Policy Note 12: The contribution of future migration to public finances

Rising life expectancy and low fertility are triggering a process of demographic ageing in many Western European countries. While in Austria, for example, there are currently just under four people of working age for every older person over the age of 65, this figure will fall to just two by 2060. This demographic trend poses major challenges for the financing of public social spending.

These results show that any changes in migration policy must be accompanied by measures in the social system in order to avoid an increase in public debt. Despite its considerable contribution, migration alone will not be able to meet the challenges of demographic ageing.