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Circular Migration

Circular migration has become an increasingly important topic for policy development, particularly as it has been seen as a way to enhance the contribution of international migration to development. The Global Forum on Migration and Development (GFMD) has highlighted circular migration as a key strategy for promoting development, as it offers benefits to both origin and destination countries, as well as the migrants themselves.

Circular migration became more prominent in the 1960s and 1970s, driven by globalisation, advancements in transportation and communication, the rise of multinational corporations, and the growth of social networks. Despite its increasing prevalence, circular migration was often overlooked or lumped together with other forms of temporary migration due to a lack of proper documentation. Only recently has it gained recognition as a distinct migration phenomenon, characterised by the repeated movement of migrants between their home country and a destination country based on seasonal work or employment opportunities.

Defining Circular Migration

Circular migration is a repetitive migration pattern where individuals move between their country of origin and a destination country based on the availability of employment opportunities.  Circular migration involves short-term movements that occur repeatedly, typically when work becomes available. This phenomenon has especially been common among low-income groups who migrate to take advantage of seasonal or short-term job opportunities in different locations, such as another country, city, or region. The cycle of moving back and forth would allow migrants to earn income while maintaining ties to their home country.


Circular Migration and Brain Drain

Circular migration leads to a transfer of skills, remittances, and other benefits to the country of origin. In contrast, brain drain is the permanent migration of highly qualified individuals, such as doctors and engineers, from the home country to other countries, which result in the long-term loss of talent.

Unlike circular migration, which allows for the eventual return of talent and skills, brain drain leads to a permanent gap in the workforce, with limited economic returns like remittances.


Philippe Fargues, a French demographer and sociologist, has defined several criteria that must be met for migration to be considered circular. These include a temporary residence in the destination country, the possibility of multiple entries into that country, freedom of movement between the origin and destination countries during the migration period, legal rights to stay in the destination country, protection of migrant rights, and a healthy demand for temporary labour in the destination country. 

According to the United Nations Economic Commission for Europe (UNECE) Task Force, ‘a migrant is considered circular if they complete at least two loops between two countries’. For example, if a person moves from Country A to Country B, returns to Country A, and then moves again from A to B, they are considered to have completed two loops and are called a circular migrant. However, this definition becomes more complicated when more than two countries are involved. For instance, if a migrant moves from Country A to B, returns to A, and then moves to Country C, they would be considered a circular migrant in Country A (since they have completed two loops), but Countries B and C might classify the individual as a return or temporary migrant, not circular.

In essence, a circular migrant is someone whose primary destination is their home country, but who periodically moves between countries for economic purposes, such as employment or business. This repetitive migration pattern distinguishes circular migration from other types of migration, such as permanent or short-term migration, by its cyclical nature and the migrant's ongoing connection to their country of origin.


Other Forms of Migration

Classifying migration can be a tough task due to various factors. Broadly, migration can be classified into two main types: (a) internal migration, which occurs within the borders of a single country, and (b) international migration, which involves movement across national borders.

Internal migration is sub-categorised according to various criteria:

  • Based on the direction of movement between rural and urban areas Rural to rural, rural to urban, urban to rural, and urban to urban
  • Based on spatial dimensions Intra-district migration (migration within the district), inter-district migration (migration from one district to another within the state), and inter-state migration (migration from one state to another)
  • Based on the motive/reasons for migration Marriage migration, labour migration or migration of people for work, employment, etc., and migration due to natural calamities
  • Based on duration of migration Permanent migration and temporary migration

Further, other forms of migration include circular migration, forced migration (occurs when people are compelled to move due to factors such as war, conflict, persecution, or natural disasters), voluntary migration (people move by choice, typically for economic, educational, or family reasons), immigration (the act of entering a new country to settle there), emigration (the act of leaving one’s own country to live in another), irregular/undocumented migration (movement that occurs outside the established legal frameworks or regulations of the sending, transit, and receiving countries), and so on.


Impacts

Migration, particularly from the Global South to the West, has sparked global debates due to its complex impacts. It causes brain drain in origin countries and leads to competition for jobs in destination countries. Additionally, migration from rural to urban areas within the same country has often strained infrastructure and hampered agricultural growth. As a result, migration has become a contentious policy issue.

Circular migration has emerged as a potential solution, offering a balanced approach that benefits both sending and receiving countries. For origin countries, circular migration brings the flow of remittances, boosting economy, infrastructure, and employment opportunities. However, it also mitigates brain drain by encouraging brain circulation, allowing migrants to contribute their skills to both the countries. For the host countries, circular migration addresses labour shortages without creating permanent population shifts, easing cultural and economic anxieties.

Circular Migration within the Country

In India, internal migration has predominantly been circular, with rural populations moving to urban areas for work, especially in sectors like construction, manufacturing, and services. Between 2004 and 2012, the construction sector saw significant employment growth, particularly for rural males. While this has led to economic opportunities for migrants, it has also caused rural economies to decline and urban areas to face infrastructure collapse due to rapid population growth. Inter-state migration, particularly from states like West Bengal, Odisha, and Bihar, has increased post-liberalisation, with migrants often moving to southern states for better-paying jobs. For example, daily wages in Kerala are significantly higher than in West Bengal, improving household welfare through remittances.

However, circular migration has been marked by challenges such as exploitation, unsafe working conditions, language barriers, and resentment from local workers who feel their jobs are being threatened by migrants accepting lower wages. These migrants often face insecurity as their work is seasonal, irregular, and poorly paid, limiting their ability to save or accumulate assets. The COVID-19 pandemic highlighted this vulnerability, with migrants walking back to their hometowns due to the lockdown.

Circular Migration to Other Countries

The ageing population in Western Europe and Japan has created a significant demand for skilled workers and caregivers from the developing world, especially from India. As these countries have been facing workforce shortages in critical sectors like quantum computing, infrastructure development and healthcare. India has a unique opportunity for improving the quality of life for many of its citizens within a single generation. For instance, Germany which is Europe’s largest economy has been particularly concerned about its growth constraints due to its shrinking workforce. Circular migration would present a win-win solution, where government-to-government agreements could ensure the protection of migrant workers wages, social security, and their guaranteed return. These system would not only address the labour needs of aging societies but also would ensure that migrants would benefit from better economic opportunities while contributing back to their home country’s development.

Initiatives by the Indian Government for Circular Migration and the Challenges

The central government has prioritised global outreach by securing bilateral agreements with non-Anglophone countries like Germany, Israel, and Japan for addressing skill deficits in their labour markets. For instance, Israel has demanded for over 1,00,000 skilled workers, such as masons, carpenters, and home-based carers from India. This has presented an opportunity for Indian workers who would receive competitive wages along with accommodation and social security. However, fulfilling the global skills gap would be challenging due to language barriers and the need for skill-matching through government-to-government agreements. This also requires legal compliances like passports and demonstrating skills in the specific formats required by the host countries.

The National Skill Development Corporation (NSDC) in collaboration with Maharashtra Institution for Transformation (MITRA) scheme and state departments have been working for the creation of standard operating procedures (SOPs) for helping skilled youth to access higher-wages in international markets. A key challenge has been in identifying youth with the right skills who were also willing to migrate. For instance, workers who were seeking jobs in Israel needed specific certifications and a booster training programme including English language skills and construction techniques. The training was supplemented by a four-day Recognition of Prior Learning (RPL) course for enhancing their existing skills. Through this process about 2,500 workers were pre-selected and Ministry of External Affairs expedited passport issuance for these workers.

After the rigorous testing of these 2,500 workers, 997 workers were chosen. This circular migration agreement ensured that these workers would return to India after five years. They would bring back enhanced skills and experience, which would benefit the Indian construction sector.

Way Forward

Circular migrants have been marginalised in both rural and urban destinations. Therefore, there is an urgent need for policies that recognise the extent of circular migration, for ensuring migrant rights, and addressing their precarious working conditions, as seen in initiatives like Kerala’s health insurance scheme for migrant workers.

Further, MITRA has been collaborating with state skill development departments for creating a dynamic database of skilled youth in alignment with the needs of countries like Israel, Japan, and Germany. Also, refresher training in languages like Japanese, German, or French is being provided to people to further enhance their employability abroad. As migration barriers have been diminishing globally, India’s potential of becoming a major source of human capital has been growing. Circular migration would offer a sustainable solution for ensuring benefits both for the migrant workers and the country.

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