As populations age in many developed nations, policymakers face growing pressure to design effective migration frameworks that support economic stability. With shrinking workforces and rising dependency ratios, immigration can play a crucial role in balancing labor supply and sustaining public services. Recent analysis from CEPR explores how strategic migration policies can mitigate demographic decline, boost productivity, and maintain fiscal sustainability in countries experiencing low birth rates and longer life expectancy. The study highlights successful models where targeted entry programs have filled critical skill gaps, particularly in healthcare and technology sectors. It also underscores the need for integration policies that ensure newcomers contribute fully to the economy while benefiting from social inclusion. Sustainable approaches combine long-term planning with flexible regulatory systems to adapt to changing demographic trends.
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How to manage migration in an ageing country CEPR