Immigrants represent a large percentage of a host country's labour market as foreign-born citizens make up as much as 22% of the population in some countries such as Switzerland and 62% in Kuwait. Whether socially and politically integrated or not, immigrants are a reality in any country's demographic. As governments are experiencing the world's greatest hardship since the Great Depression of the 1930s, societies examine the effects of this hardship on immigration.
The Implications of Economic Downturn on the Labour Market
Since the onset of the recession, millions of jobs have been cut worldwide, pushing unemployment rates to record highs. Even those who survived the first rounds of redundancies feel threatened still as the economic downturn has yet to show easing. Although the sectors most affected so far have been the construction and manufacturing sectors, demand for highly skilled labour such as nursing is still high.
The Impact of High Unemployment Rates on ImmigrationImmigration driven by economic opportunity has understandably quietened, as potential immigrants and temporary workers weigh the opportunity differential between the source country and the host country. While low wages and high unemployment may hinder immigration, immigrants with personal, cultural or political motivations are unlikely to view economic disparity as a deterrent. What stands to intensify is the competition among immigrants and between immigrants and native workers.
The Competition Between Immigrants and Natives
The public opinion is that immigrants take the native workers' employment options even when these are scarce, although analysts and economists agree that the effect of high immigration is likely to be small in the long run as the economy responds to high immigration with an increase in labour demand. Furthermore, immigrants are hindered by language deficiencies and local knowledge among others, and are less likely to compete outside low-skilled occupations.
Immigration and Global Remittances
Remittances are initiated by migrants to send money home to their families and prove as a source of foreign exchange most important in developing countries. In 2006 alone, an estimated US$280 billion worth in remittance flow was recorded by the Migration Policy Institute, of which nearly three quarters was sent to developing nations where it largely influences household consumption.
Who's Likely to Immigrate Now
The grimness of world economy is likely to influence the kind of immigrants seeking a new life as opportunities become scarce and integration in a new society more difficult to achieve. It is likely that immigrants acquiring long-standing visas to which they applied before the current economic recession will persist in migrating, while immigrants seeking temporary sojourn may reconsider their decision and weigh the opportunity differential before migrating.
Migration has roots in every society, from highly developed countries to the struggling; although available data is insufficient to forecast migration trends, the effects of lower migration flows are understood to be critical for society.
For further reading on trends affected by the recession, click here.
Source: Migration Policy Institute
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