Migration to Wealthy Countries Slows Down

Labor migration has fallen below pre-pandemic levels in many major EU countries, including Germany and the Netherlands, signaling a broader slowdown in migration flows to rich nations.

According to a new OECD report, permanent migration to OECD countries fell by 4% in 2024, following three consecutive years of strong growth. Labor-related migration dropped even more sharply — by 21%.

Despite the steep decline in labor migration, the report found a continued rise in family and humanitarian migration, putting additional strain on integration systems, even in countries accustomed to high levels of internal migration. The pressure has been particularly heavy on housing, education, and welfare services.

In total, 6.2 million people settled in OECD member states last year — about 15% more than before the pandemic.

A notable trend in the data is the sharp decline in work-related migration after several years of rapid growth, as wealthy nations had been trying to fill labor shortages. The OECD reported that in countries such as the United Kingdom, softer labor market conditions and tighter visa policies led to a nearly 20% drop in work migration, falling to 934,000 in 2024.

This shift suggests that migration will contribute less to labor force growth compared to recent years. However, migrants continue to perform well in many host countries — in some, employment rates among migrants even exceed those of native workers.

As rich nations grapple with rapidly aging populations, the OECD warned earlier this year that without more migrants, member countries’ labor forces could shrink by about 8% by 2060, with average income growth slowing to around 0.6% per year.

While the structure of migration flows is changing, migration remains a key driver of economic growth.

Source: Euronews