Admission of foreign workers to Austria

Facts and figures

361.721 369.535 382.140 400.159 418.336443.112

15.724 17.71920.102

22.920

30.611

26.905

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

2001 2002 2003 2004 2005 2006

Selbstständige Beschäftigung

Unselbstständige Beschäftigung

Beschäftigung von Personen mit Migrationshintergrund

Employment of workers of migratory background

Migration to Austria

1.353 million people of migration background lived in Austria as at January 2007, i.e. 16% of the entire population.

Only topped by Luxembourg and Lithuania (both with very high percentages of EU citizens), Austria has the largest proportion of people born outside its territory.

As regards third-country nationals, Austria ranks

second after Greece within the European Union.

Employment

474,000 (or 13.6%) workers of migratory background were employed in Austria in 2006.

Employees of migratory background rose 22.3% from 2002 to 2006, while self-employed workers of such background soared 73%.

This signifies that this group of workers accounted for almost three quarters (71%) of employment growth.

More than 56% of all dependent workers of immigrant background are centred in only four business segments.

Business services: 70,000 (thereof 22,000 in the cleaning business and 14,700 in temporary agency work); retail and wholesale business: 66,600; tourism: 61,500; building industry: 51,300.

Facts and figures

69.01370.125

62.406

56.977

41.936

51.096

4.462 5.5997.773

15.17611.950

9.169

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

2001 2002 2003 2004 2005 2006

Arbeitslosigkeit

AMS-Qualifikation

Arbeitslosigkeit und AMS-Qualifikation von Personen mit Migrationshintergrund

Unemployment and AMS qualification of workers of migratory background

Unemployment among foreign workers

The foreign workers‘ share in unemployment is 17.8%.

Owing to their low skills level foreign workers are at a specially high risk of unemployment: 77% of all foreign job-seekers registered as unemployed only have compulsory schooling (versus 40% of Austrian job-seekers).

Act Governing the Employment of Foreign Nationals (AuslBG)

Controlled access to the labour market: to meet labour demand

Objective: to strike a balance between labour supply and demand; prevent unemployment

Ensure compliance with agreed wages and working conditions to provide a level playing field for competition between companies

Penalise illegal employment

Two pillars: residence and work

1. Entry and residenceVisa and residence title; asylum; border controls:

Federal Ministry of the Interior (BMF) Competent authorities (indirect federal

administration: governors of the Austrian states (Länder); district administration authorities; municipal authorities)

2. WorkAdmission to the labour market:

Federal Ministry of Economics and Labour (BMWA)

Public employment service (AMS) in terms of indirect federal administration

Scope: Who is subject to the AuslBG?

1. Basically any non-Austrian national (with a few exceptions)

2. Dependent employmentA. employment relationshipsB. employment-type relationshipsC. training relationships (formal apprenticeships)

3. Self-employment: opinion obtained in alien law procedure on overall economic benefit

Social partners

1. Act Governing the Employment of Foreign Nationals (AuslBG)

A. Legislative and executive power at federal levelB. Competent ministry: BMWA (+ foreign nationals

committee at federal level) authority to issue ordinances and guidelines authority to give directions to the public

employment service (AMS) in special cases.

2. Execution by the AMSA. Regional AMS office + regional advisory board:

first instance B. State AMS office + state directorate (foreign

nationals committee at Länder level): second (appellate) instance

C. Federal AMS office: administrative coordination

New admissions – third-country nationals

Third-country nationals:

“Zero quota” for workers, i.e. new permits are only issued for

1. key workers if quota space is available

2. seasonal workers if quota space is available

3. rotation workers

4. posted employees

5. others (au-pairs, volunteers, etc.)

New EU citizens

New EU citizens: Permit regime remains in place, but:1. Quota regime under alien law no longer applies2. Labour market opinion required; if positive, new EU citizens

also subject toA. unanimous approval by foreign nationals committee,

or B. a good level of integration, orC. available quota space for seasonal worker, orD. applicable intergovernmental agreement, or E. federal ordinance governing maximum quota

numbers (BHZÜV), such as for nurses and care workers, or

F. 2008 BHZÜV for skilled workers (50 occupations)

Admission of key workers - 1

1. ConditionsA. Special qualificationB. Minimum gross pay € 2,358 per monthC. plus:

special supra-company importance, or creation of new jobs, or corporate decision-taking power, or transfer of investment capital, or tertiary education or other top training credentials

Admission of key workers - 2

1. ProcedureA. Employer files application for a “settlement permit for key worker” with the

competent authority on behalf of foreign nationalB. Public employment service (AMS) submits its opinion to competent authority C. Fixed-term permit (18 months) issued for job in question; permit is also

recognised as residence titleD. After 18 months: unrestricted settlement permit; no restrictions on job take-

up 2. Application rejected if:

A. No quota space availableB. AMS opinion is negative (appeal to competent state’s AMS office)

Ordinances for skilled workers

1. First ordinance for skilled workers (1/5/2007) 800 permits max. for turners, locksmiths, welders only for new EU citizens

2. Second ordinance for skilled workers (1/1/2008)

permits for skilled workers in 50 occupations subject to a jobless-to-vacancy ratio of ≥1.5 no maximum numbers only for new EU citizens