The unemployment rate among workers from A8 countries was around 5% during the third quarter of 2009, compared to a rate of 7.9% amongst UK-born workers and 12% for those from Pakistan, India and Bangladesh.

Overall it does not appear that the effects of the thousands of Eastern European workers has had a detrimental effect on the UK’s unemployment rates. Although unemployment is around two and a half million, it has fallen in recent months which suggests that migrant workers are helping to fuel economic growth rather than undercut British workers in the labour market. The Institute for Public Policy Research says that migration into the UK from Eastern Europe since EU expansion in 2004 has had little effect on the British economy in terms of employment rates and wages.

Support for this view has come from the industry analyst Paul Rayne, who said earlier this year that there had been renewed demand for the services of Polish workers in the construction sector as it picked up following the recession. Also, Ernst & Young has said that Polish and other eastern European immigrants “are having a positive economic impact by making the UK workforce younger, more flexible and economical, easing the pensions burden and keeping interest rates lower”. The Business for New Europe Group also argues for a continuation of the immigration into the UK as it is in the best interests of British and economic growth.

A report entitled ‘The impact of the recent migration from eastern Europe on the UK economy’, compiled by David Blanchflower, Jumana Saleheen and Chris Shadforth, said that: “The entry of recent A8 migrants appears to have improved the workings of the labour market, reduced wage and inflationary pressures and lowered the natural rate of unemployment.”

http://www.bankofengland.co.uk/publications/speeches/2007/speech297.pdf

The House of Lords has also studied the effects of large scale immigration into the UK from Eastern Europe. Its report, entitled ‘The economic impact of immigration’ said that record levels of immigration had had little or no impact on the UK economy but it warned that the increased competition had a negative impact on the low paid indigenous workforce and added that there was a clear danger that apprenticeships and training for young British workers could be affected.

The report went on to say that if immigration levels continued at the same rate for 20 years it would contribute to a 10% increase in house prices. The House of Lords report was welcomed by Sir Andrew Green, from Migrationwatch, who argued that it had “torn to shreds the government’s economic case for the massive levels of immigration which they have actively encouraged”.

As can be seen there are arguments on both sides of the divide. Most can see both the pros and cons of immigration in general and immigration from Poland in particular.

The one hand says that since EU expansion it has largely been a positive for the economy in that the majority of Poles come to the UK ready, willing and able to work, prepared to work for low wages and they bring with them a positive work ethic not always seen in the indigenous workforce. This viewpoint adds that they also drive down the cost of construction, filling in gaps in the skilled economy that would not otherwise be filled.

On the other hand some emphasise that the government has lost control of immigration into the UK. They say it has little idea how many people are coming in whether from inside the EU or outside. The initial estimated figure of just 15,000 coming in from EU accession figures has been wildly exceeded and critics say that with immigration out of control it is almost impossible to estimate what benefits or costs immigration is bringing to the country. Though it has fallen in recent months, up until then domestic unemployment was rising and that such gaps as there are in the workforce should be filled by the indigenous population.

Immigration has also entered the election debate in a limited way with figures from the Office for National Statistics showing that almost every job created under Labour has gone to a foreign worker. The statistics show that 98% of 1.67 million new posts were taken by immigrants, adding fuel to the argument of those who argue that immigration into the UK is out of control.

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