With the increasing population and advancement in technology, people are settling down in different parts of the world. They are doing so to pursue a job and a better lifestyle; thus, skilled workers are settling down globally. Migration has now become an essential aspect of the socio-economic life of people. The profile of the migration population varies because of the different sources of migration.
Benefit or Burden?
Migration has a significant impact on the local market, remittances, public purse, economic growth, and several other factors. Based on these viewpoints herein, I will discuss whether migration is a benefit or a burden to the economy.
Contribution of migrants in the local market
According to The Organisation for Economic Co-operation and Development (OECD,2012), immigrants represented a 47% increase in the workforce in the United States. While in Europe the rate was 70%. Migrants cover up the crucial niches both in highly developed and underdeveloped sectors of the economy. New migrants represent 22% entries into the solid growing occupation in the United States and 15% in Europe. This occupation includes the healthcare sector, science, technology, maths and engineering.
At the same time, they are filling up the other small sectors. In Europe, about 24% of occupations which include craft and trade-related works, machine operators and assemblers, are done by migrants. In the United States, about 28% of migrants are engaged in production, installation, maintenance and repairing.
Thus, in all these small sectors, immigrants cover up those labour needs where the domestic workers have denied working. Migrants over here benefit the country and the economy by providing a continuous workforce with zero investment resources.
Remittances Sent by Migrants.
The money that migrants send to their loved one’s home is known as remittances. Remittances play a massive role in the economic development of a country. According to the World Bank estimates, in the year 2018, international remittance stood at $689 billion.
A World Development study has shown an average 1% increase in remittances in around 80 developing countries. This addition raises the real GDP by 0.07% approx.
Furthermore, remittances received overseas also helps in keeping domestic currency stable. For example, in 2018, Indian Rupee (INR) was the worst-performing currency in Asia because of the rise in oil prices; however, the Rupee bounced back thanks to the international remittances.
Global remittances always help to cope up with the scarcity of foreign exchange in domestic currencies.
Thus migration has measurable benefits for the economy. Remittances sent back by the immigrants contribute significantly towards the economic development of a country.
Migrants provide more to taxes and social contribution.
In most countries, migrants pay more to taxes and social assistance than the benefits they receive. So, they are also offering more towards the financing of public infrastructure.
Migration spur innovation
International migration has both direct and indirect impacts on the economy. Migration impacts the size of the population and the age pyramid of the receiving countries. Moreover, migration brings in skills, abilities and other human capital to the host country. The proportion of educated migrants is increasing consistently. Thus a steady flow of knowledge prevails in the market. Hence, migrants are influencing the host country with their innovation, skills and expertise.
Thus to answer my question, whether Migrations is a Benefit or a Burden? I will state that migration is in no way a burden to the economy. Instead, it supports the economy and helps in the socio-economic development of the country.
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