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Workers who invest in education and training and obtain licenses and certificates generally find that employers seek them out and often pay their costs to move to the job. Matching workers with jobs has costs that must be paid by someone, employers, workers, or governments. However, employers of lower-skill migrant workers often rely on temp agencies to recruit workers or use network hiring to find additional workers, which involves current employees referring qualified friends and relatives, reducing the need to post ads and screen workers who apply for jobs. EU employers of migrant skilled workers such as nurses generally pay recruitment and transport costs, and may provide housing and other benefits. Third-country or non-EU workers may pay for EU jobs upfront in recruiter fees and after arrival in lower wages and fewer benefits. Temp or agency workers may not pay upfront for jobs in other EU countries, but they often earn lower wages or receive fewer benefits than similar local workers, so payment for their jobs often takes the form of lower earnings. In many cases, intra-EU migrant workers move as employees of temp or staffing firms that recruit workers in one country and “post” them in another. Intra-EU migrant workers can find jobs in other EU countries by paying for transportation and seeking work after arrival, or they can find a job in another country before they depart and negotiate with their future employer about sharing the costs of transportation and related expenses. There are two major types of migrant workers in EU countries: intra-EU migrants and third-country nationals.Įxamples of intra-EU migrant workers are Poles or Portuguese employed in the UK who move under freedom of movement regulations, one of the four pillars of the EU, viz, the free movement of goods, capital, services and labour between EU Member States. No one knows how much employers and EU workers spend to move to other EU Member States for jobs, and there are even fewer data on what non-EU migrant workers spend to get jobs in the EU. The major costs of workers include lost earnings while seeking a job, spending money on training or other assistance to increase the chances of being hired, and paying a recruiter to get a contract for a particular job. The major costs incurred by employers are the cost of leaving the job vacant, the cost of advertising and screening applicants, and the cost of training newly hired workers. low-skilled migrantsĮmployers seeking workers and workers seeking jobs incur costs.
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Recruitment costs differences: Intra-EU vs non-EU workers and high vs.
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This combination of high costs, regressivity and non-transparency prompted the UN Secretary General to emphasize the “enormous gains to be made by lowering costs related to migration especially by low-skilled migrant workers.” (2013: para 113). Furthermore, many workers do not know upfront how much they will have to pay for foreign jobs, so they can be induced to pay more than they expected. High worker-paid costs are regressive in the sense that lower-wage workers pay more for foreign jobs than higher-wage workers. But the supply of workers earning less than USD 500 a month often exceeds the number of jobs, allowing employers, recruiters and others to charge workers some of the wage gap between poorer and richer countries that motivates workers to seek foreign jobs. Employers usually pay recruitment costs for highly skilled workers, since the demand for mobile professionals such as accountants and nurses typically exceeds the supply of workers willing to move. The International Labour Organization (ILO) conventions and the laws of many EU countries require employers to pay all of the costs associated with recruiting foreign workers. There are many reports of migrant workers paying high fees and taking on debt at high interest rates to obtain contracts to work in other countries, prompting global efforts to develop a database of worker-paid migration costs and policies to reduce them. Recruitment costs are high, regressive and non-transparent