All articles tagged with #labour shortages
Top central bankers from Japan, Europe, and the UK warn that aging populations in rich economies will require increased immigration of foreign workers to sustain economic growth and stabilize prices, as low birth rates and longer lifespans lead to labour shortages and higher dependency ratios, with implications for inflation and productivity.
As President Vladimir Putin prepares for re-election, Russia's economy is experiencing a recovery in growth, aided by the evasion of Western oil price caps. Despite challenges such as labour shortages, inflation, and high interest rates, Russia's export-focused economy has fared better than expected under sanctions. However, the country faces a shortage of skilled workers and needs to address issues like weak currency, high inflation, and interest rates. The central bank is expected to hike rates further to control inflation. While the economy is rebounding, supply-side constraints may limit growth, and there are concerns about overheating and rising inflation ahead of the election.
Germany's economy is facing challenges such as inflation, interest rate rises, sluggish recovery in its key export market China, and high energy costs. The country is predicted to finish the year in the red, with the government being the only one left predicting GDP growth. The push to achieve climate neutrality by 2045 is expected to bring a new economic era, but some experts are sceptical about seeing any short-term benefits. The country is also held back by structural weaknesses such as slow bureaucracy, low levels of digitalisation, and an ageing population that could lead to labour shortages.
Net migration to the UK reached a record high of 606,000 last year, driven by non-EU workers and special visa schemes for Ukraine and Hong Kong, according to the Office for National Statistics. Prime Minister Rishi Sunak promised to reduce arrivals, but faces difficulty doing so at a time of acute labour shortages. The increase in migration highlights the difficulty of balancing post-Brexit immigration policy, with pressure to curb migration from some voters and labour shortages in key sectors. The government has announced reforms to remove the right for some international students to bring family members into the UK, but has not set a specific target for net migration.
Canada's population grew by over a million people in 2022, marking its highest annual population growth rate since 1957, with nearly 96% of the growth attributed to migration. The surge in immigrants was fueled by government efforts to ease labour shortages, but it could also pose challenges related to housing, infrastructure, and service delivery. Prime Minister Justin Trudeau has made efforts to attract more immigrants to the country to fill a gap in its economy due to aging Baby Boomers, with a plan to welcome 500,000 immigrants a year by 2025.