On what basis should you choose your expat country?
The OECD Talent Attractiveness Indicators document provides a snapshot of the attractiveness of member countries at a given point in time. This report contributes to a better understanding of expatriates' expectations based on their life plans and the strengths and weaknesses of each surveyed country. This data is valuable for countries that are in direct competition for foreign talent. As labor shortages keep worsening, the ITA report is even more important in specific sectors such as healthcare and construction. Indeed, we now know that almost every country has a shortage of qualified healthcare personnel and technicians. But on what criteria do potential expatriates base their choice?
For its study, the OECD has defined four expatriate profiles: highly skilled workers, entrepreneurs, the startuppers and students. The report then decrypts 7 indicators for each profile, namely the quality of opportunities (this criterion includes the environment that is more or less conducive to the development of the expatriate's life project), wages and taxes (cost of living, expenses, etc.), future prospects (long-term integration, change of status, access to citizenship, etc.), environment (living environment, family life, etc.), quality of the professional environment (does the country provide all the opportunities for talents? What is the place of innovation, R&D?), inclusiveness, quality of life and health. Each indicator is based on 3 criteria: very important, important, not important.
Highly skilled workers looking for stability
For highly skilled expatriates, New Zealand is the place to be. The country outperforms all other OECD competitors and is the most attractive place to start a professional career. But the competition is fierce. New Zealand is just ahead of Sweden, Switzerland and Australia, which finishes at the bottom of the podium. Canada ranks 10th.
The top three countries, New Zealand, Sweden, and Switzerland, respectively, tend to maintain their leading positions in all selected criteria (very important, important, not important) and for all indicators. Although they might sometimes swap places, they remain at the top of the rankings. New Zealand and Switzerland share a low unemployment rate of 3.3 percent and 2.2 percent, respectively. In Sweden, the unemployment rate is higher, peaking at 7%, but the country remains economically dynamic, especially for international talent. The three countries share similar career prospects and a comparable quality of life. Skilled foreign workers have a long-term perspective and can more easily combine family life with professional success.
Entrepreneur: Where will you pay less taxes?
New Zealand, Switzerland, and Sweden are well-rated by entrepreneurs. Sweden even comes first among OECD countries, ahead of Switzerland and Norway. Canada is at the bottom of the podium. New Zealand is fifth with a configuration where all indicators in the study are marked as important. But when revenues and taxes are considered more important than other indicators, Switzerland takes the first position, ahead of Sweden and Canada. Unsurprisingly, entrepreneurs are sensitive to factors that can directly impact their business (cost of employees, investments, corporate taxes, import taxes, etc.). Conversely, when expenses are considered less important than other indicators, Sweden takes first place, ahead of Canada and Switzerland.
Ecosystems tailored for startuppers' needs
According to the findings, startup founders seem to pay more attention to the living environment than to the cost of living. When we look at all the indicators, we can see that startup creators tend to rank Canada as the best OECD country to set up a business. The United States comes in 2nd place and France 3rd. The United Kingdom closes the podium. Sweden is 7th, New Zealand 14th, and Switzerland does not even appear in the ranking. Once again, the results confirm the importance of the living environment according to the activity. Canada keeps on gaining popularity among startup founders. At the beginning of the year, Canada even relaunched its startup visa to attract more creators. The United States remains the leading country for innovation. Startup founders say they are looking for an ecosystem that is conducive to the creation and development of their company. They are looking for governments that have an interest in innovation, provide support for innovative companies, and offer investment opportunities in R&D, professional networks, hubs, etc.
Students: American or Japanese dream
International students believe that the American dream has a bright future ahead. The United States leads in front of Germany and Norway and is the number one OECD country to study in. When all the indicators are green, students head for the world's leading power. When they focus all their attention on career opportunities, the country even widens the gap with other countries. The U.S. always comes out on top when the quality of the work environment or future prospects are the most important indicators. The same results apply when family, health or quality of life are the most important factors. Students are keen on living the American dream. The potential challenges of obtaining an H-1B visa are nothing but fiction for them. The cost of education does not hinder the aspirations of international students either.
But here's something quite odd! Unlike other expat profiles, students rank Japan in the top 10 best countries to study in. Highly skilled workers rank it 20th, entrepreneurs 21st and startup founders 19th. Although Japan is facing an unprecedented labor shortage, it is struggling to attract and retain international talent. This is mainly due to a frantic pace of work, with long overtime hours, language barriers and cumbersome bureaucracy. Students, on the other hand, have a totally different perception of Japan. The Japanese soft power trend, called Cool Japan and launched in the 2000s, seems to have paid off. International students are particularly attracted to Japan because of its culture, language, and lifestyle. Studying in Japan also makes a difference in the CV. The country is at the forefront of many fields, with renowned universities providing quality education.
What makes the difference when choosing a destination?
The OECD study confirms empirical findings. The expectations and needs of an entrepreneur are not the same as those of a student or a foreign worker. There are significant differences even between the creators of "classic" companies and startups. It is important to remember that the study aggregates averages. There is indeed a multitude of companies in multiple fields. A textile SME will not have the same needs as a retail SME.
In fact, the report backs up the observed trends. New Zealand, Sweden and Switzerland are considered the most favorable destinations for moving with a family and career development. The same approach is taken by students, business leaders and startups, who will each look for the most attractive countries according to their own status.
What makes the difference when it comes to settling abroad is not always all about the money, although, of course, the cost of living has some influence on their overall choice. But it is far from being the essential decision-making factor. Instead, prospective expats will make their choice based on criteria that are essential to the development of their own life project. The same goes for other objective and subjective criteria that take into account their professional and academic life, their state of health, but also their feelings, their values and their aspirations.
