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The country's dependence on free labor increases immigration three times more than before the pandemic

2024-03-05 11:02:30Kosova&Bota SHKRUAR NGA REDAKSIA VOX

The country's dependence on free labor increases immigration three times

As immigration reaches record levels around the world, a debate is brewing among economists about whether some industries are too dependent on "foreign hands." Many business owners say that attracting low-skilled foreign workers has become necessary as the local population ages and the labor force shrinks.

For some economists, reliance on imported workers is approaching unhealthy levels in some countries, holding back productivity growth and helping businesses delay the search for more sustainable solutions to labor shortages. Those solutions could include greater investment in automation or more radical restructuring like closing businesses, which are painful but may be necessary in the long run, they say.

The debate is likely to heat up further as Western societies approach a demographic abyss. For the first time since World War II, the working-age population is shrinking in advanced economies. The European Union's working-age population will shrink by a fifth by 2050.

There are ways to offset this trend, such as encouraging older workers to delay retirement. But importing foreign labor is often the easiest option, given the supply of workers available in countries like Latin America or Africa.

Immigration also provides a boost to economic growth, as immigrants increase the population and spend money, even when it is attracted by conservative groups, as is the case in the US and Europe. Immigration is now running two to three times above pre-pandemic levels in major destination countries, including Canada, Germany and the UK.

Three-quarters of farmers and 30% of construction and mining workers in the US today are immigrants. Overall, immigrants made up 18% of the US labor force in 2021, compared with 16% a decade ago, according to the Organization for Economic Co-operation and Development. Despite promises to curb immigration, the UK has seen a 'boom' since leaving the EU in 2020 as businesses scramble to find workers. More than 27% of nurses are foreigners, up from about 14% in 2013.


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