Migration: One Solution To Labour Shortages?

The growing strain from an ageing workforce and declining birth rates has resulted in significant labour market tightness across many OECD countries. This situation has intensified competition, and in this context, it is important to understand how evolving migration routes impact job markets and what challenges employers face when hiring foreign nationals.

Migration is a complex phenomenon and analysing the unadulterated effect of it on economies is challenging, if not virtually impossible. The overall impact depends on numerous factors, including whether or not migration is controlled by governments. Nevertheless, this much is clear: in markets experiencing labour shortages, workforce immigration can partially alleviate the situation.