date: 14 June 2007

embargo: 00.01hrs 19 June 2007

UK economy gains from migrant workers says TUC

The British economy is benefiting from the influx of migrant workers to the UK, reveals a TUC study 'The economics of migration' published today (Tuesday).

Contrary to far right accusations that immigrants are a drain on the welfare state, TUC research shows that migrant workers are paying more in taxes than the value of the public services they receive. Across the economy the arrival of migrant workers has not depressed jobs or wages, and although there is limited evidence of some local effect on wages and employment for low-skilled workers, so far low-skilled workers have not lost out thanks to the vibrant economy.

To continue with that good performance we need to ensure unscrupulous employers stop taking advantage of migrant workers' lack of knowledge of their rights and poor English, the report says. The solution is to crack down on the minority of bad employers by properly enforcing employment rights such as the minimum wage and closing loopholes such as the poor protection enjoyed by agency workers, not by taking it out on the migrant workers suffering the exploitation.

TUC General Secretary Brendan Barber said: 'M igrant workers are making a substantial contribution to Britain's economy, and some sectors would collapse if they were removed overnight. They haven't caused mass unemployment or held wages down as some would have us believe.

'But we do not do enough to protect vulnerable workers, whether migrant or indigenous, from exploitation. If migrant workers are treated fairly and paid a decent wage they can only add to the economy, and pose no threat to the livelihoods of the rest of the workforce.

'The availability of migrant workers should not stop employers or government helping unemployed and disadvantaged UK citizens into work, nor stop efforts to give the low skilled the new skills they need to improve their job security and help them get better jobs.'

The report shows there is very little evidence that migration has had a negative impact on the distribution of jobs and wages. To ensure this continues to be the case and that low-skilled workers do not find themselves pushed out of the market, the TUC believes the supply of jobs to all workers - and services for displaced workers and unemployed people to get even better jobs - needs to be increased.

The report also finds little evidence that immigration has driven down wages. TUC research shows effective enforcement of the UK minimum wage must be a greater priority than it is at present - migrant workers who are paid less than the minimum wage are being exploited and the emergence of a large group of employers habitually breaking the law could undermine the minimum wage's effectiveness for all workers. The Low Pay Commission and the Government must make special efforts to make sure that the value of the minimum wage does not fall relative to pay generally.

The arrival of migrant workers is not problem-free as any unplanned population change can put strains on an area if the social and housing infrastructure cannot cope. The TUC argues that a share of the extra prosperity that migrant workers are contributing to the economy should be used to ensure local public services can deal with new workers. Treasury figures show that migrant workers are responsible for around ten per cent of economic growth.

The full report can be viewed at http://www.tuc.org.uk/extras/migration.pdf

NOTES TO EDITORS:

- The TUC has recently launched a Commission on Vulnerable Employment to investigate the extent of workplace exploitation and consider improvements to the enforcement regime and legal protection available for vulnerable staff - exploited workers, including migrant workers, can submit their experiences of working in the UK to www.vulnerableworkers.org.uk

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet : a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries: Elly Brenchley T: 020 7467 1337; M: 07900 910624;
E: ebrenchley@tuc.org.uk

Liz Chinchen T: 020 7467 1248; M: 07778 158175; E: media@tuc.org.uk

Press release (700 words) issued 19 Jun 2007