Advanced economies will suffer if immigration is halted
UN data shows that halting immigration will drastically reduce the potential working population of G-7 nations
London — It may have fallen out of political favour, but a world without migration looks bleak for advanced economies. Analysis of UN data by Fitch Ratings shows that halting immigration would drastically reduce the potential working population of Group of Seven (G-7) nations, leaving ageing societies more dependent on a smaller labour force and resulting in greater financial stress on pension systems and potentially slower growth. Under the UN’s base case scenario — current immigration levels being maintained until 2050, followed by a gradual reduction of half by 2100 — Canada would see its potential workforce boosted by 11%. But stopping inflows completely would see it drop by 43% in the same period, Fitch says. Without new immigrants, the US would be faced with a 16% reduction in its working age population by the end of the century, and the UK — where concern about levels of foreign workers featured prominently in last year’s Brexit vote — would experience a 20% drop. While few p...
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