The Nordic Labor Market And Migration

The large influx of migrants to Nordic countries in recent years is challenging the adoptability of Nordic labor market institutions while also adding to potential growth. This paper examines the trends, economic drivers, and labor market implications of migration to Nordic countries with a particular focus on economic migration as distinct from the recent large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are influenced by both cyclical and structural factors. Although migration helpfully dampens overheating pressures during periods of strong demand, and over the longer term will cushion the decline in labor supply from population aging, in the near-term unemployment can rise, especially among the young and lower-skilled. The analysis highlights the need to adapt Nordic labor market institutions in a manner that better facilitates the integration of migrants into employment. In particular, greater wage flexibility at the firm level and continued strong active labor market measures will help improve labor market outcomes among immigrants.

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. Education policy, active labour market policy, social benefit policy and wage policy are analysed. A key conclusion is that no single policy is likely to suffice. Instead, various policies have to be combined. The exact policy mix must depend on evaluations of the trade-offs with other policy objectives.

Available online: https://pub.norden.org/nord2021-050/ Nordic countries have been affected by the Covid-19 pandemic, which has taken a substantial toll on economic growth and employment level. Immigrants may have been disproportionately affected, even though Denmark, Finland, Norway and Sweden already face serious challenges in integrating immigrants into their labour markets for several years. This report aims to make a contribution to further research into the consequences of the pandemic.

In 1954 the Nordic countries entered a formal agreement on free labour mobility. Migration profiles have changed very much over the years since then. The Nordic agreement on free mobility is however still a clear advantage, both for the affected individuals and for the participating countries. The report contains a survey of earlier studies of the impact from the Nordic labour market agreement, followed by a broad description of the actual mobility over the 50 years since 1954. Next, the report surveys the actual factors behind the intra-Nordic mobility with special emphasis on cyclical differences between the countries. This is followed by in-depth analyses of characteristics of intra-Nordic migrants compared with people migrating out of the Nordic area. The report contains a survey of earlier studies of the impact from the Nordic labour market agreement, followed by a broad description of the actual mobility over the 50 years since 1954. Next, the report surveys the actual factors behind the intra-Nordic mobility with special emphasis on cyclical differences between the countries. This is followed by in-depth analyses of characteristics of intra-Nordic migrants compared with people migrating out of the Nordic area.

In this report, we describe efforts to achieve faster integration of refugees and foreign-born residents in the labour market in the Nordic region. The examples presented in the report have been selected by our group of Nordic experts. In selecting examples, they have focused on the integration initiatives deemed to have the greatest likelihood of being implemented in their neighbouring countries. This selection is based on the knowledge gained from research and the recommendations made by our Nordic co-operation partners. In this report we have also sought to give a brief description of current research and knowledge regarding effective measures and the possible challenges facing refugees in the labour markets in the Nordic Region. For more information visit www.integrationnorden.org

This report presents the results from a project that has aimed to generate new comparative knowledge about labour migration from Central and Eastern Europe to the Nordic countries, the factors that shape wage and working conditions for labour migrants and recruitment processes and practices. In the report we: • Describe and compare patterns of labour migration between Central and Eastern Europe and the Nordic countries. • Compare the working conditions of Polish labour migrants in in Oslo, Copenhagen and Reykjavik – and analyse how their labour market situation is shaped by variations in national regulations, systems of collective bargaining and local labour market structures. • Analyse the particular role of recruitment agencies in introducing new migrants to the Nordic labour markets. The research has been conducted by a team of researchers from Fafo (Norway), FAOS (Denmark), CIRRA/MIRRA (Iceland), CMR (Poland) and SOFI (Sweden).