Migration Trends Shift as Wealthy Nations Experience Slowdown
Recent trends indicate a slowdown in migration flows to wealthy nations, highlighting changes in migration dynamics. According to a report by the OECD released on March 11, 2025, permanent migration to these countries experienced a 4% decline in 2024, following three years of robust growth.
Decline in Labour-Driven Migration
Labour-related migration saw a significant drop of 21% in the same period. OECD Secretary-General Mathias Cormann emphasized the importance of immigration in addressing labour shortages and maintaining economic resilience. He stated the need for effective migration policies to manage public service pressures and facilitate the integration of newcomers into the workforce.
Importance of Policy Improvements
Cormann pointed out the persistent wage gaps between immigrants and native-born workers. This disparity underscores the necessity for streamlined processes that recognize foreign qualifications and enhance support for language learning, job searching, and skills development.
Family and Humanitarian Migration Increase
Despite the downturn in labour migration, family and humanitarian migrations have increased. This shift has placed additional strain on integration systems, particularly in nations accustomed to significant inward flows. There has been noticeable pressure on housing, education, and welfare services due to this influx.
Migration Statistics and Future Outlook
Last year, approximately 6.2 million individuals settled in OECD member states, representing a 15% increase compared to pre-pandemic levels. However, the labour migration trend has shifted notably. The number of individuals migrating for work fell to around 934,000 in 2024, marking roughly a 20% decline from the previous year. Stricter visa policies and changing labour market conditions in countries like the UK contributed to this decrease.
Regional Trends in Migration
- Labour migration in key EU countries, such as Germany and the Netherlands, has fallen below pre-pandemic figures.
- Despite these challenges, immigrants continue to perform well in the host countries’ labour markets, with employment rates sometimes exceeding those of native populations.
Long-Term Implications
The OECD warned earlier this year that without an increase in migrant numbers, member states face a potential labour force contraction of about 8% by 2060. This could lead to a notable decrease in median income growth, estimated at approximately 0.6% annually.
As wealthy nations navigate these evolving migration trends, it remains clear that immigration plays a vital role in driving economic growth and meeting workforce demands.
