Homework Help - Question & Answer

By Student

Writing an essay on impact of immigration on UK Economy and need help?


By PD Tutor#1
Best Answer

Most of our example essays dealing on immigration and the economy focus on the United States, so we cannot point you towards a handy on-point example essay that will outline the format and give you a good idea of the type of content you should have.  However, we can still give you a great starting point for an essay about the interaction of immigration and the economy in the UK.  In your essay, you could look at several different factors that impact the economy.  These factors include the number of available workers, increase in aggregate demand (spending), the flexibility of the labour market, which sectors are most impacted, the dependency ratio, immigrants’ use of social services or welfare, and the economies of scale.

Despite concerns that immigrants will tax an already-stressed economy, the research seems to suggest the opposite.  Immigrants increase the available labour force, as they are more likely to be of working age.  This also decreases the dependency ratio, by introducing more people of working age and fewer of retirement age.  This increases the potential for output, though it does cause concerns of worker displacement if there are not enough jobs available for immigrant workers.

However, the influx of workers should also increase spending, which should increase demand, and therefore increase the demand for workers.  Since the increased demand for workers will be met with an increased supply of workers, the results should be an impact in real GDP.  This is good for the country, as a whole, but does not necessarily mean that there will be an increase in per capita GDP, as the demand may be for unskilled labor.  However, because younger labourers usually mean a more flexible labour market with semi-skilled and skilled workers who are willing to travel for work, it could even lead to an increase in per capita GDP, especially if immigrants work in public sector jobs.

Related Documents

View all Students Questions & Answers and unlimited Study Documents