Catherine Friday
In the middle of the 19th century, governments in both Australia and Argentina — two young, ambitious and fast-growing nations — faced a similar challenge: they lacked the workforce needed to develop their economies and meet their full potential. The solution in both countries was to encourage immigration.
Australian authorities subsidised the passage of thousands of Europeans, while Argentina’s 1853 constitution mandated that the “federal government will encourage European immigration and may not restrict, limit, or burden with any tax whatsoever, the entry into the Argentine territory of foreigners who arrive for the purpose of tilling the soil, improving industries and introducing and teaching arts and sciences.”
The world’s advanced economies still rely on migrants to drive economic growth – especially in many Western countries where there are ageing populations and lower birth rates. In Spain, for example, central bank analysis suggests that immigrants contributed over 20% to the national economy’s 3% GDP per capita income growth from 2022 to 2024. One famous 1996 economic study even coined the term “immigration surplus” to describe the net positive effect that immigrants have on GDP and productivity (though it should be noted that competing native workers often lose out in terms of lower wages).
Yet despite the continued proven economic benefits, the politics of immigration have become vastly more complicated and, in some cases, weaponised due to the sheer numbers of people globally who are on the move. According to the UN Population Division, there were a record 304 million global migrants as of mid-2024, representing about 3.7% of the world’s 8.2 billion people. That’s almost double the 153.9 million in 1990 and nearly four times the 77.1 million back in 1960.
There are multiple push and pull factors that fuel mass movement including social and geopolitical, demographic and economic and, increasingly, climate change. These pressures will only increase in the coming years.
Shutting the doors on new migrants might seem politically expedient in the short term, but it’s not a viable long-term strategy for growth. Therefore, it’s crucial for governments to identify and demonstrate to their own citizens where, why and how immigration can help the economy and society as a whole.
To ensure immigration delivers broad-based economic and social benefits, governments will need to adopt evidence-based, targeted and well-governed approaches. Immigration policy needs to be aligned with real labour market needs, ensuring migrants complement domestic workers rather than displace them, while addressing genuine skills shortages in priority sectors. For example, the World Health Organization forecasts an 11 million global health worker shortfall by the end of this decade.
This requires stronger labour market intelligence. More dynamic and reliable workforce data – supported by advanced analytics and forecasting tools – can help policymakers identify emerging skills gaps earlier, calibrate visa pathways more accurately and avoid misaligned quotas that undermine both economic outcomes and public confidence.
A question of trust
Public trust lies at the heart of sustaining long-term immigration systems. They must be perceived as fair, transparent and controlled, with clear safeguards around wages, worker protections, access to public services and integration outcomes. Citizens are more likely to support immigration when they understand how decisions are made, what safeguards exist and how migration contributes to tangible economic and social outcomes.
To support this, governments can deploy smarter immigration systems that improve targeting and accountability – from faster and more secure visa processing to stronger identity verification, quicker recognition of credentials and reduced fraud. These tools help make immigration more efficient, predictable and transparent, strengthening both operational performance and public legitimacy.
Because migration increasingly operates across borders, effective international cooperation and trust is crucial. Bilateral and multilateral education exchanges, research collaborations, skills mobility agreements and coordinated training programs can help build an international network of relevant talent.
Both Australia and Argentina, in the mid-19th century, were desperate to attract workers and settlers to bolster their economic competitiveness. Today, established economies still need talented workers to drive growth and help develop society, but governments struggle to convince their own citizens of migration’s benefits – not least because of the unprecedented number of migrants seeking a new future.
A successful digitally enabled immigration strategy needs to be evidence-based, targeted, transparent and internationally coordinated. By using data to analyse the overall health of the labour market, governments can both help their own citizens find meaningful work and also accurately identify the areas where migrants can add the most value.
Ultimately, governments that invest in better labour market intelligence, stronger cross-border partnerships, fair worker protections and clearer public communication will be better positioned to unlock migration’s benefits while addressing legitimate public concerns. Handled well, immigration can move from being a source of political tension to a long-term national asset – one that supports growth, competitiveness and shared prosperity.
The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms.
