Migrants contribute to economic growth

Growth is the basic requisite for the well-being of an economy and the population. One way of finding out how much an economy is growing is to calculate its production potential. The production potential corresponds to the amount of all the manufactured goods and services and basically depends on three factors: the number of people producing goods and services, the time required for production and how productive the workers and machines used are. Labour-related immigration has a positive effect on production potential in two ways: firstly, immigration raises the number of workers and more goods and services can be produced. Secondly, ongoing studies have shown that migrants who come to find work are better qualified than national workers and consequently raise work productivity. In a calculation model, the German Council of Economic Experts has estimated that migration in general will have significantly positive growth effects on medium-term production potential in the next few years. If only qualified immigrants were taken into account in this kind of estimate, the results would be even more positive.