LABOR MIGRATION AND ITS MACROECONOMIC IMPACTS

Abstract

In the context of globalization, labor migration has become an integral part of modern economies. The movement of people from one country to another or from one region to another for the purpose of better working conditions, higher income and social security constitutes the main content of labor migration. This process has a significant economic and social impact on both migrant countries and countries receiving migration. This process represents the departure of people from their native places of residence in search of better living conditions, higher wages and social security. Azerbaijan is also among the countries affected by labor migration processes. Labor migration in Azerbaijan occurs both internally and externally and affects the economic development of the country's regions in various ways. As a result of labor migration abroad, on the one hand, a decrease in the labor force is observed, and on the other hand, remittances sent by migrants increase the level of social welfare of the regions. Structural problems of the labor market in the country, unemployment differences across regions and uneven levels of socio-economic development strengthen these processes. This article analyzes the impact of labor migration on macroeconomic indicators in various countries, especially in developing economies. Migration has a significant impact on the labor market, currency flows, consumption, and economic growth of both donor (sending) and recipient (receiving) countries. The article assesses the economic consequences of labor migration in the context of both international statistics and the Azerbaijani case.