Since the start of 2019, the foreign-born labor force in America has grown by 9%, with similar increases seen in Britain, Canada, and the euro zone. This significant migration boom has led to record-breaking numbers of people moving to countries like America, Canada, Britain, and Australia. Last year, 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, with Australia and Canada experiencing more than double their pre-covid levels of net migration, and Britain seeing an intake that is 3.5 times higher than in 2019.
The large movements of people have significant economic consequences as they contribute to the growth of economies like America’s by making it 2% larger over the next decade than previously forecasted. However, immigration goes beyond just GDP as it influences factors like 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.