Rapid Rise in Work Permits Despite Economic Slowdown - TCD Policy Institute Study

November 03, 2003

The rapid increase in the number of work permits issued to workers from outside the European Union since 1999 is continuing in 2003, despite the economic slowdown and more restrictive work permit policies, according to research published today (Monday 3 November) by Trinity's Policy Institute. But the share of non-EU nationals on work permits in Ireland's total labour force – at around 2 percent [to be exact: 2.25%] - remains small.

The research by Dr Martin Ruhs is the first detailed analysis of the Government's work permits data ever conducted and was undertaken with the support of the Work Permits Unit of the Department of Enterprise, Trade and Employment.

The key findings include:

• The number of work permits issued to non-EU nationals increased: from 5,750 in 1999 to 40,504 in 2002. The total number in 2003 is likely to exceed the figure for 2002: during January-September 2003, 36,682 permits (including 18,463 renewals) had already been issued. The increase is happening despite declining rates of economic growth and the government's decision earlier this year to make certain occupations ineligible for work permits.
• The average age of Non-EU nationals employed on work permits is 30. In 1999-2002, almost two thirds have been men but the share of women is increasing. 16 per cent work in agriculture and 8 per cent in industry but more than three quarters are in service jobs.
• 3 out of 4 non-EU nationals in Ireland on work permits are employed in relatively low-skilled occupations (2002). About a quarter of them work in catering where the share of non-EU nationals in total sectoral employment is significantly higher than in other sectors.
• 40 per cent of all Non-EU nationals employed on work permits work in Dublin. Cork (7 per cent), Kildare (6 per cent), Meath (5 per cent) and Galway (4 per cent) are also popular destinations.
• In 2000-2002, the number of new work permits issued to non-EU nationals was more than double the number of new applications for asylum.
• Workers come to Ireland from 152 countries, but 10 countries provided more than 50 per cent.
  The 5 countries providing the most workers in 2002 were Latvia, Lithuania, Philippines,
  Poland and Romania.
• Only one third of all work permits in Jan-Sep 2003 were for people from the ten EU accession
  countries, despite the government encouraging employers to give preference to workers from
  these countries.
• In 2002, the average gross weekly pay promised to non-EU nationals on work permits was
  EUR 424. The job category with the lowest weekly pay offered – EUR 253 - was "personal
  and protective services in the domestic service sector" - roughly equivalent to the minimum
  wage. It is not known whether workers actually received this wage.

"The continuing rise in the number of permits suggests demand is fuelled not by economic growth as
in the past but by a continuing shortage of labour in specific sectors, by migrant networks which now
link Non-EU workers in Ireland with their friends and relatives abroad, and by recruitment agents.
Local employers may also have found foreign workers willing to accept employment conditions that
are unappealing to local people," explained author Dr Ruhs at the launch.

The government's expectation that EU enlargement, and the associated expansion of the supply of
potential EU labour (from the accession countries), will significantly reduce the employment of
workers from outside the enlarged EU and thereby obviate the need for work permits may be
misplaced, according to the report. It suggests employers may still prefer to employ a non-EU national
who finds it more difficult to change jobs and escape unsatisfactory employment conditions than an EU
national who enjoys freedom of movement in the labour market.

It is necessary to continue with the development of a comprehensive work permit system and labour
immigration policy given the uncertainty about the impact of EU enlargement on the employment of
workers from outside the enlarged EU. More information is needed about the economic and social
impact of foreign workers, why employers need them and the role of the recruitment industry in
shaping migration flows to Ireland," argued Dr Ruhs.

The report calls for increased efforts by the Department of Enterprise, Trade and Employment, the
Department of Equality, Justice and Law Reform and the Central Statistics Office to improve the
availability and analysis of the data already collected by these agencies. It also recommends the
establishment of an inter-departmental "Working Group on Immigration Statistics and Analysis" to
coordinate the mechanisms of data collection and statistical analysis across the various data producers.
"Martin Ruhs' report represents a major advance in the understanding of recent immigration patterns to
Ireland. It also demonstrates the value of well-designed research in the evaluation of public policies and
programmes. The Policy Institute seeks to foster closer links between academic research and policymakers, and this report is a relevant and very practical example of the expertise that researchers can deliver," commented Prof. Bob Holton, Director of The Policy Institute.

"The Department is pleased to have been able to assist Dr Martin Ruhs and to benefit from
independent, professional research in this very topical and rapidly changing area," commented Mr
Michael Cunniffe, Principal Officer, Economic Migration Policy Unit, Department of Enterprise, Trade
and Employment.

The series 'Studies in Public Policy' published by Trinity’s Policy Institute aims to bridge the gap between the academic and professional policy communities and make a real difference to public policy debate in Ireland.