Back to Insights

The 8.1 per cent problem: Europe is recruiting talent it cannot keep

The leak happens after arrival

Europe has a talent problem, and it is not only about getting people through the door. Across ten European countries, just 8.1 per cent of migrant workers stay with their employer for more than three years. Every early departure writes off what was spent on recruiting, relocating and training that person.

The national picture is no better. In the Netherlands, nearly 70 per cent of knowledge migrants from outside the EU and EFTA leave within five years. These are exactly the people Dutch employers competed hardest to hire.

The stakes keep rising. In 2024, 51 per cent of EU firms named a shortage of skilled workers as a major obstacle to investment, up from 38 per cent in 2016. The EU workforce could shrink by up to 18.8 million people by 2050.

A new report from Migration Policy Institute Europe, From Afterthought to Asset (October 2026), puts these figures at the centre of Europe's skills debate. Its diagnosis is one we recognise. Europe has built serious machinery for attracting talent, then largely leaves people on their own once they arrive.

Integration was built for someone else

In most of Europe, integration policy was designed with refugees and other migrant groups in mind, not labour migrants. MPI Europe's 2026 mapping of national integration strategies found that only five member states, Austria, Belgium, Germany, Greece and Slovakia, even mention labour or skills shortages. Those five focus on activating migrants already in the country. None treats integration as a way to attract or keep new workers from abroad.

The practical rules tell the same story. Most EU member states have no integration requirements for labour migrants at all. Where obligations do exist, they usually apply when someone moves to long-term residence, typically after five years or more. By then the decision to stay or leave has already been made.

What support labour migrants can get tends to be small in scale, short term and fragmented. It often comes through specific visa schemes or recruitment projects rather than mainstream services. The authors sum up the result well: integration remains an afterthought in talent policy rather than a central asset.

There are signs of change. The European Commission's 2025 Union of Skills strategy is the first EU document to frame integration as a precondition for attracting talent, not a downstream social concern. Yet the EU's own instruments remain inconsistent. The recast Blue Card Directive treats integration conditions as a barrier to waive, and the new EU Talent Pool stops at recruitment, with no support once workers arrive.

What actually makes people stay

The report is careful about what the evidence can and cannot show. Research on whether integration policy shapes where migrants choose to go is still limited and mixed. The evidence on retention is much stronger, and it points in a consistent direction.

Language is one pillar. Being able to speak the local language helps people move through their workplace, access training, progress in their careers and take part in civic life. The second pillar is social. Everyday contact with neighbours, membership of community organisations and access to mainstream social networks build the trust, predictability and sense of belonging that research links to stronger intentions to remain.

Timing matters as much as content. Insights from Austria's WORK in AUSTRIA platform suggest the first weeks and months are the most volatile stage of a labour migrant's journey. People are far more likely to leave if settling in feels slower or harder than expected. Support that only arrives years later reaches those who struggled through, and misses those who already gave up.

Where integration is built in from the start, the results show. Germany's Triple Win programme combines predeparture language training with ongoing integration and recognition support for international nurses. Its most recent internal evaluation of 292 nurses found 91.4 per cent still with their original employer after at least six months in Germany.

Two further findings deserve attention. Integration is a two-way process, so colleagues, managers and neighbours need support to adjust too, not only newcomers. And decisions to stay are usually made by whole households, which means the partner's experience of the city matters as much as the worker's. Integration policy cannot fix wages or working conditions, but it can remove much of the friction that drives people away.

Where attraction ends, belonging has to begin

Talent portals, relocation packages and welcome centres do valuable work. But most of them stop once the paperwork is done. MPI Europe argues that the main weakness of these systems is not their format but their fragmentation. They should act as entry points into a wider ecosystem that carries people from arrival into everyday life.

That wider ecosystem is where belonging is built. People don't stay for a country. They stay for a corner of the city where someone knows their name. This is the layer ELSSSE is designed to provide: newcomers and locals meeting in the same neighbourhood projects, contributing skills and time, and being recognised by the people around them.

For cities, this turns integration strategy into something measurable. ELSSSE tracks participation, contribution and retention over time, neighbourhood by neighbourhood, using real activity rather than surveys. That answers a gap the report itself flags: many promising integration projects are too small or too new to show their effect on who stays.

For employers and universities, it extends support beyond the office and the campus. The report notes that employers are closest to international hires day to day, yet have mostly been bystanders in integration. Belonging in the wider city is the retention lever most of them have not yet pulled.

There is a wider benefit too. MPI Europe points out that visible integration helps sustain public support for labour migration at a time of rising scepticism. When newcomers contribute to their neighbourhoods, that contribution is seen by locals, not just counted in statistics.

Europe invests heavily in attracting talent and far too little in making people want to stay. If you work on integration, talent attraction or retention in a city or organisation, talk to us about building the belonging layer. Explore what ELSSSE offers cities and governments and employers and universities.

Sources

All figures are drawn from Jasmijn Slootjes and Abigail Goldfarb, From Afterthought to Asset: Leveraging integration policy to attract and retain talent (Brussels: Migration Policy Institute Europe, October 2026), and the studies it cites. These include Mile Vasić et al. (2023) on employer retention, Statistics Netherlands (2025) on knowledge migrants, the European Investment Bank Investment Report 2024/25, and German Federal Employment Agency and GIZ materials on Triple Win (2025).

ELSSSE material: The Solution, For Cities & Governments, For Organizations.

More insights