Migrants and the downturn
In an interview with La Croix newspaper (in French), the OECD’s Jean-Christophe Dumont looks at how the downturn has been affecting migrants. One major issue is unemployment – in a downturn, immigrants are more likely to lose their jobs than locals. Despite this, emigrants don’t appear to be returning home in large numbers. In part that’s because job prospects back home may be as bad as in emigrants’ destination countries. But it’s also because emigration is often a long-term project involving big adjustments like resettling families, buying property and so on. Most people would think twice before undoing such changes.
Still, the slump has had a noticeable impact on one area – remittances, or the money emigrants send back home. According to World Bank estimates, they’ll be 6% lower in 2009 compared with 2008. As it’s likely to be several years before remittances return to pre-crisis levels, many developing countries will face a continuing shortfall in this important source of income.