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Discuss the extent to which migration can be considered to have a positive impact on labour markets

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´╗┐Discuss the extent to which migration can be considered to have a positive impact on labour markets? Migration is the movement of people/labour between either the domestic or other counties. Immigration is the movement of labour outside a country. The most common reason for immigration is to find jobs meaning an addition to a country?s labour force. In most instances this can have a positive effect on labour markets both, in the immigrant?s native country and the country to which he/she/they migrated to. Although mostly advantageous negative impacts can occur as a result. If a person migrates e.g to the UK from a less developed country such as Poland in pursuit of work, providing the person finds work and doesn?t become unemployed and in this case the immigrant?s skills match the type of labour that is demanded will increase a country?s output + international competitiveness and in turn can benefit the labour markets. This is because Migrants are usually young adults meaning that migration can help to raise the population of working age and make the labour market more flexible. A flexible labour market will mean that employers can hire and fire workers more easily and thus the labour market will adjust more easily to changes in the demand for and supply of labour. ...read more.


This will partly solve the problem of unemployment without importing foreign workers highlighting the great advantage of migration. On the other hand migration carries many flaws for the labour market. For instance although most migrate to the UK to find jobs, many move in order to study and for relationships. This can be a negative impact because if, people immigrate to study and then leave the country after graduating there is no improvement for the labour market, in fact due to limited places the people migrating to study are arguably depriving the UK labour market of possible workers in this sense. Similarly if people come to the UK due to relationships , their incentive to find a job may be lower. Hence they may become unemployed and claim job seekers allowance etc. Similarly if there is net immigration and the immigrant have all the right skills for the available jobs, unemployment will increase due to the depression of real wages for domestic workers reducing their incentive to actively seek a job, another reason could be that the immigrants, since they more willing to do a job for a lower wage etc , may occupy most jobs reducing demand for labour ,resulting in increased unemployment. In turn this will increase pressure on the welfare state, which may be passed on to workers in the form of higher taxes, this may further discourage them to work since it essentially means that their wages would be decreased. ...read more.


This can also be partly achieved by discriminating against certain immigrants. For example reducing the amount of elderly people entering the country will decrease the chances of an ageing population, for which there is a very limited labour market. All this will mean that only certain jobs are taken by immigrants leaving the rest to the natives. This will largely benefit the labour market because it won?t suffer much wage inflation and demand for housing etc will not increase significantly. Furthermore this will help keep inflation down meaning less expense for employers. An advantage for the labour markets in the migrants home country would be that, if the migrant is working in the UK in order to send money back home, then that will serve as an injection to that economy and might overtime help to create more jobs. An obvious disadvantage however would be that the labour markets would suffer there due to many people emigrating from that country resulting in high demand for labour. This will on the other hand be a benefit to the people in that country since they would enjoy higher wages and could mean that people would return to those countries from the UK in light of these improvements in economic prospects further reducing the chance of unemployment etc. Overall immigration, to a large extent brings about more benefits to a labour market then problems. ...read more.

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