Discuss the economic and demographic arguments for and against new Essay

Discuss the economic and demographic arguments for and against new labour migration - Essay Example Population characteristics of UK and its economic implications UK is among the developed western continents. Majority of the people in UK are old aged as the lifespan is longer, but this reduces the population growth rate because the aged are not within the productive age brackets. Economically, these people are not strong enough to provide workforce needed in economic building (Borjas 2000; Kupiszewski, 2012). Additionally, due to their age, there is no possibility of young generation to replace them in the work environment (Lisiankova and Wright, 2005). This population structure poses a threat to both population structure and economic condition of the country. To address this condition, several procedures have been formulated. One of the measures includes encouraging labor immigration. Need for immigration Given the scenario of UK population challenges, analysts and economists would raise question to find out whether UK requires immigrants or there are other options that can be fol lowed. By understanding the need for immigrants, it will be easier to formulate appropriate policies to be used (Borjas 2000). Currently, UK migration is characterized by the two types, international and domestic migration. Labor immigration has great effects in the UK’s economy and population. ... This is to ensure the adverse effects of immigration are addressed now and in future (Borjas 2000; Great Britain, 2012). UK countries need to remain pro active in policy making in regard to immigration and future labor market situation. In economics, philosophers have concluded that through migration everybody benefits. The countries receiving employees benefit through reducing the labor shortage and produce low cost products. Countries, from which the people come from, reduce the rate of unemployment while the workers in the foreign land benefit. From the above theory, it can be noted that it is true, but these benefits are only in the short run; in long run, migration cost is huge. Countries getting foreign workers endanger their citizen job security. The native employees in firms may be fired to recruit cheap workers from foreign countries. This is so in nations with labor market which inflexible (Borjas 2000). It is therefore important to check on the flexibility of labor market before formulating policies that encourage immigration. Immigrants find themselves trading off their rights for wealth creation in other countries. The immigrants are exposed to high chances of being exploited in the foreign countries. Merits of Immigration Creation mobility of job - Immigration leads to establishment of new jobs because of economic growth and enhancement of job mobility. In 18th to 20th century, over one third of UK’s population growth, moved to other countries, but this was not sustained for long. In 21st century, largest increase in population is due to immigration. It is important for any country to control the movement of people across the borders. Migration has effects on both demographics and economic performance of a country. Demographics