KUALA LUMPUR - As migration expands across regions facing ageing populations and skill shortages, the International Labour Organization (ILO) warns of a growing global brain waste, where millions of qualified migrants remain trapped in low-skill jobs.

The warning, part of a broader call for smarter, fairer labour migration systems, underscores a key paradox of today’s global economy: countries hungry for talent are leaving talent untapped.

Recent ILO estimates show that nearly 168 million migrants were part of the global labour force in 2022, accounting for 4.7 per cent of all workers worldwide.

Behind these numbers lies a pressing challenge, ensuring migration benefits both workers and host economies.

When Migration Fails Talent

Many migrants remain trapped in low-skill jobs despite having higher qualifications, creating what the ILO describes as a global brain waste problem.

Recent OECD and EU data show that over one-third of highly educated immigrants are over-qualified for their jobs, with foreign-born workers in some countries facing over-qualification rates as high as 64 per cent (Italy) and 42 per cent (Malta).

Non-EU citizens in the EU had an over-qualification rate of nearly 40 per cent in 2021, compared with around 32 per cent for other EU citizens.

Even immigrants settled for 10+ years often remain over-qualified, earning less than native-born workers and unable to fully use their skills.

ILO Regional Skills Specialist for Africa, Christine Hofmann, said that skilled migrants often end up taking jobs far below their qualification level, citing cases of trained technicians working as helpers and veterinarians driving taxis.

This mismatch, Hofmann noted, prevents migrants from reaching their full potential and slows down the development of host countries.

Global Examples

To address the issue of “global brain waste,” the ILO is calling for migration, employment, and education policies to be better aligned.

“It’s very important for countries to align their migration, employment, and education policies,” said Hofmann, adding that visa systems and training services should reflect labour market needs.

One model that demonstrates this approach is Chile’s “Valora” programme, established in 2008, which enables workers including migrants to have their prior learning formally recognised.

It operates through a nationwide system of labour skills validation and certification, aimed at improving job mobility, supporting productivity, and promoting lifelong learning and further education.

Across Europe, countries are also strengthening recognition systems. In France, the Validation des Acquis de l’Expérience (VAE) allows migrants and refugees to have their work experience formally certified, helping them re-enter skilled professions.

Similarly, the European “Europass” framework standardises CVs and qualification records across 27 countries, improving transparency and cross-border employability.

In Asia, the ASEAN Mutual Recognition Arrangements (MRAs) enable skilled professionals such as engineers, nurses, and architects to have their qualifications recognised within member states, supporting regional labour mobility.

Meanwhile, Thailand, Cambodia, and Laos are piloting recognition schemes for middle-skilled workers with ILO support.

Several countries have also launched programmes to attract and retain skilled migrants. Germany’s recognition partnerships, introduced in 2024, allow migrants to begin working while their foreign qualifications are being verified.

Finland’s Talent Boost Programme focuses on retaining international talent through fast-tracked recruitment and integration services, while Canada’s bridging programmes help internationally trained professionals meet licensing requirements through competency-based assessments rather than full retraining.

Hofmann pointed to such systems as key to empowering migrants through fair and transparent skills recognition.

“The ILO’s role is not to promote labour migration per se, but to help make it fair for workers, employers, and governments,” she said.

Policy Reform

Robust labour market information and stronger skills anticipation systems are essential to ensure migration meets real demand.

Hofmann added that employers must be involved in shaping migration frameworks that reflect operational skill gaps.

“Employers and their organisations are very important partners in all stages,” she said, noting that they inform both policy design and implementation.

The ILO also highlights that while brain drain remains a concern, skilled migration can have positive effects for origin countries through remittances and business links.

The Upside of Skilled Migration

“Studies show that skilled migration often has positive impacts on countries of origin, especially if remittances are sent and used for investments or if diaspora workers create business links with local firms,” said Hofmann.

She cited a case in Ethiopia where a returning domestic worker used IT skills gained abroad to start an internet café employing three people.

Such stories, Hofmann said, show how well-managed migration can drive entrepreneurship and reintegration.

For migration systems to succeed long-term, she stressed the need for social dialogue among governments, employers, and workers.

“When countries enter into skills partnerships and conclude bilateral labour migration agreements, they absolutely need to be based on social dialogue and negotiated with workers’ and employers’ organisations in both countries,” she said.

Hofmann said that many migration schemes risk falling short of their goals without this cooperation.

The ILO continues to work with partners worldwide to build migration frameworks that are fair, inclusive, and effective in unlocking migrant workers’ full potential.