Migration has always been central to shaping economies. People leave home for all kinds of reasons—better jobs, education, safety, or simply a shot at a new life. Wherever they are, they bring ideas, skills, and energy that help countries grow. Here’s how migration continues to change economies around the world.
1. Boosts the Workforce and Closes Skill Gaps
In accordance with the International Labour Organization, migrant workers constitute nearly five percent of the total workforce across the globe. These workers provide support to various industries, such as the construction industry, agriculture, production, and health care. Many times, they take jobs that the locals either do not want or are unable to fill.
In developed countries, it is a method for stabilizing populations that are getting older and birth rates that are decreasing. Also, in the developing world, workers frequently acquire experience abroad and return with skills capable of commanding higher pay.
2. Fuels Growth Through Remittances and Global Exchange
Remittances sent around the world totaled over $860 billion or more in 2023—more, in fact, than many countries receive in foreign investment, according to a report by the World Bank. These funds are often spent on food, schooling, or small businesses—in turn bolstering the development and well-being of families and communities.
It’s not just families that are the lucky recipients of that money. It also boosts local economies with higher spending and investment. And when migrants return home, they often bring with them new ideas, skills, and experiences that contribute to the growth of firms and industries. It’s a virtuous cycle that benefits both sides.
3. Drives Innovation and Entrepreneurship
Businesses established by immigrants create jobs for millions globally and are a source of global innovation in all areas, the OECD says. But some of America’s most successful technology companies were created by first- or second-generation immigrants.
Typically, diverse teams function better. Companies that rank the highest for cultural and ethnic diversity are 35% more likely to have financial returns above national averages, according to a McKinsey & Company report. Different backgrounds mean different points of view, and often that leads to better ideas and smarter answers.
4. Tackles Challenges Through Fair Policies and Inclusion
Migration has its pros and cons. Many who have migrated are discriminated against and exploited while being paid only a low salary or else not getting proper access to education or medical facilities. Failure to integrate can be harmful both for the migrants and the countries hosting them, according to the United Nations.
Reasonable labor laws, cultural inclusion, and more ready access to training programs can address that. Those jurisdictions and employers who invest in these areas are those with more prosperous, more inclusive communities. Companies, economies, and societies as a whole are better off viewing migrants as contributors instead of competition.
5. Adapts to a Changing World
The pace at which people are moving shifts quickly. Technology, remote work, and climate change are driving new migration patterns. Global mobility will continue to drive innovation and economic performance around the world as we see countries adjust for job market reconfigurations, according to the International Monetary Fund.
And, in the years ahead, policies that manage migration safely and fairly will be more important than ever. When nations come together to effectively manage movement in a responsible manner, they create opportunities for people—and growth and prosperity for economies everywhere.
Why Migration Will Always Matter
Migration is people moving beyond borders. Migration involves the movement of ideas, skills, hope, and inspiration. Every movement contributes something new to the global narrative. Well-managed migration fills labor gaps, fosters diversity, and enables economies to evolve.
