The warning of the main central bankers: soon we will not have enough employees in the labor market to support the increase and maintain the stability of the prices. We will need to import foreign workers. In the euro area, although foreigners are only 9% of the labor market, they represented over half its growth

The largest savings in the world will not have enough workers to support the increase and maintain the stability of prices in the following decades, unless they attract more foreigners, they have warned the main central bankers, writes FT. Speaking at an annual meeting of the main decision makers, at Jackson Hole, Wyoming, the heads of the Japanese Bank, the European Central Bank and the Bank of England wanted to emphasize the challenge for the economic growth represented by the aging of the population. Kazuo Ueda, governor Boj, told the annual symposium of the Kansas City federal reserve that his company, which ages quickly, has transformed the lack of work into one of the most «pressing» economic problems of Japan. Although foreign workers represented only 3% of Japan's workforce, Ueda said they were responsible for half of the recent increase in the number of workers. «Further increases will definitely require a wider discussion,» he added. In developed economies, birth rates are at historically low levels, while life expectancy is much higher. This has increased the so-called addiction rates, which means that a much higher part of the population is no longer at work. Christine Lagarde, the ECB president, said that an influx of foreign workers will play a «crucial role» in counteracting the negative impact of demographic tendencies on economic growth. Lagarde noted that, without an influx of foreign workers, the euro area would have up to 2040 with 3.4 million less active age people. The labor market in the euro area came out of the pandemic in a «unexpectedly good form», partly due to the larger number of older workers, but «even more» due to the increase in the number of foreign workers, she said. «Although they represented only about 9% of the total workforce in 2022, foreign workers were responsible for half its growth in the last three years,» Lagarde said. «Without this contribution, the conditions in the labor market could have been more tense, and the lower production.» Governor Boe, Andrew Bailey, said that the «acute» challenge represents demographic and declining productivity for the economy of Britain was not sufficiently underlined. Economists believe that attracting workers to cover shortage of labor market will be essential for maintaining economic growth in the following decades – despite the increasing pressures of populism and negative public attitudes towards immigration. Central bankers forecast that population aging will not only reduce production, but also risk inflation, because workers could demand higher salaries in an environment characterized by the generalized labor deficit. By 2040, 40% of the population of the United Kingdom will be older than the standard 16-64 -year -old group, Bailey added. The United Kingdom was also affected by the decrease of the participation rate in the labor market, determined by the increase in the number of people classified as «long -term patients» and a significant decrease in the number of young people working – two phenomena that Bailey suggested could be linked. Mental health problems were the most common reason, he said, describing them as «a very worrying evolution.» Boe has become «much more focused on [măsurarea] Inactivity «than on unemployment, said Bailey – although he acknowledged that the rate of participation in the labor market and the reasons for his fall in the United Kingdom are harder to measure than headline data on unemployment. While more old -old women continue to work, the same does not apply to men, he added.
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