What are the most expat-friendly countries in 2023?
Denmark currently tops the list of the most expats-friendly countries. The Danish model of job security is quite appealing to job seekers. Moreover, the country's low unemployment rate and dynamic economy give Denmark a cutting edge in the labor market. The major sectors seeking international talents are information technology, engineering, finance, medical science, logistics and science. The leading players are Microsoft, Novo Nordisk (healthcare), and the transport giant Maersk (the largest company in Denmark).
Behind the leader Denmark, we have Hong Kong and Australia. Despite a few setbacks, the city-State is striving to keep its position as an international finance hub. Hong Kong's economic growth relies significantly on HSBC, City Bank, or Standard Chartered Bank. But the city-state is also investing in artificial intelligence, digital technology and management. Same for Australia, where innovation is on the rise with companies like Google, Amazon, Myob (an Australian multinational company specializing in accounting software for businesses) and IBM employing foreign professionals.
Luxembourg, the United Arab Emirates, Netherlands, Canada, France, Germany and South Korea complete the Top 10 list of expats-friendly countries. The major sectors attracting international talent in these countries are new technologies, engineering, healthcare, science and innovation.
New laws and strategies to attract expats
Jobs and their sociopolitical environments are closely linked. Big brother China reopening its borders is making Hong Kong quite uneasy. Their expats also are worried. Those who had already left the city-state won't be returning, whereas the newcomers are making do with the new Hong Kong and the ever-rising Chinese presence. This is perhaps why other rating systems are emphasizing more on expats-friendly countries more in terms of bureaucracy, especially when it comes to work visas. Here, countries like Ireland, Canada and Malaysia top the list.
Countries with more expats-friendly laws
Canada is one of the favorite expat destinations, with an immigration policy perceived as very friendly. Recently, Canadian Minister of Immigration, Refugees and Citizenship Sean Fraser presented the very ambitious 2023-24 Immigration Plan. Thus, Canada plans to welcome “between 410,000 and 505,000 new permanent residents this year, between 430,000 and 542 500 new ones next year and between 442 500 and 550 000 citizens in 2025.”
Following in Canada's footsteps, Germany, too, is opening up to immigrants. New immigration reform has been presented based on the Canadian model. The German immigration plan is expected to bring 60,000 non-European workers to the country annually. The new legislation is three-fold—first, the recognition of diplomas and qualifications by German authorities, accompanied by a work contract; second, migrants should have at least two years of experience. The third and most innovative immigration avenue is the “opportunity card”. Much like its Canadian counterpart, it is point-based, allowing international talents to look for jobs in Germany and even to do trial work periods.
Denmark also is relaxing its immigration policy to attract more foreign talent. Among other decisions: simplified paperwork for employers, rapid delivery of work permits, additional positions added to the jobs list open to foreigners, and lowering the minimum wage requirement. On March 23, the Danish government came forward with well-thought measures to attract qualified international talents. Those new regulations have come into effect as of April 1. Denmark hopes these measures will help Danish businesses get the workforce they are cruelly missing. For example, in 2022, 42% of Danish businesses could not bring in new employees due to a lack of interest.
Italy, too, is recruiting non-European workers. Contrary to what Prime Minister Georgia Meloni affirmed, in reality, there is an acute shortage of foreign labor in the agricultural, tourism and industrial sectors. Consequently, Italian authorities have increased to 82,000 the number of international workers authorized to work in the country. It is not much of a surprise that the recruitment platform exploded with demands as soon as it went online, with more than 240,000 applications on the very first day!
Bringing in international talents: a do-or-die situation
The labor shortage is not the only determining factor in the equation. There is no magic here. Even Italy knows that increasing and adjusting the numbers here and there won't solve the labor shortage issue overnight. Italian farmers are complaining that they are still short of some 100,000 foreign workers. That's why Italian opposition parties want the government to come up with a fool-proof expats policy where foreign workers are welcomed and not exploited.
We are dealing here with a problem more complex than economic sustainability; it is a matter of survival for many countries. Indeed, growth is directly related to the human factor. Sadly, many regions across the globe have very low demography. Behind the race to attract expats, many countries are, in fact, really trying their best to maintain or even increase their demographic figures.
Is immigration the solution to low demography?
For many years, Canada has relied heavily on immigration to help boost its demographic figures. Japan, for its part, lost around 800,000 inhabitants in 2022. As a result, Japanese authorities are speeding up their immigration actions to counter the demographic decline. According to the Japan International Cooperation Agency, before the year 2040, the world's second-largest economy will need 6,74 million foreign talents. It is a situation that the government of Prime Minister Fumio Kishida is very concerned with. They know that a much sparsely populated Japan will cut a very weak figure on the international scene, especially with the real threat of China continuing to extend its influence over South East Asia.
But let's not get distracted by Japan's demographic drop, as it is just part of the bigger picture. In South Korea, the fertility rate was at its lowest in 2022, with 0,79 children per woman (it should be at 2,1 for the country to be considered stable demographically). Although Italy is faring a bit better (1,2 children per woman), it is still facing a sharp drop in the natality rate. In Germany, there was a mini “baby boom” in 2021, with a birth rate of 1,58 children per woman, with the figures rising for the first time since 2017. These “lockdown babies” were conceived during the early Covid-19 lockdowns. At that time, the German population was still very optimistic that the virus would be short-lived.
More babies, more international students, and more foreign workers. Denmark's policy of attracting international talents is very youth-oriented. To encourage international students to stay in the country after the completion of their studies, the new Danish immigration reform automatically allows them to be there for three more years. They can use the time to look for a job (it was two years under the previous law). In addition, they won't need to apply for a residence permit.
Innovation and cultural diversity
Fresh blood allows for the emergence of new ideas. And ideas lead to money. Start-ups have perfectly understood this equation, with them competing with each other to recruit the best highly-skilled international professionals. These experts are usually autonomous, more creative and highly productive. They are more aware of the changes in the global scene and are an indispensable medium for exchanging ideas. International talents are also worthy representatives of their country and can act as facilitators between their host State and their country of origin.
All these innovative immigration measures are highly appealing to those willing to take the leap. Of course, they have to choose wisely among all those countries, but they must bear in mind that work is not everything: they must be able to have a life outside their jobs, too. Germany has devised the perfect answer to that issue with a specially-designed communication campaign for expats. The country is showcasing the vast cultural richness of its cosmopolitan cities and using them to attract and retain expats. Berlin, Munich, Cologne and Leipzig are among Germany's most expats-friendly and attractive cities.
