European Central Bank President Christine Lagarde said an influx of foreign workers has played a decisive role in cushioning the euro-zone economy from the twin shocks of a once-in-a-generation inflation surge and the steepest interest-rate increases in decades. Speaking at the Federal Reserve’s Jackson Hole symposium in Wyoming, Lagarde noted that Europe’s labour market has “weathered recent shocks well,” with employment growing faster than historical patterns would suggest despite tighter monetary policy. Lagarde put hard numbers on that contribution. Although migrants accounted for only about 9% of the bloc’s workforce in 2022, they generated roughly half of total employment growth over the past three years. She estimated Germany’s output would be around 6% below its 2019 level without foreign labour, while Spain’s post-pandemic rebound also relied heavily on migrant workers. Net immigration pushed the European Union’s population to a record 450.4 million last year, offsetting a natural demographic decline. The ECB chief argued that this additional labour supply helped prevent more acute wage pressures and job losses as the central bank sought to rein in price growth. By widening the pool of available workers, migration has mitigated the trade-off between taming inflation and preserving economic activity, she said. Lagarde also used a televised interview to stress that “the independence of any central bank is critically important,” warning that economies risk becoming dysfunctional if governments interfere in rate-setting. Her comments come amid renewed scrutiny of monetary authorities on both sides of the Atlantic and serve as a reminder, she said, that accountability to elected bodies must not compromise policy autonomy.