Showing posts with label Foreigners in Ireland. Show all posts
Showing posts with label Foreigners in Ireland. Show all posts

Friday, December 25, 2009

Economics 26/12/2009: Commoners Amongst Our Foreigners

Merry Christmas to all and a Happy New Year.

To start off the post-Christmas season on an interesting note, here is a different look at the CSO's data on PPS allocations.
Cumulative PPS allocations over 2002-2008 show clearly the magnitude (absolute and relative) of migration from Poland to Ireland. It is worth highlighting the fact that the number of people moving to Ireland from the countries with strong historical links to this country is smaller than that from Poland, and close to that from the 3 Baltic States. Of course, the relative potential pool of migrants from the historically important destinations for Irish emigrants in the past is of magnitude of 100 times greater than that of the Baltic 3 entire populations.
Total immigration figures are impressive, peaking in 2006 and falling in 2008 to the average of 2004-2005 levels.
Looking at the same in terms of countries, the above graph shows again how dramatic was immigration from Poland relative to other countries. In 2005, tiny Lithuania sent more people into Ireland than any other country save for UK and Poland. However, as credit bubble blossomed back in the Baltics, Lithuanian and Latvian migration started to decline after 2005, as was the case with Slovakia post 2006.
A messy chart above shows several interesting trends in migration from other countries. Nigeria - a clear decline post Michael McDowell-led reforms of the free-for-all asylum processes. Brazil - massive increase between 2004 and 2008. Whatever the reasons might be? Philippines - no dramatic slowdown in inflows, save for 2002-2004 period. In other words, given that the Philippines is the leading country supplying nursing staff to HSE, there is really no evidence here that Filipino nurses stopped coming to Ireland (remember the claims made by the trade unions). There are many other interesting things going on in the chart, so feel free to interpret/speculate.
Some more trends in PPS allocations in 2002-2008 above. As percentage of the total, Poland's weight was still increasing in 2008, relative to all other major destinations sending immigrants to Ireland.
Cumulative allocations as shares of total allocations above. And next, same by broader region:
Here is a funny thing - 3 Baltic states accounted for more allocations in 2004-2006 than the UK, the rest of the EU15, the US and even the rest of the world. Amazing, given these three countries are about 1/100th of the EU27 population. And, given that incomes were raising in these countries at very high rates, why would these three countries attract such a massive migration to Ireland? Perhaps the reason is coincident with the anecdotal evidence that vast majority of migrants from these 3 states were Russian speaking. Of course, if this is true, it would represent a small embarrassment to these countries' leaderships, because it would illustrate dramatically how prosecution of Russian-speaking minorities in these countries was pushing people to emigrate. But, again, this is speculative at this point in time, as we never bothered to ask these people their ethnicity, as opposed to their citizenship.

Now, next, look at the dynamics of allocations of PPS numbers to foreign nationals:
Note the dramatic dynamics for the EU10 - virtually none in 2003, jump in 2004 and on to peaking in 2006. what does it tell us about these workers? Prior to 2004, they had to compete with the rest of non-EU employees for jobs. And they were not very good at it, apparently. Post 2004, they no longer had to face real competition. And they became, overnight, very good at getting jobs. Suspicious? Me too. Just shows how arbitrary the world is out there - your skills, your aptitude, your knowledge - all these matter as a secondary differential at the very best. Your passport is what determines who you are, can be and will be to a greater extent.
Total allocations to foreign nationals above.

Now, on to two very interesting graphs:
The above chart shows that overall, the groups with no employment activity were dominated not by the EU10 citizens, but by the UK, EU15, and US migrants. Why, you might ask? Well, citizens of these countries came to Ireland for many reasons, some of which were simply not available to those from EU10 - retirement would be one, second homes would be another one. In other words, it is not that the citizens of these countries had lower propensity to work in Ireland, they simply were more heterogeneous (age wise and occupation/income wise).
Chart above dispels several myths:
  • EU10 citizens propensity to drop out of labour market activities was no more dramatic than that of other major groups of migrants. However, this must be interpreted with care, as the EU10 migrants do not include second home owners or retirees (which makes their drop-out rates higher than average for EU15, UK and US migrants) and they have no restrictions on spouses employment here (which makes their rates of dropping out more significant than those for the rest of the world migrants);
  • US migrants have the lowest rate of decline in labour market activities;
  • EU10 numbers for 2008 also conceal the fact that many of those migrants probably moved into gray economy (cash payments) and into sub-contracting, both not recorded by PAYE system. This increases the rate of non-participation for these immigrants.
So despite a massively different levels of migration from the EU10 over 2004-2008, there is little evidence so far to suggest that these migrants were dramatically different from other groups of migrants. In some areas they were somewhat distinct, but one cannot conclude that these differences were dramatic...

Saturday, April 4, 2009

Live Register Details: March 2009

Per my earlier post today, here are some charts and trends for the Non-Irish contingent of the Live Register.
In terms of numbers on Live Register numbers, Accession States (EU27 less EU15) are by far predominant of all Non-Nationals. Some reasons why, apart from the obvious one that there is simply more of them than of other Non-Nationals, are:
(1) These are workers with less tenure (many came after 2004) and thus are cheaper to lay off. They might not be the least productive, but given our daft labour laws according protection by tenure, not merit, they are the first ones to go.
(2) Many of these workers are employed as quasi-skilled - they are still in on--the-job training and/or still developing their language skills.
(3) Obviously, majority were employed in Construction, Hotels and Hospitality, Retail Services - all sectors that experienced the heaviest fall off in employment.
Chart above shows totals of all Non-Irish Nationals against the Irish Nationals. Not much to comment here, except that I would suspect that tenure-adjusted, unemployment rates amongst non-Irish nationals are much closer to the Irish nationals than these numbers suggest.
Finally, the last chart shows monthly rates of growth in Live Register signees. Again, all Accession States (EU27 less EU15) lead in rates of growth and in some cases - Q1 2008 being one example - with massive spikes. These are the signs of who is being let go first in this economy. Notice convergence of all categories to trend in March 2009. This is cyclical - following massive layoffs of January-February 2009 and will not hold in months to come as the next wave of layoffs is already ongoing. The next, most troublesome sub-category is EU15 (ex Irish and UK nationals) - the French, Germans, Italians, Spaniards and so on. These groups were not known to be occupied with 'dirty' work, preferring instead cushy jobs in professions, even public sector, and of course that welfare-heaven - EU jobs. They are being laid-off ahead of 'Others' (which includes Americans, Russians, Ukrainians, Chinese - all the 'rif-ruf' according to our immigration laws). Now, the 'Others' category does not cover students here, who are doing their post-graduate degrees and working part time, but do not qualify for unemployment assistance. Others, as well as the UK nationals are actually holding to their jobs pretty much as well as Irish nationals.

So, see, not all Non-Nationals are identical... an obvious conclusion.