The issue of international inward migration and its impact on the UK economy has become the subject of much debate. The accession of new EU member states in 2004 prompted an influx of people coming into the country seeking employment, whilst government estimates suggested around 52,000 migrants from the new A8 countries (the 8 EU member states who joined in 2004) would enter in 2005, reports suggest that the actual number was closer to 80,000.

Certain sections of the British media have consistently suggested that the presence of migrant workers is reducing the number of jobs available and driving wages down. Despite these fears, there is very little evidence that this is the case. Recent reports from both the Bank of England and the TUC have shown that the average person in the UK actually benefits from new workers arriving in the country, overall economic prosperity is increased due to a rise in demand and wages have continued to rise since 2004. Most economists agree that a healthy level of inward migration is vital if an economy is to experience continued growth.

The problems with immigration emerge when the skills profile of the individuals coming in, are unsuitable for the needs of the economy. This can occur when the skills of people coming in match those of the existing workforce in a market which is already saturated. This seems not to have been the case in the UK, but the situation will require constant monitoring. Perhaps with this threat in mind, the government has imposed strict limits on the numbers of migrants coming into the UK as a result of further EU expansion. Despite operating an open door policy for the 2004 EU expansion, the government has decided to impose limits on the level of unskilled workers allowed into the country; this has been set at 20,000 workers, an unlimited number of skilled workers will be allowed into the country. All applicants and their employers will be required to demonstrate how the individual will either add value or plug an existing skills gap in the UK. This policy of ‘managed migration’ will hopefully allow the government to maintain the correct balance.

Fact File

• A8 (the 8 EU member states who joined in 2004 from which there is data suggesting economic migration) migration is estimated to have increased output by £4bn per and lifted long-term economic growth by 10-15%.
• Latest figures show that the UK’s net population rose by 185,000 during 2005, this is 17% lower than in 2004.
• Nearly two thirds of migrant workers in this country live in the South East of England – 45.3% live in London and another 18.5% in the rest of the South.
• Migrant workers mainly occupy jobs at either ends of the skills range, i.e. professional or routine jobs. They are less likely to work in intermediate jobs.
• Around 565,000 migrants came into the UK in 2005, around 80,000 of these were from A8 countries.