One consequence of being part of an economic and political union, where the central governing authority enforces free movement of people – the absolute right of anyone to live and work wherever they want – is that there is a strong economic incentive to move from areas with higher unemployment and/or lower wages to areas where economic opportunities are greater. This is especially true for younger people who are looking to get started in the labour market.
And what are the impacts? Economics 101 gives us the answer. In the areas that they move to, labour supply is increased. The laws of supply and demand means that the price of labour – that is, wages – falls, and unemployment may rise, especially for locals who find it difficult to compete. And, given the way the welfare state works, pressure on services – schools and hospitals – also increases. Paradoxically, it’s not necessarily good for the areas from which the migrants come from either – they may see lower unemployment, but they are denuded of the young, skilled workers they need to develop.
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