Business Focus: Effects of Immigration in Europe
Migration has overflowed the political and economic debate over the past decades as the globalization of the job markets expands. However, its benefits, costs, issues and advantages are generally overlooked from a business perspective.
Undoubtedly, immigration has proven to be highly beneficial for businesses and for SMEs (Small and Medium Sized Enterprises). Yet, a lack of governmental intervention on a global and national scale cause the frequent occurrence of some issues, of which illegal immigration is the most severe. It puts businesses at risk and make ethical enterprises be out-competed by unethical organization, which can benefit by hiring illegal immigrants at lower costs thus unfairly providing cheaper services. Other issues include the difficulty to assimilate immigrants into the work culture and language barriers.
When considering a global expansion, countries with high immigration may be preferred due to their favourable conditions such as the provision of language and cultural knowledge that current staff might not possess. Moreover, the diversification of the workforce might foster innovation and protect from anti-discrimination laws.
Furthermore, skilled immigrants represent an under-tapped talent pool of highly flexible, adaptable and loyal workers, ideal for expanding businesses. Unskilled immigration can also be beneficial for the national economy and enterprises, by providing a steady supply of candidates to fill job openings often neglected by native people.
EuCham – European Chamber listed the European countries according to the migration rates, which indicates the difference between immigrants and emigrants of a country in a given year per 1,000 persons, based on data from Central Intelligence Agency (2014). As seen here by these metrics, SMEs could take advantage of the high migration inflows occurring in Cyprus, Luxembourg, Norway which by providing advantageous tax and bureaucratic laws attracting with immigration a stream of inflow capital which can ultimately stimulate the economy.
For a full report click on this link eucham.eu/charts to read more.