Delivers a comprehensive analysis of migration trends, labor market integration, and policy developments in OECD countries. This edition features a chapter on migrant entrepreneurship, examining its contribution to economic development and job creation. The Outlook emphasizes migration’s role in driving economic growth while addressing the challenges of integration and policy management amid rising migration levels.

Migration Trends

• Record Migration Levels: In 2023, the OECD countries witnessed a historic high with 6.5 million new permanent-type immigrants, primarily driven by family migration (up 18%) and humanitarian migration (up 20%).
• Temporary Migration Growth: Temporary labor migration also increased significantly, with over 2.4 million work permits and authorizations issued, a 16% increase from the previous year.
• Asylum Applications: The number of new asylum seekers reached a record high of 2.7 million applications in 2023, with the United States receiving more than one million applications, surpassing European OECD countries combined.

Labor Market and Economic Impact

• Employment Trends: The post-pandemic recovery saw high employment levels among immigrants, with an overall employment rate of 71.8% and unemployment at 7.3% across OECD countries.
• Migrant Entrepreneurship: Migrants are increasingly contributing to entrepreneurship, accounting for 17% of the self-employed in OECD countries in 2022, up from 11% in 2006. This rise in migrant entrepreneurship has led to significant job creation, adding nearly four million jobs between 2011 and 2021.

Policy Implications and Challenges

• Labor Shortages and Demographic Changes: Many OECD countries are experiencing labor shortages and demographic shifts, necessitating a balance between restrictive and attractive migration policies to remain competitive destinations for foreign workers and students.
• Integration Policies: Emphasizes the need for effective integration policies to harness migrants’ potential for sustained economic growth while managing irregular migration flows.

Overview

1. Recent developments in international migration movements and labour market inclusion of immigrants

Examines recent developments in international migration and labor market inclusion. It analyzes migration trends and integration challenges in OECD countries, emphasizing the need for effective policies to support immigrant workforce participation and maximize their contribution to economic growth.

Migration Trends

• Increased Migration Flows: Notes a notable increase in international migration, particularly temporary labor migration. This trend is driven by various factors, including labor shortages in specific sectors, economic opportunities, and geopolitical events such as conflicts and crises that displace populations.
• Asylum Seekers: The number of asylum seekers in OECD countries has significantly increased, influenced by ongoing conflicts, political instability, and human rights issues in various regions. This influx has pressured host countries to adapt their immigration policies and support systems.

Demographic Shifts

• Diverse Origins: Migrants’ origins have become increasingly diverse, with more individuals coming from a broader range of countries. This diversity enriches the cultural fabric of host nations but also presents challenges in terms of integration and support services.
• Age and Skill Levels: The demographic profile of migrants is also changing, with a mix of younger, skilled workers and older individuals seeking refuge or better living conditions. This variation necessitates tailored policies to address the specific needs of different migrant groups.

2. Labor Market Inclusion of Immigrants

Importance of Integration

• Economic Contributions: Emphasizes that integrating immigrants into the labor market is crucial for economic growth. Immigrants often fill labor shortages in key sectors, contributing to productivity and innovation.
• Social Cohesion: Successful labor market inclusion fosters social cohesion and reduces tensions between immigrant and native-born populations. It is essential for building inclusive societies where all individuals can contribute to and benefit from economic opportunities.

Self-Employment Trends

• Higher Self-Employment Rates: In many OECD countries, immigrants are more likely to engage in self-employment than their native-born counterparts. This trend reflects their entrepreneurial spirit and willingness to create businesses, which can lead to job creation and economic dynamism.
• Sectoral Distribution: Immigrant-owned businesses often operate in specific sectors, such as retail, hospitality, and personal services. While these businesses may be smaller on average than those owned by native-born individuals, they play a vital role in local economies.

Challenges to Labor Market Inclusion

• Discrimination: Immigrants frequently face discrimination in the labor market, which can limit their job opportunities and career advancement. Biases against foreign qualifications and work experience compound this issue.
• Recognition of Qualifications: Many immigrants need help in having their professional qualifications recognized in host countries. This can lead to underemployment, where skilled immigrants work jobs that do not match their qualifications.
• Language Barriers: Proficiency in the host country’s language is often a significant barrier to employment. Language skills are crucial for effective communication in the workplace and can impact an immigrant’s ability to secure jobs.

Policy Responses

• Targeted Training Programs: To enhance labor market inclusion, many countries are implementing targeted training programs for immigrants, focusing on skill development and language acquisition. These initiatives aim to equip immigrants with the necessary tools to succeed in the labor market.
• Simplified Work Permits: Some OECD countries are streamlining their work permit processes to make it easier for immigrants to enter the labor market. This includes creating pathways for temporary workers to transition to permanent residency.
• Support for Entrepreneurship: Recognizing the entrepreneurial potential of immigrants, several countries are introducing policies to support immigrant entrepreneurship. This includes access to funding, mentorship programs, and resources to help immigrants start and grow their businesses.

2. Recent developments in migration policy

Examines recent developments in migration policy across OECD countries. It explores the evolving policy landscape and emphasizes the importance of flexible, inclusive, and coordinated approaches. These approaches address migration’s complexities while balancing immediate labor market demands with immigrants’ long-term integration and well-being.

Evolving Migration Policies

• Policy Adaptation: Many OECD countries adapt their migration policies in response to changing migration patterns and challenges. This includes revising existing frameworks to address better labor market needs, humanitarian obligations, and integration goals.
• Temporary Migration Schemes: Temporary migration schemes designed to meet specific labor shortages in various sectors have increased. These schemes allow for the quick entry of foreign workers to fill gaps in the labor market.

Emphasis on Integration

• Integration Policies: Countries emphasize integration policies supporting immigrants’ social and economic inclusion. These policies include initiatives aimed at language acquisition, skills training, and access to employment services.
• Holistic Approaches: Many governments are adopting holistic approaches to integration, recognizing that successful inclusion requires collaboration across various sectors, including education, health, and social services.

Asylum and Refugee Policies

• Increased Asylum Applications: Notes a rise in asylum applications, prompting countries to review and strengthen their asylum processes. This includes efforts to expedite processing times and improve support for asylum seekers.
• Resettlement Programs: Some OECD countries are enhancing their resettlement programs for refugees, aiming to provide safe pathways for individuals fleeing conflict and persecution. These programs often involve partnerships with international organizations.

Focus on Labor Migration

• Skills-Based Migration: There is a growing trend towards skills-based migration policies, prioritizing the entry of migrants with specific skills and qualifications needed in the labor market. This approach aims to align immigration with economic needs.
• Employer-Sponsored Programs: Many countries are implementing employer-sponsored migration programs, allowing businesses to recruit foreign workers directly to address labor shortages. These programs often include mechanisms for ensuring fair treatment and working conditions.

Addressing Irregular Migration

• Combating Smuggling: OECD countries are intensifying efforts to combat irregular migration and human trafficking. This includes enhancing border security measures and increasing cooperation with countries of origin and transit.
• Regularization Opportunities: Some countries are exploring pathways for regularizing undocumented migrants, recognizing their contributions to the economy and society. These initiatives aim to provide legal status to individuals living and working in the country for an extended period.

International Cooperation

• Global Partnerships: Highlights the importance of international cooperation in addressing migration challenges. OECD countries are partnering with other nations and international organizations to share best practices and develop coordinated responses to migration issues.
• Policy Frameworks: Various international frameworks and agreements are being utilized to guide migration policies, emphasizing the need for humane and rights-based approaches to migration.

3. Recent developments in migrant integration policy

Examines recent developments in migrant integration policy across OECD countries. It highlights the evolving landscape of these policies and emphasizes the importance of comprehensive, tailored, and inclusive approaches. These strategies aim to facilitate migrants’ successful social integration, ultimately contributing to social cohesion and economic growth.

Enhanced Focus on Integration

• Policy Prioritization: OECD countries increasingly recognize the importance of effective integration policies. Governments increasingly prioritize integration as a critical component of their migration strategies, aiming to foster social cohesion and economic participation.

Comprehensive Integration Programs

• Holistic Approaches: Many countries are adopting comprehensive integration programs that address various aspects of migrants’ lives, including language acquisition, education, employment, and social services. These programs support migrants from arrival to full participation in society.
• Tailored Support: Integration policies are becoming more tailored to the specific needs of different migrant groups, including refugees, family reunification migrants, and skilled workers. This includes targeted support for vulnerable populations.

Language and Skills Training

• Language Acquisition: Language training is a critical component of integration policies. Many countries are expanding access to language courses and providing resources to help migrants improve their language skills, which are essential for employment and social integration.
• Skills Development: There is an emphasis on skills development and recognition of foreign qualifications. Programs are being implemented to help migrants gain the skills needed in the local labor market and to facilitate the recognition of their existing qualifications.

Employment and Economic Participation

• Labor Market Access: Integration policies are increasingly focused on improving migrants’ access to the labor market. This includes initiatives to connect migrants with job opportunities, provide career counseling, and support entrepreneurship among migrant communities.
• Employer Engagement: Some countries are fostering partnerships with employers to create pathways for migrant employment, ensuring that businesses can tap into the skills and talents of migrants while providing them with job opportunities.

Social Inclusion and Community Engagement

• Civic Participation: Promoting participation among migrants is a crucial goal of integration policies. Countries encourage migrants to engage in community activities, volunteer work, and local governance, which helps build social connections and a sense of belonging.
• Anti-Discrimination Measures: Efforts to combat discrimination and promote diversity are integral to integration policies. Many countries are implementing measures to address biases and ensure equal opportunities for migrants in various sectors.

Monitoring and Evaluation

• Data Collection: There is an increasing emphasis on collecting data and monitoring the effectiveness of integration policies. Countries are developing indicators to assess the progress of integration efforts and identify areas for improvement.
• Feedback Mechanisms: Engaging with migrant communities to gather feedback on integration programs is becoming more common. This participatory approach helps ensure that policies are responsive to migrants’ needs and experiences.

4. Migrant entrepreneurship in OECD countries

Analyzes migrant entrepreneurship in OECD countries, examining the economic contributions and challenges immigrant entrepreneurs face. It highlights the vital role of migrant entrepreneurship and makes a case for supportive policies. It concludes that countries can enhance economic growth and innovation by providing targeted support and creating an inclusive business environment for migrant entrepreneurs.

Importance of Migrant Entrepreneurship

• Economic Contribution: Migrant entrepreneurs play a significant role in the economies of OECD countries, contributing to job creation, innovation, and economic dynamism. They must often be more represented in founding new businesses, particularly in the retail, hospitality, and technology sectors.
• Job Creation: It is estimated that migrant entrepreneurship has added millions of jobs across OECD economies, underscoring the importance of supporting immigrant business owners.

Characteristics of Migrant Entrepreneurs

• Diverse Backgrounds: Migrant entrepreneurs come from diverse backgrounds and possess various skills and experiences. This diversity can lead to innovative business ideas and approaches.
• Challenges Faced: Despite their contributions, migrant entrepreneurs often face unique challenges, including limited access to financing, language barriers, and difficulties navigating regulatory environments.

Support for Migrant Entrepreneurship

• Policy Frameworks: Many OECD countries recognize the need for policies that support migrant entrepreneurship. These include initiatives to improve access to finance, providing training and mentorship, and facilitating networking opportunities.
• Integration Programs: Some countries are incorporating entrepreneurship training into integration programs for migrants, helping them develop the skills necessary to start and run a business.

Access to Finance

• Financial Barriers: Access to finance remains a significant barrier for many migrant entrepreneurs. Traditional lending institutions may hesitate to provide loans to individuals without established credit histories or collateral.
• Alternative Financing Options: Some countries are exploring alternative financing options, such as microfinance and community lending programs, to support migrant entrepreneurs in overcoming financial barriers.

Role of Networks and Mentorship

• Networking Opportunities: Building networks is crucial for migrant entrepreneurs. Many successful immigrant business owners leverage community connections and networks to gain access to resources, information, and support.
• Mentorship Programs: Mentorship initiatives that connect experienced entrepreneurs with migrant business owners can provide valuable guidance and support, helping them navigate the challenges of starting and growing a business.

Policy Recommendations

• Tailored Support: Emphasizes the need for tailored support measures that address the specific challenges migrant entrepreneurs face. This includes targeted training programs, access to finance, and resources for navigating regulatory requirements.
• Collaboration: Encouraging collaboration between government agencies, private sector stakeholders, and community organizations can enhance support for migrant entrepreneurship and foster a more inclusive business environment.

5. Country notes: Recent changes in migration movements and policies

Provides country-specific analysis of recent migration movements and policy changes across OECD countries. This comprehensive overview examines the dynamic nature of migration trends, diverse policy responses, and ongoing challenges and opportunities in migration management. It emphasizes the critical need to adapt policies to address the evolving needs of both migrants and host societies.

Overview of Migration Trends

• Increased Migration Flows: Many OECD countries have experienced increased migration flows driven by economic opportunities, humanitarian crises, and demographic changes. This has led to a growing diversity in migrant populations.
• Refugee Movements: Notes significant movements of refugees and asylum seekers, particularly in response to conflicts and crises in regions such as Ukraine and Afghanistan.

Policy Responses

• Adaptation of Immigration Policies: Countries adapt their immigration policies to respond to changing migration patterns. This includes introducing new visa categories, streamlined processes for skilled migrants, and measures to support family reunification.
• Focus on Integration: There is a heightened focus on integration policies, with many countries implementing programs aimed at facilitating the social and economic integration of migrants into host societies.

Country-Specific Developments

• United States: The U.S. has seen shifts in immigration policy, including changes to asylum procedures and efforts to attract skilled workers. It highlights ongoing debates around immigration reform.
• Canada: Canada continues to promote a welcoming immigration policy, focusing on attracting skilled migrants and refugees. The country has implemented measures to enhance the integration of newcomers.
• European Union: EU member states grapple with varying migration pressures, leading to diverse policy responses. It discusses the EU’s efforts to create a cohesive approach to migration and asylum.
• Australia: Australia has maintained a points-based immigration system, emphasizing skilled migration. Recent policies have aimed at addressing labor shortages in specific sectors.

Challenges and Opportunities

• Labor Market Integration: Many countries face challenges integrating migrants into the labor market, particularly in recognizing foreign qualifications and addressing skills mismatches.
• Public Perception and Political Climate: Notes that public perception of migration and the political climate can significantly influence migration policies. Some countries are experiencing rising anti-immigrant sentiment, which may impact future policy decisions.

Future Directions

• Sustainable Migration Policies: Emphasizes the need for sustainable migration policies that balance the economic needs of host countries with the rights and needs of migrants.
• Collaboration and Coordination: Enhanced collaboration between countries, different levels of government, and stakeholders is crucial for effective migration management and integration.