Foreign workers a key driver of eurozone growth

Foreign workers drive post-pandemic growth in eurozone: ECB

Robert Besser
13 May 2025, 12:11 GMT+10

Foreign workers a key driver of eurozone growth

Foreign workers have emerged as a critical force behind the euro zone’s economic growth since the pandemic, offsetting the impact of an aging workforce and low birth rates
Over the past three years, foreign workers accounted for half of the region’s labor force growth, easing labor shortages and increasingly filling higher-skilled positions as their education levels rise, the ECB said
The findings contrast with political narratives in several European countries, where anti-immigration sentiment has gained traction

FRANKFURT, Germany: Foreign workers have emerged as a critical force behind the euro zone's economic growth since the pandemic, offsetting the impact of an aging workforce and low birth rates, according to a European Central Bank (ECB) study released this week.

Over the past three years, foreign workers accounted for half of the region's labor force growth, easing labor shortages and increasingly filling higher-skilled positions as their education levels rise, the ECB said in a blog post authored by senior economists.

"The influx of foreign workers in recent years has secured a robust growth in the euro area labor force, which has somewhat offset the negative demographic trends," the post stated.

The findings contrast with political narratives in several European countries, where anti-immigration sentiment has gained traction. However, the ECB emphasized that as the bloc's population ages and birth rates remain low, foreign workers could be key to sustaining economic momentum.

Germany and Spain saw the most significant influx of foreign workers contributing to labor force growth, while France and the Netherlands also reported notable but smaller contributions. In contrast, Italy's relatively low labor participation rate meant that domestic workers played a more significant role in driving economic activity, according to the ECB.

Despite the rise in foreign workers, unemployment among them has decreased, primarily due to higher education levels, the ECB added.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Birmingham News.

More Information

null in null

Business

Section

Foreign workers drive post-pandemic growth in eurozone: ECB

FRANKFURT, Germany: Foreign workers have emerged as a critical force behind the euro zone's economic growth since the pandemic, offsetting...

Trump trade agreement sends Wall Street soaring

Dow Jones soars 1,161 points as U.S. stocks surge

NEW YORK, New York - U.S. stocks surged on Monday following news that the Trump administration had agreed to a 90-day reduction of...

De-escalations in India, Pakistan, China and U.S. fuel Asian stocks rally

Stocks in Asia surge on India-Pakistan, China-U.S. ceasefires

SYDNEY, NSW, Australia - Stocks in Asia and the pacific have closed significantly higher following ceasefires in India-Pakistan hostilities,...

Toyota warns of 21% profit drop amid Trump tariffs, weak dollar

Toyota sees 21% full-year profit decline as tariffs take a bite

TOKYO, Japan: Toyota Motor Corp is bracing for a 21 percent decline in full-year profit, as the impact of President Donald Trump's...

Nordic, Baltic nations plan offline card payments amid rising risks

Nordics, Estonia launching offline card payment in case Internet cut

HELSINKI, Finland: In response to rising geopolitical risks, Finland, Sweden, Norway, Denmark, and Estonia are preparing to roll out...

Budget airlines struggle as big carriers gain in tough market

Low-cost carriers hit hardest by US travel demand slump

CHICAGO, Illinois: All U.S. airlines are feeling the impact of falling travel demand caused by President Trump's trade war. But low-cost...

United Kingdom

Section

Foreign workers drive post-pandemic growth in eurozone: ECB

Watch latest videos

News RELEASES

Business

Foreign workers drive post-pandemic growth in eurozone: ECB

Trump trade agreement sends Wall Street soaring

De-escalations in India, Pakistan, China and U.S. fuel Asian stocks rally

Toyota warns of 21% profit drop amid Trump tariffs, weak dollar

Nordic, Baltic nations plan offline card payments amid rising risks

Budget airlines struggle as big carriers gain in tough market

United Kingdom

DoorDash to acquire Deliveroo in $3.85 billion deal

British female duo resumes 8,000-mile Pacific rowing challenge

Wall Street surges after UK-U.S. cement deal on trade

UK police conduct investigation after fire erupts at Keir Starmer's London house

After India UK FTA, focus must be on local content to prevent entry of Chinese goods: Report

"If Trump held discussions, they have to say": DMK TKS Elangovan seeks clarification from Indian govt

Movie Review

The Rule of Jenny Pen