wage differentials essay

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04. Using extract D, identify two significant points of comparison between the data shown in the two bar charts (5 marks) Agriculture is the biggest sector of employment for migrant workers at 92% whereas it is the smallest for UK employment at 10%. Manufacturing is the lowest in terms of employment for migrant workers at 12% and is the second largest with 10% of UK employment. Distribution, hotels and restaurants is the represents the highest amount of UK employment in industrial sectors with 18% and is the second highest for migrant workers with just over 50%. construction is the third largest in terms of migrant employment sector with 30% and the third largest sector of UK employment with 9%. 05.Extract E gives examples of…show more content…
An argument against this point is that an increase in the supply of labour will lead to a decrease in labour shortages in certain jobs. Especially in jobs that local people don’t find attractive for example low pay jobs like cleaners. Not only will people take low pay jobs but also skilled workers who have good qualifications will benefit the UK economy and its services for example highly skilled jobs such as doctors. My final judgement is that the initial argument is a weak one because the migrant workers will benefit the UK economy by taking jobs that have a shortage of labour that maybe would not get done otherwise. An advantage to the UK of free movement of labour within the EU is that migrant workers who come to UK could contribute to the positive multiplier effect. This is when an initial increase in aggregate demand can have a greater impact on GDP. The workers will be spending in the UK, boosting aggregate demand and GDP. The rise in GDP will create more jobs as firms look to expand. An argument against this point is that shortages may appear when migrants return home because overall they want to help their families in their own country. Spending may be decreased because of this which will decrease aggregate demand and GDP. Also, this could lead to a difficulty in long term stability because if they can leave as easily as they can arrive then there will be a shortage of
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