The migration of workers is the movement of people from their home country to another country for the purpose of employment. It is a complex phenomenon with a long history, and there are many different reasons why people choose to migrate.
The migration of workers is a complex and multifaceted issue. It has both positive and negative consequences, and it is important to carefully consider all of the implications before making policy decisions about migration.
The migration of workers has a number of economic, social, and political implications:
- On the economic side, migrant workers can help to fill labor shortages in host countries, boost economic growth, and transfer skills and knowledge.
- On the social side, migrant workers can help to diversify societies and cultures, and they can also provide valuable social services, such as childcare and elder care.
- On the political side, migrant workers can help to promote democracy and human rights, and they can also play a role in resolving conflicts.
Who is a migrant worker?
The United Nations (UN) defines a migrant worker as ‘a person who is engaged in a remunerated activity in a state of which he or she is not a national’.
A migrant worker is a person who migrates within a home country or outside it to pursue work. They usually do not have the intention to stay permanently in the country or region in which they work.
Migrant workers who work outside their home country are also called foreign workers. They may also be called expatriates or guest workers, especially when they have been sent for or invited to work in the host country before leaving the home country.
The International Labor Organization (ILO) estimates that there are 169 million international migrant workers in the world.
The top three destinations for migrant workers are:
- Northern, Southern, and Western Europe (24.2%).
- Northern America (22.1%).
- Arab States (14.3%).
The top three countries of origin for migrant workers are:
- India (25.3 million).
- China (11.2 million).
- Mexico (11.1 million).
Reasons for migration of workers
Some of the most common reasons for migration of workers include:
- Economic opportunities. Many people migrate in search of better economic opportunities. This may include higher wages, more stable employment, or access to better education and healthcare. MNCs attract migrant workers by offering attractive employment opportunities including pay and remuneration.
- Family reunification. Another common reason for migration is to reunite with family members who have already migrated. This is especially common in cultures where family ties are strong.
- Refugee status. Some people migrate because they are fleeing conflict, persecution, or other forms of violence. These people are often granted refugee status in their host countries, which provides them with protection and access to basic services.
- Climate change. Climate change is increasingly driving migration, as people are forced to leave their homes due to rising sea levels, drought, and other environmental factors.
- Social environment. Many countries around the world try to attract workers by lowering TAX rates. Additionally, many places in developed economies offer higher standard of living.
Different types of labor mobility
Labor mobility is the ease with which an individual is able to move from one region to another in search of work. It is the ability of workers to move geographically and occupationally within the labor market which results in taking new employment in a different place.
Labor mobility means:
- Occupational mobility. Occupational mobility of labor means extent to which workers are willing and able to move to different jobs requiring different skills.
- Geographical mobility. Geographical mobility of labor means extent to which workers are willing and able to move geographical region to take up new jobs.
Why is migration of workers possible?
Ease of labor mobility depends on the differing skill levels of available jobs, the location of the jobs available, the willingness of an individual to change to a different job, the age of the worker, the qualifications of an individual or the degree to which an individual has transferable skills.
In the UK, job opportunities may arise in certain areas, e.g. the South East of England.
Let’s take a look at differences in labor mobility in different types of economies:
- Developed countries. In developed economies, labor tends to be relatively immobile because high level of home ownership mean that workers are reluctant to pay the cost in time and money of arranging a house sale and purchase in another region. Also, high skill levels in one occupation may mean that workers are not equipped to deal with machines, processes and technologies in other industries and occupations. In developed economies which have transitioned from the primary to secondary to then the tertiary sector, the tertiary sector accounts for the largest proportion of employment e.g. 75% of the workforce in the USA is within tertiary.
- Developing countries. In emerging market countries, despite strong family and ethnic ties to one area, mobility tends to be higher because home ownership is low and low skill levels mean that workers can undertake low-skilled jobs in many different industries.
Benefits from migration of workers
The more mobile workers are, both geographically and occupationally, the higher the supply of labor tends to be.
Migrant workers contribute to the economic growth of the host country through their production, consumption and payment of TAXes, but also remit a significant portion of their incomes to their home country.
High labor mobility helps a country achieve economic efficiency. A mobile worker means that if jobs are lost in one industry or region, workers are willing and able to move to other jobs and/or other occupations. This helps to keep structural unemployment low.
Structural unemployment happens when a worker loses his job due to the changing structure of the nation’s economy, i.e. developing country moves from an agricultural base to a manufacturing base and farming techniques become less labor intensive and more capital intensive.
Drawbacks from migration of workers
Labor immobility reduces the flexibility and international competitiveness of a country’s workforce.
A high degree of geographical mobility, especially between rural and urban areas, can lead to over-crowding and very poor living conditions in towns and cities.
In summary, many governments pursue policies to attempt to increase labor mobility. These include relocation grants for key public sector workers, job center and other governmental offices to advertise job vacancies nationally or training and retraining programs for the unemployed.
