Is Migration an Essential Driver of Global Growth and Innovation?

New Delhi, July 26 (NationPress) The role of migration extends far beyond merely supplying labor; it actively fosters innovation and serves as a crucial catalyst for growth, demographic resilience, and cultural unity, as highlighted in a report by One World Outlook, a contemporary digital platform.

Authored by migration policy expert Giuseppe Savino, the report emphasizes that amid the rising tide of anti-immigration sentiments in Europe and the United States, it is essential to move past fearmongering and consider the real implications.

In the US, immigrants are 80 percent more likely to launch businesses compared to their native-born counterparts. Remarkably, more than 40 percent of Fortune 500 companies were established by migrants or their descendants, including tech powerhouses such as Google, Tesla, and Apple.

Furthermore, a considerable number of patents filed in the US feature at least one foreign inventor, showcasing the reliance of the nation’s science and engineering sectors on international students.

As stated in the article, “In 2022, global remittances reached $831 billion – a staggering 650 percent increase since the year 2000. These funds, sent by migrants to their families, frequently surpass official development assistance and sometimes even foreign direct investment.”

In Europe, the International Monetary Fund (IMF) reports that two-thirds of new jobs created in the EU between 2019 and 2023 were occupied by non-EU migrants.

These individuals are not “stealing jobs”; they are addressing structural vacancies that neither automation nor the local workforce can fulfill.

A 2016 study by the McKinsey Global Institute indicated that although migrants represent just 3.3 percent of the global population, they contribute 9.4 percent to the global GDP, amounting to approximately $6.7 trillion.

“In the United States alone, their contribution to GDP was $2 trillion,” the author noted.

According to a 2024 IMF report, migration is expected to boost the region’s potential GDP by 0.5 percent by 2030.

This figure is significant as it accounts for half of the anticipated growth. Without migration, Europe’s already limited economic outlook would be considerably worse, the article contends.

In the US, immigrants are increasingly vital to economic vitality.

“In 2023, more than 31 million immigrants – constituting 19 percent of the workforce – were engaged in the labor market. Their participation rate of 67 percent surpassed that of native workers, who stood at 62 percent. In essence, migrants work harder, pay more taxes, and stimulate domestic consumption,” the author explained.

It is essential to note that immigrants typically do not displace native workers; instead, they often assume physically demanding roles or jobs that locals are unwilling or unable to fill.

“In aging societies such as Germany, Italy, and Japan, this complementarity is not merely a luxury – it is a necessity. Without migrant labor, hospitals would face staffing shortages, supply chains would be disrupted, and entire sectors – from agriculture to eldercare – would be in jeopardy,” the article stated.

The Organisation for Economic Co-operation and Development (OECD) has cautioned that without the increased inclusion of immigrants, women, and older workers, GDP per capita growth among its member states could decline from 1 percent annually (2000-2020) to just 0.6 percent by 2060.

In contrast, inclusive migration policies could contribute at least 0.1 percentage point to annual growth, the report added.