In 2023, legal migration to OECD countries reached unprecedented levels, with around 6.5 million migrants arriving through permanent migration routes. This marked a nearly 10% increase from the previous record set in 2022, emphasizing a global trend of rising migration fueled by economic opportunities and labor shortages in high-income nations.
The UK Leads Immigration Growth Among Wealthy Nations
The United Kingdom saw the most significant increase in legal migration, with a net immigration of 750,000 people, making it the second-largest recipient of migrants after the United States. This surge was largely driven by demand for workers in the care sector, underscoring how immigration plays a pivotal role in meeting labor needs in critical industries.
Jean-Christophe Dumont, head of the OECD’s international migration division, explained, “This isn’t just a catch-up from the pandemic. In 2023, we are seeing a new migration trend.” He attributed the surge to the growing demand for foreign workers and an increasing number of international students seeking education in OECD countries. A third of OECD nations, including Canada, France, and Japan, reached record levels of immigration. The United States alone welcomed 1.2 million legal migrants.
Economic Benefits of Immigration Post-Pandemic
The influx of migrants has had a stabilizing effect on economies, especially in countries like Canada, New Zealand, Germany, and the UK, where immigration has been a key driver of employment growth since early 2023. Economists have praised immigration as a critical tool in helping advanced economies recover from the pandemic and manage inflation.
However, the migration surge has also raised political tensions. Concerns about asylum seekers, despite their relatively small share of overall migration, have become a hot-button issue. This has led to declining voter support for incumbent governments in several OECD countries. In the United States, immigration has become a central issue in political campaigns, including Donald Trump’s focus on cracking down on illegal immigration.
Record Surge in Asylum Applications
Asylum applications in OECD countries surged to a record 2.7 million, a 30% increase from the previous year. This was driven primarily by arrivals from Venezuela, Colombia, Nicaragua, and Haiti, with the US alone accounting for over 1 million asylum claims—more than all the European OECD countries combined.
The Economic Impact of Migration on Labor Markets
The economic impact of this migration surge cannot be overstated. Research by Goldman Sachs highlights that immigration has been a significant contributor to employment growth in nations like Canada, New Zealand, Germany, and the UK. In the US, economist Joseph Briggs has argued that immigration helped rebalance the labor market, with minimal economic cost.
However, some economists, such as Seth Carpenter from Morgan Stanley, have raised concerns about the potential effects of immigration restrictions. They warn that limiting immigration could slow economic growth and raise inflation.
Tightening Immigration Policies Amid Rising Migration
In response to increasing migration, several major migrant destinations have tightened their immigration policies. Canada, Australia, and the UK have introduced measures limiting work-related migration, with Canada even capping temporary residents for the first time. The rising number of international students, which increased by 6.7% to 2.1 million across OECD countries, has also strained housing markets, leading to new restrictions in the UK, Canada, and Australia.
The Future of Immigration: Economic Necessity vs. Political Concerns
Despite political pressures, Dumont emphasized that countries like the US, which faces an aging population, will continue to rely on legal migration to meet labor demands. “The US economy depends on legal migration across sectors like agriculture, hospitality, and healthcare,” he stated. “It will be challenging to reverse this trend.”
The growing migration wave highlights the complex challenge faced by governments globally: balancing the economic benefits of immigration with political concerns. As migration dynamics evolve, finding a sustainable and fair approach to immigration will be essential for policymakers in the coming years.
