Consequences of Migration in the UK Labor Market - Term Paper Example

Select A Country And Discuss How Migration Has Led To Changes In The Labour Market. Discuss How This Can Affect HRM in an International Setting Table of Contents Table of Contents 1 Introduction 2 Literature Review 3 3 Critical Analysis and Discussion 4 4 Conclusion 7 References 8 Bibliography 10 Introduction For economic development and social change, the movement of population has remained as a quintessential component in modern civilisation. This physical movement of humans can be referred as a migration. In simple words, migration is an evolutionary process through which human kind shifts from one place to another place, for better opportunity. According to the observation, it has been revealed that this approach has been mostly practiced by labour class of the society. Over the last decade, especially during the last few years economic migration has grown in the United Kingdom labour market significantly. Generally, it has been determined that people have the tendency of shifting in other places, where growth or economic development can be seen. Due to a lack of work opportunity or unemployment people have over the years preferred to move in developed cities or places for working opportunity. In this regard, it has been also observed that in developed countries such as the United Kingdom (UK) and the United State of America (USA) the effect of migration can be viewed highly in labour market. It can be evidently asserted that in the modern era, it will be very difficult to identify such examples, where people rather preferred to be born, live and die under the same roof significantly. In this concerned discussion, the main aim is to highlight how migration has led to changes in the labour market of the United Kingdom. In addition, the study with a focus on reviewing pertinent literatures will also emphasise how migration can affect human resource management (HRM) in an international setting. Literature Review In accordance with Bauer & Zimmermann (1999), unemployed workers’ from central and Eastern Europe (within EU) have moved towards the UK for job opportunities. According to a report, it has been observed that the wages of the UK labour market has been higher than that of central Europe and EU labour market indeed (Bauer & Zimmermann, 1999). Over the years, it has been observed that the pressure of migration has increased significantly. At the same time, it has been also determined that the migration has not only happened in central Europe and EU but also it has been seen in different territories such as America, Africa and Asian countries. The impact of high level immigrants has been also seen in the political environment and economy of the United Kingdom. Due to high amount of immigrants UK market has been affected in a number of ways. Consequently, the labour market has become more congested and as an effect the wages of labours have been reduced specifically. Simultaneously, the availability of migrant labours has led towards unemployment issues in the United Kingdom (Bauer & Zimmermann, 1999; Gilpin & et. al., 2006). According to Farnham (2010), the term human resource management (HRM) can be used in both ways. First of all, HRM denotes a generic term to describe the form of management activities, which conventionally portrays personnel management. On the other hand, HRM can be considered as a typical approach to recommend a specific philosophy towards carrying out people-oriented organisational activities (Farnham, 2010). In recent years, it has been observed that due to immigration the human resource function agenda has been changed. According to the observation, it has been identified that the changes mostly have been seen in the structure of human resource in large private and public sector organisations (Farnham, 2010). High immigration into the UK is resulting in the increase of potential labour force in the local market. And, it is also directly impacts the supply as well as demand for goods along with services within the markets and public services. On the other hand, due to immigration in the UK labour market, the social economic inequality has been increased. On the contrary, it has been also viewed that multinational enterprises have been benefited during business activities due to immigration. After the increased focus on internationalisation and the emergence of globalisation, larger multinationals have extended their business in world-wide markets and due to that reason those organisations’ needed massive labour force for their operations. Thus, it can be evidently asserted that migration has both positive and negative influences. However, for immigrant country, it renders certain opportunities and threats (Schuler & et. al., 2002; Dickmann & Muller-Camen, 2006). Critical Analysis and Discussion In accordance with Salt & Millar (2006), it can be asserted that about 1.505 million foreign migrants worked in the UK in the year 2005. According to observation, it has been discovered that immigrant workforces were more skilled than that of local workforces. Besides, most of the immigrants are employed, whereas the number of domestic workers is low in the United Kingdom. Apart from this, immigrant citizens have enjoyed managerial posts in the United Kingdom; on the contrary, most of the local citizens have worked in clerical grades. In case of occupational group, it has been observed that highly skilled migrants have involved in better occupational groups such as finance, communication and information technology, medical and science among others (Salt & Miller, 2006). Figure: 1 Highly Skilled Migrant’s Occupational Group in the UK (Salt & Miller, 2006). In accordance with Dustmann & et. al. (2005), the impact of migration has been mostly seen on wages as well as employment (Dustmann & et. al., 2005). Accordingly, it has been identified that the impact of immigration on the labour market critically depends on the skills of migrants. It can be asserted that the skill of workers and the characteristics of the immigrant country both of these factors decide the condition of the market. For example, it has been seen in case of India, over the years that highly skilled engineers and doctors have moved in the UK for better employment opportunity. And, within a quick span of time those migrants settled in the United Kingdom (Iles & Yolles, 2002). Consequently, it has been also ascertained that due to high amount of immigration in the United Kingdom, labour market has become more and more congested. As an effect, the number of skilled workers’ has also increased in the UK labour market. At that same time, large multinationals and public sectors organisations’ have identified the opportunity of utilising these resources. Furthermore, organisations’ have also identified the competitiveness of large workforce. At that stage, most of the organisations’ have reduced wages and instead of that hired skilled labours. From the analysis, it can be evidently asserted that due to high amount of immigration in the United Kingdom, the employment rate has been decreased especially for domestic labour force rather the unemployment rate has increased indeed (Merchant & et. al., 2011). In accordance with Lillie & et. al. (2013), the labour migration concept has increased in the modern era due to globalisation. After globalisation, the economically developed countries have engaged in international business activities for expanding their wings. Responsively, most of the firms have depended upon workforce due to several causes such as supply chain management, distribution channel, production and operations among others. Subsequently, most of the larger firms have the tendency of enticing skilled migrant labours because those workers are easier and faster to find and cheaper around the world. According to observation, it has been exposed recently that in excess of 100 million workers are moving around the globe. Out of them, only 3% labours constitute in global market; whereas, 32% of the labour force belongs to developing countries’ and migrating towards industrialised countries (Lillie & et. al., 2013). Since the year 1990, the effect of migration has been seen highly in the entire world. As a consequence, modern economic downfall in the entire world has led to a common question in front of the economists, whether immigrates cause this downfall in world-wide economy massively or not. Although on the basis of that several economists have argued and most of them have disagreed on that particular issue. According to the economists’ though, due to immigration the supply of workers’ have increased as well as the wages of workers’ have decreased although the demand of workers’ have increased. Thus, it denotes that the actual impact of immigration or migration especially is very low in case of long-run (Migration Policy Institute, 2014). From the observation, it can be evidently stated that migration has affected human resource management (HRM) in an international setting. Over the years, it has been ascertained that migration has thrown challenges for individuals. In keeping with migration, people have to cope-up with the rules and regulations of immigrated country. From environment to recognition everything has changed for migrant individuals. Even culture, languages and literature have transformed after migration. In most of the cases, it has been observed that the aspect of labour migration has been inspiration for better survival. On the contrary, it has been also determined that skilled workers have preferred migration due to better settlement. Thus, it can be asserted that the impact of migration can be seen highly for career advancement and personnel development (Stahl & et. al., 2002). At the same time, it can be asserted that due to migration, after globalisation most of the multinational firms have identified that migration has been the key opportunity for their expansion in international business market. This is because due to migration availability of labour has increased in developed countries such as the United Kingdom. Consequently, the labour market of the UK has changed identically due to migration and the affect has been also observed in HRM in an international setting (Stahl & et. al., 2002). Conclusion From the foregoing discussion, it has been magnified that since last few decades a set of profound changes due to migration has been seen in the United Kingdom. According to analysis, it has been exposed that due to migration the wages of labour has decreased in the UK labour market. On the other hand, immigration has been also been viewed cause few other difficulties, such as increasing unemployment and decreasing employment in the UK market. Moreover, it has been also observed that due to migration most of the larger organisations’ have practiced international HRM. Accordingly, it can be asserted that migration has both positive and negative influences. It can cause benefit for larger organisations. Through the aid of migration an organisation can build a strong employee base of diverse culture which in turn can facilitate it to operate on a global context. Besides, the benefit of cost effective labour force can be determined as a significant advantage of focusing on employing a set of employees who are present in the nation from other diverse countries. Consequently, it can also put an inverse impact on the employment rate of the country to which migration is taking place, which can also cause inequality and indiscipline atmosphere on the country’s environment. Besides, illegal immigration can cause terrorism activities in immigrant country. Nevertheless, from the different standpoints, it can be evidently asserted that migration can also bring about better opportunities for an individual. References Bauer, T. K. & Zimmermann, K. F., 1999. Assessment of Possible Migration Pressure and Its Labour Market Impact Following EU Enlargement to Central and Eastern Europe. Department for Education and Employment, United Kingdom, Vol. 3, pp. 1-108. Dickmann, M. & Muller-Camen, M., 2006. A Typology of International Human Resource Management Strategies and Processes. International Journal of Human Resource Management, Vol.17, Issue. 4, pp. 580-601. Dustmann, C. & et. al., 2005. The Labour Market Effects of Immigration. The Economic Journal, Vol. 115, pp. 297-299. Farnham, D., 2010. Human Resource Management and Its External Contexts. Human Resource Management, pp. 3-38. Gilpin & et. al., 2006. The Impact of Free Movement of Workers from Central and Eastern Europe on the UK Labour Market. Department for Work and Pensions, Vol. 29, pp. 1-61. Iles, P. & Yolles, M., 2002. International Joint Ventures, HRM and Viable Knowledge Migration. International Journal of Human Resource Management, Vol. 13, Issue. 4, pp. 624–641. Lillie, N. & et. al., 2013. Migration and Human Resources Management. BK-Sage-Martinez, pp. 220-237. Migration Policy Institute, 2014. Immigration and the Labour Market Theory Evidence and Policy. Equality and Human Rights Commission. [Online] Available at: http://www.google.co.in/url?sa=t&rct=j&q=immigration%20and%20the%20labour%20market%20theory%20evidence%20and%20policy&source=web&cd=1&cad=rja&uact=8&ved=0CCcQFjAA&url=http%3A%2F%2Fwww.migrationpolicy.org%2Fpubs%2FImmigration-and-the-LabourMarket.pdf&ei=G3RvU8j5E8uWuATuz4GoDQ&usg=AFQjCNHB2I0Txb25BJWtIq6GISGztP8AHg [Accessed May 11, 2014]. Merchant, K. A. & et. al., 2011. Performance Measurement and Incentive Compensation: An Empirical Analysis and Comparison of Chinese and Western Firms’ Practices. European Accounting Review, Vol. 20, Issue. 4, pp. 639–667. Salt, J. & Millar, J., 2006. Foreign Labour in the United Kingdom: Current Patterns and Trends. University College London, pp. 335-355. Schuler, R. S. & et. al., 2002. International Human Resource Management: Review and Critique. International Journal of Management Reviews, Vol. 4, Issue. 1, pp. 41–70. Stahl, G. K. & et. al., 2002. Towards the Boundary less Career: A Closer Look at the Expatriate Career Concept and the Perceived Implications of an International Assignment. Journal of World Business, Vol. 37, pp. 216-227. Bibliography Akorsu, A. D. & Cooke, F. L. 2011. Labour Standards Application among Chinese and Indian Firms in Ghana: Typical or Atypical?. The International Journal of Human Resource Management, Vol. 22, Issue. 13, pp. 2730–2748. Farndale, E. & et. al., 2010. The Role of the Corporate HR Function in Global Talent Management. Journal of World Business, Vol. 45, pp. 161–168. Read More