The world's leading economics may not have enough workers to drive growth and keep inflation under control and migrant workers may be able to fill in the gaps, policymakers said last month at the Federal Reserve's annual gathering in Jackson Hole, Wyoming.
The discussion came, according to the Financial Times, as the several of the countries represented at the Aug. 21-23 Jackson Hole Economic Policy Symposium have seen their populations age, birth rates slow and governments crack down on immigration.
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Central Bankers Express Concerns Over Aging Populations
The population in the U.S. has also been aging, with approximately 11.6 million older workers currently in the workforce, according to the Bureau of Labor Statistics. The older workforce has quadrupled since the mid-1980s. Pew has reported that workers age 75 and older are the fastest-growing group in the U.S.
One reason for this is the lower birth rates in the U.S. and other parts of the world, including the EU. With fewer babies being born, an aging workforce may seem like an inevitability.
However, migrant workers can help mitigate some of the potential labor shortages that lower birth rates may cause. In Japan, foreign workers account for only 3% of the labor force, but were responsible for half the labor force growth, according to the FT.
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Countries Crack Down On Immigration
Despite the concerns over potential labor shortages, several countries have been cracking down on immigration and deporting those already inside their borders. For instance, the U.S.has already deported over 332,000 illegal immigrants during President Donald Trump's second term, the New York Post reported, citing the Department of Homeland Security.
The U.S. is not alone in its immigration crackdown. In 2023, over 480,000 people were ordered to leave the EU as part of a crackdown on migration. While few people were actually forced to leave, EU leaders aim to manage migration more effectively.
Deportations have also increased in the EU, according to Politico. In 2021, about 7,500 people were deported per quarter. However, deportations increased to over 270,000 in 2024.
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Foreign Workers Are Key to Economic Stability
Fewer workers typically means less production of goods and services, and this worries the leaders who met in Jackson Hole. Christine Lagarde, president of the European Central Bank, says the euro area will have fewer than 3.4 million people of working age by 2040 without an influx of migrant workers.
Bank of England Governor Andrew Bailey says that by 2040, 40% of people in the U.K. will be older than the standard working age, the FT reported.
These numbers indicate the need for more workers to come from abroad. If countries cannot increase their labor force, it may threaten prices and economic stability in numerous countries.
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