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A more open approach to immigration could bring increased benefits
Alongside the high rate of structural unemployment, there are substantial shortages of labour in some regions and occupations, further underscoring the problems in the labour market. Immigration has partially relieved these labour shortages. Higher-skilled vacancies tend to be filled by Slovaks while low-skilled jobs that Czech workers find unattractive are taken mostly by other central and eastern Europeans. While gains from labour migration have already been realised from the special agreement on the free movement of labour with Slovakia, the policy approach to other potential source countries, such as the Ukraine, has to-date been rather restrictive. The Czech Republic has gradually become an immigration country since 1990, but legal immigration from countries other than Slovakia is still low in international comparison, though, as elsewhere, actual immigration is higher because of undocumented migrants. The recent pilot project that facilitates the granting of permanent residence using a points system is a positive sign of new thinking in immigration policy. A more open and long-run approach to standard legal immigration could help formalise labour inflows and increase the integration of foreigners and thus go towards easing problems created by the rapidly ageing Czech population. One step would be to widen the avenues to permanent residence and citizenship. A less restrictive system of work permits, including the use of less precisely defined permits would complement such measures and be beneficial in fiscal terms, as more activities would be declared. At the same time, the trade licensing system for foreigners should be aligned to the work permit system, as it has become abused as a means of legal entry. Information to develop immigration policy needs to be improved. In particular, more statistics are needed on the number and activities of immigrants to help develop policy.
Foreigners working in the Czech Republic by type of permit
Per cent labour force
Source: Czech government authorities.
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