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Talent Shortage: Brain drain and brain gain

There is a significant increase in international migration, with a particular focus on highly qualified migrants with higher education. The International Organization for Migration (IOM) has estimated that in 2019,...
Posted in Trends
août 10, 2024
Talent Shortage: Brain drain and brain gain

There is a significant increase in international migration, with a particular focus on highly qualified migrants with higher education.

The International Organization for Migration (IOM) has estimated that in 2019, there were almost 272 million international migrants. This reflects the ongoing trend of increased international mobility.

About 35% of these international migrants are highly qualified individuals with higher education. This category of migrants is in high demand and tends to have certain advantages in the migration process.

The emigration rate of highly qualified individuals is consistently higher than that of their less educated compatriots in all countries and at each level of development. Several reasons contribute to this pattern, including their in-demand skills, linguistic and cultural knowledge, access to global information networks, and financial resources.

Higher emigration rates are observed in middle-income countries because migrants from these countries can often afford the costs of migration and have incentives to emigrate.

Experts expect a further increase in the annual immigration flow of highly skilled workers, especially in the European Union. The migration of highly qualified workers is projected to increase significantly.

The shortage of highly qualified workers is a global issue, especially in the knowledge economy. A growing global shortage of talent is contributing to the increasing flow of highly skilled workers.

The shortage of highly qualified workers is prevalent in the vast majority of countries, with only 18% of countries not reporting such shortages.

On the evolving demand for skills in the labour market, the significance of highly skilled migration, and the various definitions associated with « brain drain. »:

The demand for specific skills is expected to change significantly by 2030. There will be a notable increase in demand for technological skills, including advanced IT skills, programming, and research. Social and emotional skills will also become more popular, while higher cognitive skills will see a relatively smaller increase. Basic cognitive and physical skills are expected to decline in demand.

Highly Skilled Migrants are needed in the U.S. where the IT sector is the most attractive sector for highly skilled migrants. 

In 2019, 66% of highly qualified migrants in the U.S. worked in the IT sector.

The arrival of highly qualified migrants not only increases the human capital of the destination country but also creates a competitive environment, stimulates training and knowledge acquisition, and generates economic benefits. A statistical analysis in the United States suggests that a 1% increase in immigration leads to a 0.1% increase in GDP growth.

« Highly Skilled Migrants » and « Brain Drain » refers to the emigration of highly educated and skilled people from less developed regions or countries to more economically stable ones.

Brain Drain is the movement of skilled individuals from developing countries to developed countries with higher incomes. This direction is a common theme, but it’s worth noting that brain drain can occur between countries with similar income levels and quality of life.

The phenomenon of brain gain, and human capital flight, describe the migration of highly skilled and educated individuals from one country to another. 

Highly skilled workers tend to migrate to certain regions within the European Union, with a preference for countries like Sweden, Ireland, Estonia, Denmark, and regions in the UK. Urban environments are also attractive to them. In contrast, less attractive regions are found in Italy.

The main factors motivating highly skilled workers to seek employment abroad include better employment opportunities, higher wages, and improved living conditions. These are referred to as « pull factors, » and they play a more significant role in migration than « push factors. »

The social and economic conditions in the host regions, such as economic growth, higher wages, strong social security, high per capita wealth, language and cultural similarity, and easier access to the labour market, are critical in determining the mobility of highly skilled workers.

Some researchers use both the concepts of brain drain (loss of highly educated people) and brain gain (human capital gain) to analyse the impact of migration. Brain gain occurs when a region or country gains skilled workers due to immigration.

Brain drain can have significant negative effects on the economic growth and innovation opportunities of the donor country. The loss of human capital and public funds spent on education are key issues associated with brain drain.

Brain drain also has unfavourable social consequences, including an ageing population, which can strain the workforce and social systems.

Macedonia, the Baltic States (Lithuania and Latvia), and Nigeria, Ethiopia, and Kenya are examples of countries where there is a brain drain. 

There is a strong link between a country’s competitiveness and brain drain. Countries that provide decent working conditions, professional development opportunities, and improved living standards tend to retain highly skilled workers. Factors like unemployment rates and the gap between well-being and wages also play a role in brain drain.

Brain drain, particularly among young people, can have devastating consequences for a country’s national competitiveness and its ability to innovate and develop.

Passive external migration policies affect a country’s competitiveness, innovation, and overall development by contributing to the loss of highly skilled workers.

It’s crucial for countries on a big scale, and companies in a microscale to create environments that retain highly skilled workers and promote brain gain, which can contribute to a sustainable economic development.

There is a correlation between the migration of highly skilled workers and various international indices, as well as their impact on economic growth in 25 OECD countries in 2019 (Pearson’s pairwise correlation coefficients)

Talent attractiveness , Brain drain and brain gain have a notable impact on the Global Competitiveness Index, which recognizes the multidimensional nature of knowledge systems in economic and social contexts. There is a less significant relationship between the migration of highly skilled workers and HDI, which focuses on factors like literacy and education duration.

Migration of highly skilled workers has a significant impact on the Prosperity Index, reflecting the extent to which a country’s potential is realised in terms of both productivity and well-being.

There is a significant relationship between migration of highly skilled workers and the Social Progress Index, which evaluates social and environmental indicators. This reflects the direct impact of migration on the quality of life in a country.

The country’s innovative development is significantly influenced by brain drain, brain gain, and the attractiveness of the country for highly qualified immigrants (Global Innovation Index).

The migration of highly skilled workers has a substantial impact on economic growth, with brain drain having the greatest negative influence (GNI per Capita) 

Countries’ development levels vary significantly based on the studied migration indicators. This highlights the importance of implementing policies to attract highly skilled migrants and to address brain drain as key factors in enhancing a country’s competitiveness.

Competitiveness is closely tied to a country’s ability to leverage its human capital, and knowledge and skills play a pivotal role in maintaining and increasing competitiveness while improving the quality of life for its population.

In conclusion, attracting and retaining highly skilled professionals in driving a country’s competitiveness and economic growth and enhancing comprehensive policies and support services to encourage their immigration, have long-lasting positive effects on a nation’s development:

  • Migration and Competitiveness: direct and significant impact of attracting highly skilled immigrants on a country’s competitiveness. Countries that actively encourage the immigration of highly educated professionals tend to perform better in global competitiveness indices.
  • Economic Growth: Highly skilled migrants don’t just contribute to a country’s intellectual capital; they also foster a competitive environment that motivates native populations to continually improve their skills. This, in turn, positively affects economic growth.
  • Policy Implications: governments should formulate and implement policies that create favourable conditions for highly skilled immigration. Such policies might include visa facilitation, support services for immigrants, and provisions for their families, including education and childcare.
  • Holistic Approach: To enhance a country’s attractiveness to highly skilled migrants, it’s important to consider not only immigration policies but also broader aspects of competitiveness and social development.

Reference: 

(PDF) The Impact of Migration of Highly Skilled Workers on The Country’s Competitiveness and Economic Growth (researchgate.net)

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