Business Iceland SA, service organization representing about 2,000 businesses and the largest corporations of Iceland, believes the only way to ensure continued economic growth in Iceland is large scale immigration, the local news site visir.is reports. The natural growth of the labour market and raising the retirement age in the coming decades will not keep up with what Business Iceland expects will be a 2.5% annual growth rate. The portion of foreign nationals of the Icelandic nation will therefore likely top 20% within two decades.
According to newest census, the total number of Icelanders is around 330.000 and at least 12% of the population is born abroad. The largest group of foreign nationals in Iceland are Poles.
Strong economic growth and an ageing workforce
Business Iceland believes the future prospects of the Icelandic economy are very good, characterized by strong economic growth and a rising standard of living. The IMF is predicting the GDP of Iceland will grow by 3.7% in 2016, which is the second highest growth rate within the OECD. The main long-term challenge, Business Iceland argues, is a shortage of workers as Icelander’s grow older.
Read more: The population of Iceland might reach half a million in 50 years according to projections
Business Iceland points out that that at the same time as strong economic growth requires a growing workforce Icelanders are quickly growing older, with large cohorts of workers set to retire in the coming decades. With a less favourable ratio of working age people to retired people, it will become more difficult to ensure rising living standards.
Iceland will become more prosperous and multicultural
Raising the retirement age and ensuring people finish necessary education earlier only provide a partial solution. Large scale immigration is therefore crucial. Statistics Iceland has estimated that the annual need for immigration is about 2,000 people, which would mean the proportion of foreign nationals in Iceland will double from 8% to 20%. Business Iceland believes the need for immigration will be significantly larger.
Read more: Icelandic tourism industry forced to hire thousand foreign workers over the next few years
The result, Business Iceland argues, is that Icelandic society will grow both increasingly prosperous and more multicultural, a welcome and positive development, they argue.
Business Iceland SA, service organization representing about 2,000 businesses and the largest corporations of Iceland, believes the only way to ensure continued economic growth in Iceland is large scale immigration, the local news site visir.is reports. The natural growth of the labour market and raising the retirement age in the coming decades will not keep up with what Business Iceland expects will be a 2.5% annual growth rate. The portion of foreign nationals of the Icelandic nation will therefore likely top 20% within two decades.
According to newest census, the total number of Icelanders is around 330.000 and at least 12% of the population is born abroad. The largest group of foreign nationals in Iceland are Poles.
Strong economic growth and an ageing workforce
Business Iceland believes the future prospects of the Icelandic economy are very good, characterized by strong economic growth and a rising standard of living. The IMF is predicting the GDP of Iceland will grow by 3.7% in 2016, which is the second highest growth rate within the OECD. The main long-term challenge, Business Iceland argues, is a shortage of workers as Icelander’s grow older.
Read more: The population of Iceland might reach half a million in 50 years according to projections
Business Iceland points out that that at the same time as strong economic growth requires a growing workforce Icelanders are quickly growing older, with large cohorts of workers set to retire in the coming decades. With a less favourable ratio of working age people to retired people, it will become more difficult to ensure rising living standards.
Iceland will become more prosperous and multicultural
Raising the retirement age and ensuring people finish necessary education earlier only provide a partial solution. Large scale immigration is therefore crucial. Statistics Iceland has estimated that the annual need for immigration is about 2,000 people, which would mean the proportion of foreign nationals in Iceland will double from 8% to 20%. Business Iceland believes the need for immigration will be significantly larger.
Read more: Icelandic tourism industry forced to hire thousand foreign workers over the next few years
The result, Business Iceland argues, is that Icelandic society will grow both increasingly prosperous and more multicultural, a welcome and positive development, they argue.
