International labor market trends in 2024
The labor market in 2024 has seen significant changes, influenced by varied national legislation affecting expatriates worldwide. Early in the year, France and Canada implemented immigration reforms, setting limits on the number of international students and temporary workers. The United Kingdom followed in April, increasing the income requirements for foreign workers. In the later months, countries like Australia, Japan, South Korea, Kenya, and Belgium introduced or adjusted policies like digital nomad visas and relaxed regulations for specific categories of foreign workers.
Amidst these changes, the global labor market continues to grapple with an aging workforce and pronounced labor shortages. A notable initiative is Germany's "Chancenkarte" (Opportunity Card), introduced in 2022 and activated on June 1, 2024. This policy allows non-European expatriates to enter Germany for one year to seek jobs, permitting them to work up to 20 hours weekly. Designed as a temporary work permit, the Opportunity Card is part of Germany's strategy to alleviate labor shortages by welcoming 400,000 foreign workers annually. A significant part of this plan is the agreement with Kenya, aimed at bolstering the workforce, though it stops short of setting a specific quota for Kenyan workers.
Similarly, Switzerland has seen a sharp rise in immigration, with a net increase of 98,851 people in 2024, up by 17,506 from 2022. Immigrants predominantly find employment in sectors such as construction, agriculture, services, sales, and healthcare, highlighting a broader trend of relying on foreign talent to meet labor demands.
Between economic uncertainty and technological progress
In the United States, the labor market is navigating a complex landscape characterized by a need for foreign talent, a declining unemployment rate (4.2% in August 2024), and persistent job market challenges. Recent data reveal a gradual weakening of the job market. In August 2024, the private sector added only 99,000 jobs, significantly below the expected 140,000. This was a slight improvement over July when 110,000 jobs were created compared to the forecasted 122,000. These trends are consistent with earlier patterns observed at the beginning of 2024 and throughout 2023. Economists are now discussing the "end of the golden years" for workers that followed the post-Covid surge, noting a decline in job vacancies amid increasing economic uncertainty.
Meanwhile, France is grappling with its own labor challenges, particularly in integrating foreign talent. In November 2023, former Minister of Industry Roland Lescure highlighted the need for "100,000 to 200,000 foreign talents" over the next decade to address labor shortages driven by retirements and the scarcity of trained young workers. The industry sector alone is projected to have 1.3 million job openings in the next ten years. Despite this pressing need, reactions to the analysis have been mixed. The new French government is preparing to introduce a stricter immigration law in 2025, which will be more rigorous than the reforms implemented in January 2024.
The most promising sectors for expats in 2025
As we look ahead to 2025, which sectors will be actively recruiting in key expatriation destinations? There is a growing belief that technological advancements could revitalize the international labor market. Many companies are banking on vibrant, dynamic sectors to draw in foreign talent. Central to this trend are careers in artificial intelligence, which are set to transform the employment landscape dramatically.
Artificial Intelligence (AI)
Artificial Intelligence (AI) has become indispensable for any major nation. In 2023, American companies captured 80% of generative AI investment, with the United States pouring $67.2 billion into AI technologies. While investment continues to grow globally, it's notably smaller in other countries. Canada, aiming to accelerate its development in AI, has earmarked CAD 2.4 billion to enhance AI applications in business sectors. In Germany, investment rose from EUR 5.31 million in 2023 to EUR 7.17 million in 2024, reflecting a continued commitment to advancing AI capabilities. Prior to its governmental reshuffle in May, France declared AI a "strategic priority," setting aside EUR 2.5 billion for AI development by 2030. Japan is collaborating with Microsoft on a substantial $2.9 billion initiative to advance its position in the AI landscape.
The potential for AI development seems boundless, prompting an intense competition for global talent. The sector now demands expertise in over twenty specialized roles, including data analytics consultants, data analytics managers, data scientists, machine learning engineers, roboticists, AI engineers, AI ethics officers, data miners, chief data officers, AI trainers, and deepfake reviewers. These positions require advanced training and are typically offered to highly skilled professionals. Proficiency in English is a must for candidates, alongside fluency in the host country's language. Candidates must also possess strong computer programming skills, analytical precision, and rigorous attention to detail. Creativity and the ability to collaborate effectively in teams are equally important. Notably, the IT sector continues to be pivotal and is expected to remain so into 2025.
Education
While Artificial Intelligence (AI) is often criticized for jeopardizing numerous jobs, the replacement of teachers by virtual counterparts has not materialized. Like Canada, several countries are experiencing acute teacher shortages. As of mid-August, Quebec was still searching for 5,705 teachers for its primary and secondary schools. Australia forecasts a shortfall of at least 4,000 secondary school teachers next year. Similarly, South Korea, Japan, and numerous European Union nations, including Belgium, Sweden, Germany, Finland, Spain, Portugal, Ireland, the Netherlands, and Austria, are facing educational crises. Sweden's situation is particularly dire, with projections indicating a potential deficit of 153,000 teachers by 2035. These shortages extend to early childhood professions such as educators, specialized educators, animators, and childcare assistants.
Do these shortages render education a promising sector for job seekers? Reforms in various countries suggest so. For example, Belgium's plan to increase teacher salaries comes with a possible rise in workload. In South Korea, teachers are advocating for higher wages amid an unprecedented wave of resignations—32,000 in the past five years—exacerbated by the high pressure to inflate students' academic achievements.
Sweden is overhauling its educational approach, shifting from play-based to more traditional learning methods, including a return to paper textbooks instead of tablets by 2028. However, this shift has met with mixed reactions. Some educators stress the importance of play-based learning for young students yet acknowledge an overspend on digital resources—EUR 60 million in 2023 and EUR 44 million anticipated for this year and the next. Meanwhile, the challenges facing traditional expat destinations are benefiting others, such as the United Arab Emirates, which is actively recruiting foreign teaching talent.
Video games
The video game industry emerged as one of the strongest sectors during the COVID-19 pandemic. After experiencing a temporary slowdown this year, the industry is poised for a resurgence in 2025 and 2026. This expected growth is fueled by advancements in virtual reality (VR) and augmented reality (AR) games, mobile gaming, cloud gaming, and e-sports. The United Arab Emirates (UAE) is actively positioning itself as a new gaming hub with the introduction of the Gaming Visa, tailored to attract foreign talent such as developers, content creators, and e-sports athletes.
Globally, the United States, the United Kingdom, Canada, Brazil, Japan, South Korea, and China host the largest concentrations of game developers. The United States continues to dominate the industry with nearly 350,000 jobs and annual revenues exceeding $100 billion. In Canada, the video game sector has seen significant growth, with a 33% increase in business creation from 2019 to 2021. Japan maintains its position as a historical leader, home to industry giants like Nintendo and Sony. South Korea is renowned for its vibrant e-sports scene, while China has carved out a niche in mobile gaming. Brazil and the Czech Republic are emerging as significant players in the global gaming landscape.
Other promising sectors in 2025
In 2025, key sectors such as health, banking, finance, transport, environment, and construction will continue to be significant providers of employment opportunities. The intensifying global shortage of healthcare workers is heightening competition among nations. The finance sector remains robust, particularly in regions like Singapore, Hong Kong—which has reemerged as a finance hub, now more integrated with mainland China—and the United Arab Emirates.
Technological advancements are also reshaping the transport and construction industries, yet AI has not replaced human roles. For example, while builder robots are utilized, they have not curtailed human recruitment. In response to the global housing crisis, various countries have initiated ambitious construction programs. On October 8, Canada announced new measures to construct additional housing, with an Action Plan targeting the creation of 3.87 million new homes by 2031. The Canada Mortgage and Housing Corporation (CMHC) sets an even more ambitious goal: building 5.8 million homes by 2030 to effectively address the housing shortage. Meanwhile, Germany anticipates a need for approximately 800,000 new homes by 2025.
For those considering a move in 2025, the trend mirrors that of 2024: traditional sectors remain vital while emerging fields like AI and sustainable development are increasingly becoming part of various professional landscapes. The real challenge for prospective expats lies in adapting through continuous training. The rapid emergence of new technologies and evolving job roles demand ongoing education. AI experts advise lifelong learning to maintain competitiveness. This is also the implicit desire of nations as they devise strategies to attract highly skilled expatriates.
