Immigration: Vital for the UK's Economic Success

LONDON, April 24/PRNewswire/ --

High levels of immigration over the past ten years have been good for the
UK economy, according to a new report from The Work Foundation.

Both inflation and interest rates have been lower as a result, skills and
labour shortages have been avoided and the economy has been kept on a stable
growth path. Even allowing for a more uncertain economic outlook, the
government should embrace the case for free movement across the European
Union and enable the citizens of Bulgaria and Romania to work in the UK.

The report debunks the myths about the impact of migration on employment
and wages. It shows that wages have not fallen because migrants are willing
to work for less - including in key sectors such as construction and hotels.
The rising National Minimum Wage has protected the most vulnerable and
established a strong pay floor in the labour market.

There has been no significant impact on unemployment, including youth
unemployment. If there are any 'losers' they are to be found amongst the
'workless households' (families where no working age adult has a job) and
amongst an earlier generation of migrant workers.

David Coats, associate director of policy and author of the report, said:
'The government has had a hard time over immigration not because it has 'lost
control' of the issue, but because it has failed to tell a compelling story
based on consistent high quality information. The official statistics are so
haphazard that the government finds it difficult to defend otherwise good
policies.

'On the available evidence, the best judgement is that the economic case
for free movement in the EU is strong and the UK's ageing population, with
fewer young people entering the jobs market, means that a fair and flexible
policy of managed migration is essential if the economy is to continue to
grow.'

Fewer people came from central and eastern Europe to work in the UK in
2007 than in either 2006 or 2005. The high water mark may have been passed
and employers cannot rely on a continued supply of Polish workers to fill
labour shortages in the UK. As the economies of central and eastern Europe
grow and unemployment falls the pressure to migrate will lessen.

The report also argues that the UK has the right policies in place
(liberal product markets and flexible labour markets) to ensure that migrants
find jobs quickly. Other countries are less well placed to manage the
consequences of mass migration.

The report makes the following policy recommendations:

- The government must devote sustained attention to producing
high quality, consistent data and sharing it across departments and
agencies. Too many different data sources on immigration create
conflicting statistics and can feed an impression of chaos.

- All employment rights, including the National Minimum Wage, must
be properly enforced to protect migrant workers at risk of exploitation.

- The government is right to base its managed migration policy on a
points system. This is much better than an annual 'cap' on the number of
migrants to be admitted, which fails to take account of employers' demand
for labour and changing economic circumstances.

- A more determined effort is needed to tackle worklessness in the
UK. There must be comprehensive policies to raise the skills, aspirations
and quality of life of the most disadvantaged communities.

Notes to editors

1. David Coats is available for interview. Copies of 'Migration Myths:
Employment, Wages and Labour Market Performance' are available from The Work
Foundation.

2. The Work Foundation is a think tank and consultancy.

3. The paper does not deal with the informal economy or illegal
immigration.

Source: The Work Foundation

Media calls to Stephen Overell on +44(0)207-976-3507 or +44(0)7970-765251 or Lucy Jeanes on +44(0)207-976-3508.

2008-04-23 19:07:21 0343822 PRNEWSWIRE