Europe’s Economy Can’t Grow Without Migrants, Lagarde Warns

The European Union’s economy would have looked far weaker after the pandemic without foreign workers, European Central Bank chief Christine Lagarde said Saturday, warning policymakers not to ignore migration’s role even as it fuels political tensions.

Speaking at the U.S. Federal Reserve’s annual symposium in Wyoming, Lagarde said an influx of foreign labor helped the eurozone absorb successive shocks like soaring energy costs and record inflation, while keeping growth and jobs intact. Employment in the bloc expanded by 4.1 percent between late 2021 and mid-2025, nearly matching gains in gross domestic product (GDP), she noted.

“Although they represented only around 9 percent of the total labor force in 2022, foreign workers have accounted for half of its growth over the past three years,” Lagarde told the gathering of central bankers. Without that contribution, she added, “labor market conditions could be tighter and output lower.”

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{snip} Net immigration pushed the EU’s population to a record 450 million last year, even as governments from Berlin to Rome move to restrict new arrivals {snip}

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