Study says immigration has strengthened economies in wealthy countries

A new study has found that immigration has made a significant contribution to economic growth in many wealthy countries over the past three decades.

A new study has found that immigration has made a significant contribution to economic growth in many wealthy countries over the past three decades. The research concludes that nations with higher levels of immigration have benefited from stronger productivity, greater investment and improved economic performance despite ongoing political debates over migration.

The findings will be presented next week at the European Central Bank Forum on Central Banking in Sintra. The research examined data from dozens of member countries of the Organisation for Economic Co operation and Development and found that immigration has played a major role in supporting economic growth, particularly as many developed nations face ageing populations and declining birth rates.

According to the study, most immigrants arriving in these countries were highly skilled workers who helped increase labour productivity. Researchers found that countries receiving larger numbers of immigrants experienced noticeable improvements in economic output per worker during the years that followed.

The study was led by University of California Davis professor Giovanni Peri. He said the evidence showed that higher immigration rates were consistently linked with stronger productivity growth and increased investment. The research also found that the economic benefits continued over time rather than disappearing after the initial rise in immigration.

Data used in the study showed that the number of immigrants living in OECD countries increased from about 25 million in 1990 to around 100 million in 2024. During the same period, many developed countries experienced negative population growth among their native populations, making immigration an increasingly important source of workers.

Researchers estimated that when immigrants make up an additional one percent of a country’s population, economic output per worker rises by about 1.2 percent within five years and by nearly 1.9 percent over a decade. These gains were linked to higher levels of investment and stronger economic activity across different sectors.

The findings are particularly important for Europe, where population decline has become a growing concern since 2015 and accelerated after the Covid 19 pandemic. The study suggests that immigration has helped offset labour shortages and supported long term economic growth in several European countries.

Spain was highlighted as one of the strongest examples. Between 1990 and 2024, the share of immigrants in the adult population increased by 15 percentage points. Researchers estimate that this rise may have contributed to nearly one third of the country’s growth in economic output per worker during that period.

The United Kingdom also recorded significant gains. Immigration increased by around 10 percentage points of the population between 1990 and 2024. The study estimated that almost one fifth of the country’s growth in output per person could be linked to the arrival of immigrant workers.

Researchers also rejected the argument that the benefits of immigration decline as more people arrive. They pointed to countries such as Canada and Australia, which have large foreign born populations while continuing to experience positive growth in productivity and investment.

The study concludes that many wealthy countries still have the capacity to welcome more workers without harming economic performance. Instead, carefully managed immigration could continue to play an important role in supporting growth, addressing labour shortages and strengthening national economies in the years ahead.