Why rich countries are so dependent on migrant workers | CNBC Explains

Summary

Migrant workers, who make up a significant portion of the global workforce, play a crucial role in both host and home economies. Despite the economic opportunities in wealthier countries, migrant workers face numerous challenges, including poor working conditions and vulnerability, especially during crises like the COVID-19 pandemic. Their remittances are vital for many low-income nations, yet many come from countries with limited economic infrastructure. The discussion emphasizes the importance of addressing the rights and welfare of migrant workers, as well as the need for long-term economic strategies in both sending and receiving countries.

Takeaways

• 😀 1 in 20 workers worldwide is a migrant, contributing significantly to the global economy.
• 😀 Migrant workers often reside in high-income countries, with 67% of them in these regions.
• 😀 The presence of migrant workers helps bolster economies through their labor and remittances.
• 😀 Economic globalization has increased the number of migrant workers, driven by both push and pull factors.
• 😀 Workers move to countries offering better economic opportunities, where they can earn higher wages and send remittances home.
• 😀 Low-income countries, such as India, Bangladesh, and the Philippines, often supply migrant workers to wealthier nations.
• 😀 Remittances from migrant workers amount to significant financial flows, with India being the largest recipient.
• 😀 Migrant workers are often employed in low-skill sectors, such as construction and agriculture, in countries like Singapore and the UAE.
• 😀 Migrant workers face challenges like low pay, poor living conditions, and lack of basic labor rights protections in some host countries.
• 😀 The COVID-19 pandemic highlighted the vulnerable living conditions of migrant workers, particularly in crowded dormitories.
• 😀 Migrant workers contribute to addressing demographic issues like aging populations in high-income countries.
• 😀 The personal stories of migrants, such as Sri Jegarajah’s family experience, illustrate the broader social and economic impact of migration.

Q & A

What percentage of the global workforce is made up of migrant workers?

Approximately 1 in 20 workers worldwide is a migrant.

How are migrant workers defined in the context of this script?

Migrant workers are defined as individuals who live and work in a country where they do not hold citizenship.

What are the primary reasons driving the migration of workers to high-income countries?

The primary reasons are the search for better-paying jobs, economic opportunities, and the dynamics of international labor markets, which are influenced by factors like globalization and low birth rates in high-income countries.

How do remittances contribute to the economies of migrant workers' home countries?

Remittances, the money migrant workers send home, are a vital source of income for families in low- and middle-income countries, helping improve their standard of living and contributing significantly to the local economy.

What role does globalization play in the increase of migrant workers?

Globalization has accelerated the movement of migrant workers by lowering entry barriers, increasing interconnectedness between countries, and creating labor market opportunities in higher-income countries.

What is one of the key challenges faced by migrant workers, particularly in host countries?

A significant challenge is the enforcement of laws that protect migrant workers' rights, including ensuring decent pay, safe working conditions, and access to basic labor rights.

How did the COVID-19 pandemic impact migrant workers, particularly in countries like Singapore?

The pandemic highlighted the poor living conditions of migrant workers, with many living in crowded dormitories where social distancing was difficult. Additionally, the closure of borders and mobility restrictions left many workers stranded in host countries, exacerbating their vulnerability.

Why are workers from countries like Indonesia, Bangladesh, and the Philippines often drawn to migrate?

These workers are often from economies in early stages of development, relying on agriculture and manufacturing, and migrate to higher-income countries where their skills are in demand, offering better wages and opportunities for remittances.

What is one major structural issue in countries that provide migrant workers?

A major issue is the lack of infrastructure, skill development opportunities, and a higher-value tech industry, which prevents workers from advancing in their home countries and encourages migration for better prospects.

How does the migration of workers benefit high-income host countries?

Migrant workers help address demographic challenges, such as low birth rates and an aging population, and provide essential labor in various sectors, contributing to the overall economic growth of the host country.