The world is currently witnessing an unprecedented migration boom, with record numbers of people moving to countries such as America, Canada, Britain, and Australia. In the year 2020 alone, America saw 3.3 million more people moving in than leaving, which is almost four times higher than typical levels in the past decade. Canada welcomed 1.9 million immigrants, Britain received 1.2 million, and Australia saw 740,000 new arrivals. These numbers are all record-breaking for each country and have significant economic consequences.
The large movements of people have a profound impact on economies, with the foreign-born labor force in America growing by 9% since the start of 2019 and around a fifth in Britain, Canada, and the euro zone. The surge in immigration to America is expected to make its economy 2% larger over the next decade than previously forecasted, contributing to its strong economic growth. However, immigration goes beyond just GDP and influences factors such as inflation, living standards, and government budgets.
An important aspect of the recent wave of immigrants is that a larger proportion of them are low-skilled compared to previous arrivals. This shift has significant implications for labor markets and could lead to increased competition for jobs among low-skilled workers in certain industries. Governments will need to adapt their policies accordingly to ensure that immigrants can contribute positively to their economies while also addressing any negative effects on existing workers or communities.