The Economic Impacts of Mass Immigration Into European Countries

The immigration of millions of people to Europe from the conflict-laden countries such as Syria and Afghanistan has raised an alarm in the political, economic and social spheres. On their part, the immigrants have narrated shocking stories of their journey to Europe and the painful experiences in their native countries. Accordingly, their need to get relief and better lives is echoed from the immigrants and the civil rights groups. Nevertheless, most of the European countries have been hesitant to accommodate them because of related the economic burden. In this light, it is important to go into the depths of economic impact of the immigration issue in Europe with the aim of coming up with the relevant policies.

To start with, the immigration of the desperate individuals into Europe can have negative effects on the native worker’s wages. Some of the immigrants may be more skilled than the native workers, which means that they can find good job opportunities in the European block. On the contrary, they are likely to settle for less payment than the native workers. In this light, lowering of wages in an economy can affect the productivity of workers and their standards of living. For such fears, nations have been less accepting of the immigrants and have therefore confined them within the refugee camps. On the other hand, immigrant can be good for a nation in the sense that it can create a new demand for good and services. The economists refer to the concept as immigration surplus. To meet the demand, employers are likely to hire more workers for mass production of goods. Creation of job opportunities for native workers raises their standards of living and at the same time minimizes the rates of dependency to the government agencies in an economy.

Notably, there is a likelihood that the immigrants may come in handy in consideration to the aging population in Europe. The birth rate in nations such as Italy is relatively low, which may affect the labor market in the future. Therefore, allowing the immigrants to learn and work in the economy can be beneficial in the long-run. Even so, in the short-term, the governments may have to increase its budgetary considerations to public goods and services. Economies such as Greece and Italy that have been struggling with the issue of debt crisis may be more affected in such courses. A good example of the economic burden is demonstrated in Germany ,where in 2015, the economy may spend close to 10 billion Euros on the refugees- the amount may be higher by 2016. Besides, the net fiscal contributions of migrants tend to be lower than that of the native workers because of their lower levels of employment.

Indeed, there are pros and cons that come with the influx of immigrants into the European zone. Policy makers should evaluate how well they can take advantage of the possible opportunities. This may mean coming up with better employment policies that assure native workers of their jobs as well absorbing the qualified immigrants into the work force. Further still, proper budgetary allocations should be made so that development aspect in the economies is not halted due to a concentrated effort on dealing with the immigration issue.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s