Immigration Labour In South Africa

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Does immigration labour benefit or impoverish south Africa ? Motivation I chose the area of immigration labour. This is because with the rise of unemployment levels in south Africa and the increased amount of immigration labour it has to raise ones eyebrow as to how the south African economy is dealing with this and also with the increase in xenophobic attacks will south Africa be able to sustain itself and its people or will other countries benefit from them ? Introduction immigration labour is defined as foreign labour in a country . in recent times an estimated figure of about 105 million people are employed in a country that is not theirs. Some argue that immigration labour actually benefits a country more then it does it any harm…show more content…
Economic growths most important source is the labour force. Rise in productivity will lead to a rise in economic growth. Productivity is likely to be increased by immigrants as they are usually economically active thus economic growth will increase. Output demand is boosted by immigration thus the countries economy grows. According to Eaton, (1998) demand is increased by immigrant workers by providing new goods and services. Natives benefit from the rise of production. Demand for goods and services rises when more immigrants enter a country also increasing the population leading to expansion of…show more content…
The biggest problem in south Africa is that there is an oversupply in unskilled labour and a major undersupply of skilled labour. Due to too many unskilled labourers entering the country the labour market conditions suffer, because of these labourers being unskilled it doesn’t fill up the labour shortage gap in skilled areas this can incease unemployment rates. According to a study conducted in England by Dustmann a 0.17% increase in unemployment is caused by a 1% increase in immigrant population. Skilled workers wages are sometimes determined by immigrants, if the population of immigrants rises skilled workers will receive higher wages, however an increase in the population of immigrant unskilled labour results in an reduction in employment and wages which is negative. The blame for moving natives in the labour market is put onto immigrants. Unemployment increases as wages increase because employers retrench workers in order to keep up with labour costs which results in a rise in

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