Challenges and Developments in 2023
Masaki Bruijs, from Eastwing, our affiliated partner, looks back at developments in knowledge migration in 2023 and looks ahead to the coming year. Where in recent years the Dutch government has proactively focused on attracting highly educated professionals from abroad, for example, by simplifying immigration procedures and offering the favourable 30% ruling, the question now arises whether a similar policy will be implemented in the coming years. A review of 2023 reveals interesting trends and developments in the Dutch migration landscape, while a preview of 2024 provides insight into expectations for the coming years.
In 2023, the government collapsed on the theme of migration. Clear positions of the political parties were expressed during the elections, and it is expected that the new government will limit migration inflow, despite the significant shortages of highly educated workers.
It is noteworthy that in 2023, there has already been a decrease in the number of residence permit applications in the knowledge and talent category. This category includes, among others, knowledge migrants, intra-company transfers, and the European Blue Card. According to numbers published by the Immigration and Naturalization Service (IND), in 2023 (up to December 1st), 24,040 residence permits for were applied for in the category knowledge and talent, compared to 30,670 applications in 2022 (a decrease of 27.5%). Whether this decline is also a harbinger for the coming years remains to be seen.
Nevertheless, a considerable number of labour positions within the Dutch knowledge economy will continue to be filled in 2024, as asylum seekers are allowed to work unlimitedly in the Netherlands with a work permit during their stay. Additionally, the nearly 105,000 present refugees from Ukraine will retain their freedom in the Dutch labour market for the next year based on the Temporary Protection Directive.
However, it remains challenging to recruit a sufficient number of highly educated workers to tackle the significant personnel shortages. Additionally, employers face the challenge of hiring foreign highly educated individuals at a competitive and market-competitive salary. This is evident from the increase in the highly skilled migrant salary thresholds (6.45% as of 2024) and the raise in salary thresholds for the 30% ruling (9.9% as of 2024). These salary thresholds, which are annually indexed, determine the minimum salary that foreign workers in the Netherlands must earn to qualify for a residence permit as highly skilled migrant and the 30% ruling.
Despite the Dutch intentions to limit the influx of migrants, the EU has revised the directive for the European Blue Card to continue stimulating the influx of highly educated personnel. The revisions have simplified the application for the Blue Card, and the EU aims to further harmonize immigration policies within the member states. The Dutch government has already partially implemented the revisions in national legislation; the remaining revisions are expected to follow in the course of 2024.
All in all, migration was a significant theme in the Netherlands in 2023, and it is expected that the dynamics around migration will continue in 2024. The newly formed government will be tasked with making the knowledge economy sustainable and strengthening it in 2024.
