Issue Briefs

Skilled Mobility Programs in G20 nations

Introduction

Globalisation has been a defining force of the 21^st century. With the advent of the internet and the rapid industrialization of Asia, global informational and supply chains have emerged as critical components in the flow of commerce on our planet. The surge of global connectivity has ushered in a period of improved mobility with workers becoming increasingly able to perform job functions anywhere on the planet within a day’s time.

Thus, skilled mobility, particularly in Science, Technology, Engineering, and Mathematics (STEM) fields, has emerged as a key component in the global development of technology. Countries with a lack of domestic talent are increasingly reliant on global skilled workers to fill demand gaps and grow their industries.

Most G20 members are amongst countries with labor shortages, including China with a 47 million shortage, the United States with a 4.6 million shortage, Germany with a 1.6 million shortage, and South Korea with a 2 million shortage¹ . These countries require significant investment in skill development or strategic migration processes to overcome shrinking labour pools, which, in turn, would limit commercial productivity in the short run and could negatively impact GDP growth in the long run.

Skilled Labour Migration Programs in G20 Countries

Skilled labour is defined as highly trained, educated, or experienced segments of the labour pool that are capable of handling niche, complex, and demanding workloads. Given the long training times, there is a smaller number of skilled workers produced by nations and these workers command higher salaries in the market. Some examples of skilled labour occupations include software engineers, doctors, and lawyers, as these professions require high educational attainment and a prolonged period of training to qualify to practice.

However, some countries are not able to domestically develop the necessary talent to support the demands of their industries, and, as a result, companies in these countries are increasingly keen to hire skilled workers from abroad to address these talent gaps. Some key examples of policies in G20 countries are given below :

The United Kingdom (UK) has been addressing its skilled labour shortage. The Immigration Salary List (ISL) focuses on specific occupations with a significant shortage in the resident UK labour market and allows employers in those sectors to sponsor overseas work visas at a lower salary threshold. Some skilled occupations currently featured on the Immigration Salary List are nuclear scientists, archaeologists, and laboratory technicians.

Moreover, the UK Government has implemented the graduate route for international students to stay for two to three years in the United Kingdom after completing higher studies. The graduate route is unsponsored, which means that all international students can automatically enroll into the scheme and stay in the UK after completing studies, with a further option to switch to a skilled worker visa after the completion of two to three years in the United Kingdom² .

Germany is another G20 member nation that has significant skill shortages in its domestic economy. Germany recently implemented the new Skilled Immigration Act (FEG) in November 2023³ . The FEG expands access to the EU Blue Card, the residence permit for workers from outside the EU⁴ , by lowering salary thresholds in regular and shortage occupations. It has opened the eligibility of qualified individuals to a wider pool of people, including those from the IT sector who do not possess a university degree, but have sufficient sectoral experience.

In March 2024, Germany added further employment recognition rules, which included a special provision for practical professional knowledge. This provision applies to non-regulated professions in all sectors and requires that skilled workers possess either an academic qualification or non-academic vocational qualification of at least two years of training from their home country. In the case of IT professionals, language requirements are no longer necessary for residence permits.

Finally, Japan has also announced its own skilled worker permits to address skill gaps within their economy. In 2019, Japan launched a new form of residency permit titles Specified Skilled Workers (SSW) to bring specialised talents into certain Japanese industrial fields and to function as workers without prior training⁵ . The SSW program currently covers 16 occupations including the aviation industry, automobile transportation industry, and construction industry. There are two types of SSW permits. Type I permits offer residency in Japan for a period of five years and are available to foreign nationals in fields that require a considerable amount of experience in Specified Industry Fields. Type II permits offer residency in Japan on a renewable basis and no stay limits and are offered to foreign nationals with proficient skills in Specified Industry Fields⁶ .

Potential Actions that G20 Nations can take on Skilled Mobility

Skilled mobility is a potential tool that can be utilised by countries with significant talent gaps to improve their nation as well as the country they are temporarily domiciled in. Programs that recruit talent, particularly those in STEM fields, provide professionals with the opportunity to access high-quality research and educational facilities that, in turn, will improve their knowledge, capabilities, and skillset, which will benefit their country of residence in the short term and home nation in the long term.

G20 could develop a digital platform accessible to member nations that could be used by skilled professionals in these countries to access global opportunities to broaden their skillsets and advance their careers. This potential initiative is aligned with the 2023 B20 Task Force on Future of Work, Skilling, and Mobility policy action that calls for the development of a Universal Labour Information Management System (ULIMS). The Task Force also recommended removing policy barriers and leveraging technology to improve cross-border mobility, which would, subsequently, improve the efficiency of these programs.

Another potential program could be the development of multilateral G20 skill programs that would recruit high potential students from G20 countries and train them in fields that are experiencing global talent shortages, such as artificial intelligence and healthcare.

Finally, G20 nations can implement initiatives, building on the 2023 G20 Commitment to Inclusive Education and Skills Training⁷ related to promoting open, equitable scientific collaboration, supporting educational institutions to accommodate and skill more individuals, and expanding access to high-quality technical and Vocational Education and Training (TVET) programs. In turn, the expanded investment and access to these programs will promote inclusive skill development across all members of the G20.

As countries increasingly face workforce shortages, an effective global mobility system would help the movement of workers to needy countries and support overall progress and development.

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