6.5 million permanent migrants moved to an Oecd country in 2023, according to the organisation’s latest report. Flows that open challenges and opportunities for the 38 high-income member countries. The contribution of those who moved to a nation that is not theirs opens Pandora’s vase in terms of refuge, acceptance, housing costs and services. But represents also one possible answer to current problems. From the talent shortage and the gaps in the labour market to the ageing populations and, in many cases, low birthrates, those flows are hardly only a threat to the sustainability of a nation’s economy.
The latest Oec International Migration Outlook, reporting and analysing data from 2023, accounts for a new record. For the second year running. According to Stefano Scarpetta, Director for Employment, Labour and Social Affairs Oecd, «Not only have 6.5 million permanent migrants arrived in the last year, but the number of temporary migrants and asylum seekers has skyrocketed.»
Introducing the report, Scarpetta does not shy away from the concerns about the impact of significant numbers of incoming people on a country’s economy and society. However, he also emphasizes the positive potential outcomes. «Reflecting structural trends rather than temporary blips, these increasing migration flows raise legitimate concerns, but they also point to major opportunities. Evidence from Oecd countries suggests that high flows can be well managed with appropriate policy.»
Managing the flow in uncertain times
There is no clear answer to the fears of an “invasion” happening at the borders – a narrative that has also been used as a central topic in many elections for a very long time. Nor is it possible to say it is feasible and safe to welcome all migrants entering a country. Yet, as the Oecd paper offers, it is helpful to put the trend, data and numbers into a social and economic context. Looking in particular to those evolving trends the 38 members. This includes the shifts, international distress, and the impact, especially (not exclusively) the war in Ukraine, on migrations within and toward Europe and America.
With over 6 million new permanent immigrants entering one of the Oecd countries, 2022 was already a record year. A peak surpassed in the following 12 months. According to the organisation, the main reason in 2023 for moving abroad was family migration (increased by 16%). Besides this and humanitarian seasons, another flow that continued to rise was the international flow of students: last year, over 2.1 million new permits were issued, marking an increase of almost 7%.
High numbers of people moving to a place pose challenges and put pressure on countries. It brings more nations to tighten their asylum legislation or restrict legal migration to tackle housing availability, costs, and public services. However, the evolving labour market and demographics in most of the OECD do not need only border closing and barriers but a well-managed migration. As Scarpetta points out in the report’s opening remarks, «Labour migration is a discretionary category of admission over which host-country authorities have virtually full control. Increasing the accessibility and availability of labour migration channels contributes to addressing labour shortages and is essential to strengthening overall control of flows and managing irregular migration.»
(Im)migrants entrepreneurs
Occupation levels are strong, and labour market outcomes for immigrants are “better than ever before”, comments the Oecd report. At the same time, the challenges posed by an ageing population and a shortage of appropriate profiles are fuelling the need to better manage the “income fluxes”. A growing number of immigrants also promotes countries’ growth in many domains. In many places, the matter is finding a balance between restrictive and attractive measures.
In this tag-o-war to find a balance, the document looks at the percentage of migrants who were entrepreneurs. Their number grew to 17% in 2022, translating into an additional 4 million jobs in the Oecd countries since 2006. But, as the Outlook underlines, «while immigrants are over-represented among the founders of some of the most successful firms in the Oecd, in practically all countries immigrant firms are smaller than those of the native-born, with similar demographic characteristics and operating in the same sectors. Nonetheless, immigrants are more likely than the native-born to be own-account workers, be in false self-employment, and participate in the gig economy. Few Oecd countries have services targeted at immigrants within their mainstream services to support entrepreneurship, but immigrants tend to have access to national programmes and initiatives virtually everywhere.»
Is migration to be welcomed or feared? Is it a threat or an opportunity? The answer is not straightforward and depends on various factors. Undeniably, most of us are told the part of a story that fuels fear – not wholly untrue. Less so about benefits or changes and possible growth immigration in these evolving times brings to the table. Moreover, it is pretty inevitable. Thus, no matter the point of view, the question is now, maybe, more about how to adapt and manage it rather than how to build higher walls.
Looking more closely at the report’s numbers, in 2023, a third of the nations recorded high immigration levels. Among them are the UK, Canada, France, Japan and Switzerland. At the same time, another third saw, instead, a decline in the flux of people moving there. In this group are notably New Zealand, Israel, Denmark and Italy. The last one received 235.000 new immigrants in 2022 (on a long-term or permanent basis), which is 15% more than the year before. Around 25 thousand were issued to tertiary-level students.
Moreover, in 2023, the number of applicants for first asylum seekers increased by 69% and reached a total of 131.000. At the same time, OECD data confirm that in 2022, 152.000 people left Italy(an increase of 14%), with the majority of them moving to Spain (32%), Germany (14%) and Switzerland (12%).
***
Alley Oop’s newsletter
Alley Oop arrives in your inbox every Friday morning with news and stories. To sign up, click here.
If you want to write to or contact Alley Oop’s editorial team, email us at [email protected].
