An unprecedented wave of migration is currently sweeping the world, according to an article in The Economist. For example, last year 1.2 million people moved to the UK, this is an absolute record. Spain also has a record migration rate. 1.4 million people are expected to move to the US this year. Analysts say – this is a real migration boom.
Many world governments are specifically trying to attract more people to their countries. For example, Canada has a clear goal of accepting 1.5 million new residents in 2023-2025. Germany and India recently signed an agreement, allowing more Indians to work and study in Germany. Australia is extending the period of time some students can work after graduation from two to four years.
Many countries have now accepted Ukrainians, who are fleeing Russian aggression. Even countries, that have hither to been hostile to migration, including Japan and South Korea, have become more welcoming to outsiders in an effort to counteract population aging.
Economies, that host large numbers of migrants, tend to benefit in the long run. Research shows, that migrants help build trade and investment links between their home country and their host country. And younger workers bring in more tax revenue. In addition, high levels of immigration cool the labor market and slow down inflation.
Having more people does increase the supply of labor, which, other things being equal, lowers wage growth.
Migration is projected to drop slightly next year. However, there is reason to believe, that the historically high level of newcomers will remain elevated for some time to come. One factor is a more benevolent government policy. More importantly, today’s migration breeds tomorrow’s migration as new arrivals bring children and partners with them. Soon, the rich world’s anti-immigrant turnaround in the late 2010s will seem like an aberration.
