Canada
New digital nomad visa announced
Canada is doubling efforts to attract foreign tech talent. The Canadian digital nomad visa will allow foreign professionals to stay in the country for 6 months while working for a foreign employer. But if they receive a job offer from a Canadian company, digital nomads can apply for a work permit of up to 3 years. They will then be eligible to apply for permanent residency.
The digital nomad visa is thus distinct from the visitor visa. Currently, a traveler working for a foreign company can come to Canada on a visitor's visa. They must provide proof of their professional activity, along with a certificate attesting that their company allows them to work remotely in Canada. With this new measure, the government intends to create a specific system reserved for digital nomads. The visa is scheduled to come into force at the end of the year.
One million more permanent residents than government estimates
This was observed by Benjamin Tal, assistant chief economist at investment bank CIBC Capital Markets. The economist, who shared his findings with the government, also shared his views with the media. According to him, in 2021, there will be nearly 2 million non-permanent residents in Canad, which is way higher than the government's average of one million.
According to Tal, the counting system could be responsible for this discrepancy. The Canadian government doesn't count foreigners without visas. For example, Statistics Canada no longer counts holders of 30-day temporary visas, who are supposed to have left after their visas expire. In practice, many apply for visa extensions.
Another problem is that some 250,000 international students with valid visas are not counted. Census forms are not always very clear. Is the foreign student's "main residence" in their home country of origin or at their new address abroad? The form also exempts them from the census if they return to live with their family during the year. Many students would have understood that their principal residence was necessarily abroad.
The consequences are significant. These statistics lead to an underestimation of the number of non-permanent residents, which in turn leads (among other things) to an underestimation of the number of housing units and incorrect assessments by the Canada Mortgage and Housing Corporation, the federal government agency in charge of housing, which bases its plans precisely on official figures. It is a thorny issue at a time when Canada is mired in a housing crisis that would be much greater if the economist's figures were used instead of the official ones. Remember that the government still intends to welcome nearly 500,000 new immigrants in 2024 and 2025. Statistics Canada has updated its figures and promises a monthly update.
Improving working conditions for temporary foreign workers
Does the "closed" work permit protect expatriates or make them more vulnerable? This is the issue raised by the Quebec government to the Commission des partenaires du marché du travail (CPMT). On Tuesday, September 26, the Quebec government asked the CPMT to measure the impact of the "closed" work permit on expatriates and on the Quebec job market.
In principle, the "closed" work permit links foreign workers to their employers. But this can be a disadvantage for foreign workers. Several employers have already been reported for abuse. Tomoya Obokata, United Nations Special Rapporteur, does not hesitate to compare the "closed" work permit to a form of contemporary slavery. He is campaigning for its abolition.
Since 2019, Immigration, Refugees and Citizenship Canada (IRCC) has been able to issue "open" work permits for vulnerable foreigners (victims of violence, for example). Similarly, Quebec Immigration Minister Christine Fréchette is considering a more flexible system for temporary expatriate workers. Hence the need for an in-depth report. Minister Fréchette has put forward alternative proposals, such as the creation of a "regional work permit" or "sectoral work permit". Opponents of the "closed permit" welcomed the Minister's involvement and reiterated the urgent need for joint action with the federal government.
Update on the 2023 Parents and Grandparents visa program
In early September, Immigration, Refugees and Citizenship Canada (IRCC) announced an update to the Parents and Grandparents Program (PGP). The PGP enables Canadian citizens and permanent residents to sponsor their parents and grandparents to immigrate to Canada. This family reunification program grants parents and grandparents permanent residency and makes them eligible for Canadian citizenship.
On October 10, IRCC will send invitations to 24,200 potential sponsors and accept up to 15,000 complete sponsorship applications. This is slightly more than in 2022 when IRCC sent out 23,100 invitations. Candidates will be selected randomly from the remaining pool of 2020 applications. Applicants who sent in their application in 2020 but received no invitation to apply in 2021 and 2022 are invited to check their email address (the one mentioned in their 2020 application). Successful applicants to the PGP will be able to apply through the portals used by IRCC: the Permanent Residency Portal or the Representative Permanent Residency Portal. Canada aims to welcome 28,500 parents and grandparents this year and 36,000 by 2025.
Super visa option
Canadian citizens and permanent residents can also opt for the "super visa" to bring their foreign parents and grandparents to Canada. The Super Visa is a temporary visa that allows parents and grandparents to stay with their family in Canada for 5 consecutive years without having to renew their visitor status. They can enter Canada several times over a maximum period of 10 years. Super visa holders can also apply for an extension of up to 7 years as visitors.
Another advantage is that the Super Visa is available all year round. There is no lottery or fear of missing a specific period to apply. Applicants for the super visa must provide a letter from their child or grandchild in Canada and prove their parentage; the child or grandchild will undertake to support their parent financially.
Netherlands
End of the Golden visa
Following in the footsteps of the UK, Ireland and Portugal, the Netherlands has announced the end of its Golden Visa on January 1, 2024. This announcement was made by the Dutch Immigration and Naturalization Service, which confirmed that from January 2024, foreign investors will no longer be able to benefit from the residence permit granted by the Golden Visa.
Launched in 2013, the Golden Visa program allowed foreign investors to acquire residency by injecting at least 1,250,000 euros into the Dutch economy (via investment in a Dutch-based company). Investments had to create at least 10 jobs within 5 years, contribute to innovation, or bring added value other than financial (for example, developing the customer network). This is yet another victory for the European Commission, which has been fighting for several years to put an end to the controversial Golden Visa.
Diploma in civic integration
The Dutch Ministry of Education is proposing a new diploma with 3 objectives in view: to ensure that all residents know Dutch, immerse themselves in the culture, and actively participate in the job market. Successful candidates will receive the invaluable Civic Integration Diploma (inburgeringsdiploma).
The civic integration diploma is aimed, in particular, at holders of dependent visas. They must obtain a civic integration diploma within 3 years of their arrival. Failure to do so may result in a fine. This civic integration diploma may, therefore, be compulsory.
Foreigners can check whether or not they have to take this exam (inburgeringsplichtig - compulsory integration) on the government website. International students and workers, for example, are not subject to this requirement. Minors under 18, people who have retired, citizens of the European Union (EU), family members of an EU citizen, and holders of certain diplomas are also exempt from this requirement. However, the civic integration diploma is still required for permanent residence in the Netherlands or Dutch citizenship.
Greece
Greece plans to regularize undocumented workers as a response to labor shortages. The Greek government is currently working on a strategy to allow 300,000 undocumented immigrants to work in the sectors most affected by labor shortages: construction, agriculture and tourism. The announcement was made on Wednesday, September 27, by Immigration Minister Dimitris Kairidis. Agriculture Minister Lefteris Avgenakis pointed to the significant shortage of workers in the agricultural sector (at least 180,000 a year). He claims that "several thousand illegal workers" reside in Greece and, according to him, these workers are "familiar with the difficulties and peculiarities" of the agricultural sector.
In Greece, as in other European countries, the health crisis has weakened sectors under pressure. Greece is having to cope with the departure of its nationals and foreign workers who have entered the country legally. The situation is worrying enough to prompt talk of an "exodus" of workers.
Currently, there are no details as to the concrete implementation of this strategy. Dimitris Kairidis recalls the need to appeal to undocumented foreigners already present in Greece while refusing to open a "new pole of attraction" for other illegal immigrants.
Czech Republic
The Czech Republic is also considering a new strategy to counter labor shortages. The government proposes increasing the number of foreign workers by 20,000 each year. A proposal made by the Ministry of Industry and Trade, which plans to increase work permit and work visa quotas.
But companies, especially those facing major labor shortages, believe this is insufficient. The construction industry needs more than 60,000 masons and other professionals. Transportation professionals indicate a lack of 25,000 to 28,000 workers by next year. The healthcare sector needs between 10,000 and 12,000 additional nurses to compensate for retirements. Agriculture and agri-food are urgently looking for 8,000 to 9,000 foreign workers. The government is counting on the "extraordinary work visa" program to bring in workers from Georgia, Moldavia, Bosnia-Herzegovina, Northern Macedonia and Mongolia.
Economists are pessimistic. How can the Czech Republic attract foreign workers amid a global skills shortage? Experts believe that the country needs a more ambitious strategy. They point out that almost 800,000 foreign-born people currently work in the Czech Republic, representing around 15% of the workforce. However, the government's quotas have not kept pace with demand or globalization. India, the Philippines and Nepal are showing increasing interest in the Czech Republic.
The government wants to increase quotas for foreign Filipino talent by 5,000 yearly. The Ukrainian quota is to be raised by 11,000 per year. Visas reserved for highly qualified foreigners (engineering, information and communications technology, IT, etc.) would also increase by 1,500 per year. Attracting more foreign talent to face the skills shortage is a new challenge for the Czech government. Overall, there is a shortage of around 300,000 jobs. This situation could cost the Czech economy 150 billion Czech crowns this year alone.
Finland
The controversial 3-month policy
The government is considering abolishing residence permits for unemployed foreigners for 3 months. Prime Minister Petteri Orpo, who took office in June 2023, now finds himself in the hands of the far right. Elected by a narrow majority, Orpo allied with the far-right True Finns party. Some are calling this an "unnatural" alliance that will have an impact on Finland. According to a study entitled "The impact of Prime Minister Orpo's government program on Finland's international workforce" by "Specialists in Finland", a non-partisan organization of international professionals, " some effects are already being felt. In June, the organization had already spoken out against changes to the government's immigration policy.
The survey, carried out among immigrants via social networks between June and August, received 651 responses. The vast majority of respondents were foreign graduates employed in the tech industry, earning over 3,500 euros a month. They have moved to Finland in the last 5 years to work in a specialized sector.
For the respondents to the study, removing the residence permit from any foreigner who has been looking for work for 3 months is counter-productive. In their view, 3 months is far too short a period. They also fear negative effects on all other aspects of life in Finland, such as completing their studies, perfecting their Finnish, creating a start-up, applying for a job in their field of expertise, etc. The principle of residency would be threatened.
This is a counter-productive move that would weaken the country's economic prospects. Rather than racing to find a job within 3 months at all costs, applying in one's field of expertise would be better, even if it means looking longer. Isn't the Finnish economy looking for foreign talent? Does it want them in jobs where they will contribute to the economy, or does it want to lure them away from Finland? Respondents also note that the government proposes extending the time limit for applying for Finnish citizenship from 4 to 8 years.
Two-thirds of the survey's respondents believe they would not have moved to Finland if this policy was already in place. The same proportion of respondents are considering leaving Finland if the government's controversial plan is implemented. The organization Specialists in Finland is urging the government to give up on its plan, as this is likely to harm the country's attractiveness in the eyes of foreign workers. This may be what the government is aiming for. However, according to a study carried out earlier this year by the economic research institute Etla, Finland would have to "multiply by 3" its migratory balance within ten years if it hopes to make up for an ever-worsening deficit.
Persistent labor shortages
According to the latest Entrepreneur Gallup report (an American company specializing in management and human resources), one Finnish employer in 8 hires foreigners. For these companies, there is no language barrier issue, as they claim to have sufficient language skills to manage these recruitments. Some 67% of companies with 5 or more employees claim to be experiencing recruitment difficulties. Back in March, a study showed that 39% of small and medium-sized companies were having difficulty recruiting. These difficulties have a direct impact on growth. The latest study reveals that for one employer in 4 (26%), these recruitment problems are an obstacle to the company's development.
These figures come as no surprise to Janne Makkula, Director of Finland Entrepreneurs, the Federation of Finnish Entrepreneurs. According to him, the lack of staffing limits the expansion of at least 80,000 companies in Finland. In particular, Makkula advocates lowering labor costs, increasing the number of branch agreements and simplifying fixed-term contracts. These are all proposals included in the Gallup report, on which both small and large employers agree.
According to Albert Mäkelä, an expert from Finland Entrepreneurs, labor immigration is not the solution for all companies facing labor shortages. The Gallup study shows that just 10% of companies intend to call on foreign talent. While 77% of respondents do not plan to hire foreigners, 56% of companies recognize the value of foreign talent.
Experts believe that immigration procedures need to be simplified for the country to meet its objectives: to respond quickly to companies' needs and to enable foreigners to be hired. Mäkelä points out that a company's needs are short-term; lengthy immigration procedures prevent employers from being operational when they are needed the most. This delay reflects limited growth and loss of competitiveness. Finland is no stranger to contradictions between a government committed to limiting immigration and the reality of labor shortages and an aging population.
South Korea
New rules on permanent residence for foreigners in South Korea
On September 26, Justice Minister Han Dong-hoon presented his "Innovative Measure for the Expansion of Skilled Technical Labor". He plans to significantly increase the quota for long-term skilled technical worker visas (E-7-4) from 2,000 to 35,000. Ultimately, the government hopes to increase the proportion of E-7-4 visas in relation to E-9 visas (non-professional employment visas), which offer less protection and fewer prospects for advancement. The Ministry of Justice estimates the number of valid E-9 visa holders at 300,000, of which 19% are illegal residents. Meanwhile, just 10,000 foreigners hold valid E-7-4 visas, of whom 0.6% are illegal residents.
The government's strategy will also enable E-9 visa holders to obtain E-7-4 visas. Eligibility criteria include residence in South Korea for more than 4 years and "a certain level" of Korean. Once the visa change has been made, the foreigners concerned will still have to work for their current employer for a further 2 years. Then, if they meet the aforementioned conditions, they can obtain residency (F-2 permit) or permanent resident status (F-5 permit).
Hiring of foreign housekeepers to relieve Korean families
In its battle to boost the number of births, the Korean government is pulling out a new card: recruiting foreign staff to lighten the burden of household chores and childcare in Korean households. After all, these are the two factors most likely to hold young Koreans back. According to a recent government survey, more than half of 19-34 year-olds see no point in having a child, even after marriage. Barely 36.4% of those surveyed have a positive view of marriage. But they all point to its difficulties, particularly economic. It is precisely to alleviate these difficulties and encourage births that the government is calling on foreign workers.
The measure, proposed at the beginning of September, provoked controversy. But the government is sticking to its guns, unveiling a pilot project for 100 foreign domestic workers to be deployed in Seoul from December. The target groups will be married couples aged between 20 and 40 (where both spouses work), single-parent families and large families. These groups are considered to be most at risk of unemployment.
Foreign workers will need to be at least 24 years old, with no criminal record, experience and "language skills". Credible agencies" will be responsible for placing them with requesting Korean families. Planned to last 6 months, each placement will be monitored by the agencies.
How much will it cost?
The plan is to gradually increase the number of companies eligible for the program and cope with the declining birth rate, aging population and labor shortages. According to the Korean Ministry of Employment and Social Affairs, most Korean household and childcare workers are over 50. Their numbers are steadily declining, which is why foreigners are being brought in.
But at what cost? By the government's own admission, the target populations are the most likely to experience financial difficulties. According to the Ministry, a housekeeper living in their home earns 15,000 won ($11.40) an hour. The same worker living with employers earns 4.5 million won a month ($3,415). This is more than young Korean couples can afford. The Ministry points out that the average monthly income of a 4-person household is only around 5.04 million won or 3,827 dollars. It's, therefore, challenging to recruit a housekeeper under these conditions.
An unpopular project
This topic is fueling debates. Some are looking abroad: Hong Kong is already recruiting foreign housekeepers, mainly from the Philippines and Indonesia, who are paid well below the minimum wage. They earn at least 4,730 Hong Kong dollars a month (around $600), far too little to live on in one of the world's most expensive territories.
What about workers' rights? Difficult working conditions, unworthy wages, lack of recognition, etc., are some of the challenges. Detractors of the South Korean project believe that looking to Hong Kong is not a solution. Critics point to the increased risk of unscrupulous employers taking advantage of the vulnerability of these foreign workers. Women are particularly at risk. Opponents see in this project a new way of confining women to low-paid, poorly-regarded jobs with no career prospects. This makes no sense at a time when the government wants to encourage women to have more children. In their view, Korean women should not be pitted against foreign women, but rather women's rights should be protected and their rights enforced (particularly in the workplace).
Vietnam
Reforming the law on the employment of foreign workers
The Vietnamese government has reformed its regulations regarding the employment of foreign workers. From now on, employers must submit a report to the Ministry of Labor, Invalids and Social Affairs (moLISA) or to the departments under its authority. The report, submitted at least 15 days (previously 30 days) before the foreign worker takes up the position, must clearly state that no Vietnamese worker with the skills required to fill the position has been found. Any changes concerning a foreign worker's position (job title, place of work, etc.) must also be reported at least 15 days before the changes take effect.
From January 1, 2024, a company looking to hire foreign workers will have to announce the vacancies on the moLISA website. Again, the announcement must be made at least 15 days from the day of submission of the report to moLISA or to the local branches of the sectors in which the foreigners are to work. The Vietnamese authorities will notify in writing their approval or disapproval of any request to recruit a foreign worker; notification will be made within 10 working days of submission of the report.
Please note that foreign workers, such as teachers and researchers in international schools, may be exempted from work permit requirements. The decree extends it to foreign workers approved by the Ministry of Education and Training for teaching, research, or management positions.
New measures concerning the recruitment of foreigners in Vietnam
Since September 18, a decree has changed several terms used to describe foreign workers. The titles used by companies (recruitment of "expert", "manager", etc.) meet definitions specified in the decree. The measure is not simply a change of vocabulary but may have an impact on the recruitment process for foreign workers.
An "expert" must now meet at least one specific criterion. They must have at least 5 years' experience, validated by an official document (certificate, etc.). They must have a university degree and at least 3 years' of experience. These 3 criteria are not cumulative; the foreign national must meet at least one of them to be recruited as an expert.
The notions of "executive director" and "technical worker" have also been redefined. The "executive director" is now to be called the "chief executive officer (CEO)". They must manage a branch, head office or representative office, or act as a director in a particular area of the company. The "technical worker" will have at least 5 years of experience suited to the position they wish to occupy, or 3 years of suitable experience + at least one year of professional training.
Changes to the work permit application process
The decree modifies several aspects of the work permit application. The application of a foreign national who needs to work in several different locations must clearly mention all the locations concerned. The supporting documents requested from CEOs and experts will have to comply with the decree's indications. For example, the CEO must provide a company charter or internal regulations. Other documents specified in the decree may also be issued. The expert or technician will have to provide a diploma and a written attestation from a company based abroad attesting to the number of years the applicant has actually spent as an expert or technician.
Presented as a measure to simplify the hiring of foreign workers, the government's reform continues to provoke debate between foreign and local companies seeking to recruit foreigners. The government intends to ease these tensions with its reform. Some describe it as modest while highlighting a first step towards simplifying the hiring of foreign workers and preserving jobs for Vietnamese.
E-visa for all nationalities
On August 14, Vietnam launched its electronic visa system. The system is operational for all nationalities and is being deployed as part of a plan to boost the economy, particularly tourism. Other sectors are also indirectly affected, such as labor, investment and trade between countries. The e-visa facilitates and modernizes visa procedures.
Vietnam was singled out for its excessive bureaucracy. The e-visa is expected to attract more tourists and foreign talent. Tourism in Vietnam is driven in particular by South Korean, Japanese and European nationals. They can enter the country without a visa for 15 days. The launch of the e-visa is accompanied by an extension of the length of stay authorized without a visa: 45 days instead of 15. This extension is designed to attract more tourists.
The measure is also aimed at business travelers. With a standard duration of 90 days, the e-visa intends to encourage foreign professionals and investors to extend their business trips. To further boost tourist and business travel, Vietnam's National Assembly has also approved the introduction of a multiple-entry visa.
New Zealand
Extension of Green List visa to counter labor shortage
New Zealand recently added 17 jobs to its immigration "Green List". Jobs on this list grant faster access to residency. Among the new eligible occupations are welders, correctional officers, aeronautical engineers, database administrators, vehicle painters and road roller operators.
Immigration Minister Andrew Little, who made the announcement, says that employers in these sectors will now be able to opt for a "Green List visa" if they need to recruit a specialist and if they haven't found qualified New Zealand workers for the position.
Faced with critical labor shortages since the pandemic, New Zealand is relying on simplified access to residency to attract foreign workers. The government is already welcoming the 135,000 new immigrants who will arrive during the year. According to the government, these arrivals have eased pressure in sectors under pressure.
Nevertheless, the same government is opting for differentiated treatment according to the sector of activity. It plans to add 7 professions to a separate list relating to construction and infrastructure (machine operators, road traffic controllers, etc.). This list allows employers to recruit expatriate workers and pay them less than the standard work visa.
Opposition party proposals to boost tourism
Joseph Mooney, a member of the opposition conservative New Zealand National Party and the party's tourism spokesman, points out that the sector is one of New Zealand's main sources of export revenue. In particular, revenue from tourism is used to fund public services. However, the tourism industry was severely affected by the health crisis, and has yet to fully recover, despite the reopening of borders and economic recovery. Inflation remains high, and the current immigration system is "failing".
To boost growth through tourism, the national party is therefore elaborating a $22 million strategy. The plan also considers raising the age limit for applying for a working holiday visa from 30 to 35. To counter the labor shortage, this strategy would allow working holiday visa holders to apply for a 2nd or even 3rd visa.
Japan
According to a recent survey by Japanese newspaper Kyodo News, 86% of municipalities are calling for an increase in the number of foreign workers. This is significantly more than in a previous survey carried out in 2015. Japan's declining demography and birthrate are felt in many sectors. The study covered 47 prefectures and received 1,682 responses, a 94% participation rate. 84% feared they would disappear if nothing was done.
According to the National Institute of Population and Social Security Research, Japan's population will be 87 million in 2070, a 30% drop from today's figure. Almost 40% of the population will be over 65. Hence, for the municipalities surveyed, the urgency of increased immigration. Only 8% of respondents consider the measure "unnecessary" or "somewhat pointless". Among them are prefectures questioning their ability to offer jobs to foreigners. For example, Shichigahama, a city in Miyagi prefecture,
considers its job offer too limited to welcome foreign workers. The towns of Nishinoomote and the island of Tanegashima, in Kagoshima prefecture, prefer to focus on young Japanese, encouraging them to stay in the area rather than migrate to the big cities.
But young people are in short supply, and the population is aging. Sixteen prefectures recognize the importance of foreign workers (90%). Recognition even reaches 100% in the Shimane and Kochi prefectures. 63% of local governments surveyed say they are working to welcome foreigners better, for example, through multilingual municipal services for better access to information and Japanese language courses. 20% say they encourage companies to hire foreign workers through financial incentives. Prefectures are also setting up programs to facilitate meetings between foreign workers and Japanese companies. Municipalities are faced with immense needs, particularly in the healthcare, agricultural and industrial sectors. Worried about their future, municipalities are counting on the arrival of foreigners to keep them going.
European Union
Strong rebound in the working population
While labor shortages are also being felt in the European Union (EU), the eurozone can count on a strong rebound in its working population. According to the European Central Bank (ECB), this rebound in activity is due more to an influx of new individuals into the labor force than to a drop in the number of job seekers. By the end of 2022, the European workforce will be back to pre-pandemic levels. Today, it exceeds pre-pandemic levels, with 3.8 million more people in the workforce than in 2020.
According to the ECB, this rebound is largely due to foreign workers, mainly from third countries. They were also responsible for sustaining the labor dynamic during the pandemic. The Eurostat data do, however, express one concern: these new expatriate workers could be threatened by greater job insecurity. Eurostat notes that, on average, these employees are younger than previous immigrants. These young workers are more likely to be women, work part-time and have a lower level of education than immigrants who arrived in the EU earlier.
Visa requirements for US citizens from mid-2024
On September 5, the European Court of Justice handed down its ruling, ending the debate between the European Parliament and the European Commission in response to the question: "Should American citizens be required to have a visa on the grounds of reciprocity?" But will this be the end of the matter?
In October 2022, the European Parliament condemned the European Commission's refusal to impose visas on American citizens. And yet, according to the European Parliament, the USA was far less cooperative, imposing visas on Croatian, Romanian, Bulgarian and Cypriot citizens. Unlike other European citizens, who are subject to ESTA, Croatians, Romanians, Bulgarians and Cypriots require a visa (B1/B2). Only Croatia was granted a pass in 2021.
The European Court reminds us of the power of the European Commission. Between the principle of reciprocity and practice, it is the Commission that decides.
At present, US citizens can enter Europe without a visa. But from mid-2024, they will have to comply with the European Travel Information and Authorization System (ETIAS). Inspired by the American ESTA, ETIAS will become compulsory from next year.
Malta
Towards a cap on foreign workers?
On Tuesday, September 26, the Malta Chamber of Commerce published its 250 pre-budget proposals in preparation for the 2024 budget to be presented by the Minister of Finance on October 30.
The Malta Chamber of Commerce says it wants to take action against the exploitation of foreign workers. It points to practices against third-country nationals, which, in its view, amount to "modern slavery". Slavery from which Malta would benefit by employing these expatriates to alleviate labor shortages.
The Chamber of Commerce proposes a complete paradigm shift. Rather than always betting on population growth, why not bet on automation? In the age of AI and robots, the Chamber has made up its mind and advocates the "implementation of empowerment strategies to complement the workforce". Hence, the use of caps.
Not all sectors would be affected by these labor limitations. The Chamber of Commerce excludes healthcare, public transport, waste management, and other "essential services". According to the Chamber's plan, scrupulously controlled, approved agencies would be responsible for recruiting seasonal expatriates for a given company and for a specific period of time. At the same time, the Chamber wants to target foreign talent from third countries better. They would be offered specific jobs, again subject to precise criteria (job level, salary, etc.).
“Quality workers” in the tourism sector
This is the promise made by Tourism Minister Clayton Bartolo. The Chamber of Commerce's proposals (to limit the number of third-country workers), shared by the government, worry other professionals. The tourism sector is particularly concerned and finds it hard to see how it could survive without the help of foreign workers. In September, the Malta Employers' Association, the Association of Catering Establishments, and other professional organizations urged the government to first resolve the labor shortage problem before considering limiting the number of expatriate workers.
Responding to the tourist industry, Bartolo assures them of "the number of workers necessary for operators to provide a quality service"; but he is also determined to combat the exploitation of foreign workers and rental pressure. Prime Minister Robert Abela had already warned that he would not support industries that were solely focused on profit through the use of expatriate workers.
“Quality”. The word has been used by the government since 2019, but not without controversy. We often talk about qualifications (skilled/unskilled workers). But is "quality" synonymous with "qualification"? Or "good qualification"? The government sidesteps the issue, preferring to stick to its rhetoric. It also insists that companies raise wages. In its view, this is the other lever for attracting and retaining "quality" foreign workers. Bartolo points out that Malta has made more profits thanks to the influx of tourists. To maintain service quality and retain "quality" foreign workers, a pay rise is needed. This would be accompanied by training designed to improve employees' skills. Such training could be provided by the Institute of Tourism Studies.
Thailand
Sending qualified Thais abroad. On Thursday, September 21, Phiphat Ratchakitprakarn, the new Ministry of Labor, unveiled its strategy to encourage Thai expatriation. The plan would aim to send 100,000 skilled Thai workers abroad by 2024. More specifically, a dedicated service would help future expatriates find work abroad.
The reason is that the demand is there. Labor shortages are becoming ever more pressing in nearby countries such as South Korea, Japan, and Taiwan. Needs are just as strong in European countries, New Zealand, Saudi Arabia, and Qatar. The Thai government wants to target markets under high pressure (healthcare, construction, etc.) to forge partnerships with countries in demand.
Pairoj Chotikasatien, Director General of the Ministry of Employment, reports that New Zealand is interested in Thai workers specializing in agriculture, healthcare (dentistry, nursing), and the architectural sector. Australia is also interested in recruiting Thai chefs. Talks with the Thai private sector, the government, and the requesting states are due to take place to finalize the practical and legal aspects of these partnerships. Thai expatriate candidates can contact the Bangkok employment office or the provincial branches.
Sri Lanka
Sri Lanka has launched its digital nomad visa. Tiran Alles, the Minister of Public Security behind the project, says he wanted to keep up with the global trend. Today, it's hard to escape digital nomadism. For the time being, we know that the visa will be renewable every year, provided that the eligibility is valid. The cost of the visa is set at 500 dollars. Applicants must have at least $2,000 monthly to apply (income channeled through a Sri Lankan bank). Spouses and dependents may be covered by the Digital Nomad Visa.
The Sri Lankan government is counting on the digital nomad visa to attract more foreign talent and boost the local economy. It also hopes to become a new stronghold for digital nomadism.
Serbia
Serbia attracts foreign professionals. Last year, 35,000 foreigners found employment in Serbia. There are already 30,000 in the first quarter of 2023 alone (figures from the Serbian Employment Service). These expatriate workers are mainly employed in industry, construction, and specialized sectors such as IT. Other strongholds of employment are also being targeted (hotels, auxiliary workers, etc.).
For Serbia, it's a godsend. Like many other countries, it is affected by labor shortages. It is up to the government to provide a framework conducive to the growth of both foreign and local labor. As far as Serbian nationals are concerned, there is a lack of interest among the younger generation in specialized, technical occupations. They don't want to study or work in these fields. Another problem is the departure of many skilled workers to Western countries. There are still qualified Serbian professionals in the country, but too few to meet the economy's needs. Companies with full-order books are struggling to meet their deadlines. Delays are piling up, resulting in substantial losses.
To counter this phenomenon, experts recommend raising awareness of low-skilled, technical occupations from an early age. Contrary to parents' and young people's preconceptions, they are job-creating but still victims of their poor image (jobs that are little or poorly known, reputed to be demanding...). Since 2015, the country has embarked on several campaigns aimed at rehabilitating these professions and, above all, showing that they pay and that it's possible to make a career out of them. The challenge remains daunting. In Serbia, specialized schools are closing because they can't take on enough young apprentices.
Singapore
Recruitment of foreign workers in the hotel and restaurant industry
The government's plan applies to nationals of Bangladesh, Myanmar, India, the Philippines, Sri Lanka and Thailand. The list of nationals has been extended to include these 6 countries. Previously, only people from Hong Kong, Macau, Malaysia, mainland China, South Korea, and Taiwan could apply for the visa.
Since the beginning of September, nationals of the newly eligible states have been able to apply for a work permit in Singapore to work in one of the 9 sectors covered by the visa. The professions concerned include cooks and metalworkers. Cleaning staff and hotel porters have been added to the list. Hotel industry representatives welcome the government's measure. Extending the work permit to other nationalities is another way, in their view, of combating the shortage of workers.
Alongside this plan for semi-skilled employees, Singapore still offers the Employment Pass program for foreign professionals and the S Pass for skilled workers. Also in September, the government launched "Compass", or "complementary assessment framework". Compass rates candidates according to various criteria (salary, level of education, etc.) to assess their adaptability to cutting-edge sectors, in particular, AI-related sectors.
Guaranteeing "acceptable housing" for foreign workers
Since September 19, employers in the construction, shipbuilding, and processing industries have had to prove that they have "acceptable housing" before being allowed to take on new foreign workers. An announcement from the Ministry of Manpower (MOM), specifies that these new accommodation requirements are in addition to the conditions required to offer the work permit.
According to the MOM, the number of expatriates holding work permits in these sectors has exceeded pre-sanitary crisis levels (+19%). By December 2022, there were some 415,000 work permit holders in construction, shipbuilding, and processing, representing almost 30% of foreign workers in Singapore. The city-state is experiencing major delays on construction sites due to the pandemic. The increase in the number of expatriate workers is intended to alleviate tensions in these sectors.
To attract expatriates, the government has joined forces with industry to propose this new requirement for acceptable housing. The increase in the number of foreign workers is expected to go hand in hand with an increase in dormitory accommodation. Dormitories would be full, and expatriates would be forced to find accommodation elsewhere. The MOM's announcement is supposed to guarantee decent housing to workers. Employers will have to present a rental contract as proof. Violators risk suspension of their work passes.
Since December 2022, the combined efforts of government and industry have resulted in the addition of some 17,000 dormitory beds. The MOM acknowledges that this is not enough but adds that it cannot continue to increase the supply of beds in the same proportions as the increase in the workforce. It, therefore, calls on companies to increase their productivity to reduce their dependence on foreign workers.
Germany
More foreign talent in high-tech sectors
Science and technology are booming. A study by the German Economic Institute notes that the number of foreign workers in STEM (science, technology, engineering, and mathematics) has risen by 190% since 2012. By 2022, 202,000 expatriates in Germany will be working in STEM. The contribution of foreigners in these sectors has doubled from 6.5% to 12.7%.
The study also shows a high proportion of European nationals working in these new technologies. However, Indian, American, and Chinese professionals are also numerous in qualified STEM positions. Indeed, the number of third-country expatriates has jumped from 30,300 in 2012 to 122,000 in 2021–2022. Unsurprisingly, the big cities, led by Berlin, Munich, and Frankfurt, are the biggest magnets for foreign talent. They say they find more opportunities there than in other regions. Professional networking is also said to be denser, enabling better career development.
Nonetheless, the study points to several challenges for expatriates who choose Germany, not least of which is the language barrier. To help foreign workers, German companies offer cross-cultural training and language courses. The government is also aware of the problem. Its immigration reform includes a section on the German language. However, the executive's suggestions (to be less demanding regarding language requirements, depending on the profile) are proving controversial. Opponents argue that, on the contrary, a higher level of language proficiency is needed to facilitate the integration of expatriates. Diploma recognition is another challenge. Here again, the immigration reform aims for greater flexibility. Eligible skilled workers will be able to immigrate to Germany without being constrained by current rules.
Munich reinstates tuition fees for third-country students
In early September, the Technical University of Munich (TUM) announced that it was reinstating tuition fees for third-country students. Tuition fees for non-Europeans will apply from the start of the 2024–2025 academic year. Thomas Hofmann, President of the University, explains that tuition fees will be between 2,000 and 3,000 euros per semester for Bachelor's students and between 4,000 and 6,000 euros per semester for Master's students.
TUM's decision is an exception. Bavaria has put an end to general tuition fees for all students. In Munich, the capital of Bavaria, TUM is the only institution to have decided to restore tuition fees for non-European students. Hofmann defends the measure. In his view, international competition between universities requires greater investment to improve the quality of teaching and attract foreign students. In Hofmann's view, the state's resources are insufficient to support the investment costs of universities.
Thirty percent of the 50,000 students enrolled at TUM would be affected by the measure. Hofmann reckons the tuition fees charged by TUM remain significantly lower than those charged by other institutions worldwide. Playing the appeasement card, Thomas Hofmann points out that all students can continue to receive the university's grant, whether they are European or non-European.
But David Vadasz, the students' representative, insists that TUM must support all students, regardless of their origin. For him, it makes no sense to put the burden of investment solely on the shoulders of foreign students. Vadasz fears a counter-productive snowball effect. He points out that foreign students "[...] should not have to depend on their parents' income or the availability of a job to secure their studies financially, regardless of their origin".
Malaysia
In the words of Mr. Meenaq Kumar, Deputy Secretary of the Malaysian Indian Barbershop Owners Association, it's "a breath of fresh air". Malaysian barbershops have finally been authorized to hire barbers. There is a shortage of at least 6,000. But since 2009, the industry has been forbidden to hire foreign professionals. According to them, 30% of barbershops had to close down because of this ban. Other professionals were forced to reduce their opening hours.
According to the Association, the arrival of foreign professionals will revitalize the sector and boost training for locals. Local training is one of the conditions demanded by the government, which has partially approved the recruitment of expatriates in hairdressing, textiles, and goldsmithing. Prime Minister Datuk Seri Anwar Ibrahim adds that quotas will be introduced.
Attracting local workers
But how do you retain local workers? Professionals admit that many of them don't stay long, even after good training. They prefer to leave for Singapore, where they can expect to earn 10,265 ringgits (approx. $2,183), compared with barely 3,000 ringgits (approx. $637) if they stay on to work in the craft industry in Malaysia. According to Datuk Abdul Rasul Abdul Razak, president of the Malaysian Goldsmiths and Jewelers Association, it's hard to keep up with the comparison. Three thousand workers are needed to keep the country's 200 goldsmiths and jewelers running, but some ask for 5,000 ringgits (around $1,063), a salary that not all professionals can offer. Abdul Razak adds that the cost of hiring an expatriate would come to 6,000 ringgits (about 1,275 dollars).
This brings us back to the problem of local manpower. How to interest Malaysian nationals in the hairdressing, goldsmithing, or textile trades? For Datin Maheswary Ramasamy, secretary of the Malaysian Indian Textiles & General Stores Association, the opportunities are there, but locals are turning away from these sectors. As a result, there are few experienced locals in textiles and few willing to learn the trade. According to Datin Maheswary Ramasamy, there is a shortage of 3,000 workers in the sector. For the time being, professionals in the hairdressing, textile, and goldsmithing industries are awaiting clarification from the government regarding the hiring of foreign professionals.
Taiwan
To promote the integration of expatriates, the Taipei Ministry of Labor offers free Mandarin courses. The program is just in its second year. Launched in conjunction with the Taipei Language Institute, it has a dual objective: to make daily life easier for foreign workers and to enable them to obtain the certification needed to upgrade to "intermediate skilled foreign labor" status and earn a higher salary.
To alleviate the labor shortage, in April 2022, the government launched its "Long-term Retention Program for Skilled Foreign Workers". Eligible expatriate workers and foreign students can qualify for intermediate-skilled foreign labor status. Eligibility criteria include graduation (students) or 6 years of work experience with validation of a skills test (workers). A Mandarin language test is also required to qualify, explaining the free courses offered in Taipei.
Workers who have been granted intermediate-skilled foreign labor status still benefit from health insurance and labor protection. Indeed, under the Employment Service Act, companies employing foreign workers must pay "employment security fees". The measure was taken both to protect foreign workers and to avoid reducing employment opportunities for locals.
According to the Workforce Development Agency (WDA), 10,276 medium-skilled foreign workers have been recruited since the program was launched. These include 4072 industrial workers and 6204 care workers.
Brazil
The measure, announced in March, came into force on October 1. From January 10, 2024, Canadian, Australian, and American nationals wishing to travel to Brazil must obtain an e-visa in advance. The Brazilian government is applying the principle of reciprocity here. In 2019, then-President Jair Bolsonaro abolished the visa requirement to boost tourism (Japan was also affected). The Lula government is, therefore, reinstating the visa requirement while promising a simplified, fast, and fully electronic procedure. The Brazilian Ministry of Foreign Affairs is still working on the details of the measure and says it will communicate further details later.
As soon as the return of visas was announced, the Ministry of Foreign Affairs invited other countries to negotiate reciprocal agreements. Only Japan responded to the invitation. Japan and Brazil have, therefore, agreed on a reciprocity agreement. Effective on September 30, it allows Japanese and Brazilian citizens to travel to either country without a visa. The measure is scheduled to last 3 years. For the time being, Australia, the United States, and Canada have not signed reciprocity agreements with Brazil. In fact, no reciprocal agreement was in place when Brazil abandoned the visa requirement. Brazilians were still required to present a visa to travel to the USA, Canada, or Australia, even when connecting to another destination, but the Brazilian authorities are reassuring. The return of the visa requirement is not a blow against tourists - quite the contrary.
Kuwait
Accelerating the Kuwaitiization of public sector jobs
Is this a new stage in the Kuwaitization of jobs? The Kuwaiti government wants to give greater priority to its nationals working in the public sector. To this end, a new draft law will directly target the recruitment (or rather, limitations on recruitment) of expatriates in government jobs. The announcement was made on Monday, September 25, by National Assembly spokesman Ahmad Al-Saadoun. According to the draft law, the recruitment of expatriates for government jobs would be prohibited as long as there are Kuwaitis to fill those jobs.
Recruitment agencies will no longer be able to select non-Kuwaiti profiles for government positions. Indeed, the draft law specifies that "government jobs are strictly reserved for Kuwaiti citizens". The only exception is that if no local can fill the position, an expatriate can be recruited. Recruitment is restricted and limited: departments wishing to recruit must first place their advertisement on their website, on the website of the Civil Service Commission, and in two "widely circulated" local Arabic-language newspapers. If no Kuwaiti meets the criteria set out in the advertisement (qualifications, experience, etc.), the employer may employ a foreign worker.
Emergency plan in the name of "national security"
The bill also tackles salaries, proposing that the remuneration of expatriates working in the public sector should no longer exceed that of Kuwaitis in a similar position. The contract of foreign employees could no longer exceed one year; it would be renewable for one year, provided that the process was followed (publication of the advertisement on the Internet, etc.). If the bill is approved, the new measures will apply to current foreign workers as soon as their contract expires.
Ahmad Al-Saadoun justifies the text with the urgent need to speed up the recruitment of nationals. For him, foreigners in government positions will likely be handling sensitive information. Al-Saadoun sees this as a risk to the country's national security. Several bills have already been tried to speed up the recruitment process for Kuwaitis without having had the desired effect. According to the spokesman, the law will also help to reduce unemployment among Kuwaitis.
Expatriates banned from changing their work permits
Kuwait's Public Authority for Manpower (PAM) is tightening up its policy to combat fraud associated with expatriate work permits. To combat fraud associated with expatriate work permits, the Public Authority is tightening its policy. From now on, expatriates will no longer be able to modify the data on their work permits. These data (name, date of birth, etc.) can only be changed after compliance with a strict procedure. An employer wishing to modify a work permit must request a visa cancellation 2 weeks after the work permit was issued. This must be done through the Ministry of the Interior.
These changes follow the rapprochement between PAM and the Ministry of the Interior, with the aim of better combating fraudulent activities. PAM has also introduced a new electronic service to streamline the process of canceling entry visas for expatriate workers. Employers can now access PAM's electronic forms and tick the "cancel work visa" option for the expatriate concerned. They will then have to register this data and submit it to "a data validation declaration".
United Arab Emirates
The Ministry of Human Resources and Emiratization (MOHRE) chose Instagram to make its announcement. The announcement was made on September 26. While the United Arab Emirates (UAE) intends to position itself as the country of choice for foreign talent (almost 90% of its population is foreign), it reminds us that there are rules to be respected to work serenely. It also reminds us that the rights of both employees and employers are well-established and respected. However, the Ministry lists 10 cases in which an employer may legally dismiss an employee.
Dismissal will therefore be possible if :
- The employee has presented false documents to be hired or has presented himself under a false identity.
- The employee acknowledges having voluntarily damaged property belonging to his employer or if he has committed an error resulting in significant material damage to the company.
- The employee violates the company's internal regulations concerning compliance with safety standards.
- The worker continues not to respect his obligations and to break the rules mentioned in the contract despite the employer's warnings.
- The worker discloses the company's confidential information, causing financial losses for the company; the worker will also be dismissed if the disclosure has served his personal interests.
- The worker is "mentally unstable" and has consumed alcohol or drugs in the workplace.
- The worker has assaulted his employer, manager, or colleagues.
- The worker cannot justify his absences: more than 20 intermittent days in the year or more than 7 consecutive days.
- The employee takes advantage of his position in the company to obtain personal benefits.
- The employee signs on with another company without respecting the rules in force.
If one of these ten reasons is proven, the employer may dismiss the employee without notice.
Dubai
The average cost of an apartment in Dubai has risen by 20% in one year. According to CBRE Group, an American commercial real estate and investment services company, this is the highest increase in 10 years. CBRE Group and Dubai's residential market experts published a report confirming the figures. The surge in housing prices has been observed since 2014, with an acceleration this record-breaking 2022–2023. The report noted 79,605 homes bought and sold.
According to experts, Dubai owes its strong rebound to the cryptocurrency boom and the strategies of wealthy investors (mainly from Russia and other Asian countries), who have shifted to Dubai housing to secure their assets. The international context (Russian invasion of Ukraine, inflation, energy crisis, etc.) is driving up costs. The average annual rent for an apartment is $29,000, while that for a villa climbs to almost $88,000.
Dubai's luxury real estate market is thriving. By 2022, Dubai will be the 4th most prominent luxury real estate market in the world. This is the first time the city has held such a position. Like Qatar and Turkey, the United Arab Emirates (UAE) has benefited greatly from Russian real estate investment, but will the average expatriate be able to resist the pressure of high rents? Has Dubai become too expensive for expats? Far from the glitz and glamour of luxury, many expats report difficulties finding accommodation in Dubai.
Morocco
Authorizing the naturalization of foreign spouses married to Moroccan citizens: this is the bill proposed by the Ministry of Justice in early September. Justice Minister Abdellatif Ouahbi defends the measure as a further step towards gender equality. The measure is also part of a vast plan to develop the Moroccan legal system, with the aim of opening Morocco up to world standards in terms of nationality acquisition. Specifically, the bill aims to amend Article 10 of the Moroccan Nationality Code to allow foreign spouses to obtain Moroccan citizenship through marriage.
Until now, Article 10 (amended in 2007) only concerned "foreign women [who] have married a Moroccan man". The latter could, if she met the conditions, "subscribe [...] a declaration addressed to the Ministry of Justice to acquire Moroccan nationality". The bill targets foreign spouses married to Moroccan citizens.
The Minister says he is also sensitive to societal, political, and cultural developments in Morocco. A measure for gender equality, the naturalization of a foreign spouse married to a Moroccan citizen is also an anti-discrimination measure. This is not the first time the issue has been raised. Back in 2018, parties belonging to the government majority at the time felt that Article 10 of the Moroccan Nationality Code was discriminatory.
Egypt
How to boost tourism while supporting education? Egypt claims to have solved the equation with its "educational tourism" called "Egyaid". In practice, this involves granting scholarships, residency rights, and educational support. The initiative is designed to attract Arab, African, and other foreign students to opt for expatriation in nearby countries (Egypt in the lead). Launched by the Minister of Higher Education and Scientific Research, Ayman Ashour, Egyaid came into effect on August 28, 2023.
Study in Egypt rather than in other international countries. Egyaid is part of a wider "National Strategy for Higher Education 2030". The Ministries of Higher Education and Research have joined forces with the Ministry of Transport and Civil Aviation and the Ministry of Tourism and Culture to bring this project to fruition. According to the Ministry of Higher Education, the executive's efforts are bearing fruit. Thirty-three percent more international students have enrolled in bachelor's degrees at Egyptian universities (year 2022–2023). The executive intends to increase the number of scholarships and strengthen academic, cultural, and medical support to attract even more foreign talent. Undergraduate students will benefit from a 25% reduction in tuition fees. The figure rises to 50% for graduates.
Training tomorrow's foreign talent
Programs will also be implemented to train foreign talent in the professions of the future, particularly in AI, renewable energies, and robotics. Other measures will be deployed, such as the educational visa that will give international students access to residency. Students will also be able to benefit from discounts on transport or to take part in cultural activities.
According to the experts, Egypt and other North African countries have many assets to attract foreign talent. What remains is the challenge of improving the quality of teaching to truly compete with other universities. For the experts, Egypt will gain points in the battle of financial costs (studying in Egypt costs between 7,000 and 15,000 dollars a year) and has every interest in investing in educational tourism.
Pakistan
Pakistan has introduced a new visa policy aimed at foreign investors. To revive its economy, Pakistan wants to focus on foreign capital. The announcement was made at the Special Investment Facilitation Council (SIFC). The new system will make visas more accessible for foreign investors and entrepreneurs. In practice, business people will be able to obtain their visa thanks to a single document provided by an international organization or by their state.
Pakistan is also counting on relations with other countries, notably China, the United States, and the Gulf States, to help it emerge from its economic slump. China is already taking advantage of the economic corridor established with Pakistan (CPEC). Justice Minister Ahmad Irfan Aslam points out that China is one of Pakistan's most important trading partners. Unlike Western countries, China has already declared its support for the investment facilitation plan. Indonesia has also expressed interest in the SIFC. Pakistan is counting on its program to attract foreign investors on a long-term basis and boost its economy.
