Press Release

With the increase in human migration, economies and markets across the world are being reshaped. While I’ve found much of the media spotlight has been focused on migration to Western countries such as the U.S., Europe and the U.K., the broader trend encompasses significant movement, especially of high net-worth individuals, to other regions as well.

The global movement of people has far-reaching implications for businesses. As such, business leaders should comprehend the effects of migration to both leverage opportunities and mitigate risks.

Global Trends In Migration

Migration is generally driven by a variety of factors. These factors, according to the International Organization for Migration, boil down to five primary drivers: economics, demographics, social, political and environmental. In addition to these five macro-level factors, migration decisions are also influenced by micro-level factors such as age, gender and income level, as well as meso-level factors such as immigration policies. The IOM created a graph to help illustrate the interplay of these varying factors.

While many people move from developing nations to more affluent countries due to political, economic and environmental factors, there is also a growing trend of migration among wealthy individuals and skilled professionals toward countries such as the United Arab Emirates and Singapore.

The projected net inflow of millionaires in 2024 to the UAE is estimated to be 6,700, followed by 3,800 millionaires to the U.S. and 3,500 millionaires to Singapore, according to the Henley Private Wealth Migration Report. The report also shows that 120,000 millionaires migrated in 2023, which is an approximate increase of 43% from 84,000 millionaires who migrated in 2022. The increasing level of migration of HNWIs is due to varying reasons, including favorable tax policies, wealth management and investment opportunities.

Fed Rate Hikes And The Labor Market

In contrast to the rate hikes during the past four years, the Federal Reserve announced in September that it would cut the federal funds rate to between 4.75% and 5%. The decision to lower rates is no surprise to me, given the slowing momentum in the rise of the employment rate. The tightening labor market creates additional challenges for businesses reliant on an international workforce.

Implications For Businesses

As the global workforce becomes increasingly mobile, businesses will need to compete to find the best talent to maintain and grow their organizations. That in conjunction with potential political changes, such as stricter immigration laws limiting the number of skilled professionals, could make it difficult for businesses to maintain economic growth. Just as water runs downstream, humans will migrate where they find better economic opportunities.

Immigration policies can affect labor supply and consumer spending. For instance, Brexit led to labor shortages in certain sectors in the U.K. Similarly, caps on H-1B work visas in the U.S. can affect industries, such as tech, that often rely on foreign professionals to fill employment gaps.

There is a misconception that migrants, particularly people lacking permanent legal status, enter countries without cost. In fact, many of these migrants pay substantial sums to smugglers, with Reuters reporting that some pay up to tens of thousands of dollars.

Instead of allowing these funds to fuel illicit channels, businesses can consider advocating for more accessible legal migration pathways and shifting these costs back into the formal system. Business leaders can be at the forefront of discussions to increase legal migration channels, easing pressure on informal networks and helping economies absorb migrant labor more effectively.

Navigating The Future Of Migration

Business leaders must be agile in responding to potential regulatory shifts. They can also consider advocating for business-friendly immigration policies to ensure the inflow of talent and resources. Ultimately, businesses can benefit from migrant labor and skilled professionals by staying competitive on a global scale.