The lack of qualified foreign workers penalizes growth in France – Les Échos

French companies are struggling today to fill even highly qualified jobs. While in the presidential campaign, the flammable subject of immigration is addressed above all from an identity and security angle, a note from the Economic Analysis Council (CAE), a think tank attached to the Prime Minister, chose to focus on a weak point in France: the insufficient use of a legal and skilled immigration.

In their study, the authors, Emmanuelle Auriol and Hillel Rapoport, in turn praise the “benefits of this skilled and diversified labor immigration from the point of view of origins” on growth and competitiveness in the long term. And regret that France has not taken this path. “Labor immigration, and in particular skilled labor, remains marginal in our country,” they deplore.

13% of the first residence permits

In 2019, before the Covid crisis, only 39,000 first residence permits were issued for economic reasons out of a total of 292,000, or 13%. The family motive holds by far the first place (91,000), ahead of studies. Unlike Germany, France attracts little foreign talent from European Union (EU) countries, despite the free movement rules. In the 2021 edition of the Global Talent Competitiveness Index published by Insead, it only happens at the 19th row .

“The country has locked itself in a vicious circle of legal immigration, little qualified, little diversified and few”, summarizes Hillel Rapoport. In 2020, nearly 38% of immigrants in France had an educational level equal to or below the college certificate, according to the note. “It is an error which will cause France to lose productivity and growth points”, warns Emmanuelle Auriol.

Creativity and innovation

ACE economists note that “the countries with the highest immigration rates in the world are all rich countries.” They also observe that immigrants display more creativity and entrepreneurship and innovation than natives. No doubt because they are used to taking risks. The United States is a case in point: immigrants represent 13% of the population there but 26% of entrepreneurs with among them stars such as Elon Musk, the founder of Tesla, or Sundar Pichai, the boss of Google. According to the study, the positive effects of skilled immigration go even further: foreign trade and direct investments abroad benefit because they are supported by the effects of diaspora networks.

Based on several studies on the subject, the two authors are categorical: immigration has no impact on the salaries of native French people. And in terms of public finances, the impact is also reduced. The net contribution of immigrants is in a range between + 0.5% and -0.5% of GDP.

Introduction of the point-based immigration system

In this period of labor shortage, the report does not neglect the issue of low-skilled immigration. Recalling that “the least qualified occupy neglected jobs”, he made the link between the current difficulties of recruiting French companies and the fallvisa issuance during the health crisis. “The sectors of activity which appealed the most to immigrant workers in 2018 are those which report a lack of manpower”, namely construction, hotels and restaurants.

In the light of the experiences of other OECD countries and the abundant literature on the subject, the authors therefore call for the implementation of a series of actions to promote labor immigration in France, and more particularly the skilled immigration. Reassessment of existing systems – such as the “talent passport”, intensification of efforts to attract foreign students, easier obtaining of a residence permit upon completion of studies, etc.

They also recommend the introduction in France of a points immigration system inspired by that in force in Canada, for example. A measure which, according to them, would make it possible to better diversify the origins of immigrants and target the skills needed in the country.