In 2023, migration to OECD countries reached record levels for the second year in a row. Not only have 6.5 million permanent migrants arrived in the last year, but the number of temporary migrants and asylum seekers has skyrocketed.
These high flows have fuelled widespread concern about migrants’ impact on receiving countries’ economies and societies, putting migration management and border control at the top of political agendas and the centre of voters’ interests in 2024 elections. Reflecting structural trends rather than temporary blips, these increasing migration flows raise legitimate concern, but they also point to major opportunities. Evidence from OECD countries suggests that these high flows can be well managed with appropriate policy.
First, buoyant labour demand in host countries has been a key driver of migration over the past two years. In many OECD countries facing widespread labour shortages and looming demographic changes, growing numbers of labour migrants have contributed to sustained economic growth. 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 not only contributes to addressing labour shortages, but is essential to strengthening overall control of flows and managing irregular migration.
Second, international co‑operation on migration is gradually progressing. In 2022, EU countries co‑ordinated their responses to the sudden and unprecedented influx of refugees from Ukraine following Russia’s war of aggression, using temporary protection status for the first time. Two years later, in 2024, the EU Pact on Migration and Asylum provided a comprehensive array of regulations and policies to create more efficient and sustainable migration and asylum processes at the EU level.
In the Americas, the 2022 Los Angeles Declaration lay the groundwork for increased regional co‑operation on migration matters. In the spirit of this declaration, among other measures, the United States, together with Canada, Mexico and Spain, are establishing regional centres in several Central and South American countries to promote regular, orderly, and safe migration. In response to the massive influx of people fleeing Venezuela, South American destination countries are closely co‑ordinating their responses through the Quito process.
This progress notwithstanding, stronger and more widespread international co‑operation is essential to continue to address irregular migration. This involves improving communication among origin and transit countries and sharing information and expectations. Complementary migration pathways that offer alternatives to irregular migration are another promising tool that is still underdeveloped in many countries and could benefit from better international exchange of best practices. The OECD, together with the UNHCR, provides comprehensive monitoring of these flows, laying the foundation for such exchanges. International co‑operation should also extend beyond migration management to consider integration, notably with respect to the issue of recognition of foreign qualifications in host countries.
Finally, the fact that higher inflows reflect growing demand for foreign labour explains why these increases are occurring in conjunction with strong employment records for both settled immigrants and the native‑born. Indeed, immigrants’ labour market outcomes are better than ever before, with OECD countries seeing both historically high levels of employment and low levels of unemployment. While this reflects good general labour market conditions, it also points to the growing role of immigrants in promoting economic activity. As the special chapter in this year’s International Migration Outlook highlights, the role of immigrants in promoting entrepreneurial activities has increased significantly in OECD countries. In 2022, more than one in six self-employed individuals in OECD countries was an immigrant, a distinct increase from one in nine in 2006. Such individuals provide an increasingly important contribution to innovation and employment creation, for migrants and native‑born alike.
These trends are encouraging and suggest a way forward, especially if supported by adequate policies to improve matching in the labour market and expand infrastructure development. Regular pathways that respond to labour needs paired with stronger international co‑operation are essential to a functioning migration management system. At the same time, effective and sustainable return of those without a right to stay must be included in this package. Here, too, OECD countries have strengthened their efforts in recent years.
While well-managed migration does and will continue to contribute to economic growth, it, of course, has consequences for housing, education, transport and other public services. Ensuring adequate access to these services should be an integral part of well-managed migration, and migrants themselves can actively contribute to fulfilling these needs. For example, immigrants are overrepresented in the construction sector in most countries and are thereby also part of the solution to addressing housing challenges. Infrastructure needs must also be factored into migration management, especially since these are often in lower-skilled jobs where migration channels tend to be more restrictive. Avoiding especially strong concentrations of immigrants in certain regions is equally as important, and one approach is through incentives to settle in more rural areas with labour needs, which has been tried in some OECD countries.
While these are all essential elements of a well-functioning migration system, a critical precondition to acceptance by the host-country society is that migration is perceived by the public as well-managed, and that immigrants are seen as contributing positively to host-country societies.
Public opinion surveys on migration management suggest that there is still a long way to go before the gap has been bridged between perception and reality. We hope that this year’s International Migration Outlook contributes to addressing this important challenge, and to supporting policy makers in getting the most out of international migration for host-country populations and migrants alike.
Stefano Scarpetta,
Director for Employment, Labour and Social Affairs,
OECD