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Exploring the Decline of Work Migration to Wealthy Nations: What’s Behind the Shift?

Exploring the Decline of Work Migration to Wealthy Nations: What’s Behind the Shift?
Exploring the Decline of Work Migration to Wealthy Nations: What’s Behind the Shift?

Work-related migration to affluent nations has experienced a notable decline, dropping by over 20% last year, as indicated by recent research conducted by the Organisation for Economic Co-operation and Development (OECD). This downturn arises amidst a softening labor market, which has prompted countries such as Australia and the United Kingdom to enact stricter visa regulations.

The OECD, based in Paris and representing 38 developed and developing economies, reported that there was a 21% decrease in the number of individuals granted permanent work status in OECD countries between 2023 and 2024, bringing the total to approximately 934,000. This reduction can be attributed to several factors, including revised visa policies, particularly in the UK, where net migration plummeted by over 40% in 2024. Additionally, labor migration levels have fallen below 2019 figures across most European Union member states, even in the absence of significant policy changes.

Jean-Christophe Dumont, who oversees international migration at the OECD, attributed this drop to the less favorable global economic atmosphere. The International Monetary Fund (IMF) has also adjusted its global growth forecast downward to 2.8% for 2025, influenced in part by economic tensions associated with the ongoing trade conflict initiated by some political leaders.

Furthermore, various traditional migrant-receiving nations have intensified their entry requirements. Canada, Australia, and the UK have implemented measures to curtail work-related migration over the past two years. A significant factor in this trend has been the temporary protection granted to many Ukrainians who relocated to Europe following the conflict in their homeland, which has alleviated labor shortages in various sectors, subsequently reducing demand for foreign workers.

In contrast, migration for humanitarian purposes has witnessed a rise. The final months of the Biden administration saw a surge in asylum applications in the United States, while the UK experienced a marked increase in illegal small-boat arrivals from European Union states.

Despite the overall decline in labor and student migration, total permanent migration to developed economies dropped minimally—by only 4%—compared to peaks in prior years. Notably, the 6.2 million newcomers to OECD nations in 2024 surpassed pre-pandemic levels by about 15%. Temporary labor migration remained stable at around 2.3 million, a figure that continues to exceed 2019 figures.

The OECD reported a record influx of 6.5 million immigrants in 2023, which marked a nearly 10% increase compared to the previous year and was particularly prominent in countries like the UK, Canada, and Japan. The US alone welcomed approximately 1.2 million permanent legal immigrants, despite ongoing political discourse surrounding migration.

Looking ahead, Dumont anticipates a slight reduction in overall immigration to OECD countries in 2025, though numbers will likely remain historically high despite escalating restrictions in the US. Notably, employment rates among foreign-born workers are robust, with the UK reporting an employment rate of around 76%, slightly above that of native-born citizens. This phenomenon may be partly driven by specialized visa programs for high-skilled positions and the willingness of lower-skilled migrants to fill essential roles in sectors such as agriculture and healthcare.

As migration continues to shape electoral politics worldwide, particularly in Europe and the US, experts underline the importance of recognizing the vital contributions that migrants make to the workforce and the economy. The OECD remains a key center for research, policy development, and economic cooperation, reflecting its evolution from a post-war recovery initiative to an influential global forum.

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