Winning cities in the war for talent 

About the OECD #ResilientPlaces blog series 
In an era of unprecedented economic, environmental and geopolitical changes, local and regional leaders are uniquely placed to turn these changes into opportunities to improve the well-being of all citizens, strengthen resilience and boost competitiveness. Following the OECD Regional Development Policy Ministerial Committee meeting in Warsaw, Poland (19–20 May 2025), the OECD Champion Mayors, local and regional leaders, as well as stakeholders, continue to share innovative solutions to reinforce local and regional resilience in this blog series.

When the COVID-19 pandemic struck five years ago, everyone knew that nothing would be the same. But there was one major surprise: after the “Great Lockdown” of Spring 2020, it took only two years for international migration to reach record levels. In fact, more than one billion people crossed borders in 2022 alone.

IATA has just released its 2025 forecast that anticipates five billion airline passengers. There is no better reminder of humankind’s innate instinct to connect than the recovery of human mobility since COVID-19. 

The rise of the global city 

It is also human nature to commune in cities. Here too we have witnessed a great reset that has given rise to an emerging roster of winning cities as the swelling global mobile class redistributes itself motivated by quality of life, climate, culture and affordability. These include: 

• Major metro areas such as Tokyo and Los Angeles, with populations greater than ten million people, are leading global economic centres. 
• Singapore, Miami and Milan, with populations around six million, are de facto commercial capitals and wealth magnets for entire regions. 
• With just over four million residents each, Berlin and Dubai have lured legions of digital nomads. 
• Lisbon, Toronto and Abu Dhabi metropolitan areas, each with about three million people, are now well-established hubs for tech and finance entrepreneurs from around the world. 
• Zurich, Vienna and Vancouver, perennially ranked as among the world’s most livable cities, each have more than two million residents in their metro areas. 
• Once destinations for short holiday respites, tropical Bali and Ph.uket have become the year-round home of choice for some . 

What they all have in common is that they are truly global cities now, melting pots that are home to more diverse demographics than ever before. Historically, only imperial metropoles such as London and New York held this esteemed status. But in the post-Covid world, all cities must compete relentlessly to attract and retain talent.  

The alchemy of city appeal 

Municipal authorities – often with government support – are working hard to compete and cultivate the most appealing environment for their own nationals as well as to attract global talent.  

Their first priority is infrastructure: quality roads, railways, bridges, tunnels, a modern and well-connected airport, public transportation, and of course fast Internet access. Add to this the “soft” infrastructure of hospitals, schools, policing and emergency services. There is also the regulatory environment including digital financial services, efficient business registration and transparent rule of law.  

Crucially, there must be sufficient housing: a lack of affordable housing has become the universal urban crisis, one that only a handful of cities have successfully solved.  

Both infrastructure and housing need to be climate-proof, meaning back-up supplies of alternative and renewable energy, air-conditioning for heat waves, water storage for droughts, flood control measures and more.  

The most desirable cities today also possess a certain alchemy, an intangible civic identity that underpins their brand. This comes both from the unique spirit of the local citizens but also from giving new arrivals a meaningful sense that they are stakeholders in society. This is both granted and earned. Foreigners should be welcomed but also assume a sense of duty.  

Lisbon’s allure 

Lisbon is quite literally the world’s first truly global city, the port from which the Age of Navigators originated. Five centuries later, it is pioneering new initiatives to boost its appeal, from extensive construction of municipal housing, to making public transportation free for the young and the elderly, and launching a massive system of drainage tunnels and aqueducts to prevent floods and recycle rainwater.  

But the secret to any city’s success goes beyond public policy. Mayors need to become the ambassadors of inspiring new narratives that mobilise both locals and foreign talent. Lisbon’s success doesn’t stem from its food, friendly people, or warm weather alone. Instead, its strategy lies in balancing three key elements: a thriving tech and innovation scene, a vibrant cultural landscape, and support for the vulnerable.

On the economic front, Lisbon launched Europe’s most ambitious innovation programme, the Unicorn Factory. Focused on scale-ups, it attracted 14 “unicorn” companies and 70 tech hubs, currently employing 15,000 people. In 2023, the city was awarded the prestigious European Capital of Innovation prize, the “Nobel for innovative cities.”  

Culturally, the city has embraced a ‘do-it-yourself’ approach, offering new spaces in every parish for citizens to showcase their art and experiment, thus nurturing the rise of homegrown talent.

Simultaneously, the city has managed to attract major international events, such as the renowned Tribeca Festival which had its first edition outside New York in 2024.  

On the social side, the city has implemented a disruptive concept: the “Local Welfare State”. Filling in for the demise of traditional welfare states, cities are better placed to understand citizen needs and are more agile in addressing them. Lisbon’s new free healthcare plan for the elderly stands as the perfect example of the city’s audacious approach. 

Staying ahead of the pack 

As we look backwards and forwards simultaneously, even obvious lessons are not guaranteed to be implemented by all of today’s leading cities. We have to guard our position vigorously even as we become role models for others. Geopolitics, climate change and competition itself could knock any of the current winning cities off their perch. Mobile talent has a choice – and the best cities make it obvious which place to choose.  

For more insights, see the OECD’s Indicators of Talent Attractiveness.