#1>>>> OECD BETTER POLICIES FOR BETTER LIVES Labour Migration in Bosnia and Herzegovina - How to make the most of it? Roundtable meeting Sarajevo, 14 September 2022 OECD Global Relations South East Europe wwww ww Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera. Confederaziun svizra Swiss Confederation wwwwww#2Presentation Outline g) 00 1. Characteristics of Migration 2. Labour Market Outcomes in OECD Countries 3. Remittances as Income and Investment Source 4. Migration and Diaspora Policies 5. Way Forward - Policy Recommendations 2#31. Characteristics of Migration - Trends WB6 migrants in OECD countries 2010/11 (left) 2015/16 (left) Emigration rate to OECD (right) 1,200 30% 25% 20% 15% 10% 200 0 ALB 5% 0% BIH * KOS MKD MNE SRB Bosnia and Herzegovina has one of the highest emigration rates in the region with 20% of its population living in OECD countries. 1,000 800 600 400 First residence permits attained by WB6 citizens in European countries Thousand ALB MKD BIH MNE KOS SRB 120 100 80 60 40 20 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: More information is available at Figure 1.3 of the publication Labour Migration In The Western Balkans. Source: OECD (2016) OECD Database on Immigrants in OECD Countries (DIOC), The Swiss Federal Statistical Office (2022); Eurostat (2022), Population change - Demographic balance and crude rates at national level [DEMO_GIND]. Emigration to Europe has increased almost fivefold between 2011 and 2019. However, with the COVID-19 pandemic, it declined by 38% in 2020. Note: European destination countries include EU Member Countries, European Economic Area non-EU countries (Iceland, Liechtenstein and Norway) and Switzerland. Source: Eurostat (2021), First permits by reason, length of validity and citizenship [MIGR_RESFIRST] This designation is without prejudice to positions on status, and is in line with United Nations Security Council Resolution 1244/99 and the Advisory Opinion of the International Court of Justice on Kosovo's declaration of independence. 3#41. Characteristics of Migration - Destinations Thousand 500 Migrants from Bosnia and Herzegovina are predominantly living in a handful of traditional OECD destination countries... 400 300 200 100 0 Top OECD destination countries of WB6 migrants 2015/16 2010/11 ITA GRC USA DEU AUT USA DEU AUT ITA DEU ITA CHE DEU USA ITA DEU AUT FRA ALB BIH Source: OECD (2016), DIOC KOS MKD MNE SRB Thousand 40 ...but emigration to Central Eastern European countries quadrupled since 2013 until the start of the pandemic. 30 50 20 10 0 2013 Number of first residence permits issued to WB6 citizens in CEE countries 2014 ALB 2015 BIH 2016 KOS 2017 MKD 2018 MNE 2019 SRB 2020 Note: CEE countries are Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, and Slovenia. Source: Eurostat (2021), First permits by reason, length of validity and citizenship [MIGR_RESFIRST] 4#5- 1. Characteristics of Migration – Education levels Education level of the working-age population in OECD countries and at ■Low home ■Medium ■High 100% 80% 60% 40% 20% 0% OECD Home OECD Home OECD Home OECD Home OECD Home OECD Home ALB BIH KOS MKD MNE SRB Note: Data for 2015. Sources: OECD (2016), DIOC; Eurostat (2021), Population by educational attainment level, sex and age (%) [EDAT_LFSE_03]; World Bank and Vienna Institute for International Economic Studies (2022) ...But more recent migrants from Bosnia and Herzegovina are less educated than those who arrived earlier. 100% 80% 60% 40% 20% 0% The diaspora of Bosnia and Herzegovina is on average more educated than the working-age population at home... Distribution of education levels among WB6 migrants in OECD countries by duration of stay Low ■Medium ■ High Settled Recent Settled Recent Settled Recent Settled Recent Settled Recent Settled Recent migrants migrants migrants migrants migrants migrants migrants migrants migrants migrants migrants migrants MNE ALB BIH KOS MKD SRB Note: Settled migrants are defined as migrants who arrived prior to 2010. Recent migrants are defined as migrants who arrived in the country of destination between 2010 and 2015. Source: OECD (2016), DIOC 5#61. Characteristics of Migration - Motivations A variety of social, economic and political factors drive emigration from the WB6 economies. If you have migrated, what was the main reason to move to another country? (%) ■Important or Very important as % of total sample Because of corruption or political instability in my home economy Better employment possibilities Improvement of the standard of living Better public/social services Better perspectives for my children Higher salaries Better health system Better education Better pension systems Difficulties to find an employment that matches my qualification in the home economy I want to be close to people I care for I want to live in a place with a higher cultural diversity Source: OECD survey, N=374. Better opportunities for my own business 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6#71. Characteristics of Migration - Main drivers Education systems have difficulties producing needed skills, reinforcing skills mismatches and shortages. Skills mismatches and labour shortages in the WB6-% of respondents 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ALB stating that... ■...aplicants' lack of skills is the reason for unfilled vacancies I ...emigration of the labour force is the reason for unfilled vacancies ...skills learned in the education system do not meet the needs of their job BIH KOS MKD MNE SRB WB6 average WB6 development gaps as shares of EU and CEEC-11 averages (2020) 1% of EU employment rate ■% of CEEC-11 employment rate ■% of EU GDP per capita ■% CEEC-11 GDP per capita % of EU poverty headcount ratio (right axis) ▲ % of CEEC-11 poverty headcount ratio (right axis) 120% 2,000% 100% 1,500% 80% 60% 40% 500% 20% 0% ALB BIH KOS 0% MKD MNE SRB WB6 average Source: World Bank (2021), World Development Indicators Sources: RCC (2021), Balkan Public Opinion Barometer 2021; Balkan Business Opinion Barometer 2021 1,000% Development gaps with EU and Central Eastern European Countries remain large. 7#82. Labour Market Outcomes in OECD Countries Labour market outcomes of WB6 migrants in OECD countries (aged 15-64) ■ Employment rate Labour force participation rate ► Unemployment rate Labour market outcomes of migrants from Bosnia and Herzegovina are the best of all WB6 economies. They are comparable to those of the average OECD foreign-born population. 100% 80% 60% 40% 20% 0% 2010/11/2015/16 2010/11/2015/16/2010/11/2015/16/2010/11/2015/16/2010/11/2015/16/2010/11/2015/16/2010/11/2015/16 ALB BIH KOS MKD MNE SRB OECD foreign- born Gender gaps in employment outcomes of WB6 migrants are significant, but the gaps for Bosnian migrants are among the smallest in the region. 100% 80% 60% 40% 20% 0% Source: OECD (2016), DIOC ALB Gender gaps in employment outcomes of WB6 migrants in OECD countries Labour force participation - Men Employment rate - Men Labour force participation - Women ◇ Employment rate - Women Notre Data for 2015 Source: OECD (2016), DIOC BIH KOS MKD MNE SRB OECD foreign born 8#92. Labour Market Outcomes in OECD Countries 43% of highly skilled migrants from Bosnia and Herzegovina are over-qualified for the jobs they do in OECD countries - on par with the WB6 average. Over-qualification rates of WB6 migrants in the OECD area 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ALB BIH ■2010/11 KOS MKD ■2015/16 MNE SRB OECD foreign-born Note: Overqualified is defined as having tertiary education (ISCED 5-8) and an occupational skill level that is low or medium (ISCO 4-9). Over-qualification is only calculated for highly skilled migrants. Source: OECD (2016), DIOC. 9#103. Remittances as Income and Investment Source Remittance inflows to WB6 economies and selected CEE countries (% of GDP) ■ 2019 ◆ 2011 Bosnia and Herzegovina received remittances corresponding to 11.4% of its GDP in 2019. However, different barriers (e.g. high transfer costs) can prevent their full investment potential. 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% KOS BIH MNE ALB SRB HRV BGR ROU HUN MKD SVK CZE SVN POL OECD members Source: World Bank (2021), World Development Indicators Remittance transfer costs to Western Balkan economies I Average cost of sending EUR 140 euros (as a %) in main remittance corridors, Q3 2021 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% HHH DEU ITA AUT DEU AUT DEU ITA CHE DEU AUT ALB BIH KOS MKD DEU SRB FRA Note: The line represents the commitment set by Sustainable Development Goal (SDG) 10.c to reduce the transaction cost of remittances to 3%. For Switzerland, the percentage is calculated as the average costs of sending 160 CHF. Source: World Bank (2022), World Bank Remittance Price Worldwide Database 10#114. Migration and Diaspora Policies in Bosnia and Herzegovina • Bosnia and Herzegovina has prepared a draft strategy on migration management: Draft Strategy in the Area of Migrations and Asylum (2021-2025). There is also an overarching policy document on diaspora engagement in place since 2017: Policy on Cooperation with Diaspora. О Federation of Bosnia and Herzegovina: Strategy on Cooperation with Diaspora and Action Plan (2020-2024) 。 Republika Srpska: Strategic Plan for Cooperation with Diaspora. О РЕПУБЛИКА СРПСКА ВЛАДА • • Diaspora engagement can be further developed. Activities in the field of diaspora engagement that are often led by the non-governmental sector, can be complemented by public services. A policy framework to encourage return migration and strengthen institutional co-ordination should also be established. 252018. 302 sa mungu lanum die adr 202 pode pa za volana Ta 3634 podaci, kentuchendur skrár, pay spe Служба во Визерки за PC21122 CLTYKY PAK 1 REPARE AS PATERIE CAFARCA XPERT LAP- Vaca pap 30 3 (1) je ne od Fadere act Manga 171 dob pudu wand supa vastas 25 gall patap Come 14991 Qu pappy уактарс 24 na k super образы "Социален езерациу 23 ли C Ir Eustat Fall Nat OOLUKU ARU STRATEGIESE BARNJE SA QUAS ON DESELE 2030-2004 p Sage Akces -224 La salita ના નાકે જ લ Car Se Hijer, be 2000 Vale 1969, 192 1901 200 OBLIKE OURVLJANJE STRATEGIE KARADE LENSTVOM REPER CREME GIVENE ZA PEMB PERAFSE BESSEI La ma W F View stay $5. x Wasegurine sks w Prussi СТРАТЕШКИ ПЛАН ЗА САРАДЊУ СА ДИЈАСПОРОМ Sudo 11 ПРИЈЕДЛОГ#12- 5. Way Forward – Policy Recommendations Strengthen the management of labour migration flows and improve the outcomes of labour migrants in destination countries. · Reinforce migration management by improving institutional co-ordination and boosting migration data collection. Support migrants' employment outcomes abroad by strengthening and harmonising curricula and skills recognition systems, and using partnerships with destination countries. Alleviate the strength of push factors for emigration. . • Ameliorate the conditions for living, working and investing in Bosnia and Herzegovina by pursuing economic and social reforms. Improve citizens' education and labour market outcomes by strengthening skills policies and improving employment conditions. 12#13- 5. Way Forward – Policy Recommendations . • • Maximise the development benefits from emigration. Develop the institutional and policy frameworks to support diaspora investment and knowledge transfers. A more systematic government approach that works with existing non-state actors to strengthen the links with and create more opportunities for the diaspora is needed. Make the most of the diaspora's financial resources by formalising remittances and attracting diaspora investments more strategically. Build trust by investing in long-term partnerships with the diaspora and capitalising on the many and active diaspora associations that already exist in the region. Encourage knowledge transfers through collaborations with the professional and scientific diasporas and actively support return migration of certain diaspora groups. A one-stop shop to provide information on return, facilitation of skill recognition and improved procedures to integrate returning children into the education system would combat the lack of tailored services available. 13#14OECD BETTER POLICIES FOR BETTER LIVES Thank you for your attention! For further information, please consult our website: www.oecd.org/south-east-europe GLOBAL RELATIONS Policy Insights Labour Migration in the Western Balkans: Mapping Patterns, Addressing Challenges and Reaping Benefits Find the full publication here: oe.cd/LMWB6 Find the key findings for Bosnia and Herzegovina here: oe.cd/LMBIH OECD BETTER POLICIES FOR BETTER LIVES Contact: Mr. Martin KOHTZE " www Project manager at OECD South East Europe Division e-mail: [email protected] OECD Global Relations South East Europe wwwwww 14