Impacts of Immigration
The massive inflow of migrants may primarily affect the labor market, namely the unemployment rate and the height of real wages. In the analysis of the impact of immigration on the labor market the distribution of immigrants in the skilled and unskilled labor sectors should be taken into account. Such division is possible according to the level of the immigrants’ skills, with completed education being possibly the best indicator of proficiency. While the influx of unskilled immigrants may seem to be good for the state (to fill the positions in the labor market that local permanent residents refuse to take), the arrival of skilled migrants is usually seen as a detriment to the target state’s residents. The overall impact of immigration on the labor market in the CR can be characterized as negligible. In rare cases a large increase in immigration may have the effect of reducing wages, or increasing unemployment, but in the long run it is only a temporary phenomenon.
Another sector where an increase in immigration might show is in the economy of the destination state as well as the state of transition. More specifically, increased immigration may have an influence on the fiscal impact of the state budget. This is the difference between tax revenues from immigrants and and expenditures on them. The income for the state budget comes from the taxes immigrants are obliged to pay and expenditure is the cost of social security and health insurance for the immigrants. The statistics of the fiscal gain or loss must be used very cautiously, because they are inaccurate and are merely a short-term indicator.
The implications and impact of immigration on destination and transit countries also need to be addressed in the long run. Since joining the EU the Czech Republic seeks to address these issues. The Czech Republic is taking part in the process of creating a common immigration policy within the European Union, which involves the principle of a single approach; ie. the same set of rules for all member states (as opposed to migrants trying to use to a different approach in some other member countries to their advantage). Another measure aiming to reduce the impact of immigration is thorough the rigorous prosecution of illegal immigrants.