Macroeconomics

Macroeconomics

Introduction

The purpose of this essay is to discuss the Employment and Immigration with respect to the macroeconomic theories. There is strong economical relation between the employment and immigration. One of the consequences of immigration model focuses on the needs of labor and the role played by the economic crises of 1880, 1930, and 1980, the outbreak of xenophobic attacks. In times of prosperity, immigrants are welcome to fill positions vacated by nationals. Immigration is really a painful process of uprooting that has no impulsive choice and is geared to a variety of family data, linguistic and geographic as well as economic.

Immigration of the workforce tends to have an effect on the 'Complementarily' which is interpreted as recent immigrants filling the jobs disdained by natives. For example because of their acceptance of lower wages and an effect of substitution (older immigrants entering compete with native workers on standard employment). Immigration facilitates redeployment between sectors and employment adjustment. To standard economic theory, migration is a factor of labor market flexibility and therefore supports the reduction of unemployment. For heterodox theories, it plays an important role in the breakdown and restructuring of employment patterns. Migration involves complex economic mechanisms, which can act in contradictory directions and with different time frames (Wells, 2009).

Protected trade promoted colonial growth through natural increase and through immigration. When the European homelands tightened colonial trade restrictions, immigrants in the colonies resorted to smuggling to continue trade. After thousands of years, immigration peaked in the nineteenth century. Twenty-first-century globalization allows those who would have emigrated to trade at home. The trade-immigrant nexus is weaker than it has been because the would-be immigrant now travels the Web instead of the roads and seas (Christian, 2008).

Discussion and Analysis

Immigration is backed by the intention to improve the economic situation. However, it is not essential that immigration does tend to solve the problem of unemployment. As the immigrant labor does not have the same characteristics as the Aboriginal workforce (in terms of training, qualification, aspirations, but also vulnerability), immigration will affect not only the volume of labor supply, but the structure of the workforce. Before rendering any notions related to immigration, it is important to understand the dynamics of immigration. Immigration refers to the entry in a foreign country, which come to stay there or move there backed by the purpose. It could be due to political, economic, personal, professional reason (Doomernik, 2001).

The population structure is very different in rich countries and poor countries. In poor countries, there are many young people, while in rich countries there are many older people. The growth of the inactive population, young and old cannot participate in the labor markets for bonds of age, involves an increase in the dependency ratio by the company. Companies, thus have less extensive resources to be used in production processes (labor force) and therefore less capacity for economic growth while increasing needs and the demand for consumer goods. The ability to create new jobs and migration may structurally correct the problems ...