The impact of immigration on the labour market is rather a challenging task which is dependent on a number of factors. Some of the important factors are the characteristics of the migrants including skill level, family composition, age distribution, health status, temporary or permanent immigration, and fertility patterns. From these characteristics, the skill level is one of the main factors which determine the impact on the labour markets. Immigrants that are highly skilled tend to work in highly paid jobs and thus eligible for paying more taxes than those migrants who have low wages and are low skilled (Din, 2012, p.
Moreover, participation in welfare programmes also decreases with the skill level. On the contrary, it has been analyzed that since a long time immigration in the UK has been beneficial economically for the markets. It has been said that cutting down the numbers of the foreign workers would make it tougher for the UK Government to clear the deficit. Immigration has thus had a positive change in the labour market and public finances (Nowotny, 2009, p. It creates a positive picture of the Government’ s finances.
As the immigrants are more likely to be of the working age, they tend to pay more taxes and are less likely to have expenses for education, healthcare, long-term care, and pension expenditure (Briscoe, 2012, p. A recent government report showed that migrants in the UK are needed to raise the cost of pensions, NHS, and social care. If immigration rates run at 140,000 annually, then the national debt will also reach 99 per cent of the total economy in the next 50 years.
There are still a huge number of immigrants entering the UK labour market and without them; the national debt will soar to about 175 per cent of the GDP. However critiques also suggested that the public finances of the UK are healthier because of immigration only in the short term ((Dustmann & Fabbri, 2005, p. Experts also suggest that the immigration has temporary beneficial impacts on the public finances as they are industrious and young migrants but they can become the net consumers of public services as they settle, grow older, and start their families.
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