Europe’s Growth Depends on Immigrants. So Does America’s

Christine Lagarde says half of Europe’s job gains since 2021 came from foreign workers. Without them, GDP would collapse.

WASHINGTON — Christine Lagarde didn’t mince words in Wyoming. Speaking at the Federal Reserve’s annual symposium, the European Central Bank president said out loud what most politicians avoid: Europe’s economy would have flatlined after the pandemic if not for immigrants.

Foreign workers, though just 9% of the EU’s labor force in 2022, accounted for half of its job growth over the past three years. Germany’s economy would be 6% smaller without them. Spain’s recovery “owes much” to the same group. In total, the eurozone added 4.1% more jobs between 2021 and 2025 — a surge that kept factories running, hospitals staffed, and inflation tamer than expected.

“Without migration, labor market conditions could be tighter and output lower,” Lagarde told central bankers. She could have added: without migration, Europe’s future is demographic quicksand.