According to the United Nations, today, more than 255 million people live outside their home country. This figure includes a large number of immigrants and refugees, as well as people who move abroad for various reasons such as work, studies, entrepreneurship, retirement, etc. The United States, Germany, the United Kingdom, France, Spain, Australia, as well as Saudi Arabia and the United Arab Emirates are the most welcoming countries for expats. Meanwhile, Indians, Chinese, Mexicans, Filipinos and the British are the largest expat communities abroad. What does this mean
Expats boost the labour market
Many expats move abroad for better career prospects. Very often, countries with skilled labour shortage in particular sectors, developing countries and countries with ageing populations are those that are on the lookout for skills that are not available locally. Thanks to their qualifications and skills, expats contribute to boosting, without necessarily affecting the employment of locals. The presence of expats thus helps diversify the workforce and meet international demand. According to the United Nations, more than 60% of expatriates living in OECD (Organization for Economic Co-operation and Development) countries have more than secondary and tertiary qualifications and, today occupy important positions in their host countries. Besides, countries like Australia and New Zealand are currently facing a labour shortage in specific sectors like health and ICT, and are looking for foreign expertise amidst the global health crisis.
Expats stimulate the economy
Expats also make a significant contribution to their host country's economy. When foreigners settle in a country, their life goes well beyond work. For example, their lifestyle helps to boost the tourism industry. During their free time, they are likely to go and explore their host country, try a lot of leisure activities, including visits to tourist sites, bars and restaurants, boutiques and shopping malls, etc. The real estate market also relies significantly on expats. Most of the time, expats prefer to settle in the most popular neighbourhoods, where rents are usually high. In recent months, many real estate markets around the world have collapsed due to the expat exodus. Expat expenditure on bills, services, food and grocery shopping, whether at hypermarkets or local grocery stores, is another factor to consider. The high wages earned are, therefore, reinvested in their host country's economy in various ways.
Expat entrepreneurs create jobs
Many countries, such as Germany, Japan, the United States, Canada, South Korea, Sweden, as well as Thailand, Indonesia and Malaysia, have set up strategies to attract and retain foreign entrepreneurs. How does it help? First, doing business abroad involves some investment -- which definitely has an impact on the economy. But there's more to it. As a foreign entrepreneur with an innovative project, you will be looking for ways and means to thrive, so you will be creating jobs, and not only for locals. Today, several countries are renowned for their innovative small and medium-sized enterprises which constantly need high skills to grow.
Expat taxes and contributions
Whether you're an employee or an entrepreneur abroad, tax is an inevitable issue. Foreign employees, who are usually entitled to attractive salary packages, are also required to pay income tax. Entrepreneurs pay corporate tax, and once they start hiring, they will have other responsibilities such as employee payroll, compulsory medical insurance, etc. All expats, including retirees and students, also pay value-added tax on a range of goods and services. Those who choose to invest in real estate usually have to property tax and other fees. Expat remittance is another key factor, so in one way or another, expat contributions have a significant impact on public budgets and on public services.
Multiculturalism
Imagine living in a country where everyone speaks a single language that you don't understand and where there's a single culture, a country where you will eat the same type of food and see the same faces every day, at the office, in the metro or in the streets. It wouldn't be fun, right? So the presence of expats from different countries has an impact on the social and cultural life of a country. Multiculturalism diversifies large cities and makes them more dynamic and pleasant to live in. Besides, thanks to major activities and international events, people with different origins and backgrounds get to meet and share their experiences. It also involves a greater opening to the rest of the world, offering a wider range of economic, professional or personal opportunities.
