Work Foundation debunks myths about effects of migration

24 Apr 08
An employment think-tank has claimed that interest rates and inflation are lower as a result of high immigration, just weeks after a House of Lords committee questioned the national economic benefit of migrant workers.

25 April 2008

An employment think-tank has claimed that interest rates and inflation are lower as a result of high immigration, just weeks after a House of Lords committee questioned the national economic benefit of migrant workers.

The Work Foundation published Migration myths: employment, wages and the labour market performance on April 24. It sets out how skills and labour shortages have been avoided and stable economic growth maintained as a result of high levels of immigration over the past ten years.

Report author David Coats, associate director of policy at the foundation, said: 'On the available evidence, the best judgement is that the economic case for free movement in the European Union 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.'

The report claims to 'debunk myths' about wages and employment, saying wages have not fallen and there has been no significant impact on unemployment.

If there are any 'losers' from the population changes, they are identified as workless households, where no working age adult has a job, and among earlier generations of migrant workers.

The report says the 'high-water mark' of migrant workers from central and eastern Europe might have passed, with employers unable to rely on such workers to fill gaps.

It recommends improvements be made to data on migration, that all employment rights be properly enforced and a more determined effort made to tackle worklessness, focusing on skills and raising aspirations.

In a challenge to the Lords economic affairs select committee, the report endorses the government's points system, rejecting proposals for a 'cap' on non-EU migrants.

It says: 'The notion that “the UK is full, we have no more room”, may have some populist appeal, but it lacks economic logic and could exacerbate problems of community cohesion.'

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