Immigration is an economic imperative for Scotland
There is a growing recognition across Scotland’s business community that immigration is not just a social or political issue – it is an economic imperative.
For Edinburgh and the wider Scottish economy to thrive, we must embrace the reality that attracting and retaining international talent is essential to our future prosperity. There has been much debate in recent weeks about the merits of giving the Scottish Parliament devolved powers when it comes to setting immigration policy. Inevitably, that has become caught up in the ever-present constitutional argument.
Scotland’s demographic trends are clear: we have an ageing population and a declining birth rate. Edinburgh, while a vibrant and successful city, is not immune to these challenges. Over the next decade most of the population growth in Edinburgh and the Lothians is expected to come from people aged 65 and over – and by quite a large margin. At the same time, Edinburgh’s birth rate is one of the lowest in the UK, which itself has a lower birth rate than many other countries. This creates a real challenge for our future workforce and economy.
The facts speak for themselves: to keep our economy growing, we need more people of working age. We need individuals who can support our essential public services, start new businesses and bring valuable skills into our workforce. The 2024 Edinburgh by Numbers report highlights this clearly. Between 2012 and 2022 the natural population change – births minus deaths – added just over 5700 people to Edinburgh’s population. In contrast, net migration added more than 53,000. Migration isn’t just helping to grow our population – it is the main driver behind it.
Edinburgh is a city of opportunity. As outlined in our Call to Action, we have world-class strengths across a range of sectors including tech, health, the green economy, financial services and the creative industries. These are underpinned by strong enablers such as our vibrant visitor economy, excellent domestic and international connectivity, and a highly skilled workforce. But to maintain this momentum – and to drive good economic growth – we must ensure our population can support our economic ambitions.
Other countries have successfully aligned immigration policy with regional economic needs offering useful models for Scotland. Canada is a strong example. While the federal government sets overall immigration targets, provinces have the flexibility to tailor programmes that address their specific labour market demands.
Through the Provincial Nominee Programs (PNP), provincial governments can attract economic migrants with the skills and experience needed in their regions. For instance, Alberta has a scheme that encourages immigration to smaller rural communities facing labour shortages. In British Columbia, the Tech Pilot programme fast-tracks immigration for technology professionals to meet the needs of its growing digital sector.
These models show the value of a collaborative approach between national and regional governments – one that enables targeted, responsive immigration strategies. Crucially, they are supported by integrated data systems that track and monitor migration flows. The UK already has tools, such as the digitised National Insurance system, that could support a similar approach here.
With the right infrastructure and political will, we could adopt a more flexible, regionally responsive immigration system – one that supports Scotland’s specific economic needs and helps unlock our full potential. The time has come for a mature, constructive conversation about how we manage immigration in a way that supports our economic ambitions. We need our governments – at all levels – to work together to find practical, forward-looking solutions.
Liz McAreavey is Chief Executive, Edinburgh Chamber of Commerce