1

Foreign Labor Demand

2

The need for foreign labor

1. Host countries need foreign labor• To augment aging labor force• To fill skills gaps and labor shortages• To sustain growth and living standards

2. Countries manage the employment of foreign labor• To attract sufficient numbers of workers and the most

skilled workers• To ensure level playing field in the employment of foreign

workers versus local workers• To minimize social tensions

3

Managing the employment of foreign labor

1. Key instruments(1) Quantities (employment quotas or preferences)(2) Prices (wages)

or both (1) and (2)• These can be set at the national level, by industry, by firm, by

occupation, by skill or educational level, etc. They can vary over time as conditions change.

2. Key questions• How much foreign labor is needed?• How do countries attract the foreign workers they need?

(Recruitment and ensuring optimal quantity and quality of workers)• What is the broader environment in which recruitment takes place?

4

How much foreign labor is needed?

Countries use one or more of the following1. Demographic models and assumed population flows2. Industry-level, occupation-level, firm-level or individual-level

surveys3. Stakeholder consultations4. Ad hoc methodology/guesswork

Country examplesUnited Kingdom does 1-3 (Migration Advisory Committee)Italy does 2 (ISMU)UAE does 4

5

Today

• Initial stocktaking of how selected countries managed the employment of foreign labor• Kazakhstan• Russia• Singapore