The impact of tighter immigration controls on global businesses
Global businesses are being increasingly vocal in their opposition to tighter immigration controls, citing significant concerns over talent acquisition and economic growth. This sentiment seems particularly strong among tech companies and financial institutions in Europe and beyond.
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The recent change in government In the Netherlands, has led to concern in major tech firms like ASML and NXP Semiconductors.
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These companies warn that restrictive immigration policies could drive them to relocate operations abroad to access the talent they need. ASML CEO Peter Wennink emphasised that as a global company, ASML would move to more accommodating environments if the Netherlands' policies hinder their ability to hire skilled immigrants and foreign students (Ground News ) (ARIENHOST ).
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Similarly, concerns are growing in other parts of Europe. A coalition of tech leaders, including those from prominent firms like SAP and Siemens, has expressed alarm over the increasing anti-immigration rhetoric, arguing that it jeopardises Europe’s ability to remain competitive in the global tech industry. They argue that attracting top talent from around the world is crucial for innovation and maintaining technological leadership (ARIENHOST ).
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Financial institutions are also reacting to tighter immigration controls. As previously mentioned ?in my last article, UK companies like HSBC and Deloitte have reportedly rescinded job offers to foreign graduates due to uncertainty over visa regulations, highlighting the direct impact of these policies on corporate hiring practices and the broader labour market (BNN ).
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The issue extends to broader economic concerns as well. In the U.S., businesses are struggling with labour shortages, particularly for low-skilled positions, which are often filled by immigrants. The Wall Street Journal reports that some industries are heavily reliant on immigrant labour, and tighter controls could exacerbate existing shortages, impacting productivity and growth (BNN ).
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We have seen historical examples where companies have relocated operations in response to government restrictions. For example, Royal Dutch Shell moved its headquarters to London in 2021, partially due to unfavourable tax changes and regulatory uncertainty in the Netherlands (BNN ). Appreciate that it is not specific to immigration but does support the mentality of today’s global organisation to move where they can have less restrictions and more access to global markets.
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Overall, the pushback from businesses against tighter immigration controls underscores the critical role of immigration in maintaining economic vitality and competitiveness.
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Companies argue that without access to a global talent pool, their ability to innovate, grow, and compete on an international stage is severely compromised. With us entering the “year of the election this year,” with over 40 elections happening globally; will be interesting to see what stance governments take within the immigration space and the potential implications that may have for global organisations…
Senior Associate @ IMD Corporate | LLB Hons
5 个月Really insightful post Will Tear . I assist a charity who is struggling to recruit candidates with not just the right academic background, but also personality and the right attitude to fit in with the team. Their job is really demanding. The charity is registered with the Home Office as a sponsor. The sponsorship , until recently, has been their saving grace. However with the most recent salary threshold increase, the charity is not able to afford to sponsor another worker. They are short-staffed and struggling.