What's Happening?
Permanent migration to OECD countries decreased by 1.6% in 2025, marking the second consecutive annual decline, yet remaining historically high at 6.1 million new permanent immigrants. This figure is 12.5%
above 2019 levels. The International Migration Outlook 2026 report indicates that while some major destination countries saw a reduction in permanent migration, others experienced continued increases. Family reunification remains the primary reason for permanent migration, accounting for 45% of total inflows. Labor migration increased to 20%, while humanitarian migration significantly dropped by 26% in 2025, representing 10% of total inflows. The report also highlights that immigrants constitute 16% of employment across OECD nations and 12% of the OECD population in 2025, up from 9% in 2015. Despite these contributions, many migrants' skills are underutilized, particularly in lower-productivity sectors.
Why It's Important?
The OECD's findings underscore a critical challenge for member countries: effectively integrating and utilizing the skills of immigrant populations. With aging populations and slower productivity growth, the report emphasizes that countries cannot afford to waste the skills migrants bring. Immigrants have contributed significantly to employment growth, accounting for at least 50% of it in over half of OECD countries between 2014 and 2024. However, their contribution to productivity is contingent on how well countries leverage their skills and support investment and innovation. The underutilization of skills, particularly among STEM graduates who are disproportionately foreign-born, represents a missed economic opportunity. Addressing this requires better recognition of foreign qualifications and improved job matching, which could enhance economic output and mitigate labor shortages.
What's Next?
The OECD report calls for policy adjustments to better integrate migrants into the workforce. Recommendations include improving the recognition of foreign qualifications and more closely matching migrants' skills to available jobs. It also cautions against relying solely on migrant recruitment as a substitute for investing in productivity and improving working conditions for all workers. Furthermore, the report highlights the growing role of migrant workers in long-term care due to aging populations, suggesting that international recruitment in this sector must be accompanied by better working conditions, career opportunities, and retention strategies. These policy recommendations aim to ensure that migration contributes more effectively to addressing long-term economic challenges such as labor shortages and slowing productivity growth.
Beyond the Headlines
Beyond the immediate economic implications, the report touches on broader societal and policy considerations. The decline in humanitarian migration and asylum applications, alongside a rise in labor migration, suggests a shifting global focus in immigration policies, potentially prioritizing economic contributions over humanitarian concerns in some contexts. The report also implicitly raises questions about equity and social mobility for immigrants, as many are relegated to lower-productivity sectors despite high qualifications. The emphasis on better skill utilization and integration points to a need for comprehensive policies that not only attract skilled migrants but also provide pathways for their professional development and upward mobility, ensuring that migration benefits both the host countries and the migrants themselves.
