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Sweden reformed its labour migration management policy in 2008 and now has one of the most liberal labour migration regimes in the OECD. This book attempts to answer the question of whether Sweden's labour migration policy is efficiently working to meet labour market needs that were not being met, without adversely affecting the domestic labour market. The review also examines the impact of the reform on labour migration flows to Sweden and on access to recruitment from abroad by Swedish employers. After the reform, employers in Sweden were able to recruit workers from abroad for any occupation, as long as the job had been advertised for a nominal period and the prevailing collective bargaining wage and contractual conditions were respected. Overall, Sweden's new system has not led to a boom in labour migration, although this somewhat surprising result may be related to the slack labour market. The faith in employers appears to be largely justified until now, although there are some vulnerabilities in the system which could be addressed, especially in monitoring workplaces not covered by collective bargaining, and marginal businesses. The particularities of the relatively highly regulated labour market in Sweden may mean that this model is not easily transferable to other countries, but lessons can be drawn for other countries.

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This report is part of a series that considers labour migration policies in OECD countries. It examines whether labour migration policy is effective and efficient, focusing on two key areas: the country's labour migration system and its characteristics; and the extent to which policy is responding to the needs of the domestic labour market and its impact on the latter. Canada has not only the largest in terms of numbers but also the most elaborate and longest-standing skilled labour migration system in the OECD. Largely as a result of many decades of managed labour migration, more than one in five people in Canada is foreign-born, one of the highest shares in the OECD. Sixty per cent of Canada's foreign-born population are highly educated, the highest share OECD-wide.

The recent introduction of Express Entry, a two-step selection system based on an initial pre-screening of suitable candidates who enter a pool by Expression of Interest and subsequent selection of the most skilled candidates from the pool, has further enhanced the competitive edge of the selection system relative to other countries. It also ensures that those with the skills to succeed are admitted to Canada in a quick and efficient way. Core to Canada's success is not only the elaborate selection system itself but also the innovation and infrastructure around it, which ensures constant testing, monitoring and adaptation of its parameters. This includes a comprehensive and constantly improving data infrastructure, coupled with the capacity to analyse it, and swift policy reaction to new evidence and emerging challenges.

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Recent reforms have put Germany among the OECD countries with the fewest restrictions on labour migration for highly-skilled occupations, yet inflows continue to be relatively low. As labour migration is supposed to be one means to help meet future labour and skill shortages caused by a shrinking working-age population, this book addresses the question of how to ensure that international recruitment can help meet urgent needs in the labour market which cannot be met locally. The review examines key issues in the design of the German labour migration system, on the demand side and on the supply side. German employers can recruit from abroad for any job requiring university-level qualifications. Yet even employers declaring shortages have not done so, in part, due to their insistence on German-language skills and specific qualifications, and in part to a perception that international recruitment is complex and unreliable. While the process could be made more transparent, its negative reputation is unjustified. International students appear well positioned to meet employer concerns, but Germany could do more to promote this channel for labour migration. A large part of the demand is also expected in skilled occupations requiring non-tertiary vocational training, but here, channels remain more restrictive. To address anticipated shortages in these occupations, more should be done to recruit into the dual system, and Germany’s new recognition framework could contribute to open new channels.

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Australia has always been a nation of immigrants. More than one quarter of its population in 2015 was born abroad. Immigrants make an important economic and demographic contribution and help address skill and labour shortages. Labour migration is managed through a complex, but well-functioning and effective system which sets and respects annual migration targets. In recent years, the labour migration system has shifted from a mainly supply-driven system to a system where demand-driven migration represents close to half of the permanent skilled migration programme and demand-driven temporary migration has also risen sharply. In addition, two-step migration has gained ground in recent years. This review examines the implications of these changes for the composition of immigrants and their labour market outcomes. Moreover, it discusses recent changes in the tools used to manage labour migration and provides a detailed analysis on the impact of the introduction of SkillSelect on the efficiency of the system. Finally, the review discusses the extent to which the current labour migration system responds to the labour market needs of Australia's States and Territories.

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The Korean labour migration system has expanded since the mid-2000s, primarily in the admission of temporary foreign workers for less skilled jobs. Its temporary labour programme, addressed largely at SMEs in manufacturing and based on bilateral agreements with origin countries, has become the largest such programme in the OECD. Structural changes in the labour force, with a rapidly shrinking and highly educated youth population, keep the underlying demand for this programme strong. Yet skills levels of workers are increasing, and there is interest in increasing Korea's share in global talent mobility, including international students and innovative entrepreneurs.

This publication addresses the question of how to ensure that international recruitment can help meet urgent needs in the labour market which cannot be met locally, and how the temporary labour migration programme, and other migration streams, can evolve to ensure that Korea meets its policy objectives. This review first examines the characteristics of the Korean labour market and main challenges where labour migration can help address demand. Following a discussion of various programmes and procedures, the review assesses how labour migration is playing a role in different sectors and how programme governance could be improved. It then explores the channels for high-skilled migrants and how these could be improved in light of international experience.

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The Dutch labour migration system has undergone substantive changes in recent years. To induce a transition to more high-skilled migration, a programme based on salary thresholds has grown in volume while a programme based on work permits after a labour market test has shrunk. New programmes target international graduates either of Dutch educational institutions or of selected institutions abroad. Changes to immigration procedures have shifted responsibility to migrants' employers and have greatly reduced processing times. This review first examines the composition of labour migration to the Netherlands, in the context of present and expected demand in the Dutch labour market. Following a discussion of various programmes and procedures, the review assesses how labour migration contributes to the strategic development of sectors and to employment in regions. It then explores the determinants for the retention of high-skilled migrants and for the integration of international graduates into the Dutch labour market.

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New Zealand is among the OECD countries that have been settled by migration. Currently more than a quarter of the New Zealand workforce is foreign-born. Despite being a settlement country, most labour migration is temporary and permanent migration mainly draws from the pool of temporary labour migrants. Current temporary labour migration is equivalent to 3.6 per cent of the workforce, by far the largest figure in the OECD. An elaborate system of labour-market tests and exemptions aims to limit negative impact on the domestic workforce while at the same time responding to employer needs. A large part of temporary flows is into low-skilled jobs with little steering possibilities, and some vigilance is needed. For permanent migration, which is also among the highest in per capita terms among OECD countries, New Zealand operates with target numbers. The country faces difficulties in meeting these targets, whose value-added in a largely demand-driven system - favoring immigrants with a job offer - is questionable.

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The issues in labour migration to the European Union as a whole differ from those which impinge on individual Member States, as it has no powers of decision over admissions and does not directly manage admission processes and procedures. To date, it has contributed to the governance of labour migration chiefly through standards and regulations which it negotiates with Member States to ensure they meet shared objectives. This review considers how, in accordance with its mandate, the European Union can improve labour migration management at the Union level and what it could do to make the EU more attractive to highly skilled migrants. The review asks the specific question of how EU rules can help make the EU single market a more appealing destination for skills and talents. It also explores how the EU can improve its labour migration framework to meet current and upcoming challenges against the background of an ageing population. This review seeks to analyse two key areas in particular: (1) the labour migration system's current policies and the migrant groups that they address; and (2) the extent to which the system is capable of responding to the current and forecast needs of the labour market and safeguarding it from adverse impact.

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Austria has low levels of labour migration from non-EU/EFTA countries. At the same time, intra-EU free mobility has grown significantly and since 2011, overall migration for employment is above the OECD average. It recently reformed its labour migration system, making it more ready to accept labour migrants where they are needed, especially in medium-skilled occupations in which there were limited admission possibilities previously. This publication analyses the reform and the Austrian labour migration management system in international comparison.

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Norway is characterised by very high levels of migration from within the European Economic Area (EEA) and growing but small scale labour migration from countries outside the EEA. In this context, the challenge for managing discretionary labour migration is to ensure it complements EEA flows. High-skilled workers who come to Norway often leave, even if their employer would like to keep them. Norway has many international students, but most appear to leave at graduation or in the years that follow. The spouses of skilled migrants - usually educated and talented themselves - face challenges in finding employment, and this may cause the whole family to leave. Key industries in smaller population centres wonder how they will source talent in the future. This review examines these aspects of the Norwegian labour migration system. It considers the efficiency of procedures and whether the system is capable of meeting demand. It looks at several policy measures that were implemented and withdrawn and assesses how these and other mechanisms could be better applied. The characteristics and behaviour of past labour migrants are examined to suggest means of encouraging promising immigrants to remain, and how Norway might attract the specific labour migrants from which it can most benefit in the future.

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