MIGRANT WORKERS “DON’T KEEP WAGES DOWN”

26-11-2007

There’s no evidence that migrant workers are holding down wage levels in the West Midlands – even though this is one of the most commonly used arguments against new arrivals. Research published today suggests they mostly have a positive impact on the economy.

The study was carried out by BMG research and Warwick University for the West Midlands Migrant Workers Project Board, a consortium involving the Learning and Skills Council, local authorities and AWM.

It’s findings cut against the grain of many “common sense” assumptions about the impact of workers from abroad.

On the subject of pay, for example, it’s relatively easy to separate “migrant dense” areas of employment (eg health, manufacturing, transport, service sectors) from those which have a greater proportion of British born employees.

The report’s authors conclude that: “There is no evidence to show that growth in migrant employment is associated with lower rates of earnings growth.

“The average rate of wage growth in migrant-dense sectors of industry is exactly the same as for the economy as a whole. 80% of employers reported that wage rates have stayed the same since employing migrant workers.”

The report highlights the changing face and scale of migration to the West Midlands; in 2002/03 there were 23,400 new National Insurance applications, while in 2006/07 the number had more than doubled to 48,000. Most arrivals now are from the eight new EU countries (especially Poland which contributes 38% of migrant workers) whereas just five years ago, the New Commonwealth was the main source of extra labour.

There is apparently a danger that a “low skills equilibrium” is being established in which firms come to rely on a flow of overseas workers to do basic jobs, rather than seeking to maximise the skills of the newcomers and improve their overall company performance.

But significantly, 90% of bosses said they were “very satisfied” or “quite satisfied” with migrant workers – while only 4% were “dissatisfied”.

Are migrant workers a good thing for the economy?

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