Question 5.3. Some trade unions fear that the free movement of people depresses wages of
ordinary workers because immigrants from other European countries are willing to work for
lower wages. Should the free movement of people thus be restricted for some countries or specific periods?
The successful development of one European market established in 1993. The customary European market required unrestricted cross-border manoeuvre for commodities and services, equity and exertion (Smith, 2011). The involvement of regional establishments and disparities among the members of the state were significant to demonstrate central and external relocation coincided.
Immigration has a remarkable impact on labour availability as it accelerates the mass of employees in a particular section of the economy. The migrant’s effects significantly correspond to the qualifications of the migrants, the competency of the native employees, and the attributes of the mother country (Ma, 2020). The migrant’s impacts can also change within the current state and the future state of a country’s welfare and the workers’ demand adjusting to the labour growth availability. Relocation of workers contributes to the changes in labour availability. Migrants expand customer requirements for particular commodities and services, increasing the growth of labour in certain areas. The rise in the workforce means that settlers rise aggressiveness for current work opportunities in specific areas and at the same time developing new opportunities (Smith, 2011).
The current position of employees in a sector would be affected by migrants if they got quality expertise than the existing workers to replace them. Relocation increases the job aggressiveness and reduces the current wages when the foreign workers return the existing employees(Altonji& Card, 2018). When payments reduce, the native employees’ unemployment may rise, or they can agree to work under minimal income. On the other hand, when the competences of the migrants and those of native employees match, there is a rise in the native workers’ salary and growth in productivity(Ma, 2020). Consequently, under-skilled employees meet with aggressive migrants as technicalities required for some opportunities are easily achieved and need minimal skills.
Relocation of people gives rise to labour resulting in new job developments. The moving people increases the growth of commodities, and proprietors raise the output in areas where settler’s exertion practised. Immigrants have different cultures and practices, which leads to the mixture of a nation’s commodities and services offered affecting the occupational and corporate composition of the workforce demand(Altonji& Card, 2018). For instance, the relocation of professional settlers may drive the need for improved innovation and incorporation of more efficient and advanced systems in developing various outputs and services, impacting on the workforce required.
The magnitude that the country’s welfare attributes determine capital and exertion answers to relocation. During a country’s welfare decline, the workforce requirement is minimal while during the growth period, the demand is accelerated (Smith, 2011).
Considering the implication and effects of settlers to a nation’s welfare, I would support the free migrations to be limited to specific periods instead of putting restrictions on some countries.