New EMN-OECD joint study on labour migration in the EU

Over a period of less than ten years, the labour shortage level in the EU has more than doubled. A new joint study by the European Migration Network (EMN) and the Organisation for Economic Co-operation and Development (OECD) shows that labour migration is increasingly recognised as a key strategy for addressing growing skills needs. Digitalisation, fast-track schemes and bilateral and partnership agreements have improved the preconditions for labour migration. Comprehensive reforms to labour migration policy have been implemented in almost all EMN Countries and Serbia since 2021. At the same time, this study shows that there are a number of areas for improvement regarding coordination, processing applications, integration efforts and ethical recruitment models to attract and retain talent in occupations in need of staff. In Sweden, the recruitment of talent and highly skilled workers from third countries is high on the agenda, with a series of legislative amendments and inter-agency cooperation.

About the study

The EMN-OECD joint study “Labour shortages in times of labour migration” provides a comparative overview of legislation, policy development and initiatives on labour migration implemented in 25 EMN Member and Observer Countries during the period from January 2021 to June 2024. The focus is on third-country nationals at all skill levels who move to EMN Countries for work. The report complements the information in the EMN inform “New and Innovative Ways to Attract Foreign Talent into the EU” and examines how EMN Member and Observer Countries, and OECD countries, are utilising labour migration to address, counteract and prevent labour shortages in their labour markets. This report also provides a comparative overview of the most common countries of origin for labour migration and the sectors experiencing labour shortages.

Labour shortages across multiple sectors

Labour shortages in the EU have more than doubled in less than ten years. All EMN Member and Observer countries need to address the challenges posed by labour market shortages – albeit to varying degrees and in different ways. Labour migration is increasingly discussed as a key strategy to address these challenges, which are primarily driven by demographic changes, recruitment difficulties, economic transition and the long-term effects of the COVID-19 pandemic. The sectors particularly affected include health, social and elderly care, the hospitality and the construction sectors, the manufacturing industry, the transport sector and information and communication technology (ICT).

The EU toolkit

In March 2024, the European Commission presented an action plan with proposals for measures to tackle labour and skills shortages in the EU. The action plan is part of the EU's strategy to boost its competitiveness and enhance its economic and social resiliencewithin the Union. EU initiatives, such as the EU Blue Card for highly-skilled workers, the Talent Pool, the Talent Partnerships and the Migration Partnership Facility, are increasingly used to attract and retain talent. At the same time, several countries are planning further reforms to improve the alignment of migration and labour market needs.

Reforms in labour migration policy

Comprehensive reforms to labour migration policy have been implemented in almost all EMN Countries and Serbia since 2021. The majority of countries have simplified processes through digitalisation and fast-track processing. Sixteen EMN Countries and Serbia mainly apply a demand-driven system, where employers initiate recruitment, whilst a mixed model using several parallel strategies has been implemented in seven EMN Countries. Thirteen EMN Countries, including Sweden, are preparing legislative amendments to address labour shortages through labour migration, tailored to their national needs. Regional and local authorities play a key role in many situations. Private sector actors are also involved in countries such as Belgium, Germany and Spain.

Selection of initiatives in other EMN countries

In 2021, Croatia, Poland and Lithuania issued the most work permits, whilst Croatia, Malta and Lithuania topped the list in 2022 and 2023. Fourteen EMN Countries and Serbia apply either a national strategy or enhanced inter-agency cooperation for talent attraction. Bulgaria, the Czech Republic, Cyprus, Lithuania, Latvia and the Slovak Republic have reported that they have no specific policy for attracting foreign talent.

• France, Germany and Luxembourg report a clear government commitment to the recruitment of third-country nationals.
• Belgium has established bilateral agreements with Morocco and Suriname. Bulgaria with Armenia, Georgia and Moldova, whilst Germany has granted temporary work permits to people from the Western Balkans under certain conditions.
• Lithuania and Croatia have implemented various initiatives to attract and retain talent. Lithuania offers special relocation support to highly-qualified experts from third countries and returning citizens, whilst Croatia is actively working on the “I Choose Croatia” programme.
• Several EMN Countries are attempting to counteract regional imbalances, as major cities attract the majority of the workforce and rural areas lag behind. Measures include regional projects, advisory services and state funding. Belgium, Croatia and Sweden have implemented certain policy changes to address the issue of regional disparities in labour migration.
• Austria, Belgium, Germany, Finland and France have incorporated considerations regarding the brain drain into their labour migration strategies.

OECD Countries

OECD countries are implementing alternative methods and initiatives. Australia has consolidated its lists of job opportunities into a single list comprising over 450 occupations, which determines eligibility for both temporary and permanent residence permits. Japan introduced the “Specified Skilled Worker Programme” (SSWP) as early as 2019 to make it easier for skilled migrants in priority sectors to obtain permanent work permits. Since 2024, South Korea has been trialling a system where visa quotas are set based on forecasts of labour supply and demand in specific sectors.

Challenges and lessons learned

Despite these reforms, structural barriers remain. The countries point to complex governance, lengthy decision-making processes, integration difficulties and problems with the recognition of foreign qualifications. The study also highlights risks of exploitation, language barriers and cultural differences, which together pose challenges to retaining this workforce over time. The study highlights a number of lessons learned, such as the importance of effective data collection, clear legislation, flexible systems for different types of residence and work permits, robust integration measures and ethical recruitment methods to address both short and long-term labour shortages.

Current situation in Sweden with some targeted initiatives

In Sweden, the opportunity to recruit highly-skilled workers from third countries is high on the agenda. Currently, the Swedish Migration Agency divides labour market cases into different categories. For highly-skilled workers who submit a complete and comprehensive application, the aim is to issue a decision within 30 days. In 2022, a so called “High Talent Visa” was also introduced for people with higher educational qualifications, provided the applicant meets a number of requirements. In addition, the Swedish government has introduced a new salary requirement for labour migration.The Swedish Public Employment Service produces current assessments of job opportunities and the recruitment situation within various professions. Furthermore, analyses are carried out on how demand for labour within each profession is expected to develop over the next five years.

Selection of strategies and initiatives

• Sweden’s strategy for new industrialisation and urban transformation in Norrbotten and Västerbotten counties in order to strengthen competitiveness, attract talent and develop key sectors in northern Sweden.
• The North Sweden Green Deal is a project aimed at major sustainable societal transformation in Norrbotten and Västerbotten.
• Switch to Sweden is a national initiative from Linköping Science Park aimed at connecting Swedish companies with highly qualified international talent already in Sweden by encouraging international students and researchers to stay and work in the country after completing their studies.
• Through the Move to Gothenburg and International Citizen Hub Lund initiatives, information is provided on support and advisory services for those considering a move to these regions.