Legal migration to rich nations reached record high in 2023, led to economic gains but sparks voter backlash

Legal migration to the world’s wealthiest countries surged to a record high in 2023, generating mixed reactions as governments grapple with voter discontent despite the economic benefits, a new Organisation for Economic Co-operation and Development (OECD) report shows.

About 6.5 million people moved to OECD member nations through permanent routes last year, an almost 10 per cent increase from the previous record of 6 million in 2022.

The UK saw the largest rise, becoming the second-largest recipient after the US, with a net immigration of 750,000 — driven largely by recruitment in the care sector.

“This isn’t simply a catch-up from the pandemic. In 2023, we’re seeing a new trend,” said Jean-Christophe Dumont, head of the OECD’s international migration division, citing high demand for foreign workers and international students.

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A third of OECD countries, including Canada, France, and Japan, recorded new highs in immigration, while the US accepted 1.2 million legal migrants. Economists credit this influx with helping advanced economies stabilise following the pandemic and inflationary pressures. Yet, as overall migration grows, voter concerns have focused on asylum seekers arriving irregularly, though they represent a fraction of total arrivals.

This year, all OECD governments facing re-election saw drops in voter support, with some losing office, including in the US, where President-elect Donald Trump’s campaign emphasized immigration crackdowns.

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Applications for asylum within OECD countries rose 30 per cent to a record 2.7 million, largely due to arrivals in the US from Venezuela, Colombia, Nicaragua, and Haiti. The US alone accounted for over a million asylum claims — more than the total of all OECD European member countries.

The increase in migration has had a significant economic impact. Analysis by Goldman Sachs shows immigration accounted for most employment gains in countries like Canada, New Zealand, Germany, and the UK since early 2023, and helped rebalance the US labour market with minimal economic cost, according to economist Joseph Briggs.

In contrast, Seth Carpenter, chief economist at Morgan Stanley, warned that potential US immigration restrictions under Trump could slow growth and push inflation higher.

Other major migrant destinations have also tightened entry rules. Canada, Australia, and the UK introduced measures limiting work-related migration, with Canada capping temporary residents for the first time. The surge in international students — up 6.7 per cent to 2.1 million across OECD countries — has fueled housing market pressures, prompting new restrictions in the UK, Canada, and Australia.

While some nations are rethinking their policies, Dumont said the US and other countries facing aging populations will continue to rely on legal migration to meet labor demands. “The US economy depends on legal migration across fields like agriculture, hospitality, and healthcare,” he said. “It will be challenging to reverse this trend.”