Immigration brings significant economic benefits such as a more competitive labor market, a higher pool of expertise, increased competition, and increased innovation diversity. Immigration, however, is still controversial. Immigration is argued that it can cause problems of overcrowding, pollution, and an extra burden on public services. There is also a question as to whether the Immigration of unskilled workers contributes to downward pressure on the salaries and even native workers’ unemployment.
What are the pros and cons of Immigration? Let’s have a look.
Pros of Immigration
Increased economic output
Net Immigration increases the size of the labor-power and increases the economy’s productive potential. Immigration leads to higher economic growth, with a resulting rise in tax revenues and government spending capacity.
Encouraging entrepreneurship
Many of the immigrants are talented businessmen. Sometimes, they are highly educated, thoroughly trained, and very creative when developing a new concept. Immigrants are often highly competitive, allowing new jobs to be developed, innovation-driven, or established companies to become more agile. Their presence encourages the establishment of worker specialization, which makes it easier for all businesses to spend more on their workers.
More flexible labor market
The immigrants are highly mobile. If wages are high and demand for labor is heavy, they migrate to economies. It helps to prevent overheating a booming economy by supplying labor to meet the rising demand. Less clear, however, is the fact that once the economy experiences a downturn, migration also moves backward, meaning that they don’t continue and try and get unemployment insurance but return home.
Create a global market
Immigrants are doing more than just building stronger local economies. They also help to make a difference towards a more robust global economy. Remittances are common in countries that welcome immigrants. Immigrants who have more chances to pursue higher education or high-skill work may also take those skills back home to boost their status.
Promote economic recovery
Immigrants are more likely to migrate to a new area to seek work opportunities than indigenous people. That means economically poor areas will start experiencing a turnaround with greater speed as immigrants arrive at work.
Multiculturalism
Away from economics, some believe that Immigration contributes to greater cultural diversity, creating a more dynamic and inclusive atmosphere for a society. Both immigration countries have incorporated some elements of foreign culture into their nation, whether it is cuisine, music, literature, or political influences.
