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The EU Enlargement and Its Impact on the UK Labor Market - Literature review Example

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The survey “The EU Enlargement and Its Impact on the UK Labor Market” gives a detailed background of the shifts which occurred mainly in the service and industrial sectors due to the migratory effect of the labor force, lowering of the unemployment rate and the number of people claiming benefits. …
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The EU Enlargement and Its Impact on the UK Labor Market
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Download file to see previous pages The demographic differences like the proportion of the EU working population, the degree of their skills, social security benefits varies in a notable way. The enlargement process is an initiative to harmonize the country-specific disparities in the demand and supply of the economic inputs and distribution of economic outputs. The success of the integration is evaluated on the basis of associated benefits and costs of the process. Since there happen to be significant economic and demographic differences among the nations belonging to the union, the impact of new entries will bring about various substantial alterations in the overall socio-economic structure. The new admittances have well-defined structural differences with those of the United Kingdom. The U.K. is highly susceptible to ongoing immigration activities. So the importance of enlargement of the European Union on the labor market cannot be ruled out.
The New Member States (NMS), who was recently being made a part of the E.U., consists of nations namely Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. After the formal enlargement process was over in May 2004, most of the formal E.U. member states imposed several immigration restrictions on the NMS. They immigrants who wanted to work or to become residents faced stringent legislative barriers, curbing their intentions, which were in effect in these countries. Denmark, Sweden, Ireland, and U.K. were the only four nations where the workers from the NMS could get relatively free access. “Based on the data available one year after the eastward expansion of the EU, Boeri, and Brücker (2005) suggest that the immigration restrictions imposed by the majority of the EU-15 resulted in the diversion of NMS migrants from the traditional destination countries that border the NMS, that is Austria, Germany, and Italy, to the EU-15 countries with more liberal immigration policies” (Barrell, FitzGerald & Riley, 2007, p. 2). Empirically, U.K. appears to be the most popular destination of the NMS workers. The net inflow of migration took a steep rise from around 50,000 to 150,000 during the last decade, but the impact seemed much smaller than that of Ireland due to the population size of U.K. The data structure suggests that it is most likely to happen, considering the routes of access (Salt and Millar, 2006) and the different liberal policy adoptions (Hatton, 2005), a huge, possibly largest immigration of foreign workers. While another way of explaining the U.K. immigration process can be done by considering factors like demographic changes, income differentials and a favorable market for the labors in U.K. when compared with elsewhere (Mitchell and Pain, 2003). The migratory behavior is expected to affect the major economic indicators of a nation; in this case, United Kingdom is in a state of immigrated labor influx, like the GDP, GDP per capita, productivity, unemployment, current account balance, and many others. The stability of an economy in all these regards favors the immigration process, as the immigrants cannot hold themselves back from taking the advantages of exploring a potential market. But the socio-economic developments as suggested by many theorists as some of the important consequences associated with the immigration process rendering positive effects are still some points waiting to be critically analyzed. U.K. managed the migration process to achieve some core objectives like—economic support & growth, encouraging international developments, ensuring public protection, and by promoting social cohesion. In order to build up a successfully integrated society, some key strategies are to be employed welcoming different thoughts and contributions by distinct communities, collectively framing the aggregate development pattern as explored by the consultation paper “Strength in Diversity”. In this context, the U.K. Government’s chief economic objective is to improve the trend depicted by the sustainable growth rate of development. The migration policies adopted by the government are traditionally based on the typically market-oriented approach on a relatively liberal framework. This effective assumption was realized when the level of employment went up to a record level of 1.9 million, since 1997, along with the lowest unemployment rate given by International Organization (ILO) in the G7.  ...Download file to see next pagesRead More
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