Speech New Delhi, India 04 November 2008
Tobias Billström, Minister for Migration and Asylum Policy

Speech at the Federation of Indian Chambers of Commerce and Industry (FICCI)

The main reason for my visit to India is to inform you about our newly proposed reform for labour migration which will enter into force by the end of this year.

I look forward to learn about your views on labour migration generally and to discuss the Swedish reform. To facilitate this, I have at my side a distinguished delegation of representatives from Swedish enterprises, labour organizations and the responsible authority.

It is my firm belief that migration is a positive force in our increasingly globalised world. In order to promote cross-border mobility and make better use of the knowledge and experience of labour immigrants, it is time to broaden our perspectives.

We must recognize the ambition and potential of individuals who wish to travel abroad to live and work. This is the reason why the Swedish Government, in one of the most significant reforms of immigration policy in several decades, has decided to open a new path for those wishing to come to work.

In 2007 nearly 1 500 Indian citizens were granted work permit in Sweden. This makes India the number one country of origin of labour migrants in Sweden. In the years to come, we would like to welcome more labour immigrants. Immigration is of vital importance for Sweden's ability to meet both present and future challenges in the labour market. At the same time, it contributes to a more culturally diverse and open society.

Sweden has a tradition of labour immigration. In the decades following the Second World War, immigration made a major contribution to our prosperity. Sweden was still a labour immigration country at the beginning of the 1970s, but the general perception of immigration changed subsequently as the flows to Sweden came to be dominated by asylum seekers. Apart from asylum seekers and their relatives, the number of people who have been given the opportunity to come to Sweden to create a better future for themselves has been relatively small.

Sweden has now decided to re-open the path for those wishing to come to work.
In stark contrast to immigration regulations in many other countries, Swedish policy is not based on quotas or aimed exclusively at highly qualified labour. On the contrary, one of the main features of the reform is that it focuses on the employers' demand for labour, high as well as low skilled workers. In doing so, Sweden is setting an example which hopefully others will follow.

Even today, in times of financial instability and potentially rising unemployment, there are labour shortages in several occupations and sectors of the Swedish labour market. In addition, our population is getting older and many will soon be leaving working life. This demographic trend presents a challenge for future growth and the sustainability of our welfare system. Labour immigration is one of several instruments in efforts to prevent labour shortages and to maintain the supply of labour in the short and long-term. Increased labour immigration constitutes a complement to measures which aim to utilize the labour already in the country.

An area in which labour immigration sooner can play a vital role is where there are problems recruiting employees with the right skills. Already today, many companies are facing recruitment problems. The reality is that some skills cannot be found in Sweden, even though there is still unemployment. Doctors, nurses, engineers, electricians, IT-technicians and welders are examples of professions where there currently are shortages in Sweden. The recruitment difficulties prevents employers from expanding and ultimately from creating more jobs.

The new rules and regulations are expected to enter into force by the end of this year. Thereafter, an employer who is not able to meet labour needs through recruitment in Sweden or in the European Union will be able to recruit labour from any other country. When processing cases involving residence and work permits, decisions will be based on employers' own assessment of their needs.

To ensure that there is sound competition for jobs in the labour market and to avoid social dumping the Swedish Migration Board will examine whether the terms offered, i.e. salary, insurance protection and other terms of employment, are in accordance with the conditions applying to employees already resident in the country.

A person who has been granted a work and residence permit will also in other areas be given the same rights and obligations as provided for nationals. This includes the right to family reunification. The spouse or partner of the labour migrant will be granted full access to the labour market as well. This is another rather unique feature of the Swedish reform.

So is the validity of the permit. A Swedish work permit will be granted for the duration of the employment or for a maximum of two years. If the person is still working, it will be possible to extend the permit once or several times. After four years, a permanent residence permit can be granted to those who wish to remain.

The rules for visiting students who whish to stay on and work in Sweden at the completion of their studies will also be simplified. Since the beginning of this decade some 500 Indian students have come to Sweden each year. They will benefit from the amended rules allowing visiting students who have completed one semester or who have completed one term of research education at institutions of higher education to apply for work and residence permits without having to first leave Sweden.

With these rules and regulations, Sweden will have an open, flexible and effective system for labour immigration, based on the employers' need for competence.

I would also like to address the important issue of migration and development and circular migration, since there are clearly many parallels with labour migration.

In Sweden, one of our major priorities is to ensure that labour migration contributes to positive development effects in both countries of origin and destination - and of course that it benefits the migrants themselves. In the legislative proposal for a labour migration reform it is explicitly acknowledged that increased opportunities for labor migration do not merely benefit the economies of countries of destination, but also constitute a development potential for countries of origin.

Of course, this is clearly also a priority for India, since you have such extensive experience when it comes to successfully encouraging the return of Indian migrants and promoting the engagement and investments of members of the Diaspora.

If I have understood correctly, in addition to economic liberalization and increases in foreign direct investment, much of India's remarkable economic growth in recent years can be attributed to the remittances that non-resident Indians and migrant workers send home - around 27 billion dollars annually.

By expanding opportunities for labour migration, more individuals will have the chance to come and work in Sweden, to gain new experiences and learn new skills, and to save money and send some of it home if they choose. And of course, we hope that many of these individuals will be Indians.