For decades, the US has been the world’s main magnet for talent. Students, entrepreneurs, and skilled workers flocked to the world’s biggest economy for its universities, investment opportunities, and strong job market. That advantage, however, is now fading.
Rising education costs, tighter visa rules, and political uncertainty have made the US less appealing to the people who helped drive its growth. According to the latest IMD World Competitiveness Ranking, while the US remains competitive overall, its scores for university education, talent attraction, and retention have declined in recent years, with Singapore, the Netherlands, and Ireland now ranking higher.
It’s less a decline than a shift. Global flows of talent are changing, with more regions now competing with the US for people and their skills. IMD’s data show that Canada, Singapore, and the United Arab Emirates are drawing more of the talent that might previously have looked to the US. Malaysia has also improved in its overall ability to appeal to foreign talent.
The movement is driven by practical factors. US visa rules and policy uncertainty have created barriers for foreign students and workers who want to move there. Over the past two decades, tuition and fees at US public universities have increased by about 80%, while household incomes grew by around 16%.
And while US companies remain innovative, their ability to hire the people who could drive that innovation has weakened, as it has become harder for foreign graduates to stay and work compared with other countries. The annual cap on new H-1B work visas has been fixed at 85,000 since 2006, even as applications have risen sharply. Nearly half a million were filed last year, far more than can be filled.
In the meantime, many economies have built faster and clearer routes for skilled people to study and work, although some, such as Canada and Australia, are tightening certain rules in response to rising migration and housing pressures.
IMD data show that scores on brain drain – a measure of how secure countries feel about retaining talent – have fluctuated across several economies. The US, however, recorded one of the sharpest declines of all between 2024 and 2025.
Other economies are responding in different ways:
These four nations show there is no single model for drawing talent, but all rely on clear rules, stable governance, and strong links between education and employment – the same strengths that used to set the US apart.
The redistribution of talent is also visible in higher education. Business schools and universities outside the US, particularly in Europe and Asia, are reporting stronger demand from international applicants, including Americans. In particular, Europe’s tradition of openness and political stability has become a selling point for students wary of visa limits or social tension in the US. IMD has also benefited from this shift.
The movements matter because innovation often grows where skilled people choose to live and work. When such workers move, they share ideas and expertise that benefit others around them – an effect economists call “knowledge spillover.”
This pattern can be seen in several economies. Canada’s tech hubs in Toronto, Ottawa, and Vancouver have grown strongly in recent years, supported by steady inflows of skilled workers, though new limits on student visas are likely to slow that growth in the years ahead.
Singapore has become a base for banks and tech firms managing operations across Asia. The UAE is spending more on new industries such as artificial intelligence, while Malaysia is trying to grow its electronics and digital services sector.
The US still spends more on research and development than any other country, and remains among the leaders in scientific output, though other economies – notably China – are narrowing the gap. Higher costs and visa limits have made it harder for companies to hire and grow, especially those that rely on skilled workers.
For foreign workers, policy is now more targeted, focusing on sectors such as healthcare.
IMD data suggest these shifts are unlikely to reverse soon. Canada, for one, remains open to skilled workers even as it caps student numbers. The country has tightened rules for international students after a sharp rise in enrolments, to ease housing pressure in big cities. Students can still work up to 24 hours a week, helping them find jobs after graduation.
For foreign workers, policy is now more targeted, focusing on sectors such as healthcare. Any impact from these changes may show up in future IMD data.
For many people, moving is no longer just about career prospects but about quality of life. Safety, stability, and infrastructure now matter as much as pay, and in these areas, several other countries match or beat the US.
This does not mean the world’s biggest economy is in decline. US universities and tech companies are still among the best globally, and the country still attracts a lot of investment. But the US now faces much stronger competition for global talent.
The global map of talent has changed, and it’s unlikely to shift back anytime soon.
Entry-level roles give new recruits an opportunity to develop intuition and judgment. But a lack of humility could be stunting the development of future leaders, argues IMD’s Katharina Lange. ...
ABB Sweden’s 120-year-old graduate trainee program has survived wars, crises, and industry upheaval. What does its endurance reveal about building talent for the long term?...
Multigenerational teams bring competitive advantages. It’s vital to tap into the wisdom and experience of older workers, urges Shelley Zalis....
Audio available
As women live longer, society must rethink careers and leadership to unlock a longevity-equality dividend that enables women to contribute and lead at every life stage....
Audio availableExplore first person business intelligence from top minds curated for a global executive audience