Is complete localization of the workforce a wise way forward?

A national daily recently reported that India has set foot into the 37-year period of demographic dividend, accompanied by China, where the 37-dividend years had kicked in 1994. Developed nations such as Japan, US, Western Europe, Canada and Australia, having benefited from this rapid growth- period previously, now face a shift in the population structure. In these countries, empowerment, education and employment, seriatim resulted in a decline in the fertility rates. As the population aged, the labour force decreased, putting pressure on economic growth. Fewer workers had to support the increasing number of retirees.

More often than not, waves of immigration in the past have brought about a significant change in the demographic and economic growth of the countries. With mobility made easier in the last 30 years, young and motivated individuals have been on the move filling in the gaps in skills and in numbers. Immigrants help augment the labour force and are also bound to spend their wages on consumption, adding to economic growth. They help in increasing the demand of particularly those goods & services that cannot be imported such as nursing, housing and grooming.

Yet, another value of skilled immigrants is that they favour and fortify economic ties between their home and host country.  

Despite all this, what are some countries still fearful of? It is presumably the limited ability of being selective in terms of allowing entry of the right kind of immigrants- the ones that it needs. Integration of the immigrant workers would undoubtedly be better when they are being drawn from a broader set of people, filling jobs across the spectrum rather than looking at immigration simply as a means of offsetting an aging population. And the time to do this is not when a nation is at the brink of population ageing but rather much sooner so as to allow this process due course and time.

I would like to lay a great deal of emphasis on the fact that a country would benefit tremendously from a programme that allows the selective and steady integration of the immigrant worker, one that also allows them to learn and adapt to the ways of the society.

 Is a 100% localization of workforce a prudent strategy? MAYBE NOT.

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