Select Committee on Economic Affairs Minutes of Evidence


Annex A

FOUR FAVOURITE FIBS

(THE GOVERNMENTS SHIFTING ARGUMENTS FOR LARGE-SCALE IMMIGRATION)

1.  600,000 vacancies need to be filled

  Disproved by the facts. Net immigration since 2001 when the government first made this claim is approaching 900,000 but vacancies are still at about 600,000. The reason is that immigrants fill jobs but also create demand. To argue from vacancies is therefore to advocate an endless cycle of immigration. It is also to fall into the "lump of labour" fallacy.

2.  Immigrants comprise 8% of the workforce but contribute 10% of GDP

  Rejected by the Statistics Commission. This takes no account of the higher unemployment among immigrants and the lower participation by women. Correcting for these factors shows migrants making up 10% of the working age population and contributing 10% of GDP.

  In May 2006, the government revised their claim to 10.5% of adults and 11% of GDP. (House of Lords answer HL 5379). Even this calculation was biased by the omission of children. Correcting for this omission gives 11.2% for the immigrant population and 10.9% for their contribution to GDP—slightly negative.

3.  Immigrants earnings are 13% higher than those of indigenous workers

  Dismissed by Statistics Commission for the same reason. Correcting for lower participation rates and higher unemployment among immigrant communities makes average wages across the working age population of immigrants the same as for the population as a whole. Only about one in five of the foreign born population earns more that the average salary for full time work—the same proportion as the UK born.

4.  Immigrants are needed to pay our pensions

  The House of Lords Economic Affairs Committee dismissed this argument in November 2003. They reported "We conclude that . . . it is neither appropriate nor feasible to attempt to counter the trend towards a more aged society in the UK through a manipulation of immigration policy".

  The Turner Commission on pensions reached a similar conclusion in their interim report.

9 December 2007



 
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