Rapid labour force growth would be good news now - Natixis

Patrick Artus, Research Analyst at Natixis, suggests that looking at the situation of the United States, the euro zone and France, rapid labour force growth (caused by immigration and rising participation rates) would be good news.

Key Quotes

“It does, admittedly, reduce the fall in unemployment for a given level of job creation, an argument we have heard recently in France.”

“But since these countries are close to structural unemployment and since productivity gains remain weak, rapid labour force growth - whatever causes it - is the only way to continue to enjoy quite strong growth.”

“The labour force is now growing rapidly in in the United States, the euro zone and France, due to a rise in the participation rate, and immigration in the United States and the euro zone. This development is positive, and it should be encouraged.”