Ed Miliband shouldn’t let unsupported myths about immigration cloud his thinking on the issue.
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Ed Miliband today revealed Labour’s immigration strategy, in a speech much of the media saw as an “apology” for the previous government’s immigration record.
The majority of what was said appears to have gone unchallenged, however, Miliband made one point about the impact of immigrants on wage levels that commentators have been quick to disprove.
He claimed:
“To have an effective immigration policy, we must also reform how our economy works so that it works for all working people in Britain, whoever they are and wherever they come from. That means tougher labour standards to do more to protect working people from their wages and conditions being undermined.
“And action to create a different kind of economy: one which offers working people rewarding and high-skill jobs. So what happened?
“First of all, as a result of immigration combined with weak labour standards in some sectors, there was a direct effect on wages, especially in lower skilled jobs.”
Jonathan Portes, writing for the Independent, referred to a number of sources that dispelled the overwrought myth of immigration affecting wage levels, as Chart 14 shows.
Chart 14:
A report (pdf) from IZA, the Institute for the Study of Labor, entitled “New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market”, concluded:
Indeed, the impact of such a large and rapid migration shock on wages and unemployment is a crucial labour market issue. This is specially so given the heated public debate on migration – and in particular on migration from current and future accession countries.
Yet, there is currently very limited evidence on migration effects on the UK – and even less so on the effects of the recent EU enlargement.
While a report (pdf) from the Centre for Research and Analysis of Migration (CReAM) states:
Despite negative media coverage, there is no evidence that this expansion led, on average, to a setback of wages of workers born in the UK.
• Time to talk about integration 6 Mar 2012
• Playing the blame game – it’s all the immigrants fault… 20 Jan 2012
• DWP evidence says migrants aren’t benefit cheats. DWP’s spin says… 20 Jan 2012
• Immigration policy should support UK economic growth, not undermine it 5 Dec 2011
• So is Britain really “full up”? 1 Nov 2011
Miliband shouldn’t let unsupported myths about immigration cloud his thinking on the issue.
48 Responses to “Miliband shouldn’t repeat the myth about immigrants’ impacts on wages”
jaydeepee
Absolutely right about the construction industry. Also, for some unknown reason, there was a large influx of Brazilian workers on sites around London via Portugal or the usual student visa route.
This issue of workers being displaced by cheaper foreign workers came up time and time again on the doorstep in the mayoralty election (from all races, also) and was a huge barrier that prevented Labour voters voting and not voting.I presume this was fed back to the Labour leadership and has been acknowledged.
Sumedh Rao
http://t.co/kZTvitb9 Left Foot Forward blog response to Miliband's speech and migrant myths about lowering wages.
Hamish Livingstone
.@Ed_Miliband shouldn’t repeat the myth about immigrants’ impacts on wages, writes @LFFKatie: http://t.co/d4X5Olbh
Yk129
And if you believe what Migrationwatch tell you then you really are a lost cause
Blarg1987
The problem with the evidence is that it is things that won’t be put on paper, if we look at certain professions and jobs, i.e. bus drivers and store managers, where new people were imported from Eastern Europe or jobs advertised there, as well as cash in hand jobs and hours worked over contracted hours, it will be easier to see if wages have fallen.
Also there is growing evidence to support wage suppression as about 5 years ago when channel 4 did an interview witha company employing labour from Eastern Europe their reply was we can not find the people in the UK as they are not applying, the other commentator then asked the question then why do you not increase the wages to which the reply was silence.
Immigration can be a good thing but full eemployement should be achieved first if comapnies say they need skill sets, then they should have to prove it and not use cost as a reason.