Rallo and immigration: jobs or precarious work

Immigration as a jobs engine: myth or reality according to the data? The economic debate around immigration has reignited, this time over…

English · Original discussion in Spanish · Published

Rallo and immigration: jobs or precarious work
Immigration as a jobs engine: myth or reality according to the data?

The economic debate around immigration has reignited, this time trinc economist Juan Ramón Rallo's claims about its positive impact on job creation and economic growth. However, a detailed analysis of the data and the counterarguments put forward reveals a far more complex reality, in which the apparent generation of jobs conceals lower wages and pressure on the welfare state.

The liberal argument and its nuances

Rallo argues that immigration is the main driver of job creation and therefore of economic growth. This perspective, shared by some liberal circles, centers on the idea that the arrival of new workers boosts both demand and supply, energizing the economy. However, critics point out that this view omits crucial factors such as the role of the state and the working conditions that arise from this phenomenon.

It is argued that immigration, far from being an engine of widespread prosperity, can contribute to precariousness. The figures suggest that average wages for foreigners and people with dual nationality are significantly lower than those of Spanish nationals. According to data from the EPA (Spain's Labour Force Survey), the wage gap can exceed 400 euros per month, which translates into lower contributions to the Seguridad Social (Spain's Social Security system) and greater reliance on social benefits. This disparity raises the question of whether immigration creates quality jobs or simply low-paid positions that displace native workers or push them to accept worse conditions.

The weight of the state and demand

Another point of friction is the consideration of the state's role. While Rallo appears to overlook its influence, other analyses highlight how immigration is shaped by social welfare policies. It is suggested that the perception of access to aid and benefits could be a pull factor, which contradicts the purely liberal vision of a self-sufficient market. The financing of these services, in turn, falls on the population as a whole, generating a debate about the sustainability of the model.

The question of demand is also central.

Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (208 replies).

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