Slowing migration can lead to a decrease in rents, as evidenced by research indicating that a net migration drop of about 100,000 in Australia could reduce rents by 1%. However, the immediate impact of reduced migration is complex and may lead to increased inflation in labor-intensive sectors like hospitality and healthcare due to declining labor supply pushing wages up. In the long term, restricting immigration tends to hinder a country's innovativeness and productivity, as increased migration facilitates native workers in taking on more productive roles. Moreover, addressing the challenges of changing demographics in wealthy countries necessitates a balanced approach to immigration policies.
The rich world is experiencing record migrant flows—and the attendant social upheaval. Finding immigration policies that are not economically ruinous is damnably hard. Our three-part series starts to unpack why people are so fed up with the big dating apps (11:10). And the head-spinning history of how break(danc)ing became an Olympic sport (18:44).
Get a world of insights by subscribing to Economist Podcasts+. For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.