WASHINGTON, United States (AFP) — Ageing populations in advanced economies drain the labour force and could slow economic growth, but allowing an influx of immigrant workers could counteract that decline, the International Monetary Fund said Monday.
IMF economists acknowledged that governments face political backlash over immigration.
Meanwhile, several developing countries suffer from brain drain — where much of their educated labour force emigrate to developed countries.
But their options are limited: Even with policies to help sustain a steady supply of workers they will not be able to stave off the inevitable as older workers retire and leave the labour force.
The report encourages immigration for economic reasons and comes at a time when many developed countries face a surge in anti-immigrant sentiment.
US President Donald Trump has ordered National Guard troops to patrol the border with Mexico.
European countries are struggling with a wave of discontent against migration from war-torn Syria, and Britain is exiting the European Union in part due to voters’ concerns about open borders.