Analysis: International Labour Mobility and Its Effects on Countries

This report delves into the multifaceted topic of international labour mobility and its profound effects on various countries. It begins by defining labour mobility and differentiating between geographic and occupational mobility, providing examples to illustrate these concepts. The report then explores the economic implications of both types of mobility, including impacts on labour supply, wage rates, unemployment, and productivity. It also examines the influence of government policies, immigration, and globalization on labour flows. The discussion extends to occupational mobility, highlighting its role in economic growth and the development of new industries. The report draws on academic research and articles to support its arguments, providing a comprehensive analysis of the complexities and consequences of international labour mobility.

Running head:INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON
COUNTRIES
International Labour Mobility and its Effects on Countries
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1INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
Table of Contents
Introduction................................................................................................................................2
Background Information............................................................................................................2
Discussion..................................................................................................................................3
Definition of Labour Mobility...............................................................................................3
Geographic Labour Mobility..................................................................................................3
Occupational Labour Mobility...............................................................................................6
The Effects of Labour Mobility.............................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

2INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
Introduction
The term labour mobility can be defined as the process following which labourers can
freely move between the Economic zones of different countries. According to Krabel and
Flöther (2014), in the article, Here today, gone tomorrow? Regional labour mobility of
German university graduates, it has been discussed that, labour mobility gives labourers the
power to be an intimate part of any Economic system as well as freely move through and in
between different economic zones. Labour mobility remains an interesting topic for anyone
to ponder upon in order to understand the impact that it has on the Economy of any country
as it is one of the massive driving forces of the production industry. Labour mobility also
majorly affects growth and production thus creating a big impact on the economy. Labour
mobility is roughly a new concept as in the past, it was almost impossible for the labourers to
go around move freely across different boundaries as the political, economic and
demographic conditions were different. With the advent of an egalitarian economic condition
globally, it has been much more easier for the workers to move freely, earning their daily
bread. The following paragraphs will discuss in depth about the international labour mobility
and the several effects that it has on different countries.
Background Information
Since the beginning of the mid eighties it has been all the more common, that the
phenomenon of the cross border free flowing capital and the massive flow of cross border
commodities summoned a growth in cross border labour flows. The international labour
mobility across international borders increased due to the political and legal conditions of the
governments who were based in the receiving countries. Besides, the path of globalization
beckoned workers throughout the world to move to places and countries that have a high rate

3INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
of industrialization. Globalization came with vices like strict immigration policies but the mid
eighties started seeing receiving countries encouraging workers from all over the world to
gather at industrialized cities to earn wages that are higher and more convenient to earn than
the wage offered to them at their home country (Taiwo 2013). Countries with the highest
amount of industrialization once also boasted the most restrictive policies concerning
immigration of foreign workers, yet they were totally liberal on their views on capital and
trade flows, cross border.
Discussion
Definition of Labour Mobility
Labour mobility also can be referred to the the degree to which the workers are
willing or able to move between occupations, jobs and geographical areas (Boschma,
Eriksson and Lindgren 2014). Sometimes labour mobility changes the grading or status of the
worker just like it happens in vertical mobility. On the other hand, in horizontal mobility, the
grading of the workers remain the same. Skilled workforce and labourers showcase high
geographical mobility while they face low occupational mobility. The unskilled or low
skilled workers show both occupational as well as geographical mobility. Besides, every time
there is a low labour mobility, there occurs a situation of structural unemployment, which
government across all borders and countries try to flee and void. It is always of concern to the
government to birth new retaining schemes for the workers as well as establishing new
industries in the areas that may attract a degree of unemployment.
Geographic Labour Mobility

4INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
There are mainly two types of labour mobility. The first type is the Geographic
mobility which predominantly refers to a worker’s ability to remain active in his or her
working field in any given physical location. On the other hand, the occupational mobility
refers to any workers ability to change the nature of his or her jobs. For reference, we can
present the example of a worker who is a resident of England and moves physical boundaries
to arrive at the United States of America in order to join a job of the same nature as his
previous jobs (Fratesi 2014). This is primarily an example of geographic mobility while on
the other hand, an example of a pilot joining the automobile industry, abandoning the
previous nature of job only to indulge in a job with a completely different nature will be an
ideal example of occupational mobility.
To talk about geographic mobility, it does showcase important and considerable
implications on the economy of any given country as easing immigration policies and
requirements can do wonders for the economy of any country. It, first of all, increases the
supply of labourers. With the entrance of a higher number of employees in the economy, the
supply of general labour increases significantly. Besides, it helps to decrease the wage rates
as although there would be a supply of labour and a significant increase in it, there would also
be a static amount in the way the labour would be hired by employers. A static demand for
labour thus decreases the wage rates. Geographic mobility also gives birth to the menace of
unemployment. As in this situation, there would be always a greater supply of labourers than
actually needed, a surplus of workers will remain stable. There take the genesis of a situation
where there would be more workers than there are jobs to accommodate them. However,
geographic labour mobility also increases the rate of productivity. The labour or employees
hired by any organization will be a mix of both skilled and unskilled workers. While the
cheaper unskilled workers learn from the hardworking and niched skilled workers, the rate of
production rises with a stability. Skilled workers in any labour force increase productivity in

5INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
multifold as they also drive out unskilled workers who are not able to cope up with their
expertise and niche.
Geographic mobility must not be seen in the light of only the economy as it an
amalgamation of different factors. It is also deeply affected by government control and state
sovereignty. The government who are patrolling the borders of their countries with an eye to
the most intricate detail always remain conscious and concern about what might enter their
borders. The government always remain insecure about the nature of labourers that they are
welcoming through their ports, cities and borders. According to Huelser and Heal (2014), in
the article Moving freely?: labour mobility in ASEAN, it has been discussed that, even
though geographic mobility always plays a positive role on the economy of any country, it is
also true that the labourers who enter borders of a foreign country are generally the first and
foremost to suffer the wrath of the governing body of the foreign country. They also generate
discriminatory glances from the indigenous citizens of the abroad or foreign countries. Thus
immigration remains a topic that is a double edges sword, full of curiosity and dichotomy.
A reduction in geographic mobility can also be achieved through treaties or economic
arrangements between countries. A host country can always increase the rate of work visas
that they give out or it may suddenly reduce the amount of work visa they are giving out in
order to control the influx of the workers coming in to work in the host countries from
foreign countries. To understand this concept in depth, the example of the countries in the
European Union can be taken into consideration. The worker or group of workers that are
part of the European Union will be at an advantage of entering European territories and work
freely. These workers will always have advantages relating to their visas which also belong to
the countries belonging to the European Union. While these workers face an advantage, there
will always be workers who are not part of the countries belonging to the European Union
and thus face discrimination concerning the working condition, wage rates and visa related

6INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
legalities. Above all these discussions, one thing must be remembered which is that the
effectiveness of labour mobility across geographical boundaries will remain thoroughly
dependent on the workers. If a situation occurs, that the other part of the countries or other
foreign host countries offers a situation that of job scarcity, it is evident and obvious that the
migrating workers would stop venturing the cross boundary opportunities.
Occupational Labour Mobility
The second form of labourer mobility is known as the occupational mobility. It can be
referred to the ease of movement from one nature of the job to a completely different job,
with a very different nature that any employee will pursue. The employees, if able to move
rather quickly from one nature of the job to the other, only increase the chance of any country
going towards a positive economic development. History favours occupational mobility as
the hunters and gatherers chose to opt for a job of a different nature. Thus society moved
from the hunter and gatherers society to that which consisted of farmers.
In the article, An exploration of labour mobility in mining and construction: who
moves and why, it has been mentioned that, had the occupational mobility not been taken
place, the society would remain stagnant and stop growing all together as it remained to
ponder upon only one type of job, that of hunters and gatherers (Atkinson and Hargreaves
2014). If any economy of any certain country let the doors open for occupational mobility, an
increase in economic growth can be seen. It increases the supply of the workers in any
particular industry. If restrictions are lower for any worker to change his or her job sector, it
would also be easier for a cross boundary and cross cultural employers to quickly hire a
bunch of new employees who are ready to meet the employee appointment needs. As the
restrictions to enter a different sector of job decreases, the demand for appointing a new set of
labourers are readily met. Occupational mobility also helps the employers to maintain lower

7INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
rates of employee remuneration. When it is relatively easy for labourers to enter a particular
industry, it has been seen that the supply of workers increases with a stability for any given
demand. This phenomenon lowers the wage rates and continues to do so with élan until there
comes a point of reaching the equilibrium.
Occupational mobility also helps the newly formed industries to reach the zenith of
economic growth. It allows the nascent industries to achieve their best form of growth. At the
inception of the shift of any economy from an old profile of industry to a new form, there
remains a constant demand for employees who are ready to take up the new venture and run
the industries (Miguelez and Moreno 2013). The moment arrives such that it is necessary for
any industry to rely on workers who are willing to perfect the new nature of the industry and
learn from their mistake as well as learning as they grow. If there was no occupational
mobility, these type of nascent industries will never be able to stand on their own and
diminish as soon as they reach inception point.
In the article, Labour Mobility in Europe: An untapped resource?, it has been clearly
mentioned that an industry that favours employees changing their job profiles according to
the need will always continue to grow (Barslund, Busse and Schwarzwälder 2015). A
shortage of employees will lead these newly formed forms of jobs to be doomed. Thus, it is
necessary for the industry to support some form of occupational mobility so that there is
enough number of employees who are ready to work or provide service as well as working
and operating the machines which are required for any nascent form of industry or job profile
to remain functional. Occupational mobility can be also restricted through the passing of new
and stringent regulations. If employers and industries make it mandatory for employees to
have certain forms of experience, degrees or vocational training or educational requirements,
they would be able to sieve out the potential skilled employees by barring employees easily
moving towards different verticals of job profiles. The example of the healthcare industry

8INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
remains a very good example here. It has been seen that physicians, surgeons, nurses and
other healthcare workers remain specialized skills and degrees or training to remain in the
healthcare industries.
It is nearly impossible for any worker belonging to a different job profile to penetrate
the healthcare sector unless he or she receives a certain degree of training which gives him or
her the authority to be a legal or genuine healthcare worker. These policies restrict the supply
of healthcare workers in this particular field of job needs skilled sieving of employees who
are knowledgeable and well trained. This particular niche also lets the healthcare workers be
in high demand and it also gives them a certain right to claim the higher amount of wages.
The rarity of their skill and the scarcity of healthcare jobs make it one of the most expensive
job sectors in the existing industry (Fries-Tersch, Tugran and Bradley 2016). The demand for
healthcare workers when paired with a scarce supply only increases the equilibrium of wage.
This also means that the workers or workforce is forced into industries that have fewer
restrictions so as to keep the wage rates at their minimum. It has been seen that to keep the
wage rates lower, the supply of workers is always kept higher than the demand of workers.
The Effects of Labour Mobility
The country of origin of the workers or the home country of the workers that choose
to migrate definitely suffers some changes in their economy as well as the changes that are
inevitable in the economy of the host countries that these migratory workers take refuge into.
The host country is bound to face some demographic shortage as the host country may permit
the migratory worker with permanent residence allowance. The permanent residence
allowance also let the country of origin face the loss of demographic potential as the
migratory workers would reproduce offspring in the foreign land and mostly never to return

9INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
back to their home country. The children of the migratory workers only strengthen the
workforce of a foreign country, abandoning their home country completely.
The country of origin also risks the loss of young graduates leaving the home country
and creating a loss of an intellectually strong workforce who would be ready to grasp
anything and learn quickly. The home country also loses the right to employ bright students
and fresh graduates who, with their bright minds and quality experience turn to foreign
companies and multinational companies to seek employment. The loyalty of these young
workforces never remains with the industries of the home country as they shift their loyalty to
the host country and its economy. For the host country, it must be noted that the more swift
movement the workers can achieve the more rapid growth the host country and its industries
can achieve.
Conclusion
In conclusion, it can be inferred that, the movement of the workforce also determines
how quickly the changing nature of the marketplace and the technology can be grasped by the
industries of the host countries. The mobility of the labourers also determines innovative
industries’ growth and survival (Beerepoot and Hendriks 2013). The host country suffers a
backward economic condition if they force restrictions on the mobility of the labourers but
would achieve rapid growth if they consider labour mobility to be a piece of cake procedure,
a hassle-free phenomenon for the workers. It can also be inferred that labour mobility
depends on the restrictions of the host country to which the labour force would migrate to,
seeking new and better opportunities. The slower the access to the workers of the foreign
lands a foreign country may present, the slower the rate of economic growth that country may
achieve. On the other hand, fewer restrictions would not only let the wage earners, the
labourers earn a better standard of life, but it would also benefit the employers of the foreign

10INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
land to continue hiring skilled labourers with minimum or lower wage in order to maintain a
stability of industrial growth.

11INTERNATIONAL LABOUR MOBILITY AND ITS EFFECTS ON COUNTRIES
Reference
Atkinson, G. and Hargreaves, J., 2014. An exploration of labour mobility in mining and
construction: who moves and why. National Centre for Vocational Education Research,
Adelaide.
Barslund, M., Busse, M. and Schwarzwälder, J., 2015. Labour Mobility in Europe: An
untapped resource?.
Beerepoot, N. and Hendriks, M., 2013. Employability of offshore service sector workers in
the Philippines: opportunities for upward labour mobility or dead-end jobs?. Work,
employment and society, 27(5), pp.823-841.
Boschma, R., Eriksson, R.H. and Lindgren, U., 2014. Labour market externalities and
regional growth in Sweden: The importance of labour mobility between skill-related
industries. Regional Studies, 48(10), pp.1669-1690.
Fratesi, U., 2014. The mobility of high-skilled workers–Causes and consequences.
Fries-Tersch, E., Tugran, T. and Bradley, H., 2016. 2016 Annual Report on intra-EU Labour
Mobility. European Commission. Available at: http://ec. europa. eu/social/main. Jsp.
Huelser, S. and Heal, A., 2014. Moving freely?: labour mobility in ASEAN. ARTNeT policy
brief; no. 40.
Krabel, S. and Flöther, C., 2014. Here today, gone tomorrow? Regional labour mobility of
German university graduates. Regional Studies, 48(10), pp.1609-1627.