At Jackson Hole on Saturday, ECB President Christine Lagarde credited foreign workers with playing a vital role in supporting the Eurozone economy. She said migration inflows have helped counterbalance reduced working hours and weaker living standards, providing stability during a period of subdued real wage growth.
Lagarde pointed out that although foreign workers represented just 9% of the bloc’s labor force in 2022, they contributed fully half of its growth over the previous three years. “Without this contribution, labor market conditions could be tighter and output lower,” she added.
