Impact of Immigration on UK Labour Market

Micro macro economic

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
It ought to be obvious that economics occupies most property. The land can be separated
into two parts: microeconomics focuses on individual agents' behaviour within the economy,
such as families, employees and businesses; macroeconomics looks at the economy as a whole
(Mendoza, 2018). This focuses on specific issues like productivity, unemployment, inflation,
labour market and the balance of trade. Microeconomics and macroeconomics are not distinct
issues but rather related views on the economy as a whole. This essay is based on the impact of
UK labour market due to immigration. It is also observed that, this essay include the positive as
well as negative impact of inflow of labours from other countries. It includes the argue that that,
inflow of labours from outside country is beneficial for the UK’s economy or not.
MAIN BODY
The effects of immigration on the UK labour market concentrate critically on immigrants'
skills, current workers ' skills and hosting economy characteristic (Khoudja and Platt, 2018).
They will also expect to vary in the short and long term as the economy and labour demand will
adapt to the increasing shortage of labour. Immigration impacts the production of labour, as it
expands the number of jobs in other business sectors. Around the same time, as refugees broaden
market appetite for such goods and services, immigration is expected to raise competition among
UK labour market. Immigration will intensify demand in some industrial sectors for current
employment but it can also generate new employment (Impact of UK’s Labour Market, 2016).
Immigration impact short term on current workers ' salaries or jobs rely on the degree to which
migrants have capabilities that supplement or supplement those of established employees. When
migrant jobs become replacements for local employees, immigration is projected to increase job
demand and to slash short-term salaries. In conditions of jobs, their ability to embrace the new
lower salaries depends on the degree to which falling wages and increase unemployment or lack
of activity among current staff.
At the opposite side, if migrants' skills are similar to existing workers, all jobs experience
improved productivity that can be anticipated to contribute to a rise in current workers' incomes.
In particular, it is anticipated that workers in low-skilled jobs will face more competition from
migrants as the skills required for these jobs are cheaper to obtain and less specialized. Second,
aside from increasing the availability of labor, immigrants will also increase the market for work,
1

generating new jobs. That's because the economy doesn't have a set number of workers. Migrant
workers boost market consumer spending, and companies in sectors where migrant labor is used
(e.g., agriculture or healthcare industries) can increase productivity.
Brexit vote was influenced by concerns in favor of limits on labour migration to restrict
UK labour inflows (Ottaviano, Peri and Wright, 2018). To several, maybe most, likely voters, the
economic effects of recent EU migration appeared the most crucial issue. Dispute over statistics
stirred divisions within the country thus filling the pages of newspapers. The outside population
in the UK increased from 3.5 million to nearly 7 million from1995 and 2011. Nevertheless,
around 86 percent of the UK population was UK born and around 90 percent were British
citizens in 2017.
Most UK labor force employees are not highly skilled or low-skilled employment, but in
middle-skilled classes, leading to positions that require schooling above secondary school but not
graduate degree. The same stands true of migrants. In 2017, 57 percent of EU-born workers were
in mid-skilled jobs, along with 55 percent of born outside the EU and 63 percent of lived in the
UK. The allocation of skills for people born in the UK vs. non-Great Britain is relatively
comparable (Kesler and Safi, 2018). Yet for EU vs. non-EU migration it is special, with
European-born workers highly represented in low-skilled positions and non-EU-born workers
heavily represented in university employment. In 2017, the bulk of outside UK born workers in
low-skilled positions (56 per cent) came from EU countries. Through the other three levels of
skill, non-EU employees exceeded the EU workers.
Immigrant workers and its positive impact on the host country such as UK:
2