Third Country Highly Skilled Immigrants in Greece · Greece is a country with an already high percentage of immigrants and currently the need for highly skilled workers seems limited.

1

Centre of Planning and Economic Research EMN Greek National Contact Point

Conditions of entry and residence of Third Country Highly Skilled

Workers in Greece

By

Costas N. Kanellopoulos*

and Ioannis Cholezas

Athens

September 2006

We would like to thank responsible officials of the Ministry of Interior and National Statistical

Service for helpful discussions and the provision of data and information.

* Centre of Planning and Economic Research (KEPE)

Hippokratous 22 str., Athens 10680, Greece

Email: [email protected]

2

1. Executive Summary

Greece is a country with an already high percentage of immigrants and currently the need for

highly skilled workers seems limited. This is so because the structural unemployment rate is

high in Greece, even for tertiary education graduates, while a high percentage of skilled

immigrants employed in Greece are overeducated. Moreover, the number of vacancies,

especially for skilled workers, in the Greek labour market is very small indicating the lack of

any serious shortages of skilled labour. The prospects of the demand for highly skilled labour

do not seem to be radically different from the current in the coming years. Even if high growth

rates of the Greek economy persist, it is rather unlikely that the demand for highly skilled

workers will increase remarkably. In this context, it is untenable to argue that there would be a

remarkable effective demand for third country highly skilled workers.

The legal framework in Greece regarding third country highly skilled immigrants provisions

favourable entry and stay procedures for certain categories of immigrants, like board members,

managers or executives, public interest workers, members of archaeological schools, personnel

from firms established in EU member states, who are allowed to bring along their family

members, as well as intellectual creators and specialised personnel from firms established in

third countries, for whom family unification follows general rules. Another worth mentioning

category, which might include highly skilled third country workers, is that of self-employed,

who can enter the country under special conditions.

Based on data from the Ministry of Interior the number of third country highly skilled

immigrants is estimated to be about 7,000 out of 730,000 valid residence permits at the end of

2005, which can be considered as quite low. It is worth mentioning that the majority of highly

skilled immigrants residence permits concern independent economic activity and company staff.

The above presented evidence does not imply that a revision of the legislative framework

further facilitating the entry and employment of highly skilled third country immigrants in

Greece is necessary.

Based on data derived from LFS, skilled immigrants represent 4.7 percent of total employment,

while the largest group of skilled immigrants in Greece are third country nationals (almost 9 out

of 10 in 2005). It turns out that those immigrants originating from EU14 countries are mainly

employed as highly skilled, the great majority of males originating from EU10 countries are

employed as skilled workers, while the great majority of females are employed as highly

skilled. On the other hand, third country skilled immigrants, originating primarily from Albania,

3

are employed mainly in occupational groups 6-8 and more specifically almost 7 out of 10 as

craft and trades related workers. In this particular group about 1 out of 4 male workers is

immigrant, implying a remarkable influence in the relevant labour market.

2. Introduction

During the last decades human capital accumulation, as indicated mainly by the level of formal

education achieved, is consistently increasing in many countries. On the other hand the rapid

decrease in transportation costs, the availability of cheap information, the political and

economic turbulence in eastern Europe and the outbreak of local conflicts all over the world

have increased the number of observed and potential emigrants [Venturini, 2004]. At the same

time, many former emigration countries have transformed to potential host countries. Southern

European countries, among them Greece, are such examples.

These major developments produced a third one, namely migration of highly skilled individuals

or, said differently, migration of individuals embodying large amounts of human capital. In this

context, recent OECD data show that Canada and many European countries (e.g. France,

Germany, Sweden and the UK) are important sources of temporary skilled-migrants to the U.S.

(postdoctoral students, researchers, company transferees), but less so in terms of permanent

skilled migration suggesting more a pattern of “brain circulation” instead of “brain drain”. At

the same time, many European countries have turned to an attractive destination for highly-

skilled individuals, originating mainly from third world and former communist countries.

Nevertheless, there is still a long way to go, in order for Europe to become equally attractive to

highly-skilled immigrants with the U.S..

The need for highly skilled immigrants is pressing in many EU countries, when one considers

that in 2050, because of population ageing, there will be only 56.7 percent EU-citizens of

working age compared to current 67,2 percent. In addition, the fact that many Europeans first-

generation immigrants with a university degree prefer to live in Canada and the US is a strong

blow in Europe’s competitiveness. On the other hand, some researchers argue that certain

European countries face shortages of skilled workers, which slows down their growth rate,

especially when compared to the US.

This report focuses on the current situation in Greece concerning highly skilled immigrants. It is

part of a wider European plan to propose a directive for developing a common special

procedure to quickly select and admit highly qualified immigrants, as well as to provide

4

attractive conditions to encourage them to choose Europe. Furthermore, such a proposal could

take one more step in evaluating whether intra-EU mobility or an even more ambitious EU

work permit issued by one member state and valid throughout EU might be feasible.

This study was undertaken shortly after the completion of the small scale study on “Managed

Migration and the Labour Market – The Health Sector in Greece” and the results of both of

them are consistent. As is shown in this study, the situation in Greece regarding the employment

and needs for highly skilled third country immigrants seems to a certain extent different from

that of many EU countries, in the sense that it is hard to claim that Greek economy needs many

such immigrants. On the supply side of skilled workers, the main indicators supporting such an

argument are the following:

First, there is a consistent large increase of tertiary education graduates (university and

technological institutes graduates) through time, which implies that Greece produces the skilled

workers it needs. In this context, many Greek students study abroad1 and a respectable

proportion of them, because of poor career prospects in Greece, chooses to stay there

indefinitely. That probably represents a brain loss for Greece and a brain gain for the host

countries.

Second, there are persistent, though declining, high unemployment rates throughout the country

ranging from 11.4% in 1998 to 9.8% in 2006. Moreover, high unemployment rates prevail

among tertiary education graduates for about the last two decades. Such remarkable

unemployment is systematically met in almost all fields of studies.

Third, Greece has experienced an increase in its labour force by the inflows of immigrants in

the last 15 years. According to the Ministry of Interior at the end of 2005 almost 730,000 third

country nationals were holders of valid residence permit, while it is estimated that more than 10

percent of population in Greece are foreigners. Furthermore, many immigrants are considered

as overeducated, in the sense that they hold a job for which the level of qualification is below

that which their level of education would normally allow. A study carried out by OECD (2005)

adopting this concept of overeducation, estimates overeducated immigrants in Greece as high as

39 percent, compared to 9 percent of Greeks. It is worth noting that this overeducation rate is

one of the highest among EU country members.

1 According to Eurostat’s 1998 data, Greece has one of the highest proportion of students studying abroad (146.9 per 1000 students). Iceland and Luxembourg are the only two countries among OECD countries, with higher proportions of students studying abroad. [OECD, 2002]

5

Fourth, the relatively unfriendly economic environment compared to other EU countries, in

terms of available jobs and pay, reduces the attractiveness of Greece as a destination country for

highly skilled immigrants.

Regarding the demand side of skilled labour available indications, however, even if poor,

reaffirm that there is no remarkable unsatisfied demand. In Greece there are no systematic data

available on total number of vacancies or even more by occupation. One exception is a study by

Kaminioti and Chletsos (2004), in which they attempt to estimate the number of vacancies by

occupation and region in 2003, based upon entrepreneurs questionnaires. Their main outcome is

that the total number of vacancies is about 53 ths, that is 1.2 percent of total employment, or

equivalently about 10 percent of the total number of unemployed. Most of them are found in

Attica and Central Macedonia, the two most populated regions in Greece. Furthermore, these

vacancies are even more limited in occupational categories that are considered as highly skilled

workers. On the other hand, according to the same study, the demand for highly skilled workers

(both general and technical tertiary education graduates) is expected to rise in the near future.

Another attempt to estimate firms personnel needs is based on a survey conducted by the

Federation of Greek Industries (SEV), addressed to its members. Despite all above mentioned

indicators, Greek industrialists claim that they face difficulties in finding skilled personnel in

many occupations concerning new production techniques (Psacharopoulos, 2003). To sum up,

available indicators regarding the needs for highly skilled third country immigrants in Greece

show that such needs should not be large in numbers.

Moreover, the prospects of the demand for highly skilled third country nationals do not seem to

be radically different from the current in the coming years. Even if the Greek economy

continues to grow at the same high rate in the years to come, it is unlikely that the demand for

highly skilled third country workers will increase remarkably. In the last decade, the vigorous

growth of GDP was not accompanied by sizeable employment growth. Thus, a favourable

scenario would involve a decrease in the high current unemployment rate and an increase in the

relatively low employment rate, especially for females. In that sense, the scenario of increased

demand for highly skilled third country immigrants is rather remote.

Regarding the attraction of highly skilled workers to Greece, the relevant legislative provisions

are included in the last immigration laws (Law 2910/2001 as was replaced by law 3386/2005).

These laws provision favourable procedures in order to accommodate the entry and stay of

certain groups of highly skilled immigrants compared to regular immigrants. Nonetheless, it is

6

difficult to identify remarkable legislative or administrative changes regarding the admission of

third country highly skilled nationals since 2001.

Regarding the revision of the current provisions on the entry and employment of highly skilled

third country nationals, there is no officially expressed will to make any changes. Moreover, the

above presented evidence does not imply that a revision further facilitating the entry and

employment of highly skilled third country immigrants in Greece is necessary.

3. Methodology

This study was produced following the specifications provided by EMN and using available

information stemming from published and unpublished material. All articles and reports on the

subject were utilized, as well as available statistical data, although the relevant sources are

rather few and the topic remains rather unexplored. Furthermore, fruitful contacts with pertinent

authorities, as well as, with researchers and practitioners were realised.

Our first task was to define the concept of highly skilled to be used. In this report we decided to

present relevant information provided by National Statistical Service (ESYE) and the Ministry

of Interior, which is responsible for work and residence permits of third country nationals.

ESYE follows the definitions and approach adopted and proposed by EUROSTAT for skilled

workers, as classified in ISCO-88. In this context, LFS defines as highly skilled those belonging

to the first three occupational groups, whereas skilled are those in groups 6-8. Even though

current immigration law does not provide any definition of highly skilled immigrants, one could

consider as such those granted facilitated entry and residence procedures. The law provisions

certain such categories, like workers promoting public interest, board members, managers or

company staff and intellectual creators.

Data regarding the numbers, profile and evolution of highly skilled immigrants in Greece are

rather non systematic. One data set providing relevant information is the Labour Force Surveys

(LFS) conducted by ESYE, as well as unpublished data from the Labour Force Employment

Organisation (OAED), which are collected through individual employment cards filled in by

employers. Nevertheless, there are also sources of data concerning the immigrant population

usually collected by individual researchers, but none of them refers to highly skilled

immigrants.

The data we use come from two distinct sources, that is unpublished data from the Ministry of

Interior and unpublished LFS, conducted by ESYE, which refer to the second quarter of years

7

2000-2005. The Ministry of Interior database provides the number of valid residence permits by

type as defined by current immigration law, which allows the approximation of third country

highly skilled workers in Greece. The LFS address the entire Greek population and include

information on country of birth or nationality, which allow identification of immigrants. While

household is the unit of research, there is also available information on members. Data include

information on demographic and social characteristics, as well as, on labour market features

(employment and unemployment etc.). Although far from perfect, those data are the best

currently available.

A relevant strong drawback of the LFS data is the difficulty to present immigrants accurately, as

a large number of them remains consistently illegal, despite the three legalisation programmes

that have taken place. As a result, beyond the communication difficulties between interviewer

and interviewees (different mother tongue), many of them avoid to respond to any state agent

approaching them. However, it is certain that such problems in recent years have been reduced,

consequently the percentage of foreigners in the whole population is increasing, which should

not however be considered as a higher inflow of immigrants. Thus, it would be wise to be

careful when interpreting the results, while it would be unwise to proceed to sub-major groups

presentation and analysis.

It was not possible to provide tables from LFS regarding immigrants average length of stay in

Greece in weeks (tables 14 -20). Moreover, there are no data available regarding the current

vacancies and employment prospects by occupation or region. Thus, our argument is based

mainly on the hypothesis that recent trends will continue.

4. National legislation for migration of third country highly skilled workers to Greece

Law 3386/2005 titled “Entry, stay and integration of third country nationals in Greece”2 also

regulates the entry and stay of third country highly skilled immigrants. The general procedure of

the law regarding the entry of third country workers in Greece is as follows. Special committees

(article 14) responsible for determining labour market needs of foreign workers (irrespective of

their qualifications) by region, industry and occupation are appointed by the Regional General

Secretary every two years on December. Their task is to prepare an annual report determining

regional current labour force needs and vacancies per occupation, prefecture and employment

duration, which could be filled by third country nationals. In order to prepare the report, such

2 For a thorough discussion on the law see Triandafyllidou (2005).

8

Committees should take into consideration the interests of the national economy, the available

labour supply of both natives and third country workers, who reside legally in Greece, as well

as the labour demand per occupation. This report is forwarded to the Ministry of Employment

and Social Security responsible for the issuance of a joint ministerial decision.

According to the provisions of the law, once the report is final, the Ministry of Interior, the

Ministry of Foreign Affairs and the Ministry of Employment and Social Security jointly decide

on the maximum number of residence permits for labour to be issued to third country nationals

per prefecture, nationality, type and duration of employment. The decision is then forwarded to

the Greek consulates, who are responsible for posting it up on a visible position and receiving

applications all year long. Once the list of interested applicants is compiled, it is sent back to

Region concerned and then employers can apply for hiring certain third country employees.

Their application is examined and then the Secretary General of Region issues an act, which is

sent to the Greek consulate to issue the appropriate visa. Despite the fact that a similar process

was provisioned by the previous immigration law (2910/2001), in practice these complex

procedures have not yet been fully implemented.

On the other hand, current migration law provisions less bureaucratic and time consuming

procedures for certain categories of third country workers, among them being those considered

as highly skilled. In such cases the Ministry of Interior examines applications and then a special

visa is awarded. While a third country citizen could be considered as highly-skilled, when

he/she enters the country in order to exercise an economic activity requiring high qualifications

(e.g. scientists, artists, intra-corporate transferees, researchers, university professors etc.), the

Greek immigration law provisions for the following types of workers, which could be highly

skilled.

The first type of skilled workers are board members, managers and company staff. They are

entitled to a residence-work permit, if they hold a work contract and have proof of their

occupational status. According to law 3386/2005 (article 17), these workers need to hold a

special visa before entering the country. The residence-work permit is issued for up to a year

and can then be renewed for two years on. The application of the immigrant is submitted to the

Ministry of Interior (Directorate of Foreigners and Immigration), where the permit is issued.

Another category provisioned is that of third country workers serving “public interest”. In this

case, the employer must prove to the Ministry of Interior that such workers are qualified to

promote “public interest”. According to law 3386/2005 (article 45) the Directorate of

9

Foreigners and Immigration of the Ministry of Interior is responsible for the issuance of a

residence permit based on “public interest” that allows access to the labour market. This

residence permit also lasts for a year and can be renewed for one additional year every time.

A similar category of workers includes members of archaeological schools (article 23). They

may be granted a residence-work permit within the framework of the school’s activity, which is

valid for a year and is renewable for as long as their scientific activity lasts. This permit is

awarded by the Directorate of Foreigners and Immigration of the Ministry of Interior.

It is worth noting that there is one more provision regarding third country personnel of firms

established within EU or European Economic Area, who can be sent to Greece, in order to offer

their services within the framework of a contract between a foreign firm and a Greek one

(article 18). In such cases, the third country worker should hold a valid residence-work permit

in the European country where the sending firm is established. The application for the issue of

the residence permit is lodged to the municipality or community of the residence of the

counterpart. Competent for the examination of the application is the relevant Service for

Foreigners and Immigration of the Region. The permit lasts for as long as the contracted service

is provided and no longer than a year. In a special case, the permit could be renewed for another

six months.

The above groups of third country nationals can be accompanied by the members of their

family, who are provided, upon an application, with a personal permit that expires along with

their sponsors’ permit. This provision does not apply to the following groups of third country

skilled immigrants.

Third country intellectual creators like writers, authors, directors, painters, sculptors, actors,

song artists, choreographers and scenographers (article 22), who have the right to issue a

residence-work permit valid for a year, provided they have a signed contract for more than three

months duration with a firm or an organization, related to actions of use or production of

copyright products. Once their permit expires after a year, they are allowed to renew it, as long

as, there is a contract in effect.

Third country nationals who are employed as specialized personnel in a company, which is

established in a third country, and for whom the rendering of specific services is provided,

within the framework of a service contract (article 19). A necessary prerequisite is a supply

contract between the third country company and a Greek one, which provisions the duration of

services, the number and the specialty of the persons that will be employed as well as the

10

coverage of their cost of living, Medicare and return. The application for the issue of a

residence permit is lodged to the municipality or community, where the local company is

established. Competent for the examination of the application is the related Service for

Foreigners and Immigration of the Region. Residence permits are issued upon decision of the

Secretary General of the Region for a period required for the fulfillment of the contractual

obligation by the company and cannot exceed the period of six months in total. In special

occasions and only if this is justified by the need to fulfill the contractual obligation of the

company, the above mentioned residence permit can be renewed for six more months.

With the exception of the above mentioned specific occupational categories, the current

legislative framework does not provision any other regulations regarding the definition or

admission criteria of highly skilled third country workers. Consequently, they should follow the

regular migration procedures.

It is hard to identify in the current migration law any preference first given to other EU

nationals. The previously mentioned committee responsible for the determination of job

vacancies at the prefecturall level should take into account “the interest of national economy,

job offering from nationals and third country nationals who are legal residents of Greece as well

as the demand per specialty” (article 14). Thus, surprisingly, EU nationals are not mentioned

within this framework.

Even though according to migration law a competent committee, including representatives of

employers, should decide the number and type of immigrant workers needed by region, industry

and occupation, in practice this provision has not yet been implemented.

Finally, the knowledge and proficiency of the Greek language is not a formal requirement for

third country nationals to obtain a residence-work permit.

5. Programmes for attracting third country highly skilled workers

It is hard to identify any specific agreements between Greece and third countries regarding the

recruitment of highly skilled workers. The only bilateral agreements we are aware of, which

might include highly skilled workers as well, are those with Albania and Bulgaria concerning

seasonal workers, as well as one with Egypt regulating the admission of workers requested by

Greek employers ratified in 1984. All these agreements provision return regulations after the

expiration of the permit.

11

Regarding self-employment and independent economic activity of skilled third country

nationals they should follow the general rules set for every third country national wishing to

work as self-employed or employer in Greece (article 24), which are more favourable than those

referring to regular immigrants. The main provisions in this case are the following. The

prospective immigrant should have 60,000euros deposited in an accredited banking institution,

which should be deposited in a Greek bank once a special visa has been granted. Moreover,

his/her application along with a feasibility study should be submitted to the Greek consulate in

the home country. Then, it is evaluated and accepted by a special committee at the destination

Region certifying that immigrant’s activity promotes national economy. Once the prospective

third country self-employed has been granted a special visa, he/she applies for a residence

permit, which is issued by the Secretary General of the Region and is valid for two years (article

25). The residence permit is renewable upon the approval of the special committee of the

Region for two years each time, conditional on continuation of the same activity within the

prefecture and the fulfilment of his/her tax obligations. The law also provisions return of the

third country self-employed not later than six month after the expiration of his residence permit.

6. Rights of third country highly skilled workers

As was previously mentioned, four groups of highly skilled third country immigrants, namely

board members, managers and company staff, workers of public interest, members of

archaeological schools and experts of firms established in EU or countries of the European

Economic Area, have the right to bring along their family members. According to law

3386/2005 (article 53), all other immigrants have the right to bring their family members to

Greece after two years of legal stay and provided they have a stable and regular income to

support them.

Third country highly skilled workers have the right to renew their residence-work permit as

long as their economic activity continues and they meet their tax obligations. After five years of

residence in Greece, they have the right to apply for a long-term residence permit, like any other

immigrant legally living in the country for the same period. On the other hand, if they become

unemployed presumably their work permit can not be renewed and they should live the country.

There is no special taxation regime referring to highly-skilled immigrants. They are subject to

the same tax provisions as highly skilled nationals.

12

7. Experience with third country highly-skilled workers

According to 2001 census conducted by the National Statistical Service of Greece there were

797,0913 immigrants in Greece in 2001, that is around 7.3 percent of the whole population,

while their percentage in the labour force exceeds 10 percent. It should be noted that these

percentages are above EU average and they are the result of an immigrants’ influx in the last 15

years, raising doubts on whether the Greek society and economy can smoothly absorb such

large numbers of immigrants.

A crucial question is whether the Greek economy actually needs additional highly skilled

workers. A number of factors could lead someone to argue that this is not the case. First,

university graduates as a percentage of the entire population and of the labour force is

increasing rapidly over time, which shows that the natives continue to consider education

(especially tertiary) a profitable investment and, thus, there does not seem to be a shortage of

highly skilled workers. In addition, the unemployment rate of tertiary education graduates is

above average from 2003 and onward (see last row of Table A) met more or less in almost all

fields of study. This indicates that the demand for skilled personnel is less than those graduating

from tertiary education. Second, there are persistent, even if declining, high unemployment

rates throughout the country ranging from 11.4 percent in 1998 to 9.8 percent in 2006.

Unemployment is particularly high among the young (15-24 years of age) and the women. (see

Table A) Third, in Greece the large inflow of educated immigrants has led to their concentration

in certain sectors of economic activity, such as agriculture, construction and household services,

where they do not use their specific skills and, consequently, there is a “brain waste”. In other

words, highly-skilled immigrants in Greece turn out to be overeducated and to a larger

proportion compared to Greeks.4 [Lianos, 2003]

3 Unfortunately, there are complete statistical information for only 762,191 individuals. 4 According to OECD (2005) DELSA/ELSA report, 28.3% (53.4%) of immigrant men (women) are overeducated compared to 9.0% of both Greek men and women. Overeducation is greater among older immigrants, early arrivals and those with a higher level of education. Finally, overeducation is prevalent among immigrants employed in the agricultural sector (55.3%) and household services (89.6%), the two major employers of immigrants, especially illegal ones.

13

Table A – Unemployment rates in Greece (15-64 years of age) 1998 1999 2000 2001 2002 2003 2004 2005 20061

Total 11.4 12.3 11.6 11.0 10.5 9.9 10.7 10.0 9.8Males 7.5 8.2 7.6 7.4 6.9 6.3 6.7 6.2 6.4Females 17.5 18.5 17.5 16.5 15.8 15.2 16.4 15.4 14.8Total (15-24)

30.5 31.6 29.2 28.2 26.8 26.9 26.9 26.0 25.3

Ter.edu. grads2

9.0 10.0 10.3 10.6 9.9 10.7 12.5 13.0 11.8

1 Data from the first quarter of 2006, 2 Over 15 years of age. Source: Labour Force Surveys, National Statistical Service of Greece

In this context, the number of work permits to third country nationals, who could be considered

as highly skilled, according to the Ministry of Interior database at the end of 2005 was rather

small. That is 4,709 permits have been issued for independent economic activity, 2,186 for

board members, managers and executives, 98 for public interest workers, 58 for intellectual

creators and 31 for new technologies, 7,082 in total. In fact, all these categories represent less

than 1 percent of total residence permits at the end of 2005. It is worth noting that in 2001 these

types of permits were introduced and, since then, are subject to shorter immigration procedures

than regular immigration.

On the other hand, Kaminioti and Chletsos (2004) have found that there are limited vacancies in

Greece. Their data were collected by PAEP (Employment Observatory Research-Informatics

S.A.) in 2003, after conducting a wide field survey that included firms from the entire country

(the sample consisted of 7,336 private firms). The survey collected numerous qualitative and

quantitative data that allowed researchers to determine vacancies and demand for labour by

industry, occupation and region. According to Table B, most vacancies exist in two particular

regions, namely Attica (28,7%) and Central Macedonia (25,7%), which is not surprising given

they are the two most populated regions in Greece.

14

Table B – Vacancies by region (2003) Absolute values %

East Macedonia 1.607 3,01 Attica 15.336 28,73 North Aegean 764 1,43 Western Greece 923 1,73 Western Macedonia 6.256 11,72 Ipiros 1.895 3,55 Thessalia 4.384 8,21 Ionian Islands 583 1,09 Central Macedonia 13.705 25,67 Crete 269 0,5 South Aegean 3.927 7,36 Peloponnese 1.437 2,69 Sterea Ellada 2.302 4,31 Total 53.387 100 Source: Survey PAEP, 2003.

Regarding vacancies by occupation, Table C shows that they are concentrated mainly in craft

and related trades workers (35,1%), followed by services and sales (21,5%), while there are

almost no vacancies among legislators, senior officials and managers and among skilled

agricultural and fishery workers. Professionals also do not seem to have many vacancies (3,7%)

and the same is true for technicians and associate professionals (7,2%). In general, in 4 out of 6

categories that can be considered as highly skilled workers vacancies seem to be very limited.

That could lead one to conclude that Greece does not have numerous vacancies in highly skilled

workers that need to be filled by foreigners.

Table C – Vacancies by occupation (2003)

Absolute values

% Employed in total (%)

Legislators, Senior Officials and Managers 26 0,05 22,59 Professionals 1.951 3,65 7,09 Technicians and Associate Professionals 3.824 7,16 5,39 Clerks and Associate Professionals 5.685 10,65 13,05 Employed in Services and Sales 11.500 21,54 16,47 Skilled Agricultural and Fishery Workers 19 0,04 1,05 Craft and Related Trades Workers 18.756 35,13 15,78 Plant and Machine Operators and Assemblers 6.151 11,52 10,6 Unskilled Workers and Handicraft 5.476 10,26 7,97 Total 53.387 100 100 Source: Survey PAEP, 2003. Except for the reasons outlined above, there are a few others that probably discourage highly

skilled immigrants from coming to Greece. First of all, Greece suffers from high unemployment

15

rates. According to migration theory5, immigrants choose the host country based on certain

criteria and the probability of finding a job (which is inversely related to unemployment rate) is

one of them. Second, science and research in Greece are not yet developed so as to attract third

country highly skilled workers. Third, Greek language is considered by many an important

barrier that discourages immigrants. Fourth, there are strict rules that regulate the recognition of

diplomas obtained abroad, even for Greek citizens. That could be a potential problem for third

country highly skilled immigrants who wish to seek employment in their field. The lack of

official recognition of academic credentials prevents the registration in the relevant professional

associations, which is a precondition for working free lance.

It is clear from the above that it is hard to argue there are pressing needs for third country highly

skilled workers in Greece. On the other hand, existing legislative framework facilitates the entry

and stay of certain types of highly skilled immigrants since 2001, whenever such a demand is

expressed. Nevertheless, the number of those who have obtained such permits is considered as

rather small. Thus, one can infer that there are no serious legislative problems for the admission

of third country highly skilled workers.

8. Statistical data

Tables 1 to 6 present skilled employed by country of origin and occupation from 2000 until

2005. Immigrants are defined as those born abroad and are currently settled in Greece.

Immigrants are grouped in those originating from EU14 countries, those originating from EU10

and third country nationals (TCN). It is evident from Table 5 that in 2005 skilled immigrants

represent 4.7 percent of total employment. Moreover, the largest group of skilled immigrants in

Greece are by far third country nationals (almost 9 out of 10 in 2005). In total, most skilled

immigrants are males. As far as Greek nationals are concerned, the number of skilled males

employed is rather stable over the period examined, while the number of females has increased.

A plausible explanation is the ageing of the entire population and the increasing rate of females

entering the labour market. The pattern is similar for immigrants from EU14 and EU10

countries. The number of males has increased in the first group and has decreased in the second

group, while the exact opposite holds for females. On the other hand, highly skilled immigrants

from third countries have increased considerably. In 2005, there are 72 percent more male and

41 percent more female immigrants from third countries in Greece compared to 2000. In reality

5 See Venturini (2004) for a discussion of migration theories.

16

this reflects the improvement of LFS, in the sense that it becomes more representative,

regarding immigrants.

Another aspect of skilled immigrants employment is that by occupational group. In this respect,

those employed in the first three occupational groups (1-3 by ISCO-88) could be considered as

highly skilled, while those employed in the last three occupational groups (6-8 by ISCO-88) as

skilled. It turns out that those immigrants originating from EU14 countries are mainly employed

as highly skilled. The great majority of males originating from EU10 countries are employed as

skilled workers, while the great majority of females are employed as highly skilled. On the

other hand, third country skilled immigrants of both sexes are employed mainly in Groups 6 - 8

and more specifically almost 7 out of 10 as craft and trades related workers. In this particular

group about 1 out of 4 male workers is immigrant, implying a remarkable influence in the

relevant labour market.

A comparison of tables 1 and 6 shows that over time the occupational concentration of skilled

immigrants remains rather stable with the great majority of third country immigrants employed

as craft and related trades workers.

The next six tables (7-12) report only third country skilled immigrants by occupation, sex and

country of origin for the ten countries with the largest number of immigrants in Greece. The

tables show, that skilled immigrants in Greece originate mainly from Albania and are employed

as craft and related trades workers. This should come as no surprise, since, generally, the vast

majority of immigrants come from the very same country. Further, a large proportion of skilled

immigrants come from Russia, Georgia, Egypt and Romania.

The occupational distribution of third country skilled immigrants differs by gender, but it is

almost identical across countries of origin. For example, the vast majority of male immigrants

are employed as craft and trade related workers or as plant and machine operators and

assemblers. A thorough look at the tables also shows that for certain countries of origin the

occupational distribution differs slightly. More specifically, a significant number of highly

skilled immigrants from Egypt and Turkey are employed as professionals or legislators, senior

officials and managers. Immigrants from the US are employed mainly as professionals,

technicians or legislators, senior officials and managers.

As far as female skilled immigrants are concerned, they are mostly employed as craft and

related trades workers or professionals. In Table 12 there is a shift in female employment

towards skilled agricultural and fishery jobs, but one should not jump to conclusions, since it is

17

only a year and more recent data are not available. Differences across countries of origin also

exist. For example, a respectable -although declining over time- proportion of skilled female

immigrants originating from Russia are employed as professionals. On the other hand, many

skilled females from Bulgaria, Romania and Egypt are employed as skilled agricultural and

fishery workers.

9. Conclusions

According to most recent LFS available data, the number of highly skilled third country

immigrants (groups 1–3 by ISCO-88) in Greece remains rather low, about 1.5 percent of total

employment. Thus, their potential impact upon the functioning of the relevant national labour

markets presumably should not be important. On the other hand, skilled third country

immigrants already amount to 11.5 percent of native skilled personnel, which is even higher for

males (13.2 percent) than females (5.4 percent). In the case of male craft and related trades

workers third country workers represent almost one out of four nationals. The last percentages

undoubtedly indicate that such skilled immigrants have influenced the relevant labour markets

in Greece considerably. Wage competition should have contributed to the moderation of labour

costs (helping the reduction of inflation), increased competitiveness and perhaps made some

nationals to turn to other jobs.

Skilled immigration from third countries in Greece is still a rather new phenomenon, originates

mainly from neighbouring countries, to a large extent takes the form of circular migration, and,

thus, its mid term prospects are unclear. To the extent that many of them would return to their

home countries, which depends on the economic growth of their countries, their structural

effects upon Greek economy would not be further extended. The substitution of those returned

by other skilled workers originating from remote third country workers does not seem very

likely, given the existing entry and employment difficulties. Thus, one can argue that the

influence of skilled immigration is not expected to be amplified in the coming years.

According to the Ministry of Interior data base, those third country immigrants, who have taken

residence permit valid at the end of 2005 under the special favourable provisions of

immigration law remain rather few, about 7 thousands, whereas there are no indications it is so

because of legislative formidable barriers. Consequently, whatever their contribution to the

functioning of certain firms, their broader impact should not be impressive. Since third country

highly skilled immigrants are considerably cheaper than similar native workers and their

18

number in Greece still remains small, the most probable scenario would be an increase in their

number, mainly of those originating from remote third countries in the coming years.

The legal framework in Greece regarding third country highly skilled immigrants consists of a

single migration law, which provisions favourable procedures for certain categories of such

immigrants, like board members, managers or executives, public interest workers, members of

archaeological schools, personnel from firms established in EU member states or countries

within the European Economic Area, intellectual creators and specialised personnel from firms

established in third countries.

The evidence presented shows that the need for third country highly skilled workers in Greece

should be rather limited. Therefore, certain features of the Greek economy (e.g. high

unemployment rates, not well developed information and new technology sectors, limited

funding of education and research, Greek language, bureaucratic difficulties) that may

discourage third country highly skilled workers from coming to Greece, do not seem that

restrictive. On the other hand, estimated vacancies in the Greek labour market are scarce and are

usually filled by unemployed.

19

References

European Commission, Policy plan on legal migration, COM (2005) 669 Final.

European Commission, DGJFS, Questionnaire on the conditions of admission for more than

three months of highly skilled third country nationals in the member states of the European

Union for paid employment, 20th Immigration and Asylum Committee, 20 June 2006.

Kaminioti, O. and M. Chletsos, (2004) Demand for dexterities and skills in the Greek labour

market: Evidence from firm survey, PAEP.

Kanellopoulos, C. and M. Gregou (2005) Managed Migration and the Labour Market – The

Health Sector in Greece, EMN, 2nd small scale study, KEPE.

Lianos, T.P. (2003) Contemporary Immigration in Greece: An Economic Examination, KEPE,

Study No.51. (in Greek)

OECD (2005), Greece: Economic Survey, OECD Country Reviews.

OECD (2002), International Mobility of the Highly Skilled, OECD Proceedings.

OECD (2002), International Mobility of the Highly Skilled, OECD Policy Brief.

Psacharopoulos, G. (2003) Greek education: A modern tragedy, Institute of Democracy

Konstantinos Karamanlis, Athens. (in Greek)

Tzilivakis, K. (2006) Overseas labour for hire, ATHENS NEWS (03/02/2006), page: A15.

Tzilivakis, K. (2005) The EU’s search for skills, ATHENS NEWS (23/12/2005), page: A15.

Venturini, A. (2004) Postwar Migration in Southern Europe, 1950-2000: An Economic

Analysis, Cambridge University Press.

20

Table 1 – Skilled workers employed by country of origin and occupation (2000)

GR EU14 EU10 TCN Total Males Females Males Females Males Females Males Females Males Females Legislators, Senior officials and Managers 298927 99334 1769 1216 478 450 4218 1523 305391 102524 Professionals 248118 215569 1563 3622 691 1650 4737 4823 255108 225663 Technicians and Associate Professionals 141203 124699 132 1343 365 1053 2241 2751 143941 129848 Skilled Agricultural and Fishery Workers 402430 291815 153 397 0 108 2739 1651 405320 293971 Craft and Related Trades Workers 504620 79945 1206 712 3284 360 60439 5934 569547 86952 Plant and Machine Operators and Assemblers 271101 27001 891 336 447 299 13096 1450 285534 29087 Total 1866399 838363 5714 7626 5265 3920 87470 18132 1964841 868045

Table 2 - Skilled workers employed by country of origin and occupation (2001)




21







22

Table 7 - Third country skilled workers employed by occupation, sex and country of origin (2000)

1 2 3 6 7 8 Total Males Females Males Females Males Females Males Females Males Females Males Females Males Females

Albania 426 0 714 465 367 256 1640 265 35223 2245 4189 0 42559 3231 Russia 618 231 1000 1336 209 758 294 86 5695 1421 3898 659 11714 4491 Georgia 107 235 123 312 120 0 0 0 4323 977 1375 0 6048 1524 Egypt 146 149 716 467 429 168 104 0 2399 299 463 0 4257 1083 Romania 0 273 169 115 0 334 275 637 1970 0 611 0 3025 1359 Turkey 853 150 370 352 0 256 0 0 1472 149 250 0 2945 907 Armenia 134 0 0 120 0 0 0 0 1531 115 242 288 1907 523 Syria 0 0 0 0 0 0 0 0 1832 168 0 0 1832 168 Pakistan 171 0 0 0 0 0 0 0 761 166 506 0 1438 166 USA 252 0 313 451 316 153 0 156 166 0 169 0 1216 760 Others 1511 485 1332 1205 800 826 426 507 5067 394 1393 503 10529 3920 Where: 1 = Legislators, Senior officials and Managers, 2 = Professionals, 3 = Technicians and Associate Professionals, 6 = Skilled Agricultural and Fishery Workers, 7 = Craft and Related Trades Workers, 8 = Plant and Machine Operators and Assemblers



Albania 957 0 1228 176 181 175 2439 505 43871 2389 5216 674 53892 3919 Russia 260 206 643 1103 166 433 458 323 5793 2208 3408 509 10728 4782 Georgia 166 242 366 251 133 106 0 0 6034 804 1338 176 8037 1579 Egypt 281 215 496 0 309 176 359 0 1632 0 346 0 3423 391 Turkey 1351 0 0 331 132 92 154 0 909 136 143 0 2689 559 Romania 0 0 446 0 0 176 0 125 1550 298 279 0 2275 599 Syria 0 0 0 0 0 0 0 0 2068 0 0 0 2068 0 Pakistan 0 0 0 0 0 0 0 0 1812 92 172 0 1984 92 Bulgaria 0 156 0 0 0 119 270 293 1209 0 431 0 1910 568 Armenia 265 0 124 242 0 0 0 0 925 117 255 0 1569 359 Others 1300 176 1156 1343 1117 1044 0 138 5241 466 1609 248 10423 3415

23



Albania 1437 0 952 0 832 0 4302 486 51536 2723 7037 832 66096 4041 Russia 1313 203 584 1928 165 829 366 342 5882 1860 2208 794 10518 5956 Georgia 157 121 0 108 241 0 0 228 3593 691 1428 219 5419 1367 Egypt 481 0 377 0 157 0 0 0 2512 0 170 0 3697 0 Romania 83 141 314 159 0 244 0 0 2059 328 749 352 3205 1224 Turkey 498 0 249 263 172 0 0 0 1387 328 624 0 2930 591 Syria 0 0 419 0 0 0 0 0 2061 0 241 0 2721 0 Bulgaria 0 314 119 324 0 0 0 267 1645 0 589 0 2353 905 Pakistan 0 0 0 0 0 0 0 0 1903 90 340 0 2243 90 Australia 167 146 167 425 0 473 588 0 540 0 607 0 2069 1044 Others 2170 470 1346 2517 1557 779 628 0 6427 951 2295 120 14423 4837



Albania 1215 141 1047 97 198 0 4279 1061 56414 2877 5859 780 69012 4956 Russia 1109 151 424 1628 433 1061 385 529 5707 2171 3577 888 11635 6428 Egypt 535 0 579 0 403 0 0 0 3135 0 825 0 5477 0 Georgia 0 0 0 240 111 0 0 128 4424 132 739 406 5274 906 Bulgaria 167 0 0 342 329 0 596 463 2122 322 1117 0 4331 1127 Romania 71 129 146 346 170 398 0 500 2893 354 416 464 3696 2191 Pakistan 163 0 0 0 0 0 85 0 3073 90 363 0 3684 90 Syria 0 0 312 174 0 0 0 0 2247 0 389 0 2948 174 Turkey 208 0 0 0 0 0 172 0 1400 352 342 0 2122 352 Ukraine 0 104 0 219 429 172 0 0 1016 0 577 0 2022 495 Others 619 0 1879 1856 1010 775 881 65 5119 552 1694 217 11202 3465

24



Albania 1501 132 617 162 487 337 3876 2400 69023 2236 8929 1052 84433 6319 Russia 586 273 313 804 302 314 0 106 5382 754 2516 955 9099 3206 Georgia 508 220 119 365 556 188 353 88 4587 472 1677 214 7800 1547 Romania 0 0 0 0 0 0 95 317 4846 0 345 148 5286 465 Bulgaria 0 114 264 127 100 320 589 578 3122 0 716 0 4791 1139 Egypt 310 0 575 1240 308 0 0 0 2345 0 789 0 4327 1240 Pakistan 214 0 0 0 0 0 352 0 2917 0 496 0 3979 0 Armenia 211 0 0 0 136 0 0 105 2498 617 615 443 3460 1165 Ukraine 118 0 0 209 0 75 0 0 1724 0 275 106 2117 390 Syria 574 0 95 0 0 0 0 0 1053 0 235 0 1957 0 Others 2742 1389 3152 3203 1121 111 392 86 8021 606 2801 72 18229 5467



Albania 1346 438 359 795 441 0 4537 2306 76483 2418 7631 1351 90797 7308 Russia 754 546 599 567 81 199 211 540 6739 1255 2498 1350 10882 4457 Georgia 225 233 487 249 0 159 360 408 6047 713 1606 479 8725 2241 Bulgaria 199 205 0 592 0 0 574 518 3403 218 1468 234 5644 1767 Romania 0 435 0 241 0 121 94 483 4020 100 494 529 4608 1909 Armenia 202 105 0 0 230 0 0 101 2666 1069 505 236 3603 1511 Syria 221 0 99 0 0 0 0 0 2128 0 535 0 2983 0 Egypt 228 0 656 307 0 0 0 95 1609 0 291 0 2784 402 Pakistan 0 0 0 0 0 0 156 0 1398 0 1057 0 2611 0 Iraq 0 0 0 0 0 0 0 0 1497 0 1001 0 2498 0 Others 2371 1581 1612 1888 1119 651 1055 417 6003 1304 3413 192 15573 6033

Third Country Highly Skilled Immigrants in Greece · Greece is a country with an already high percentage of immigrants and currently the need for highly skilled workers seems limited.

Documents