Final answer:
Hiring unskilled labor often leads to an unfavorable efficiency variance, as unskilled workers may not complete tasks as efficiently as skilled ones, potentially increasing unemployment rates. Immigration of low-skilled workers affects American low-skilled workers by increasing job competition and possibly lowering wages. Industries may move to lower-wage areas or contribute to local wage inflation depending on the skill level required.
Step-by-step explanation:
Hiring unskilled labor would likely result in an unfavorable efficiency variance because unskilled workers may not perform tasks as efficiently as skilled workers. Labor efficiency is a crucial factor in productivity and overall cost management within a company. When a business hires workers, there is an expectation that the wages paid are commensurate with the productivity of the workers. Unskilled labor typically requires more time to complete tasks and may lead to inefficiencies. This can increase the natural rate of unemployment, as companies seek more skilled workers who can perform tasks more efficiently, creating a competitive labor market.
In terms of the broader economy, the immigration of primarily low-skill workers can lead to various effects on American low-skilled workers. It can increase competition for jobs, potentially driving down wages in sectors that have a high demand for low-skilled labor. However, companies often move industries, such as textile manufacturing, to locations with lower living costs and wages, a process known as the search for footloose industries. On the other hand, industries requiring highly skilled labor, like computer programming, typically result in local inflation in wages and living costs due to the higher demand for skilled workers.