Can Europe keep growing if borders close? European Central Bank President Christine Lagarde spoke candidly at Jackson Hole, warning that foreign workers drove half of eurozone job growth since 2022, even as their share of the workforce is just 9% (Investing.com).
- Without migration, German GDP would be 6% lower than 2019 levels.
- Across the bloc, employment grew 4.1% since late 2021—matching GDP gains and cushioning against higher interest rates and energy shocks.
But these economic wins are sparking a political backlash. As net migration pushes the EU population to a high of 450 million, governments from Berlin to Rome are restricting arrivals—despite evidence that growth prospects would be much dimmer without ongoing flows of new workers. The question: Will Europe’s need for labor outweigh surging populist pressure to close borders?
