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

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

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

Inconsistencies among academic and professional qualifications within the EU

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

Language difficulties

Legislation that is unfavourable to temporary staffing in accession countries

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

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

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

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

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

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

Zach Miles concluded: “The lack of recognition of foreign qualifications remains a major hurdle in facilitating greater labour mobility. In this one area, the EU does not operate with anything like the efficiency of a single market. While there are a number of ongoing harmonisation initiatives and some ad hoc arrangements between certain countries, little real impact is likely without a fundamental shift in attitudes from European academic institutions, professional associations and government.”

For further information:

To download the Report, click the link: The Role of Temporary Staffing Agencies in Facilitating Labour Mobility in Central and Eastern Europe (840 KB doc)

Clare Allison / Patrick Toyne-Sewell, Citigate Dewe Rogerson
Tel: +44 (0)20 7638 9571

John Nurthen, Vedior
Tel: +44 (0)1727 842999

About Vedior

Vedior is one of the world’s largest recruitment companies and is a full-service recruitment provider with a diversified portfolio of brands targeting a broad range of industry sectors. Annual sales for 2003 were €5,970 million.

From its global network of offices spanning Europe, North America, Australasia, Asia, South America and Africa, Vedior offers temporary and permanent recruitment as well as a number of complementary employment-related services such as outplacement, HR outsourcing, payrolling and training.

Vedior has a leading market position in the provision of professional/executive recruitment in sectors such as information technology, healthcare, accounting, engineering and education. In order to meet client requirements for all categories of personnel, we also have a significant global network providing administrative/secretarial and light industrial recruitment.

About the research

The report, ‘The role of temporary staffing agencies in facilitating labour mobility in Central & Eastern Europe’ was commissioned by Vedior to examine the role recruitment agencies currently play in the movement of workers in Central and Eastern Europe, and to speculate on how this role might change in the future. The research aims to outline the current state of the temporary staffing industry in these markets, with a focus upon labour mobility and the facilitating role of agencies in facilitating the movement of workers from across a range of occupational categories or job titles, and into and out of different countries.

The reports authors, Kevin Ward, Neil Coe and Jennifer Johns all work in the School of Environment and Development at The University of Manchester. They each have been involved in a range of projects on the globalisation of service activity, the geographies of local and transnational labour markets and the diversification strategies of staffing agencies. For more details, visit their website at www.manchester.ac.uk