Undocumented workers and their effect on the hospitality industry

Introduction

The hospitality industry is considered to be the biggest employers of immigrants which consist of both legal and illegal immigrants. People say that immigration policies are the main reasons why the hospitality industry is blooming. Though this may not be entirely true as there are two sides of everything, according to many researchers hospitality industry is also suffering because of many undocumented workers. The reason behind this is that the level of trust degenerates between the workers and the guests. According to Neal and Uselding the intake of immigrants in the United States has increased the capital stock by 13 to 42 percent which is considered to be a very fair margin. The only concern showed by them is that a larger populace of immigrants would take away the earning opportunity from the native workers and thus creating a downward pressure on wages. (Neal, Uselding, 68-88) The answer to the question “why do hospitality industry hire illegal immigrants?” is that the labor force is shrinking and it is considered to be one of the most challenging situation facing the hospitality industry, international society of hospitality consultants, the employers in this sector are beginning to feel the effects of a shrinking labor force, but few of them know the reason why this is happening. They keep hiring undocumented workers to cater to the rising needs of this industry.

Thesis Statement

Literature Review

Economic growth in an industrial economy is based on increasing the consumption and the production. The question remains whether the economy will collapse without more consumers and workers? The economic development has had a lot of support from the immigrants in the U.S in the year 2005. The report which was submitted to the president signifies the importance of immigration to the U.S economy. Immigrants play a very important role in the work force. There is a common myth that American jobs are being taken over by the immigrants. Whereas studies suggest that immigrants usually fill the labor market. “These people also create jobs for natives by increasing the demand of various goods and services. Immigrants also power the economy thorough higher and better productivity and increased consumptions. Researches also show that these people do not increase unemployment for the local residents. They only beat their education in terms of education and skills in different aspects such as construction and hospitality industry and etc"(United States Department of Labor, 20)

The hotel is a cluster of economic activities with significant differences between them. The various subsectors that comprise have a particular important result in the setting of a diverse industry. The National Classification of Occupations, 1993, prepared to meet international standards of comparability, identifies five sectors: hotels, restaurants, bars and drinking establishments, services, catering and canteens, and campsites, hostels and holiday camps. This diversity can be simplified by grouping the five activities on two sectors: hospitality, which includes the types of accommodation and catering, which includes restaurants, bars and drinks in general, and the provision of ...