Although economic growth has slowed, OECD labour markets remain tight, with persistent shortages of workers in critical sectors. These shortages are not just cyclical but reflect structural changes due to demographic ageing. While migration cannot solve the challenges posed by ageing populations to the OECD labour markets, it can play a role in mitigating its impact.
A perfect illustration of the role migration can play is that of the health sector, as shown in the special chapter on international migration of health professionals in this publication. Despite continuous efforts to increase domestic training, the share of migrant doctors increased over the last two decades by seven percentage points (p.p.) in the OECD, from 21% to 28%. It is not only in health and care that migrants are essential workers, but also in other sectors, such as agriculture, construction, accommodation, or information and communications technology.
Labour migration is contributing to addressing structural labour market needs. Both permanent and temporary labour migration, despite a slight decrease in 2024, were still well above pre‑pandemic levels at 32% and 26% above 2019 levels respectively. While employers play a crucial role in attracting international talent, they are also key to making the most of the skills of immigrants already living in the host country.
Most immigrants in employment in the OECD did not migrate with pre‑arranged employment. They migrated for family or humanitarian reasons. Nevertheless, their fate in the labour market largely depends on the willingness and ability of employers to hire, train and integrate them in their firm.
The special chapter on the role of firms in immigrant integration in this edition of the Outlook shows that, at entry in the host country labour market, immigrants earn 34% less than the native‑born of the same age and sex, on average over the 15 countries covered in the analysis. Almost two‑thirds (63%) of this gap is due to where immigrants work. Immigrants not only work in lower-paying sectors, but they also work for lower-paying employers, within sectors. This employer effect accounts for 27% of the gap, on top of the 36% that is due to the sector concentration.
The immigrant earnings gap reduces by one‑third, from 34% to 21%, in the first five years in the host country labour market. Although immigrants move on average to better-paying firms over time, most wage progression takes place within firms.
In the past decade, since the Syrian refugee crisis, OECD countries have made tremendous efforts to adapt and upgrade their integration systems with a reinforcement of the offer of language training, more targeted support, a rebalancing of rights and obligations of recently arrived immigrants, as well as with increasing investment in migrant integration.
The role of employers has however been largely neglected or focussed solely on refugee integration in the context of corporate social responsibilities. This ignores that employers are central to the successful integration of all immigrants.
Policymakers should therefore engage in a constructive discussion with employers on integration. They need to support those firms contributing the most to migrant workforce inclusion with targeted policies and incentives and create a general ecosystem conducive to better integration outcomes and social inclusion. Integration is also a shared responsibility whose benefits accrue to all, the migrant workers, the employing companies and the economy as a whole.
Stefano Scarpetta,
Director for Employment, Labour and Social Affairs,
OECD