The COVID-19 crisis had a significant impact on the global labour market, especially since remote work has become the new norm. Whether in Europe or elsewhere, companies are less keen on hiring foreign professionals. Instead, they are trying to preserve their existing workforce along with reducing costs. The slowdown of several sectors, such as tourism, hotels and restaurants, has led to inevitable layoffs in recent months. While the unemployment rate keeps rising, employment remains relatively static. Many professionals, therefore, had to postpone or cancel their overseas career plans.
Today, very few countries, like Canada, are still recruiting foreign professionals to meet the labour market demands. Others, such as Australia and New Zealand, are planning to reopen their borders to the most highly-skilled foreign professionals from 2021. They are expected to fill vacancies that are on the updated skills shortage lists, including nurse, doctor, or even IT specialist positions. Clearly, the global health crisis led to a shift in global mobility trends.
From Asia to the Middle East
Malaysia used to be an attractive destination for a career change in Asia. But with an unemployment rate of 4.6% in September 2020, which represents a 1.3% rise compared to the same period last year, this is no longer the case. Today, more than 737,500 people in Malaysia are unemployed -- which is quite alarming. Only 35,500 people, mostly residents, managed to find jobs in recent months. Like many other Asian countries, Malaysia is still suffering from the COVID-19 effect. So the government is now looking to prioritise the employment of locals, including young graduates. From now on, an employer will only be able to hire foreign professionals when the required skills are not available locally. According to these reforms, all new job vacancies should be published on the official MYFutureJobs portal so that Malaysians get the chance to apply.
Saudi Arabia took a similar step in recent months, thus accelerating the Saudisation of its labour market. Other Middle East countries, including Qatar and Kuwait, are now facing an expat exodus which has led to a significant demographic decline. It's worth noting that many of these countries are home to strong expat communities of different nationalities who have mainly relocated there for work.
However, since it relies heavily on the presence of foreign workers, Saudi Arabia recently started a labour law reform that will be in force from March 2021. This reform aims at enhancing the rights to foreign professionals who, until now, depend on their employer or sponsor. Henceforth, they will be able to change employer and transfer their exit or re-entry visas more easily. While this measure will make the Saudi labor market more competitive, employees will enjoy more benefits, including higher wages.
Prioritising investors
With an unemployment rate of 3.6% today, compared to 4.7% in September, Singapore is slowly getting back on track. In May 2020, its government took new measures aiming at reducing the number of foreign professionals joining its labour market. Today, potential candidates need to secure a minimum wage of SG $ 3,900 per month to be eligible for an Employment Pass. For financial professionals, the minimum wage rose from SG $ 4,500 to SG $ 5,000 per month. This is discouraging employers from recruiting foreign talent. However, recognising the vital contribution of foreign talent to its economy, Singapore is launching the new Tech Pass program.
Managed by the Economic Development Board, this program aims at attracting at least 500 tech professionals from January 2021. Selected candidates will be allowed to start more than one business in Singapore and become an investor, a consultant or a mentor for local start-ups. However, this visa, which is valid for two years, is not intended for IT professionals who wish to join the Singaporean labour market. Only value-adding profiles, that is, individuals having exceptional talents and making significant investments, will be considered.
To be eligible, applicants must earn at least SG $ 20,000 per month and have at least five years of experience in running a tech company with a market value of at least US$ 500 million. Individuals having at least five years of experience in developing a technology product that either generates over US$ 100 million or has at least 100,000 monthly active users may also qualify.
Like Singapore, many countries are now prioritising foreign investment over recruiting foreign talent. Qatar, for example, made a 30% cut on employment costs for foreign professionals in its ministries and public bodies since June 2020. This obviously had a massive impact on the Qatari labour market and economy. As a response to this issue, the country is now offering permanent residence through residential and commercial real estate investment. To be eligible, however, the investment must amount to $ 1 million minimum.
