Economies across Europe have been having a hard time due to labor shortages since 2022, and 2023 doesn't look better. Since last year, many of these countries have also embarked on immigration reforms to attract foreign talent. But the battle isn't over yet, as retaining these talents is another challenge. Here's an insight into their strategies.
Europe unrolls the red carpet for international talent
The talent hunt is on in Europe. Countries like Germany, Slovenia, the United Kingdom, France and Spain are trying to find a balance in their strategies to hire international talent while cracking down on illegal immigration. Hence the risk of confusion in the vocabulary. Indeed, shortcuts are too often made to characterize economic immigration as merely illegal immigration.
In the summer of 2022, the United Kingdom launched a new visa to attract young graduates from top schools. At the same time, Spain passed a new immigration law to facilitate the recruitment of foreign workers. These reforms aim at making it easier for foreign workers to obtain visas. In other words, simplification, facilitation, and acceleration have become the priorities to meet the current needs.
Increasing visibility and attractiveness to foreign talent
Faced with an increasingly acute labor shortage, Slovenia is aligning itself with other European countries and revising its Aliens Act. As in other European countries, the fundamental idea behind this revision is to make procedures more straightforward. Slovenian Prime Minister Robert Golob confirms that the government is working to ease down the procedures for obtaining a work permit in Slovenia.
To speed up the process, the Slovenian immigration law reform should not only abolish the written certificate required by the administration in case of a change of employer but also deliver residence permits by mail, keep fingerprints for up to 5 years, and facilitate the renewal of permits. Moreover, foreigners whose temporary permit has expired can apply for a new permit within 8 days. Slovenia is also addressing its weakest labor sectors. For instance, the reform includes making it easier to recruit foreign talent in the health and social sectors.
Germany is also working on a new immigration law to attract foreign talent. Hubertus Heil, the German Minister of Labor, wants to make Germany more attractive. The Opportunity Card is the flagship project of the new law and is supposed to fulfill this function through simplification. The points-based card is to be obtained before entering the country and should make it possible to look for work for one year, to carry out two-week trial periods, and even to work part-time in the country.
Between sped-up hiring and accelerated deportation
Italy is blowing hot and cold over its immigration policy. In early February, the European Council urged Italy to withdraw a decree that it considered contrary to international law. The Italian decree proposed to regulate the conditions under which NGOs could carry out their migrant rescue operations. On March 6, the European Commission welcomed Italy's policy on the migration crisis. Three days later, Italy passed a new decree amending its immigration law. Once again, the aim was to simplify procedures for foreigners. The decree will allow them to renew their residence permit every 3 years, instead of the current 2 years. In addition, international students will be able to convert their student visas into work permits while avoiding quota limitations. The measure will be extended to international students who have not graduated in Italy, and foreigners will also be able to work while waiting for their residence permit to be approved.
France is being put to the test too. Overshadowed by the pension reform, the new French immigration bill seemed right on track but encountered a few pitfalls. On March 22, President Macron announced a law divided into several texts. This new law, intended to control immigration and improve integration, includes the regularization of undocumented workers in high-demand sectors, a list of which has been established by the government. The law that provides for integration also contains another more security-oriented component that documents facilitated deportations and more. Ultimately, the government, which believed it would win over the right and the left, only earned criticism.
Is foreign talent the solution to labor shortages?
Construction, catering, hotels, personal services, maintenance, health, transport, and agriculture are on the impressive list of sectors affected by labor shortages that arise during economic and demographic crises. Last year already, the labor shortage bluntly struck European countries, resulting in up to 6 million job vacancies.
How can countries retain foreign talent?
This is a real headache for Germany, Spain, and France. Popular among international students, Germany is losing ground in the eyes of foreign workers. They blame it on the overly complex entry procedure and the lack of digitalization. France, Italy, and Malta have similar issues. Estonia, on the other hand, is a champion of straightforward immigration procedures. Everything has been designed to attract foreign talent, and the strategy is paying off. Estonia, the new leader in digital technology, has built its image as the new "Silicon Valley" in Europe and attracts digital nomads and other young talents.
Of course, red tape is not the only issue in European countries. In Spain, low wages and the lack of innovation also discourage prospective expats. According to DigitalES, an organization of technology entrepreneurs, Spain is short of about 75,000 new technology professionals. Meanwhile, Italy is paying the price for an ambiguous immigration policy. Giorgia Meloni, Italian prime minister since October 2022, had openly led an anti-immigration campaign. But in the face of the acute labor shortage, the government backed down and is now opening its doors to international talent.
The paradox of immigration reforms
France is the perfect illustration of this paradox. In parallel with the massive protests against pension reform, there are other demonstrations against immigration law reform. Government communication is often an issue in France, as in Italy and other countries. Immigration is rarely presented as an asset; rather a necessary evil and most often temporary. Governments try to appease populations and accommodate radically opposed political camps (the far right and the far left). Unfortunately, the same message is sent to international talents. It is, therefore, difficult to envision a sustainable life and career in a country that struggles to properly present economic immigration on one side while fighting against illegal immigration on the other.
For example, the French government recently proposed an integration component to its immigration reform in the form of a mandatory French test. Still, it made no mention of the accompanying measures that are essential to any viable integration.
A fundamental rethinking of policy is needed to retain foreign talent, including a better reception of qualified and unqualified candidates that eases their professional and social integration. Germany wants to take up the challenge with its Opportunity Card, inspired by the Canadian model. The country intends to improve its image, highlighting its landscapes, culture and assets. Simplified entry procedures and promises of stable, well-paid jobs undoubtedly improve the host country's image, but these measures are not enough. Associations of foreigners stress the importance of reasoning from a life project perspective. Host countries should consider facilitating immigration for more than one member in a household, housing facilities, family reunification, schooling, reception, and assistance networks, etc. because foreigners are neither machines nor instruments to be used by governments. These qualitative and human investments will definitely contribute to retaining foreign workers.
