Though the economic future of developed countries may seem grim, the global perspective is more promising. Despite decreasing fertility rates, women still have more than 2.1 children each on average, thus contributing to an increasing global population and a growing worldwide workforce. While the United Nations predicts that the global population will likely keep growing, the shaded region indicates that they recognize the possibility of continued fertility rate depression and a potentially shrinking population.
Because of this, immigration, especially of working-aged individuals, could help abate the imminent struggles of developed countries. The UN’s Department of Economic and Social Affairs considers replacement migration a promising potential solution. Ironically, anti-immigration mentalities have taken a stronghold in many of these developed nations. Trump supporters in America and Brexit supporters in the United Kingdom are two prominent examples.
While the exchange of capital and working-age people between countries could be a solution to the mismatch of supply and demand, integrating migrant workers into local economies is much easier said than done. Issues such as language barriers, market flexibility and political agendas can greatly affect the extent to which migrants can help, or hurt, local markets.
However, aside from financially incentivizing couples to have children, as Japan has done, promoting immigration and increasing the flexibility of labor markets seems to be the most promising way to help future economies of developed, low-fertility nations.
