As demographic decline, skills shortages, climate pressures and geopolitical shifts reshape labor markets, countries that attract and integrate talent will gain a competitive advantage.

Housing, credential recognition, integration services and workforce planning determine whether countries can convert mobility into economic growth.

While the Philippines is often viewed primarily as a source of global talent, the larger opportunity lies in building a national talent ecosystem that benefits from international mobility rather than simply supplying labor abroad.

Growing strains on global labor markets

As demographic pressures and artificial intelligence (AI) investment-driven disruption reshape labor markets, attracting and retaining global talent is becoming a critical competitive advantage. The challenge is already evident: major global technology manufacturing companies have faced delays at US semiconductor plants due to labor shortages, while the technology infrastructure sector needed 300,000 additional workers by September 2025, and 58% of data center operators reported struggling to fill roles.

Executives face what amounts to a false choice between investing in global talent pipelines or waiting for AI and robotics to reduce labor demand. The need is growing across sectors: the World Health Organization projects a global shortage of 11 million health workers by 2030, while shortages in areas such as agriculture, caregiving, and skilled trades continue to strain economies. At the same time, demographic shifts, technological change, climate pressures, and geopolitics are increasing global mobility needs.

This reflects what EY describes as the “NAVI world,” where change is non-linear, accelerated, volatile, and interconnected. The EY Megatrends 2026 report examines the disruptive changes that give rise to megatrends — global cross-sector developments that transform how organizations create value. This article is part of a series exploring these megatrends and discusses how reactive migration policies create recurring crises while strong migration infrastructure builds resilience.

Rethinking migration as infrastructure

Migration infrastructure, including visa processing, credential recognition, housing, and integration services, determines whether countries can turn demographic pressures into economic opportunity. Building it requires coordinated action across business, government, and civil society. Businesses can view migration as a talent strategy rather than a policy issue, while governments can move beyond reactive, politically driven approaches toward long-term workforce planning. Civil society can support successful integration through sustained language, credentialing, and community programs.

Climate change is among the factors impacting migration. Disaster-related displacement reached a record 45.8 million people in 2024, while the World Bank projects up to 216 million internal climate migrants by 2050. As one of the world’s most climate-vulnerable countries, the Philippines may experience increased internal migration from climate-affected regions to urban centers, creating implications for infrastructure, housing, jobs, and public services. Managing these shifts will require coordinated planning across national and local governments, businesses, and communities to ensure that growing urban populations can access opportunities while maintaining quality of life and economic resilience.

Technology is also reshaping migration, creating immediate demand for talent while increasing long-term uncertainty about the future of work. Countries that offer clear pathways for both skilled migration and remote talent will be best positioned to compete.

Finally, demographic trends are making migration increasingly unavoidable. Ageing economies face shrinking workforces, with the Organisation for Economic Co-operation and Development (OECD) old-age dependency ratio expected to reach 52% by 2060 — roughly two working-age adults for every person aged 65 and over. At the same time, countries with younger populations, including the Philippines, have an opportunity to develop talent strategies that support both domestic growth and international mobility.

From talent exporter to talent ecosystem

While the Philippines is often viewed primarily as a source of global talent, the larger opportunity lies in building a national talent ecosystem that benefits from international mobility rather than simply supplying labor abroad.

Overseas Filipino Workers contribute billions in remittances annually — in recent years, personal remittances have equaled roughly 8% to 9% of Philippine gross domestic product, according to Bangko Sentral ng Pilipinas data — but they also generate valuable networks, experience, and expertise that can strengthen Philippine industries. Destination markets, for their part, are adapting: Japan has steadily expanded its Specified Skilled Worker visa program since introducing it in 2019, while Gulf states such as Saudi Arabia and the United Arab Emirates have long hosted some of the largest overseas Filipino worker populations. As global competition for skilled workers intensifies, Philippine businesses and policymakers can focus on creating pathways that encourage knowledge transfer, diaspora engagement, investment, and eventual return migration. The countries that benefit most from migration may not be those that export talent or import talent, but those that successfully connect both.

Infrastructure capacity as the binding constraint

Infrastructure can be as significant a barrier to migration as policy or labor demand. As climate and economic migration increase, cities will need to expand housing, schools, transportation, and public services. Without accelerated investment, absorption capacity will remain a major constraint on migration regardless of workforce needs.

Many countries struggle to fully utilize migrant talent because foreign credentials are often not recognized. As a result, one-third of highly educated immigrants in OECD countries are overqualified for their jobs — a mismatch often described as “brain waste” — even as the WHO projects an 11 million global health worker shortage by 2030.

Migration policies also often shift with political cycles, creating uncertainty for employers and undermining long-term workforce planning. Research suggests that when settlement outpaces integration, political backlash can lead to more restrictive migration policies. However, countries such as Canada, Finland, and Portugal have shown that comprehensive integration policies can work, while Estonia and Germany have used digital tools to help migrants navigate new systems. How quickly such measures — mutual credential recognition, bilateral skills partnerships, digital application systems — spread will offer a practical indication of whether migration infrastructure is maturing.

Making migration a strategic advantage

Despite the challenges, countries that invest in talent and migration infrastructure can unlock significant economic benefits. For the Philippines, this means not only enabling Filipinos to compete globally but also creating conditions that encourage investment, innovation, and knowledge transfer at home.

Migrants support fiscal sustainability by strengthening the workforce and contributing to pension and healthcare systems. Beyond labor markets, immigrants and their children have fueled innovation, founding 46% of Fortune 500 companies and 44% of US billion-dollar startups. Conversely, countries that fail to attract and integrate talent risk workforce decline, slower growth, and reduced competitiveness.

Automation will reshape work, but it will not eliminate the need for people. Many roles, particularly in healthcare, skilled trades, hospitality, and caregiving, will continue to require human skills that technology cannot fully replace. At the same time, demographic decline is shrinking workforces across many advanced economies. The OECD notes that AI can boost productivity, but it is not a substitute for human workers. As a result, migration infrastructure remains essential for addressing labor shortages and providing economies with the flexibility to adapt to changing workforce needs.

Building foundations to meet tomorrow’s talent needs

Business leaders can no longer view migration as solely a government concern. Housing, skills development, education, and social belonging are long-term investments. As labor shortages grow and demographic pressures intensify, countries and businesses that strengthen talent pipelines, support workforce integration, and adopt the right enabling migration policies will gain a competitive edge.

Success will depend not only on government and business action, but also on civil society’s ability to expand integration support, foster public trust, and share solutions across borders. The countries that build these foundations today will be better positioned to meet tomorrow’s talent needs and gain a competitive advantage in the decades ahead, while those that delay may face growing shortages and constraints.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

Noel P. Rabaja is the deputy managing partner, strategy and transactions leader, and markets leader of SGV & Co.