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What impact does migration have on the economy and job market of the host country?

Torrey Malenoir

Migration is a topic that has been discussed for years because of the impact it has on a lot of aspects of a country, economy and job market being two key areas affected. For individuals, leaving their home country and migrating to a new one is not an easy decision to make because it involves a lot of factors to consider such as social, economic, and political reasons. However, this decision has not only an impact on the personal lives of migrants, but also on the host country's economy and job market.

Statistics show that migration has a positive effect on a country's economy by increasing its GDP and contributing to the diversity of its workforce. Migrants bring skills and education which are often not available in the host country, creating a balance and complementarity in the labour market. In addition, immigrants tend to fill the gap in the job market and occupy the low-skilled jobs that are often avoided by native-born workers. Moreover, migrants tend to set up small businesses, and according to the Migration Policy Institute, immigrants are more likely than U.S-born individuals to start their businesses and employ others.

The impact of migration is also evident in the global remittance market, with migrants sending money to their families in their country of origin. In 2019, the World Bank reported that global remittances totalled $714 billion, with migrants in the United States being the largest source with $68 billion flows, which represent approximately 13.7% of the country's GDP. These remittances support the development of the sender's country by helping to improve the standard of living, increasing property ownership, and developing small businesses.

However, migration can also have a negative impact on the economy and job market of the host country. In some cases, migration can lead to an oversupply of labour, which can have an effect on wages or jobs that require specific skills. Furthermore, an increase in migration can create competition for jobs, which may lead to discrimination and exploitation of workers.

In summary, migration has both positive and negative effects on the economy and job market of the host country. It can contribute to the development of the country by providing a diverse and skilled workforce, filling the gap in low-skilled jobs and creating small businesses. On the adverse side, migration can also have an effect on wages and jobs that require specific skills, generate competition and discrimination for employment opportunities.