budget for 2010. Furthermore, in the current economic situation, where demand for workers has contracted, the Spanish government aims to contain the number of workers arriving from abroad by reducing the size of foreign worker quotas and making changes to the Special Catalogue of Vacant Jobs. Whereas 136,604 initial work and residence permits were issued in 2008, there were only 15,000 workers contracted in countries of origin in the first nine months of 2009, mainly in the health care sector, such as doctors or nurses, and in the technical engineerin In contrast, social integration measures have been promoted and the Immigration Law was moderately revised in December 2009. It now includes measures to reinforce the social integration of foreign residents by increasing to 18 years old the age up to which migrant children have the right to education regardless of legal status. Furthermore, the government has allowed issuing work permits to persons coming into Spain as part of family migration, without taking the national labour market into consideration. These reforms, however, have not been introduced as a direct result of the economic crisis. Public opinion is focused on unemployment in general as the main problem that Spain faces, and not on immigration as such. The Municipal Register (Padrón Municipal de Habitantes) is the administrative register which records municipality residents. Its creation, maintenance, revision, and custody are the responsibilities of the respective municipal councils. The revision of the municipal register referred to 1 January of each year is obtained from its update (National Statistics Institute). The Residential Variation Statistics (Estadística de Variaciones Residenciales) is elaborated based on new registrations and registry removals in the municipal registers of inhabitants due to changes of residence. Migratory annual flows are thus obtained at the domestic (i.e. between different Spanish municipalities) and foreign (i.e. between Spanish municipalities and foreign regions) levels (National Statistics Institute). COUNTRY CASE STUDIES - about the sources Spain Concerning the Spanish labour market and immigration, one can say, that since 2004, the immigration policy on foreign worker recruitment has been designed as a flexible framework more adaptable to national employment needs. Bilateral agreements with countries of origin, the list of vacant jobs, and, especially, the quota policy are more complex devices and more sensitive to special economic dynamics. The worker recruitment policy created a political and institutional framework which is able to respond more efficiently to changing contexts. While the outlook on Spain’s economic prospects is not very optimistic yet, these political mechanisms will be very useful in times of economic boom and economic constraints alike. Some analysts predict a sharp rebound in the Spanish economy, while others foresee sluggish growth. Nevertheless, in the long term, this policy will enable the Spanish economy to cover its needs for temporary and high-skilled foreign workers. 179 The Economically Active Population Survey (Encuesta de Población Activa) is a quarterly survey that targets households. Its main objective is to obtain data on the labour force (subcategorized by employed and unemployed) and on people outside the labour market. The theoretical sample for this survey varies from 65,000 households per quarter to approximately 60,000 actually interviewed households (approximately 180,000 people). References Aparicio, W. and E. Marco y Roig Molés 2006 “La entrada por razones laborales” en E. Aja and J. Arango (Eds.), Veinte Años de Inmigración en España, Fundación CIDOB, Barcelona. MIgRATION AND ThE ECONOMIC CRISIS IN ThE EUROpEAN UNION: IMplICATIONS fOR pOlICY Baldwin-Edwards, M. and J. Arango (Eds.) 1999 Immigrants and the Informal Economy in Southern Europe, Frank Cass, London. 180 Cachón, L. 2002 Cachón, L. 2009 “La formación de la España inmigrante: Mercado de trabajo y ciudadanía”, in Revista Española de Investigaciones Sociológicas, nº 97, pp. 95–126. La España inmigrante: marco discriminatorio, Mercado de trabajo y políticas de integración, Anthropos, Barcelona. Cachón, L. and M. Laparra 2009 Inmigración y políticas sociales, Bellaterra, Barcelona. Clandestino 2009 Irregular Migration in Spain. Spanish Report, Policy brief, Carmen Clandestino Project. Dolado, J. and P.Vázquez 2007 Ensayos sobre los efectos económicos de la inmigración en España, Fundación FEDEA, Madrid. Esteban Sánchez,V. and A. López-Sala 2007 “Breaking Down the Far Southern Border of Europe: Immigration and Politics in the Canary Islands”, Migraciones Internacionales,Vol. 4, nº 1 (nº 12), pp. 87–100. Fundación de Estudios de Economía Aplicada (FEDEA) (Ed.) 2009 La crisis de la economía española: lecciones y propuestas, Madrid. Ferrero-Turrión, R. and A. López-Sala 2009 “Nuevas dinámicas de la gestión de las migraciones en España: el caso de los acuerdos bilaterales de trabajadores con los países de origen”, in Revista del Ministerio de Trabajo e Inmigración, nº 80, pp. 119–132. Ferrero-Turrión, R. and A. López-Sala 2009 “Economic crisis and migration policies in Spain: The big dilemma”, Paper presented at COMPAS Annual Conference: New Times? Economic crisis, geo-political transformation and the emergent migration order, Oxford, 21–23 September 2009, unpublished. Ferrero-Turrión, R. and G. Pinyo-Jiménez 2009 “Inmigration and the construction of public philosophy (s) of integration in Spain”, in E. Guild, K. Groenendij, and S. Carrera (Eds.), Integration, Immigration and Citizenship, Asghate. Fix and CIA 2009 Godenau, D. 2009a 2009b “Migration and the Global Recession”, Migration Policy Institute, September 2009. “Inmigración, crisis y mercado de trabajo”, in Seminario Las Políticas Migratorias en tiempos de crisis, La Coruña, 29 June 2009. “Inmigración, crisis y mercado de trabajo en Canarias”, in Real Sociedad Económica de Amigos del País de Tenerife (Ed.), Claves de la economía canaria para el futuro: impacto de la crisis, La Laguna, en prensa. Izquierdo, A. 2002 2006 López-Sala, A. 2007 “La inmigración en España entre dos regularizaciones”, Economistas, nº 91. pp. 277–282. “Cuatro razones para pensar en la inmigración irregular”, in C. Blanco (Ed.), Migraciones: Nuevas movilidades en un mundo en movimiento, Anthropos, Barcelona, pp. 139–159. “Política Migratoria e Inmigración Irregular a través de Embarcaciones. El caso del archipiélago canario”, in E. Aja and J. Arango (Eds.), La Inmigración en España en 2006. Anuario de Inmigración y Políticas de Inmigración, Fundació CIDOB, Barcelona. Ministerio del Interior 2010 Balance de la lucha contra la inmigración irregular, Madrid. Organisation for Economic Co-operation and Development (OECD) 2009 International Migration Outlook. SOPEMI 2009, Special Focus: Managing Labour Migration. Oficina Económica del Presidente del Gobierno 2006 Inmigración y economía española: 1996-2006, Madrid, 15 November 2006. 2009 Spain 2008 Inmigración y mercado de trabajo, Informe 2007, Observatorio Permanente de la Inmigración nº 14, Ministerio de Trabajo e Inmigración, Madrid. Inmigración y mercado de trabajo, Informe 2008, Observatorio Permanente de la Inmigración nº 17, Ministerio de Trabajo e Inmigración, Madrid. Inmigración y mercado de trabajo, Informe 2009, Observatorio Permanente de la Inmigración nº 21, Ministerio de Trabajo e Inmigración, Madrid. COUNTRY CASE STUDIES - Pajares, M. 2007 181