Commission Recommendation on the recognition of qualifications of third country nationals
Date: 2023-09-14
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: single market



PART-2023-690247V1.docx












CALL FOR EVIDENCE


FOR AN INITIATIVE  (without an impact assessment)






This document aims to inform the public and stakeholders about the Commission's work, so they can provide feedback and participate effectively in consultation activities. 


We ask these groups to provide views on the Commission's understanding of the problem and possible solutions, and to give us any relevant information they may have. 






Title of the initiative




1.Commission Communication on maximising the potential of talent mobility as part of the European Year of Skills  


2.Commission Recommendation on the recognition of qualifications of third country nationals






Lead DG – responsible unit 




SG.E2 / GROW.D1






Likely Type of initiative




1.Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions


2.Commission Recommendation 






Indicative Timing




Q4 2023






Additional Information




The call for evidence is for two initiatives that will be part of a package on maximising the potential of talent mobility as part of the European Year of Skills. These initiatives will deliver on the 2023 Commission work programme item on recognition of qualifications of third country (i.e. non-EU) nationals. Other elements of the package have been covered by other calls for evidence.






This document is for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by this document, including its timing, are subject to change.









A. Political context, problem definition and subsidiarity check






Political context 






In her 2022 State of the Union speech, President von der Leyen announced that to help address the severe labour shortages faced by European employers, the Commission would propose a European Year of Skills, and put forward an initiative on recognising the qualifications of third country nationals. The latter is also included in the Commission’s Work Programme for 2023.


To follow up on this commitment, the Commission will adopt a package aimed at maximising the potential of talent mobility as part of the European Year of Skills. This will include a Communication, a Commission recommendation on the recognition of qualifications of third country nationals, a legislative proposal for an EU Talent Pool, and a proposal for a Council recommendation on a learning mobility framework. This call for evidence addresses the first two elements of the package
1
.


The package will support the European Skills Agenda and will take forward work on the Pact on Migration and Asylum, and the Skills and Talent package. It is also directly relevant for the Commission’s action plan on integration and inclusion, which aims to secure a faster and fairer inclusion of migrants into the labour market, and for the Commission’s Green Deal industrial plan, which highlights the need to facilitate the validation of skills and recognition of qualifications for both EU and non-EU citizens in sectors relevant for the green transition. The learning mobility framework is a key for achieving the European Education Area.


Facilitating the recognition of qualifications and validation of skills gained in non-EU countries is a key enabler for labour migration and integration of migrants into host societies. As recognised in the Communication on the long-term competitiveness of the EU, it can help alleviate the most pressing labour and skills shortages. It can also facilitate the intra-EU mobility of migrants, potentially making the EU as a whole more attractive to economic migrants with skills sought by EU employers. This aspect is also closely linked to the promotion of learning mobility. The question of what more can be done at EU level to enable the swift validation of skills and recognition of qualifications of non-EU nationals has gained prominence due to Russia’s war of aggression against Ukraine and the high number of displaced people that have fled to the EU. In April 2022, the Commission adopted a Recommendation on recognition of qualifications for people fleeing Russia’s invasion of Ukraine. An assessment of its implementation showed that Member States have introduced a number of innovative practices in this area to help displaced people access the labour market. In preparing the Communication and Recommendation, the Commission will consider how this experience can be applied more broadly.






Problem the initiative aims to tackle 






Labour shortages are a major threat to the EU economy. They hold back growth, innovation capacity and the ability of EU industry and public authorities to manage the digital and green transition. The green economy is expected to see a net creation of 5 million new jobs over the next decades. In key sectors like transport, the workforce is rapidly ageing and significant shortages already exist in certain occupations. In healthcare and long-term care, the EU is already short of around 2 million workers, and up to 1 million new job openings for health associate professionals and long-term care workers are expected until 2030
2
. 


Labour shortages have several root causes. Upskilling is essential for the digital transition, but the EU is falling short. For example, we are 11 million short of the ‘20 million ICT professionals by 2030’ target to make our continent a digital leader and support sectors such as data, AI, cybersecurity and semiconductors that rely on cutting-edge technologies. Measures to upskill and reskill the EU workforce and get the significant inactive population into work (including many migrants and refugees), are essential to address these skills gaps. The 2023 Employment and Social Developments in Europe (ESDE) report shows that labour market participation is lower among women, lower-educated people, people with a migrant background, and older and younger people. However, while measures addressing the existing EU workforce are indispensable, and the subject of significant ongoing work, they alone will not be sufficient. As noted in the  Skills and Talent package, an international dimension is needed. 


For many skilled non-EU nationals, the EU is not the most attractive destination. Only one Member State (Sweden) appears in the top five countries of the OECD attractiveness indicator for highly skilled workers. The 2019 fitness check on legal migration highlighted a number of reasons for this, one of the most important being the complex nature and lack of transparency in recognising qualifications of non-EU nationals. Employers seeking to recruit non-EU nationals can face significant obstacles, including difficulties in identifying suitable candidates, and a lack of information on relevant rules and existing tools. In particular, information on recognition procedures in Member States is difficult to find, requirements are sometimes excessive, and procedures are often overly lengthy. Employers and recognition authorities also often do not have access to information about the content of a non-EU qualification. Recognition authorities also often lack information on the   practices or analysis of  their counterparts in other Member States. Difficulties in understanding the authenticity, content and level of foreign qualifications and a lack of clarity about skills gained abroad are therefore a major disincentive for EU employers to recruit non-EU nationals. EU citizens that have gained qualifications in non-EU countries can also face similar difficulties. This affects both regulated and unregulated professions.


The resulting situation not only affects the EU’s attractiveness, it also leads to ‘brain waste’ (migrants working below their qualification level) across the EU. According to Eurostat, over a quarter of migrants are highly qualified but almost 40% are overqualified for the job they do (i.e. work in low or medium skilled occupations despite having a high level of education). The equivalent figure for EU citizens residing in their own country is 20%. The assessment of the Commission Recommendation on the recognition of qualifications for people fleeing Russia’s invasion of Ukraine also highlights ’a potential risk that qualified Ukrainian professionals may become trapped in assistant-level positions’. The 2021-27 action plan on integration and inclusion recognises that facilitating the recognition of qualifications acquired in non-EU countries is key to a faster and fairer inclusion of migrants into the labour market and enables them to make the most of their competences and skills.


Skills intelligence data produced at EU level (by Cedefop, the European Labour Authority, Eurostat etc.) as well as at national and regional level can be used more strategically to inform EU policies on labour migration and the recognition of skills and qualifications and to help the EU adapt to changing labour market needs. The first meeting of the Labour Migration Platform on 10 January 2023 demonstrated that Member States follow different practices in how they determine labour market shortages, and how this information is fed into labour migration policymaking (if at all). 






Basis for EU action (legal basis and subsidiarity check) 






Legal basis






The Communication will set out measures in various policy areas, including skills policy, the recognition of professional qualifications by Member States, education policy and legal migration and integration policy. Article 165 and 166 TFEU provide the basis for EU action on education, including the mobility of learners, and set out that the EU must implement a vocational training policy and foster cooperation with non-EU countries in this area. Article 79(2)(a) and (b) TFEU allow the EU to adopt measures setting out the conditions of entry and residence of non-EU nationals as well as on the rights of legally residing non-EU nationals.  While migrant integration policy is primarily a competence of the Member States, Article 79(4) allows the EU to introduce measures to support Member States in this area, such as the sharing of best practices. 


Article 292 TFEU provides a legal basis for the Commission to adopt recommendations.






Practical need for EU action






The Pact on Migration and Asylum emphasises that legal migration is central to the EU’s comprehensive approach on migration, and directly contributes to EU priorities on skills. The EU’s migration policy needs to reflect the integration of the EU economy and the interdependence between Member State labour markets. EU labour migration policy can help foster a level playing field between labour markets as migration destinations, and help Member States use their EU membership as an asset for attracting talent. Integrating migration policies with EU skills and learning mobility policies can help maximise their potential.


Member States share similar challenges in recognising qualifications and validating skills acquired in non-EU countries. Using a ‘Skills First’ approach, improving cooperation on the recognition of qualifications and validation of skills, and moving towards a common approach could lead to cost savings for national authorities and employers, make procedures more efficient and increase the EU’s ability to attract and make the best use of talent from abroad. Experience with the Commission Recommendation on the recognition of qualifications of people displaced from Ukraine has also shown the value of Member States exchanging best practices, of cooperation with non-EU countries, of the use of electronic tools, and of practical recommendations to help national authorities improve procedures for specific groups. Measures on the recognition of qualifications and validation of skills for non-EU nationals will need to ensure that  EU nationals with the same qualifications or skills receive equal treatment.


Only action at EU level can improve how current EU tools on skills intelligence, qualifications documentation, transparency and recognition are used to strengthen the transparency of skills and qualifications gained in non-EU countries. The EU can also support international cooperation to help foster trust, understanding and transparency of skills and qualifications, and strengthen training systems and qualification frameworks in third countries. The EU is better placed to coordinate activities on transnational learning mobility than individual Member States, due to the need to involve organisations in various countries.






B. What does the initiative aim to achieve and how 






The overall objectives of the package will be to: i) make the EU more attractive to talent from outside Europe and reduce the cost of recruiting migrants for employers; ii) ensure migrants can best use their skills and qualifications; iii) deepen cooperation with non-EU countries on legal pathways, iv) support the mobility of learners. The  package will go hand in hand with a continuing drive to reskill, upskill and activate the workforce in the EU. The Commission will seek to ensure that the various measures set out to help migrants use their skills and qualifications benefit both newcomers and those already residing in the EU.


The Communication on maximising the potential of talent mobility as part of the European Year of Skills will combine systemic long-term measures and short-term deliverables. It will include an emphasis on measures relevant to filling skills gaps in professions that support the green and digital transition (e.g. construction, energy, transport), and in the health and long-term care sectors. Action on skills and third country nationals will be embedded in the work of the Skills Agenda and the European Year of Skills, preparing the EU workforce for the labour market and pursuing specific goals such as the labour market integration of persons not in education, employment or training (NEETs), especially those with a migrant background. It will build on existing work streams, including the implementation of the Skills and Talent package adopted in April 2022, efforts to launch Talent Partnerships with selected non-EU countries, and the work of the European Training Foundation (ETF). It will promote the ‘Skills First’ approach, introduce practical measures to ease the recognition of qualifications and validation of skills for third country nationals, and improve cooperation on talent mobility and skills acquisition with countries outside the EU. The Communication will also present the EU Talent Pool and the proposal for a Council Recommendation on learning mobility and set out how they will interact with other planned measures to help the EU attract talented non-EU nationals. It will also consider the role of skills intelligence data in helping the EU to better target  its initiatives on skills and talent mobility. Priority will be given to addressing skills gaps faced by SMEs.


The Recommendation on the recognition of qualifications of third country nationals will set out guidance on simplifying and accelerating the recognition of qualifications gained in non-EU countries in different contexts. It will include a focus on facilitating recognition to access regulated professions, particularly for in-demand sectors; recognition as part of legal migration procedures; facilitating access to employment; and processing applications for recognition related to priority professions. Processes for recognition of qualifications can deter or block potential applicants and ultimately limit the potential of a country to attract the type and volume of workers necessary to address labour shortages. The Recommendation will highlight the importance of a ‘Skills First’ approach where individuals’ skills are understood and valued whether acquired in formal, non-formal or informal settings. Formal recognition of qualifications should only apply where necessary. The text will recommend that Member States better align their recognition processes for the qualifications of non-EU nationals with the system set out in Directive 2005/36/EC, simplify procedures, reduce processing times and allow access to electronic procedures to reduce burdens for applicants, while ensuring the reliability of the system. The Recommendation will take inspiration from experience gained with facilitating the recognition of qualifications for people fleeing Russia’s war of aggression against Ukraine. 






Likely impacts






The initiatives are expected to have a positive economic impact. The measures should help the EU economy to get better access to a skilled workforce which would enable growth, innovation and a successful digital and green transition. Using the ‘Skills First’ approach, making it easier to recognise qualifications and validate skills and helping match applicants to job vacancies via the EU Talent Pool will reduce employers’ administrative burden and costs when recruiting labour migrants and make public administration more efficient. This should in turn make the EU more attractive to skilled workers from non-EU countries seeking to work in the targeted strategic sectors and helping to ensure that learning mobility is used to best effect. This may be of particular benefit for SMEs, which often face resource constraints preventing them from recruiting internationally. The initiative will need to address potential risks linked to brain drain in non-EU countries. For example, the Communication will consider how the EU might partner with other countries on skills development so that employers both within the EU and in the non-EU countries concerned can benefit. 


On social impacts, measures to activate unused potential on the labour market and to draw on the skills of third country nationals will have a positive impact. Facilitating fair recruitment, promoting the ‘Skills First’ approach, and helping non-EU nationals have their qualifications recognised and skills validated more easily can contribute to their integration and inclusion and to addressing ‘brain waste’ in the EU. It will also be important to target measures for non-EU nationals to sectors facing labour shortages that cannot be addressed solely by upskilling or activating the EU domestic workforce, or by improving inadequate working conditions which may discourage persons already in the EU from working in the sector. 


No negative impact on fundamental rights is expected. The initiative can help non-EU nationals exercise the right to engage in work and their freedom to choose an occupation (Article 15 of the European Charter of Fundamental Rights). There will be no specific environmental impacts, and the initiative could help provide the skills needed for the green transition.






Future monitoring






The Communication will set out how monitoring and follow up to the actions it announces will be ensured. The Recommendation will be monitored through the Group of Co-ordinators for Professional Qualifications in consultation, as appropriate, with Member State and stakeholder groups active in the area of skills, qualifications and migration, including the social partners. 






C. Better regulation






Impact assessment 






No Impact Assessment is planned for these initiatives. The Communication will set out a general policy approach and identify follow-up actions. The Recommendation will be a non-binding EU act. The need to assess the impact of future actions announced in the Communication will be assessed in due course, in line with the Better Regulation guidelines. Both initiatives will build on a number of sources including feedback to this call for evidence, relevant findings of the 2019 fitness check on legal migration, and experience with facilitating the recognition of qualifications of people displaced from Ukraine.


An impact assessment is currently being carried out for the upcoming legislative proposal on an EU Talent Pool. 






Consultation strategy 






The Commission invites stakeholders to provide their views on the upcoming Communication and recommendation via this call for evidence. Contributions are welcome from the general public, and in particular from employers and employers’ organisations, non-EU nationals residing in the EU or interested in seeking employment in an EU, Member State, trade unions, national and regional authorities involved in the recognition of qualifications or validation of skills, civil society groups including migrant organisations, and international organisations. 


The initiative will also be informed by stakeholder discussions organised as part of the European Year of Skills, and targeted consultations to prepare the EU Talent Pool initiative, including discussions with social partners and the EU labour migration platform on key obstacles to migrant recruitment. The Commission has also consulted Member States on the Recommendation on the recognition of qualifications for people fleeing Russia’s invasion of Ukraine. The recognition of qualifications was addressed in the legal migration fitness check completed in 2019, which was based on a public consultation.










(1)
 The 
EU Talent Pool
, and the 
learning mobility framework
 have already been addressed in earlier calls for evidence.



(2)
 2021 
Long-Term Care Report: Trends, 
challenges
 and opportunities in an ageing society
, European Commission