The rich world is experiencing an unprecedented migration boom, with record numbers of people moving to countries like America, Canada, Britain, and Australia. Last year, 3.3 million more people moved to America than left, which is almost four times higher than typical levels in the 2010s. Canada welcomed 1.9 million immigrants, Britain welcomed 1.2 million, and Australia welcomed 740,000, with each country seeing their highest numbers of immigrants ever.
Net migration in Australia and Canada is more than double what it was before the Covid-19 pandemic, while in Britain the intake is 3.5 times higher than in 2019. These large movements of people have significant economic consequences. According to the IMF, the foreign-born labor force in America is 9% higher than it was at the beginning of 2019, and in Britain, Canada, and the euro zone, it is around a fifth higher.
America’s immigration surge is projected to increase its economy by 2% over the next decade. The influx of workers also contributes to the country’s strong economic growth. However, the impact of immigration goes beyond just GDP, affecting inflation, living standards, and government budgets. It is important to note that more of the recent arrivals are low-skilled, which can have implications for the economy and society as a whole.