The Impact of Immigration on the Global Economy

Immigration has become one of the hot topics in the world lately. With migrants leaving their homes and moving to foreign countries in search of a better life, it has become important to understand the impact of immigration on the global economy. According to the United Nations, there are currently 232 million international migrants worldwide, and that number is only going to increase. In this article, we will discuss how immigration affects the economy globally and analyze its impact using various examples.

Impact on Global Economy

Immigration has a significant impact on the global economy. Among the countries, the impact of immigration on the economy is varied, whether it be good or bad. The impact largely depends on various factors such as education, skill level, background, age, etc. Let us discuss some of the ways in which immigration affects the global economy.

1. Economic Growth

One of the biggest benefits of immigration is that it contributes to economic growth. Immigrants play a significant role in the economic growth of a country. In many countries, immigrants are responsible for starting new businesses, which contribute to the job market and the overall economy of the country. As a result, immigration drives technological innovation and leads to an increase in the gross domestic product (GDP) of the country. However, as we can see in the stats below, the opinions are highly different on a country to country basis.

2. Job Creation

Another impact of immigration on the global economy is that it leads to the creation of jobs. Immigrants often work in low-paying jobs that the locals are not willing to take, such as cleaning, farm work, or factory work. This increases the productivity of the country and leads to the creation of more job opportunities.

3. Higher Wage Rates

The negative impact of immigration on the economy is that it leads to a decrease in wage rates for the locals. However, this is not always the case, as many economists argue that immigration can increase the wages of the locals. According to a report by the World Bank, immigration can increase the productivity of the natives and lead to higher wage rates.

4. Impact on the Aging Population

Immigrants play a crucial role in supporting the aging population in various countries. As the baby boomers are retiring, the demand for healthcare workers and caregivers is increasing, and immigrants are filling this gap. According to a report by the Migration Policy Institute, half of the healthcare workforce in the United States is comprised of immigrants.

5. Impact on the Innovation

Innovation is one of the crucial factors that drive the economic growth of a country. And, the immigrants are the drivers of innovative entrepreneurship and fuel the start-up innovation. According to a report by the National Bureau of Economic research in 2017, immigrants founded 51% of the US national start-ups. This shows how immigrants contribute to the innovation and productivity of the country.

Examples of Immigration Impact on Global Economy

1. The United States of America

The United States of America has always been a classic example of how immigrants can contribute to the growth of a country. According to a report by the National Bureau of Economic Research, immigrants are responsible for a 15% increase in the output per capita in the United States. There are various examples of successful immigrant entrepreneurs in the US, such as Sergey Brin (co-founder of Google), Elon Musk (founder of Tesla), and Bobby Murphy (co-founder of Snapchat).

2. Canada

Canada, with its welcoming policies and approach to immigrants, has benefited from the influx of immigrants for decades. Immigration has been crucial in helping Canada maintain a stable and growing economy. According to a report by the Conference Board of Canada, Immigration accounts for 25% of Canada’s economic growth, which is a significant contribution.

3. Germany

Due to the shortage of workers in the country, Germany has been welcoming immigrants to the country since 2005. According to a report by the German government, immigrants are responsible for the country’s economic growth and contribute significantly to sectors such as health care, IT, and hospitality.


In conclusion, immigration has a considerable impact on the global economy. Although some people argue that immigrants are taking away the jobs of locals and that they are a burden on the country’s resources, the reality is quite different. Immigrants play a significant role in the economic growth of the country and contribute to innovation, increase productivity, and create jobs. By welcoming immigrants, countries can create a diverse population that brings with it culture, knowledge, and skills that can drive economic growth. Therefore, governments around the world must create policies that are welcoming to immigrants and provide opportunities for their full integration into society.

If you have any questions, please ask below!