Labor Mobility in an Age of Demographic Imbalance

High-income countries, and an increasing number of middle-income countries, are experiencing population aging. The pace differs but the trend is clear. Across OECD countries, the number of people older than 65 years old per 100 people of working age (20 to 64 years) increased from 21 in 1994 to 33 in 2024 on average over the last 30 years. In the next 30 years, the ratio is expected to reach 55 per 100 people.

Countries facing population aging are increasingly impacted by widespread labor shortages. This leads to multiple challenges related to economic activity, labor markets, pensions, health systems and public finances. Domestic responses to these pressures — such as automation, later retirement and higher labor force participation — are limited and will not be enough to reverse this structural aging trend.

Pressure on the workforce is already high in some sectors. In April 2025, one in six firms in industry and one in four firms working in services in the euro area cited lack of labor as a limiting factor. These constraints are likely to intensify in the coming years as demographic aging deepens, including in activities tied to the digital and green transitions, as highlighted by the Draghi Report on EU Competitiveness.

Switzerland will not escape this phenomenon. According to recent projections, the country could face a shortage of up to 300,000 working-age individuals by 2035, while the number of people aged 65 and over could reach 45 per 100 people of working age by 2055.

Although migration is not the silver bullet to counteract this structural trend, it can mitigate, and even compensate for, the negative effects of population aging by playing key roles in reducing labor shortages in certain sectors. Labor mobility may be a complementary path to address these aging challenges; even political actors in the EU who have traditionally been skeptical of immigration have, in practice, supported measures to facilitate the recruitment of foreign workers in response to labor shortages (e.g., Italy, Greece).

Contrasting demographic trajectories: A role for migration?

At the same time, many countries in the Global South are characterized by youthful age structures, with large cohorts of young people reaching working age in the decades to come, particularly in sub-Saharan Africa. Yet these labor markets are often marked by high levels of informality, underemployment, working poverty, and limited education and skills systems, with many young people unable to access stable, decent jobs.

These contrasting demographic trajectories are reshaping global labor markets and raising new questions about the role of labor mobility in addressing structural imbalances. Labor mobility can help address shortages in aging economies. It can also tap into the potential of migration  for young workers in sending countries where labor markets cannot absorb growing cohorts. When well-managed, it can contribute to development through remittances, skills acquisition and knowledge transfer — both upon return and through diaspora networks — as well as by strengthening national training systems.

Importantly, recognizing the role of migration in aging societies does not imply an endorsement of unlimited population or economic growth. Even with sustained immigration, most high-income countries are likely to continue having a demographic imbalance and, in some cases, to experience gradual population decline. In this context, migration should be viewed as a mechanism to smooth demographic transitions, reduce bottlenecks in essential sectors, and support social and economic resilience both in the sending and receiving countries.

The question is not whether migration should play a role, but how it can be structured in a way that is effective, ethical and beneficial for all parties.

Skills mobility partnerships: From ad hoc recruitment to structured labor mobility

The way labor mobility is organized matters as much as its scale. Uncoordinated or purely demand-driven recruitment risks exacerbating skills mismatches, undermining labor standards, and generating political and social tensions, both in the sending and receiving countries.

Skills mobility partnerships have emerged over the last decade as a promising framework to manage labor mobility in a more strategic, predictable and mutually beneficial manner. These partnerships seek to better align labor market needs in destination countries with skills development systems in the countries of origin, while embedding migration pathways within agreed governance frameworks (see examples).

While these partnerships offer a promising response to demographic trajectories, their legitimacy and long-term viability depend on how they are designed and implemented. Poorly regulated labor mobility schemes and unbalanced partnerships can reproduce well-documented risks, including worker exploitation, skills underutilization and adverse effects on countries of origin, notably through brain drain. Addressing these risks is a practical requirement for sustainable outcomes and durable labor mobility systems.

For countries of origin, partnerships must be aligned with national development, including skills strategies and remittances frameworks. This includes ensuring that training investments contribute to domestic human capital formation and do not systematically drain critical sectors such as health, education or public services. When mobility pathways are embedded in broader workforce development efforts, they can connect business across migration corridors as well as strengthen training systems and expand opportunities beyond those who ultimately migrate. Reintegration measures are equally important, offering economic, social and psychosocial support, along with a recognition of skills acquired abroad and a pathway for knowledge transfer.

For destination countries, appropriate design implies moving beyond short-term recruitment to more predictable and regulated arrangements. Transparent recruitment processes, recognition of qualifications, enforcement of labor standards and integration measures are essential to avoid downward pressure on wages and working conditions and to foster social cohesion.

Migrant workers and their representatives must be at the center of these partnerships. This requires protection against abusive recruitment practices, access to decent work and social protection, and participation in a social dialogue mechanism. Equally important is the portability of skills and experience, allowing mobility to translate into long-term professional and economic gains, whether in the destination countries or upon return. Genuine migration circularity options (e.g., multi-entry visas, return and re-migration pathways, portability of social security rights) are also essential.

Employers also stand to benefit from ethical partnerships. Better skills matching, lower turnover and reputational safeguards contribute to a more stable and productive workforce. When employers are engaged as partners rather than end-users of labor, skills mobility schemes are more likely to deliver durable results.

Taken together, these elements point to a simple conclusion: Fair considerations are not an add-on to skills mobility partnerships, but a condition for their effectiveness. Without them, labor mobility risks remaining fragmented, contested and ultimately unsustainable.

Linking labor mobility, skills and systems

Helvetas approaches labor migration as a core component of socio-economic development. But labor migration can generate harm when it is unregulated: through exploitation, risky journeys, skills underutilization and negative effects on communities left behind. This is why we focus on labor mobility as part of broader development and protection systems.

A well-governed migration system is anchored in human rights and fair labor standards. It enables people to move safely, legally and with dignity, while contributing to the economic and social objectives of both the countries of origin and destination. This requires transparent legal pathways, fair recruitment practices, access to protection and justice, and support for integration as well as humane return and reintegration.

We engage across the whole migration cycle. In South Asia, long-term partnerships, such as these in Nepal and Bangladesh, have focused on safer recruitment, policy support and system change.  At the individual level, Helvetas promotes access to accurate pre-departure information, skills development, equal labor and social rights abroad, and effective grievance and support mechanisms, including for families left behind (e.g., remittances management, financial literacy). Return and reintegration are treated as integral parts of labor mobility systems rather than stand-alone interventions. We also support economic, social and psychosocial reintegration, including the recognition of skills acquired abroad.

In other regions, such as West and North Africa, programs have implemented learning-to-earning pathways for youth on the move that expand access to education, skills development, decent work and entrepreneurship opportunities. For example, programs incorporate pre-departure training on safe migration skills, financial literacy and gender-based violence prevention. During mobility, short practice-oriented modules are made accessible to a wide range of youth, including language catch-up, basic digital skills and tailored pedagogical support. Psychosocial assistance, job placement or entrepreneurship coaching, labor rights awareness and referral to protection services further strengthen resilience.

Helvetas also works with the institutions that shape migration, not only with migrants themselves. This includes support to governments, civil society and the private sector to improve governance, services and policies, with the aim of making labor mobility systems more sustainable over time. For example, in Bangladesh, a project has supported local government actors and civil society organizations to deliver safe migration information, set up help desks, and expand grievance and dispute resolution mechanisms — all while reinforcing national institutions’ capacity to regulate recruitment and protect migrant rights. Collaboration has also taken place with private service providers (e.g., trainers, banks, recruitment agencies).

Helvetas’ broader experience in employment and skills development also helps connect labor mobility to real labor market needs. Beyond supporting individuals, Helvetas works with national vocational education and training (VET) systems to improve performance, inclusiveness and governance. This includes strengthening institutions, developing operational processes, and supporting sectoral skills committees (e.g., Albania, North Macedonia). By addressing system-level issues such as quality assurance of training, career guidance and incentives for lifelong learning, we can help design mobility pathways that are not only safer, but also more likely to lead to decent work and sustainable benefits for migrants and their communities.

Shaping migration for shared benefits

Population aging is not a distant challenge: It is already reshaping labor markets, public services and social protection systems in many middle- and high-income countries. The demographic transition is also creating a growing imbalance between labor demand in aging economies and labor supply in younger economies. Migration cannot reverse demographic trends, but it can reduce labor shortages and support skills systems development and socio-economic resilience when it is organized responsibly.

Skills mobility partnerships offer a more structured approach to labor mobility, one that can align training, labor market needs and migration governance. Yet these partnerships will only be sustainable if they are built on ethical foundations — fair recruitment, decent work, social dialogue — and can deliver benefits for both origin and destination countries, as well as for migrant workers themselves.

The key challenge for policymakers and practitioners is to shape migration in ways that protect rights, strengthen systems and contribute to shared development objectives. When this is achieved, labor mobility can become a complementary path to navigate demographic challenges while maintaining social cohesion and economic resilience.