Why Advanced Economies Are Rebuilding Growth Around Talent

Workforce shortages are already visible across many OECD economies. The pressure is especially noticeable in construction, healthcare, engineering, manufacturing and technical occupations.

This is no longer viewed as a temporary post-pandemic imbalance. A recent Reuters analysis citing Bank of Canada officials notes that labour markets are becoming harder to predict because workforce shortages are increasingly structural and demographic-driven.

Some countries are already experiencing this more sharply than others.

These changes are starting to affect how governments think about economic growth itself. When the workforce becomes smaller, it becomes harder for companies to expand operations, launch projects and sustain productivity growth.

The impact is especially visible in infrastructure, construction and technology sectors, where talent shortages directly limit growth capacity.

Technological industries have made global competition for skilled professionals significantly sharper. The growth of AI, automation and digital industries is increasing demand for engineers, AI specialists, researchers, founders and technical talent, while the supply of qualified professionals struggles to keep pace. Companies and governments are competing for a relatively small pool of people with the expertise needed to support innovation and long-term economic growth.

This competition now extends beyond highly skilled workers. Many countries are also trying to attract entrepreneurs and innovation-driven businesses that can create jobs, develop technologies and strengthen local economies. According to the Brookings Institution, immigrants are disproportionately represented among entrepreneurs and play a major role in innovation, particularly across the US technology sector.

The risks of restrictive immigration policy are becoming more visible as well. Recent debate around new US green card rules drew criticism from prominent figures in the technology industry, with concerns that tighter restrictions could weaken the country’s competitiveness in AI and advanced technologies.

Canada is expanding its economic immigration programmes and directly aligning them with labour shortages and regional development priorities.

‍The UAE is actively developing long-term visas for founders, investors, and technology specialists.

‍The United States retains the world's most powerful technology market, but constraints within the immigration system are increasingly cited as a barrier to attracting global talent.

‍Germany is simplifying immigration pathways for skilled workers in response to acute workforce shortages.

‍The United Kingdom is developing dedicated visa categories for technology and innovation sectors.

A new model of global competition is gradually emerging — one where access to talent, innovation ecosystems, education quality and business scalability all play a major role.

Canada remains one of the most consistent examples of this strategy in practice.

‍Immigration, Refugees and Citizenship Canada (IRCC) directly links immigration policy to economic growth, labour market sustainability, and regional development. According to Canada’s immigration levels plan, economic immigration categories continue to represent the largest share of planned permanent resident admissions.

This approach is designed to address several interconnected priorities.

‍Labour market support
Canada faces workforce shortages in construction, healthcare, infrastructure, and engineering — sectors that are critical to the broader economy.

‍Regional development
Provinces have a strong interest in attracting people and businesses to support local economies and workforce growth.

‍Building an innovation economyCanada is actively investing in AI, clean technology, advanced manufacturing, and digital industries. Growing these sectors requires access to skilled professionals and founders who can help build them.

The next decade may significantly reshape how countries compete with one another. Natural resources, manufacturing capacity and access to capital remain important, but people, expertise and innovation capacity are becoming equally strategic.

Governments are now trying to solve several challenges simultaneously:

• sustaining labour markets,
• improving productivity,
• developing innovation-driven industries,
• managing demographic pressure.

This is why immigration policy is becoming more closely connected to economic planning and long-term industrial strategy.

Entrepreneurs, investors and highly skilled professionals are becoming one of the most valuable drivers of long-term economic growth. As demographic pressure, labour shortages and technological transformation continue reshaping global economies, countries are increasingly competing for people capable of building companies, developing industries and driving innovation.

As a result, access to talent, expertise and entrepreneurial capacity is gradually becoming a defining factor of global competitiveness and future economic resilience.