UK economy gains from migrant workers says TUC

19/06/07

The British economy is benefiting from the influx of migrant workers to the
UK, reveals a TUC study 'The economics of migration' published today
(Tuesday).


Contrary to far right accusations that immigrants are a drain on the welfare
state, TUC research shows that migrant workers are paying more in taxes than
the value of the public services they receive. Across the economy the
arrival of migrant workers has not depressed jobs or wages, and although
there is limited evidence of some local effect on wages and employment for
low-skilled workers, so far low-skilled workers have not lost out thanks to
the vibrant economy.

To continue with that good performance we need to ensure unscrupulous
employers stop taking advantage of migrant workers' lack of knowledge of
their rights and poor English, the report says. The solution is to crack
down on the minority of bad employers by properly enforcing employment
rights such as the minimum wage and closing loopholes such as the poor
protection enjoyed by agency workers, not by taking it out on the migrant
workers suffering the exploitation.

TUC General Secretary Brendan Barber said: 'M igrant workers are making a
substantial contribution to Britain's economy, and some sectors would
collapse if they were removed overnight. They haven't caused mass
unemployment or held wages down as some would have us believe.

'But we do not do enough to protect vulnerable workers, whether migrant or
indigenous, from exploitation. If migrant workers are treated fairly and
paid a decent wage they can only add to the economy, and pose no threat to
the livelihoods of the rest of the workforce.

'The availability of migrant workers should not stop employers or government
helping unemployed and disadvantaged UK citizens into work, nor stop efforts
to give the low skilled the new skills they need to improve their job
security and help them get better jobs.'

The report shows there is very little evidence that migration has had a
negative impact on the distribution of jobs and wages. To ensure this
continues to be the case and that low-skilled workers do not find themselves
pushed out of the market, the TUC believes the supply of jobs to all
workers - and services for displaced workers and unemployed people to get
even better jobs - needs to be increased.

The report also finds little evidence that immigration has driven down
wages. TUC research shows effective enforcement of the UK minimum wage must
be a greater priority than it is at present - migrant workers who are paid
less than the minimum wage are being exploited and the emergence of a large
group of employers habitually breaking the law could undermine the minimum
wage's effectiveness for all workers. The Low Pay Commission and the
Government must make special efforts to make sure that the value of the
minimum wage does not fall relative to pay generally.

The arrival of migrant workers is not problem-free as any unplanned
population change can put strains on an area if the social and housing
infrastructure cannot cope. The TUC argues that a share of the extra
prosperity that migrant workers are contributing to the economy should be
used to ensure local public services can deal with new workers. Treasury
figures show that migrant workers are responsible for around ten per cent of
economic growth.

The full report can be viewed at http://www.tuc.org.uk/extras/migration.pdf