Why the drivers of migration matter for the labour market

Release date
07/04/2016
Reference
AN2016/02
Authors
Jed Armstrong; Chris McDonald
ISSN
2230-5505

Net immigration increases both labour demand and labour supply. Historical data suggests that the demand impact is larger than the supply impact, but in the current migration cycle the boost to net demand appears to be smaller than expected. This paper explores why the unemployment rate has been higher than expected, given the high level of net immigration.