(Tiểu luận) topic benefits and risks of hiring undocumented labor in companies

Gain labor for specific sectors that require hard work: .... These people tend to move to developed countries or developing countries which are more developed than the home country.. DEF

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ASSIGNMENT

ECONOMIC GEOGRAPHY

TOPIC: “Benefits and risks of hiring undocumented labor in

companies”

Student’s name:

Student’s ID:

Class:

Ha Noi, September 2022

ABSTRACT 1

MAIN CONTENTS 2

I DEFINITIONS OF HIRING UNDOCUMENTED IMMIGRANTS 2

II BENEFITS OF HIRING UNDOCUMENTED IMMIGRANTS 2

1 Gain labor for specific sectors that require hard work: 2

2 Spend less wage on the labor force: 3

3 Have a sort of industrious labor: 5

III RISKS OF HIRING UNDOCUMENTED IMMIGRANTS 6

1 Pay for fine and penalties: 6

2 Have unstable labor resources: 6

3 Meet difficulties in management: 8

IV SOLUTIONS TO UNDOCUMENTED IMMIGRANTS IN FIRMS 8

1 Promote workplace raids: 8

2 Enhance company’s ethics: 9

3 Control strictly migration borders: 9

4 Develop money and time - saving migration channels: 10

CONCLUSION 11

REFERENCE 12

1

Currently, in the context of globalization, most countries in the world are adopting open-door policies, encouraging and welcoming people to their countries Therefore, people can also have job opportunities in different countries In addition, due to the disparity in development levels, especially in the economy, many people tend to migrate

to other countries to not only afford their lives but also help their families

In fact, the number of illegal migrants is increasing These people tend to move to developed countries or developing countries (which are more developed than the home country) With those countries generally and companies particularly, they have been facing potentials as well as risks, affecting the economic and social stability

Facing this situation, having to make a choice: whether to hire illegal workers or not is

a problem that needs a lot of consideration and hesitation In order to make the right decision, every company needs to consider and evaluate both the good and the bad when there is an illegal migrant workforce This issue has been and will be a hot issue all over the world, not only in powerful developed countries such as the US and UK but also in developing countries such as Vietnam, Thailand, Thus, for future business owners and company directors in the era of development of Gen X, Y, Z, this is also an interesting situation and many lessons when choosing migrant labor sources

For students, there are many opportunities for future development Specifically, I am

an economics student so this issue has many doubts but also interests In the future, maybe

a year or many years later, after graduating from college, I can become a laborer or a hired laborer Therefore, students like me need to have an understanding of international

migration to make informed decisions so that we are not disadvantaged in terms of rights

2

I DEFINITIONS OF HIRING UNDOCUMENTED IMMIGRANTS

Undocumented immigrants: Those immigrants who do not have legal permission to stay in a country They are not necessarily those who crossed the border illegally but for some reason, their visas do not allow them to stay in that country anymore They do not have the rights as the other type of immigrants because they cannot risk encounters with local authorities

II BENEFITS OF HIRING UNDOCUMENTED IMMIGRANTS

1 Gain labor for specific sectors that require hard work:

Migrant workers, including undocumented ones, play an essential role in the global economy Undocumented workers tend to work for a job that does not require certifications They mainly work in these areas because of differences in average characteristics, like lower English language ability and educational attainment They work

in critical and even challenging sectors, such as agriculture, domestic work, and the service industries

In the region sector, the Open Society Foundation estimates that there are 8 million undocumented employees in the area sector of the US labor market, accounting for more than 4% of the total workforce There are thought to be 646,000 unauthorized workers in New York City Undocumented employees make up about ten percent of the workforce in California An estimated 4 million unauthorized immigrants reside in Europe An estimated

23 million migrant workers are present in the Arab States, making up an average of 70%

of the workforce in the Gulf states

In the industry sector, unauthorized immigrants were significantly overrepresented in the workforce in 2014, with 17% of the workforce in the U.S agriculture industry and 13%

of the workforce in the construction business Even so, the proportion of American citizens employed in both industries was far larger, making up 76% of the construction industry and 69% of the agricultural industry respectively The number (and proportion) of legal immigrants outnumbered unauthorized immigrants in these two sectors; nevertheless, in

3

by a wide margin

Source: Pew Research Centre

2 Spend less wage on the labor force:

As the workers are undocumented, they have no firmness in their legal rights and weak bargaining power They even want to hide from the government as if they are caught migrating and working illegally, the penalty might be too high and several problems relating to laws might appear Therefore, the company or the employer may cut down their

wage easily to get extra profit

Moreover, wages will depend on the occupation and qualifications of that worker Because they lack professional certification, illegal workers frequently receive minimal pay Being undocumented may also prevent workers from reaching their full potential People without legal status encounter barriers that limit their access to jobs, and as a result, they might not be able to find employment in positions that are a suitable fit for their productive skills They are not allowed to work as teachers, attorneys, doctors, police

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in industries like construction, restaurants, and cleaning and maintenance

Employers can get extra profit through labor exploitation According to the diagram below, it is noteworthy that in all three of these states, Texas, Pennsylvania, and North Carolina, the binding minimum wage is the federal minimum wage of $7.25 Workers in North Carolina have the third-highest average losses per victim due to minimum wage violations Workers who suffer minimum wage violations in North Carolina lose an average of $72 per week, and their employers are illegally capturing 29 percent of their earned wages If these workers are employed 52 weeks per year, this amounts to losses of

$3,800 on paid wages of only $9,300 annually

Source: The New York Times

Depending on their immigration status, immigrants have bigger income disparities, according to California Immigrant Data Portal In California, the typical hourly pay for

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for naturalized immigrants

3 Have a sort of industrious labor:

The workers if they want to live and work in another country, which is challenging for them because any new living environment takes time to adapt However, they still want to work and earn money there because of different reasons

The first reason is that they want to get out of war status and intense political status in their country For example, so far this year, according to estimates by the United Nations Refugee Agency (UNHCR), more than half a million migrants have arrived in Europe Many newcomers have refused to leave, for the simple reason that they have nowhere else

to go Syria alone has nearly 350,000 asylum seekers out of a total of more than 4 million Syrians due to war and poverty seeking new lives in countries outside its territory The second reason is that they do not want to live in poverty and they have to take care

of their own family Based on an article shared by a Vietnamese living in the UK, through the case of 39 migrant bodies in frozen containers, he shared why people despite the difficulties to reach the country These people were mostly from rural areas and moving illegally to Europe They tried to get to France, then sat behind a freight car or van to get

to England by road Such "successful" journeys will end with illegal immigrants becoming workers in the UK Immigrants of this type who come to the UK for a few years will be able to apply for asylum Once entitled to the refugee policy, people will be rented out, and given language education and children will be given money to go to school

These two main reasons are the motivations for people to work harder despite obstacles

in their jobs and daily lives If they do not finish their tasks well, who else will pay for their family’s living conditions? If they are fired, how long can they have another job? Being out of job and seeking for others just take time They may choose to do well from the beginning instead of finding another job Working overseas is a way for them to be better and able to afford their family Accordingly, because of these dynamics, the production force system will be synchronized, unified, and achieve the common goal They will try to do a good job to earn as much money as possible and send it to their families in their hometowns

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RISKS OF HIRING UNDOCUMENTED IMMIGRANTS

1 Pay for fine and penalties:

The IRCA has a list of terms to verify an employee’s legal ability to work in the United States on the employer Employees who fail to conduct a sufficient check or who intentionally employ an illegal immigrant may be subject to fines, loss of business licenses,

or criminal sanctions

In the US, firms who hire or continue to employ undocumented workers face civil penalties that can range from $573 per unlawful employee for a first offense to $22,927 per person for the second and third crimes If a pattern of recruiting illegal labor is discovered, employers may be subject to criminal charges, and owners and managers may

be sentenced to up to six months in prison Specifically, in 2021, there is a case: SAN DIEGO Zion Market and its former general manager, Timothy Moon, pleaded guilty in – federal court today to knowingly hiring undocumented employees who were not authorized

to work in the United States

U.S Magistrate Judge Michael S Berg ordered Zion Market to pay a $500,000 fine plus special penalty assessments of $25,050 The court also ordered Moon to pay a $5,000 fine plus an additional $5,000 in special penalty assessments

In Vietnam, employers employing foreign workers working in this country without a work permit, they will be fined from VND 30,000,000 to VND 45,000,000 for violations from 01 person to 10 people

2 Have unstable labor resources:

If the illegal worker stays for a long time, working in the company without being detected, it is a good thing for the labor force to be maintained and continue to stick to the company's production line On the other hand, if someone is found to be working illegally, they are more likely to be deported and sent back to their home country This not only affects the company that hires that labor force in terms of legal but also affects the pace of the economy and production Losing workers in the process means increasing exploitation

of the labor of the rest Another way is that we have to go hire new people

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own life and legitimacy are ambiguous, uncertain, and even unavailable They have nothing

to guarantee the legality and eligibility to live in the new country, let alone work in that country

In some cases, the concern of going to be deported was higher among immigrants, according to a Pew Research Center survey of Latino adults conducted in March 2021 Nearly eight-in-ten immigrants who are not U.S citizens and do not have a green card (79%) say they worry a lot or some about themselves or someone close to them being deported This is a group that is likely in the country without authorization Meanwhile, 53% of immigrants who do not hold U.S citizenship but have a green card say they worry that they or someone close to them could be deported By contrast, about one-third of Latino immigrants who are naturalized U.S citizens worry about deportation The “Latino deportation worries greatest among immigrants without U.S citizenship or a green card”

is shown below:

In the diagram:

“Green card holder” refers to immigrants who say they are a U.S legal permanent resident

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are not a U.S legal permanent resident

Source: Pew Research Centre

3 Meet difficulties in management:

The workers do not have legal verification documents, so the majority of them are limited in wealth status as well as knowledge level They are undocumented people, so theft of property can occur (no matter how big or small the item is) Although the management company knows about this, it cannot sue the person because there are no legal documents to verify that person If they send the case to court, they could even be prosecuted again because the company itself is using illegal labor

IV SOLUTIONS TO UNDOCUMENTED IMMIGRANTS IN FIRMS

1 Promote workplace raids:

Unexpected inspections of the company will increase the effectiveness of investigating illegal labor migrants These companies won't be able to cope quickly At the same time, these companies and their employees will be implicitly reminded of the fact that the labor must have valid certification documents to work there

The Social Security Administration (SSA) Number Verification Service is one scheme

in America in which employers can elect to voluntarily participate An employer may get

in touch with the Social Security Administration (SSA) to confirm that a Social Security number provided by an employee for I-9 paperwork or payroll tax withholding is authentic and matches the name the employee is using If the employer discovers a disparity, it will instruct the employee to correct it within a reasonable amount of time to keep their job The E-Verify Program, which is managed jointly by the DHS and USCIS, is another initiative This program enhances the integrity of wage and tax reporting, safeguards positions for permitted U.S workers, and enables participating firms to verify the employment eligibility of all newly hired employees At a first step, companies must agree

to a Form I-9 audit by ICE They must also use the E-Verify program when hiring