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Hiring Cheap Foreign Labor Hurt the Economy


There are many advantages and disadvantages of hiring cheap foreign employees as far as the nation’s economic status is concerned. Currently cheap foreign labor has negatively affected the economy globally although the nation is trying as much as possible to eradicate the problem.

Thesis statement: reasons as to why hiring foreign workers hurt the economy

  • Unemployment to the local workers. Foreigners are given less salaries and therefore more foreigners are employed leading to unemployment to the natives as a result lowering the economy of the nation.
  • Language barrier: In most cases foreign employees do not speak the common language and after sometimes they realize they don’t belong. At the nation, economic status improves but going back to their origin homes lowers the economic standards.
  • Lack of dedication and commitment. The main objective of foreign workers is income. As long as they get money, dedication and commitment is the least of their concerns therefore leading to poor performance affecting the economic levels.
  • It takes time for the local workers to accept foreign workers especially at work place resulting to low corporation among the workers interfering with the economy of the a nation
  • The locals are being deprived as well as being discriminated on their reward system leading to differences in workers’ productivity affecting the economy.
  • The unskilled locals end up not acquiring jobs due to high cheap foreign employments, poverty among the natives in return affecting the economy of a nation.Hiring Cheap Foreign Labor Hurt the Economy
  • Some companies hire cheap labor without following the proper channel. These employees end up not paying taxes which hurt the economy of the nation.


It is evident that hiring cheap foreign employees hurt the economic status of a nation as well as the entire globe. Unemployment of the local is one of the greatest reasons for low economy, followed by language barrier and the rest. To ensure the economy of a nation keeps growing there should be employment for both foreigners and the locals. Also consider the foreigners language, it should be common to the nation mostly English.


Dewit, G., Gorg, H., &Temouri, Y. (2018). Employment Protection and firm relocation: theory and evidence. Economica.

Mehmood, K.A., Farid, M.Z., & Hassan, S.(2018). Foreign Direct Investment and Employment Downfall: Panel Evidence from South Asian Economies. Pakistan journal of social science (PJSS), 38.2 (2018): 595-609.