Why ISN'T the United States #1 on this list!
The submitted NAICS proposals coupled with future Foreign Labor and Intl. Student Enrollment legislative will place the United States as #1
Countries with Taxes and Disincentives ( Beyond Visa Fees ) to Limit Foreign Labor Exploitation!
These following countries impose measures like levies, quotas, or high compliance costs to discourage over-reliance on foreign labor, with varying success in curbing exploitation.
1) Saudi Arabia
2) United Arab Emirates (UAE)
3) Singapore
4) Canada
5) Australia
6) South Africa
7) France
8) Malaysia
9) Bahrain
10) Indonesia
11) Nigeria
12) Switzerland
13) Egypt
14) Botswana
15) Ghana
16) Kuwait
17) India
18) Oman
19) United Kingdom
20) Qatar
21) New Zealand
22) Japan
23) United States
1. Saudi Arabia Policy: The Nitaqat program, part of Saudization, mandates that private sector companies employ a minimum percentage of Saudi citizens, explicitly prioritizing them over all non-citizens, including expatriates with work permits or residency status.
Mechanism: Companies are rated (e.g., Green, Red) based on citizen hiring quotas. Compliance grants benefits like access to government contracts or streamlined visa processes for other roles. Non-compliance results in fines or bans on hiring non-citizens, functioning as a financial penalty akin to a tax.
Insight: Saudi Arabia’s policy is citizen-centric, with no preferential treatment for non-citizen residents. It addresses high unemployment among nationals and reduces dependence on foreign labor in the private sector.
2. United Arab Emirates (UAE) Policy: The Emiratization initiative requires private sector firms in industries like banking and insurance to hire Emirati citizens over non-citizens, including those with long-term residency visas.
Mechanism: Compliant firms receive financial subsidies or priority in public tenders, while non-compliance leads to fines or restrictions on hiring expatriates. The Ministry of Human Resources and Emiratization enforces these rules, ensuring citizens are prioritized.
Insight: The UAE explicitly favors Emirati citizens, with no provisions granting resident non-citizens (equivalent to green card holders) preferential status, focusing on integrating nationals into a predominantly expatriate workforce.
3. Singapore Policy: The Fair Consideration Framework (FCF) mandates that employers prioritize Singapore citizens for jobs, advertising vacancies on the Jobs Bank for 14 days before considering non-citizens, including permanent residents.
Mechanism: The **Foreign Workereris, while grants like the Jobs Growth Incentive provide salary support for hiring citizens. Permanent residents are secondary to citizens, facing higher levies than citizens but lower than foreign workers.
Insight: Singapore’s policy clearly prioritizes citizens over all non-citizens, including permanent residents, using financial levers to incentivize citizen hiring while maintaining economic competitiveness.
4. Canada Policy: The Labour Market Impact Assessment (LMIA) requires employers to prove no Canadian citizens are available before hiring non-citizens, including permanent residents (Canada’s equivalent to green card holders).
Mechanism: The LMIA imposes administrative costs and delays, making it costlier to hire non-citizens. Some provincial tax credits reward businesses for creating jobs for Canadian citizens, with no equivalent for non-citizens.
Insight: Canadian citizens are prioritized over all non-citizens, including permanent residents, who are treated similarly to foreign workers in the LMIA process, ensuring local labor market protection.
5. Australia Policy: Visa programs like the Temporary Skill Shortage visa require employers to demonstrate no Australian citizens are available before hiring non-citizens, including permanent residents who are not citizens.
Mechanism: The Skilling Australians Fund (SAF) levy is a financial penalty paid by employers sponsoring non-citizens, increasing hiring costs. Grants may incentivize hiring Australian citizens specifically, with funds from the levy supporting citizen training.
Insight: Australian citizens are prioritized over all non-citizens, including permanent residents, to promote local employment and address skill shortages.
6. South Africa Policy: The Employment Services Act and Broad-Based Black Economic Empowerment (B-BBEE) framework prioritize hiring South African citizens, especially from disadvantaged groups, over non-citizens, including permanent residents.
Mechanism: Higher B-BBEE scores, achieved by hiring citizens, grant access to government contracts and tax incentives. Non-citizens, including permanent residents, receive no preferential treatment.
Insight: The policy focuses on empowering South African citizens, with no provisions favoring non-citizen residents, aligning with goals to address economic inequality.
7. France Policy: French labor laws, under the French Labour Code and immigration regulations, require work permits for non-EU/EEA workers and impose a hiring tax on employers for non-EU foreign nationals. EU citizens (including French) have free access to the labor market without such barriers.
Mechanism: Employers must pay a tax to the Direction Générale des Finances Publiques (DGFiP) when hiring or seconding non-EU workers. This tax, along with strict visa and permit requirements, increases costs for non-EU hires. Recent relaxations (e.g., in 2024) simplified some rules but maintained the tax as a disincentive. No direct tax incentives for hiring citizens, but the added costs for non-EU workers encourage prioritizing French/EU citizens.
Insight: France's framework protects its labor market by making non-EU hiring more expensive and bureaucratic, aligning with EU free movement principles while prioritizing citizens and EU nationals over third-country workers.
8. Malaysia Policy: The Employment Act and Malaysia My Second Home (MM2H) program restrictions prioritize Malaysian citizens for employment, particularly in manufacturing and services, over non-citizens, including long-term residents.
Mechanism: Employers must advertise on JobsMalaysia before hiring non-citizens. The Foreign Worker Levy increases costs for non-citizen hires, with exemptions for citizens. Industry quotas limit non-citizen employment.
Insight: Malaysia safeguards citizen jobs, controlling foreign labor to address unemployment and promote local skills.
9. Bahrain Policy: The Labour Market Regulatory Authority (LMRA) enforces Bahrainization, requiring private sector firms to prioritize Bahraini citizens over non-citizens, including expatriates, in sectors like retail and construction.
Mechanism: Quotas mandate Bahraini hiring percentages, with fees for each non-citizen hired. The Labour Fund (Tamkeen) offers subsidies for citizen hires. Non-compliance risks fines or visa restrictions.
Insight: Bahrain reduces reliance on foreign labor, addressing youth unemployment and ensuring citizens benefit from economic growth.
10. Indonesia Policy: The Manpower Act prioritizes Indonesian citizens for jobs, particularly in manufacturing and services, over non-citizens, including permanent residents.
Mechanism: Employers submit a Foreign Worker Utilization Plan (RPTKA) proving no qualified citizens are available. A Compensation Fund Fee (DKP-TKA) increases non-citizen hiring costs. Training subsidies prioritize citizens.
Insight: Indonesia protects local jobs and upskills citizens, limiting non-citizen hires to specialized roles.
11. Nigeria Policy: The Expatriate Quota System under the Immigration Act prioritizes Nigerian citizens, requiring companies to hire locals unless no qualified citizens are available.
Mechanism: Employers obtain an expatriate quota proving a shortage of local talent. Non-citizen hires incur high visa fees, while tax incentives support citizen training and hiring.
Insight: Nigeria empowers its youth by reserving jobs for citizens and ensuring foreign workers fill critical skill gaps.
12. Switzerland Policy: Swiss labor laws prioritize Swiss citizens and EU/EEA nationals over third-country non-citizens, requiring proof of labor market shortages.
Mechanism: Employers advertise vacancies through the Regional Employment Agency (RAV), proving no Swiss or EU/EEA candidates are suitable. Work permit quotas and fees for third-country nationals increase costs.
Insight: Switzerland protects local and EU workers while allowing controlled access for skilled non-citizens, aligning with economic needs.
13. Egypt Policy: Labour Law (No. 12/2003) mandates prioritizing Egyptian citizens over non-citizens, including permanent residents, in private and public sector jobs.
Mechanism: Ministry of Manpower approval is required for non-citizen hires, with fees for foreign work permits. Tax breaks incentivize hiring citizens.
Insight: Egypt addresses high unemployment, particularly among youth, by limiting non-citizen employment to essential roles.
14. Botswana Policy: The Employment of Non-Citizens Act prioritizes Batswana citizens for all job categories over non-citizens, including permanent residents.
Mechanism: Work permits for non-citizens require a labor market test confirming no qualified citizens. Fees for non-citizen hires and mandatory certifications (e.g., Engineers Registration Board) apply.
Insight: Botswana protects local jobs and ensures foreign workers contribute to skill transfer, supporting economic development.
15. Ghana Policy: The Labour Act (Act 651) and Ghana Investment Promotion Centre (GIPC) regulations prioritize Ghanaian citizens, particularly in mining and retail, over non-citizens.
Mechanism: Employers justify non-citizen hires via a labor market test, with quotas limiting foreign workers. Permit fees for non-citizens and tax incentives for hiring Ghanaians apply.
Insight: Ghana maximizes job opportunities for citizens, leveraging economic growth to prioritize local employment and skills.
16. Kuwait Policy: The Kuwaitization program requires private sector firms to prioritize Kuwaiti citizens over non-citizens, including long-term residents, in industries like banking and oil.
Mechanism: Quotas mandate a minimum percentage of Kuwaiti hires, with fines for non-compliance. Subsidies and preferential government contracts incentivize hiring citizens. Non-citizen work permits face high fees and strict conditions.
Insight: Kuwait’s policies aim to empower citizens economically, reducing dependence on expatriates and aligning with national development goals.
17. India Policy: The Employment Exchanges (Compulsory Notification of Vacancies) Act and sector-specific regulations prioritize Indian citizens for jobs, particularly in public and select private sectors, over non-citizens, including permanent residents.
Mechanism: Employers must notify vacancies to Employment Exchanges, prioritizing Indian citizens. Visa restrictions and work permit fees for non-citizens increase hiring costs. Government contracts favor firms employing citizens.
Insight: India’s policies focus on maximizing job opportunities for citizens, addressing unemployment, and limiting non-citizen participation in key sectors.
18. Oman Policy: The Omanization program mandates private sector firms to hire Omani citizens over non-citizens, including expatriates with residency, in sectors like tourism and retail.
Mechanism: Quotas set minimum percentages for Omani hires, with penalties for non-compliance, including visa restrictions for non-citizens. Subsidies and tax breaks incentivize hiring citizens.
Insight: Oman’s policies aim to reduce unemployment among citizens and build a sustainable local workforce, prioritizing nationals over all non-citizens.
19. United Kingdom Policy: The UK’s Points-Based Immigration System and Resident Labour Market Test prioritize British citizens and settled residents (with indefinite leave) over non-citizens for jobs.
Mechanism: Employers must prove no suitable British citizens or settled residents are available before sponsoring non-citizens. The Immigration Skills Charge, a levy on employers hiring non-UK workers, increases costs, while training funds encourage hiring citizens.
Insight: The UK’s system protects local workers by making non-citizen hires more expensive and complex, aligning with post-Brexit labor market priorities.
20. Qatar Policy: The Qatarization initiative mandates private and public sector employers to prioritize Qatari citizens over non-citizens, including expatriates with residency permits, in line with Vision 2030.
Mechanism: Quotas require a percentage of Qatari citizens in certain sectors like energy and finance. Non-compliance results in fines or restricted access to government contracts. Financial incentives, such as subsidies, are offered for hiring citizens.
Insight: Qatar’s policies focus on increasing citizen participation in the workforce, reducing reliance on expatriates, and aligning with national development goals.
21. New Zealand Policy: The Accredited Employer Work Visa (AEWV) program requires employers to prioritize New Zealand citizens and residents with work rights over other non-citizens, particularly for skilled and semi-skilled roles.
Mechanism: Employers must advertise jobs locally and prove no New Zealanders are available before hiring non-citizens. The Labour Market Test imposes administrative hurdles, and visa fees increase costs for non-citizen hires. Training grants incentivize hiring citizens.
Insight: New Zealand’s policies aim to protect local employment opportunities, ensuring citizens and eligible residents are prioritized while addressing skill shortages.
22. Japan Policy: Japan’s labor policies, including the Technical Intern Training Program and Specified Skilled Worker visa, prioritize Japanese citizens for employment, requiring employers to justify hiring non-citizens, including permanent residents.
Mechanism: Employers must demonstrate a shortage of Japanese workers to hire non-citizens. Visa restrictions and administrative costs for non-citizen hires, coupled with strict immigration controls, incentivize hiring citizens. Training programs funded by the government further prioritize Japanese nationals.
Insight: Japan’s framework protects its labor market by limiting non-citizen hires, focusing on preserving jobs for citizens and addressing demographic challenges like an aging workforce.
23. United States Policy: No specific federal policy exists to prioritize U.S. citizens for employment through taxes or levies on non-citizen hires, unlike programs in other countries. Employers must comply with general immigration and labor laws, verifying work eligibility for all employees.
Mechanism: Employers are required to verify work authorization via Form I-9 for all hires, including non-citizens, under the Immigration Reform and Control Act. No specific taxes, levies, or quotas prioritize citizen hiring. Standard IRS payroll tax withholding applies to nonresident aliens (30% unless exempt under tax treaties), but no additional levies or fines target companies hiring authorized non-citizens. No government-funded incentives or training programs explicitly prioritize U.S. citizens.
Insight: The U.S. lacks a structured policy to financially incentivize or mandate citizen hiring over non-citizens, relying instead on general immigration compliance, which does not address wage suppression or job displacement concerns raised in other countries’ frameworks.