Analysis 7/2018: We need immigrants. How to make Ukrainian workers stay in Poland?
- In recent years, many people have come to Poland from the East looking for work - in 2017, according to NBP estimates, there were on average of 900,000 employees from Ukraine in Poland. Most of them work temporarily on the basis of the employer’s statement of intention to employ a foreigner. It is valid for several months only and does not allow to apply for permanent residency. The Polish administration is very reluctant to grant Polish citizenship. In 2016, only 3,500 citizenships were granted to people from outside the EU. This attitude damages the economy.
- Temporary immigrants are focused on a quick return home with their earnings. Although they rarely invest in language learning or specialist skills, they still bring significant benefits to the Polish economy – their presence reduces shortages of less qualified employees, their taxes and premiums improve the situation of public finances. Many of them provide home care and home, increasing the supply of Polish workers.
- The goal of permanent immigrants is to maximize earnings in the long run. Therefore they are eager to learn the language and acquire skills that will improve their job opportunities in the host country. Over time, they produce and earn as much as native employees. The experience of other countries shows that a predictable immigration policy allows local employees and companies to adapt to and benefit from the inflow of immigrants, leading to increased wages and productivity in the economy. Immigration also reduces the demographic pressure on public finances, on the one hand temporarily "rejuvenating" the age structure, and on the other, limiting the burden of the public debt on the taxpayers.
- Immigrants from Ukraine are attracted to Poland by significantly higher wages, geographical and linguistic proximity, migration networks already in place, much lower levels of corruption and numerous Ukrainian students at Polish universities. Unfortunately, as more attractive job markets open in Western Europe, Ukrainians may start to choose countries offering higher wages than Poland. Therefore, immigration policy should strive to facilitate their settlement as soon as possible in order to limit their outflow to the West.
- The OECD notes that many countries in recent years have facilitated access to citizenship, including Poland's neighbors. Germany shortened the time of waiting for citizenship and began to grant them at birth to children of foreigners. Lithuania abolished the requirement to choose between two citizenships. Estonia has facilitated the acquisition of citizenship for children of stateless persons. Meanwhile, against this trend, Poland has sharpened the criteria this year, adding the requirement of language at level B1.
We draw the following recommendations from the analysis of the experience of other countries:
- To create a clear path to naturalization for third-country citizens who work in Poland and pay taxes for a certain number of years. This will give them and their Polish employers incentives to create long-term relationships, laying the foundations for an increase in labor productivity and immigrant wages.
- Change the nature of work permits (type A and B) so that they would allow working anywhere in Poland rather than for a specific employer only. At present, third-country nationals are required to apply for a new work permit each time they change their employer, which pushes them into the gray economy.
- Introduce an automatic right to work for spouses of third-country nationals who have work permits. This is especially important when attracting highly qualified employees.
- Extend the seasonal work permit from nine months to an indefinite period if the holder abides by the Polish law. At present, many third-country nationals work seasonally in Poland every year and are forced to apply for a new permit each year.
- Transfer responsibility for labor immigration from the Ministry of Interior and Administration to the Ministry of Labor and Social Policy. Immigration is not a matter of security, but a matter of the labor market.
In the text, first we discuss the existing complex labor regulations in Poland for foreigners from outside the EU, which do not provide them with a way to long-term immigration and obtaining Polish citizenships. Then we move to the data indicating that, although many Ukrainians are temporarily working and studying in Poland, we belong to the EU countries that are the least likely to grant their citizenship. Next, on the basis of research on the economy of immigration, we show why it is beneficial for the Polish employees and the economy in the long run. We end the report with our recommendations.
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The analysis is based on the LFMI (2018) report on the problem of rigidity of regulation of employees from outside the European Union. The report was prepared by the Lithuanian Free Market Institute(LFMI) in cooperation with the Civic Development Forum and partners from Bulgaria, the Czech Republic, Estonia, and Slovakia. This is part of a 3-year study on the flexibility of labor regulation, initiated and coordinated by LFMI.
Authors:
Karolina Wąsowska, lawyer
karolina.wasowska@for.org.pl
Rafał Rzeciakowski, economist
rafal.trzeciakowski@for.org.pl
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