Migration to the world’s richest economies is slowing after several years of rapid growth, according to a new OECD report released on Monday.

Permanent migration to OECD countries fell by 4% in 2024, while labour-driven migration dropped by 21%, marking a sharp reversal after recent efforts by advanced economies to fill widespread labour shortages.

OECD Secretary-General Mathias Cormann said migration had played a vital role in keeping labour markets resilient, but warned that integration pressures were rising.

“Effective migration policies are needed to manage pressures on public services and support labour market integration,” Cormann said. He added that large earnings gaps between migrants and native-born workers highlight the need for faster recognition of foreign qualifications and stronger language and skills support.

Labour migration retreats

The steepest decline was seen in work-related migration, which fell by around a fifth to 934,000 people in 2024. The report attributes the drop to cooling labour markets and tighter visa rules in key destinations, including the UK.

Germany, the Netherlands and several other major EU economies saw labour migration fall below pre-pandemic levels for the first time.

Despite the slowdown, family and humanitarian arrivals continued to rise, adding new strain to housing, education and welfare systems already operating under pressure.

Overall, about 6.2 million people settled in OECD member states last year—a figure still 15% higher than pre-pandemic levels.

Ageing populations heighten long-term concerns

The OECD cautioned earlier this year that, without sustained migration, its member countries could see their labour forces shrink by around 8% by 2060, with annual median income growth slowing to 0.6%.

Even with shifting inflows, the report stresses that immigration remains a crucial driver of economic growth for many advanced economies.