Are expats a threat to youth employment?

Features
  • old and young workers
    Shutterstock.com
Published on 2022-10-11 at 14:00 by Asaël Häzaq
Immigrants tend to bear the brunt of economic downturns. The health and economic crises have led to fundamental questions about the expats' place in the local workforce. In 2020, some even bet on the end of global mobility as we know it. Others pointed out the positive impact a decrease in immigration would have on the employment of young locals. But are expats really a threat to the employment of young people? 

Expat, local talents and the global labor market

By definition, an expatriate is someone who leaves their country to go live and work in another country. In this sense, technically, expatriates may be considered immigrants. And just like other immigrant populations, they are repeatedly used as scapegoats when it comes to explaining the economic crisis, rising unemployment, violence, insecurity, etc. Yet there is no link between immigration and the decline in youth employment. And as a matter of fact, the opposite is true. Young people, whether local or expatriate, are traveling more. They are learning abroad through university exchanges, Erasmus or other international mobility programs. Knowing this, in November 2021, the French Conseil d'Analyse Économique (CAE) devised a new plan for an " increase in skilled immigration".

Countries with high immigration levels, such as Canada, Australia, or the United States, have clearly realized the importance of this phenomenon. They have understood that international mobility is a must if they want to boost their economy. With a labor market that has long been internationalized, the CEOs of large American companies are now mostly immigrants. The reason for this is that mobility allows the circulation of ideas and boosts creativity for new projects. In almost every field, innovation results from partnerships involving several nationalities, as in the case of anti-virus vaccines. In that way, immigration can be an asset to the labor market and the economy.

But the migration issue often remains stuck in identity-related questions, which tend to overshadow economic benefits. Economist Philippe Legrain sums it all up well in his book: “Them and Us.” "Immigration is today, without doubt, the most controversial subject in Western countries. Our (relatively) open and liberal societies are threatened by people who blame foreigners in general, and immigrants in particular, for everything that they believe is wrong with our lives and societies."

Global mobility and government strategies

The Kuwaiti government has decided to side with its people. This is due to the fact that the majority of the country's workforce is made up of foreigners. In Kuwait, too, the so-called expatriate "problem" pops up whenever there is some sort of economic or political issue, and the COVID crisis was certainly no exception. According to the Civil Service Council, young Kuwaitis are now in a position to claim the posts traditionally held by foreigners. 

While Kuwait's Office of Official Statistics reports that 54.6 % of foreigners work in the Ministry of Health, 20 % in education, 0.8 % in defense and 0.9 % in the Ministry of Petroleum, which stopped recruiting foreigners during the pandemic, these figures are expected to drop significantly with the implementation of the "Kuwaitization" (nationalization) policy. But the task looks more like a headache. On the one hand, you have young Kuwaitis who feel short-changed by foreigners who still hold the most important positions, and on the other hand, you have foreigners who feel unfairly discriminated against.

The United Arab Emirates (UAE), where foreigners make up almost 90% of the population, is taking a completely different approach. The emirate is striving to become a heavyweight in the international job market. Being well aware that immigrants are the country's lifeblood, they have decided to open all doors to them, including those of the ministries, with an online service that ensures their recruitment. However, the very top jobs are still held by loyal followers of Mohammed Ben Zayed, President of the UAE. 

Is it a "locals v/s expatriates" conflict?

Eliane Tevahitua, the Tavini representative (a pro-independence group) in the Assembly of Polynesia, thinks that people moving from the metropolitan area is a threat to youth employment, worsening the already tense situation even further between mainland France and its overseas territories. Eliane Tevahitua is worried about the steady number (that has increased since COVID) of expatriates coming from mainland France, who tend to occupy high positions that the native people don't get the chance to. 

In response, outraged French Labor Minister Virginie Bruant strongly reaffirms that Polynesia is France! People traveling within their own country cannot be an immigrant. This is how the minister has dodged the main issue that is causing so much anger: the difference in treatment felt by the locals. 

In July 2019, Edouard Fritch, President of Polynesia, voted for a law on the promotion and protection of local employment. However, it has still not been adopted, which is unacceptable. In an open letter, Eliane Tevahitua urged the president to act swiftly. In the 2010s, Polynesia was cited as being "a flagship destination for tourism, but a nightmare for the unemployed youth". COVID came by and put the lid back on. 

The Polynesian Water Company has been expanding its youth assistance program since 2021. Every year, it recruits about 100 young professionals, offering assisted contracts or internships to identify local talents. But for youth employment advocates, this is still not enough. They are calling for more companies to get involved in such programs and say they do not question the benefits of immigration but would instead support the rebalancing of forces. The solution would be to give work to the locals who are already in the country before looking for foreign talent. 

This is the type of policy that great powers tend to implement regarding immigration. For example, in Canada, the United States, and mainland France, companies are required to prove that they cannot find the sought talent locally before advertising the positions internationally.