Global Labour Mobility and Mutual Recognition of Skills and Qualifications: European Union and Australia/New Zealand Perspectives. Working Paper No. 56

The labour market is one the most significant markets in modern economies. Today labour embodies increasing amounts of human capital in the form of skills, talents and knowledge. Migration of workers between regions and countries can contribute to efficiency. People are moving from areas in which they are underemployed or unemployed to areas in which there is greater demand for their labour. Frequently the movement of people is across national or other administrative borders. Differences between jurisdictions in the way in which they recognise experience, skills and qualifications can subtract from the efficiency of the labour market. This paper outlines steps taken in the European Union (EU) to improve the mobility of skilled labour between EU countries. The interface between qualifications and the labour market is being addressed by the creation of extensive electronic networks providing workers with more information about potential jobs and employers with more meaningful information about potential applicants. Mobility of labour can be further enhanced by improving the portability of social security, health and pension benefits. The EU has also recognised that migrants are a substantial proportion of the EU workforce. In terms of mobility, they may be better placed than residents to take advantage of regional shifts in demand for labour, and impediments to their mobility between EU countries reduces the efficiency of the contribution they can make. The experience in both Australia and New Zealand recognises the economic benefits to be derived from geographic and jurisdictional labour mobility and especially of those aspects associated with the recognition of skills. It is different from the EU experience in two regards: (1) Cultural differences present in Europe are far less apparent in Australia and New Zealand; and (2) Registration in one jurisdiction was a basis for eligibility for registration in all jurisdictions. The Trans-Tasman Mutual Recognition Arrangement (TTMRA) and Mutual Recognition Agreement (MRA) between the Australian Government and the governments of the eight Australian states and territories are cited as potential models for other countries considering a similar strategy. (Contains 7 footnotes.) [Partial funding for this paper was obtained from a grant from the Monash Institute for the Study of Global Movements.]