Covid-19 triggers drop in migration across OECD countries

Switzerland is a member of the Schengen Area Keystone / Salvatore Di Nolfi

Immigration to the wealthy nations that make up the Organisation for Economic Co-operation and Development (OECD) fell by nearly a third in 2020 due to the coronavirus pandemic. The decline was less pronounced in Switzerland, where foreign professionals are a key source of tax revenue.

Switzerland saw the number of new asylum applications fall by 22.5% in 2020, according to an OECD study on migration trends presented on Thursday. This was the sharpest decline since the end of the Balkan war in the 1990s and compared with an average decline of 31% in other OECD nations.

The fact that immigration to Switzerland declined less than in other OECD countries was due to the free movement of persons, which accounts for a large part of Swiss migration, OECD migration expert Thomas Liebig told journalists.

Many people who immigrate to Switzerland come from Europe or even from neighbouring countries. “Some of them have very high qualifications,” Liebig said.

These foreigners make a positive impact on the Swiss national budget, he noted. The so-called net fiscal contribution of immigrants in Switzerland is about 15% higher than that of the Swiss-born, he said.

The so-called net fiscal contribution is the ratio of all revenues, such as taxes and duties, to all expenditures, such as social benefits, of an individual.

Looking at all 38 OECD countries, migrants contribute more via taxes and other contributions to the state than they receive in benefits in the form of health, education and social security, the report said.

Experts predict an increase in migration after this pandemic-related decline. To promote better integration, governments should “take into account the many disadvantages migrants face in labour markets and society” in their post-Covid recovery plans.

Given the overrepresentation of migrants in low-skilled jobs, care must be taken to ensure that migrants can acquire the skills to fill the jobs of the future, according to Liebig. He also recommended women- and family-oriented approaches to boost the impact of integration policies.