Migration flows and a shrinking workforce in the eurozone

In most eurozone countries, the trend is towards an ageing population and a fall in birth rates. In the long term, these two mechanisms tend to reduce the size of the working-age population and therefore the potential labour supply. Immigration and the presence of foreign populations can be an answer to the shortage of labour. We present an overview of trends over the last two decades for the eurozone’s four major economies: France, Italy, Spain and Germany. In most economies, the arrival of foreign and immigrant populations has had a positive effect in offsetting the decline in the working-age population. That said, this finding can be qualified by qualification levels and integration into the labour market.