Global Labor Market Perspectives in 2023
Updated: Apr 20
The early days of COVID suggested that global mobility would come to an end. Since the borders were closed, it was better to make do with the existing workforce. New rules emerged, like in Singapore, where locals were prioritized in the labor market. In Saudi Arabia, Kuwait and Oman, job nationalization programs were accelerated. In these countries, where most of the population is foreign, the "Saudization", "Kuwaitization '' or "Omanization '' of jobs has led to abuses and to a rise in distrust of foreigners who were still needed.
The truth is, people never stopped traveling! They were just forced to stay home due to the global lockdowns, which conversely resulted in an ever-greater desire to pursue a career abroad. If the willingness to increase one's income often comes in the form of motivation, it goes hand in hand with a desire to live better in places where well-being is just as important as a good salary. Mental health is also being taken more seriously and according to the OMS, there is an urgent need to transform mental health services.
For prospective expats, this transformation involves living abroad. They are not only aware of the global challenges of 2023 that await them (like the energy crisis, wars, decrease in purchasing power, etc.) but are also conscious of the opportunities that exist.
LABOR SHORTAGES AND NEW OPPORTUNITIES
Since the 2021 economic recovery, the world has suffered from global shortages. This shortage of human resources differs from country to country. However, it affects more or less the same sectors, namely construction, transport, hospitality, healthcare, education, engineering, aeronautics, etc. In countries like Japan, the United States, Canada, Australia, New Zealand, and Europe, recruitment drives are currently in full swing.
At the end of 2022, there were more than 6 million job offers in Europe. In Germany alone, 87% of companies reported having difficulties recruiting staff. In France, the aeronautical industry is short of manpower. Airbus wants to hire 16,000 people this year. The French giant had already hired 15,000 people in 2022. But it is never easy to retain talent in a context of increasing global offers. The entire sector needs skilled workers at the same time. This can be considered a boon for prospective expats.
Japan is increasingly open to immigration. From November 2021, Skilled Worker Visa holders no longer have a limited length of stay. Your permit is renewable indefinitely. In fact, the situation in Japan is especially critical and, according to the Japan International Cooperation Agency, the country will need 4.2 million foreigners in 2030 and even more in 2040 (6.7 million).
Unlike other countries such as France, where labor shortages are expected to be somewhat less severe this year, in Japan all indicators remain red. The situation is slightly better in Canada, but it is still just as problematic. Faced with an aging population, the country maintains its goal of 500,000 new immigrants this year. This is essential, according to the government, to maintain growth. Electronics, human resources, engineering, accounting, personal assistance, caregivers, customer service, teaching, construction, etc. Almost all sectors are affected. For expatriate candidates who meet the requirements, it is a career opportunity abroad.