1. Foreign Labor Demand 1

2. The need for foreign labor 1.Host countries need foreign labor To augment aging labor force To fill skills gaps and labor shortages To sustain growth and living standards 2.Countries manage the employment of foreign labor To attract sufficient numbers of workers and the most skilled workers To ensure level playing field in the employment of foreign workers versus local workers To minimize social tensions 2

3. Managing the employment of foreign labor 1.Key instruments (1) Quantities (employment quotas or preferences) (2) Prices (wages) or both (1) and (2) These can be set at the national level, by industry, by firm, by occupation, by skill or educational level, etc. They can vary over time as conditions change. 2.Key questions How much foreign labor is needed? How do countries attract the foreign workers they need? (Recruitment and ensuring optimal quantity and quality of workers) What is the broader environment in which recruitment takes place? 3

4. How much foreign labor is needed? Countries use one or more of the following 1.Demographic models and assumed population flows 2.Industry-level, occupation-level, firm-level or individual-level surveys 3.Stakeholder consultations 4.Ad hoc methodology/guesswork Country examples United Kingdom does 1-3 (Migration Advisory Committee) Italy does 2 (ISMU) UAE does 4 4

5. Today Initial stocktaking of how selected countries managed the employment of foreign labor Kazakhstan Russia Singapore 5