For Highly Skilled Workers, UK Immigration Is Good News

19 Aug 2015

In recent years, the United Kingdom has seen a marked increase with regards to proportion of immigrants at workforce. While we find only 8% of the people working in UK were immigrants in 1995, the figure had jumped to 17% by 2014.

-Most major policy concerns in UK, is immigration.

We find immigrants are better educated and younger when compared to UK natives. People from EU15 are twice as likely to be graduates as the UK born population. Also , the immigrants are most found in either professional or elementary occupations.

As per the research, Immigration does put downward pressure on the wages of the low skilled workers , while increase those for high skilled ones.

The Impact of immigration on employment, this does depend on the time period analyzed and whether the focus is kept on short term for long term effect. Another factor is, which particular end of the labour market workers are competing in.

In 2005,  as per the one authoritative study conducted by Preston, Fabri and Dustmann has concluded that immigration does affect both high as well as low skilled workers differently. In particular, it does shows that, immigration does have a negative impact on the employment of UK born workers having  o-level (GCSE) and also do have equivalent education and a positive effect on the employment of UK born workers university degree. or  with A level

Turning to the effect of migration on the welfare system and contrary to the popular belief, research does show that migrants do contribute to their fair share.

Research conducted by Tomasso Frattini and Christian Dustmann conclude that immigrants from Europe do pay more in taxes when compared to the benefits received from the government, while the opposite is true for the immigrants from the European nations.

As per the authors this particular effect can be explained by the fact that migrants from EU are younger and they are more likely to return to their home nation at the end of their careers. So they are less likely to be a burden to the welfare system when they become old and the cost of their care is comparatively higher.

In short, according to the recent research, it does suggest that immigration does not have, overall negative impacts on the jobs, wages and welfare system, although the effect of immigration on the labour market does depend on the time as well as characteristics of the workers and economy.

Hence fears about the immigration are generally unfounded and it does have positive effect on the economy. 

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