APPENDIX 3: CALL FOR EVIDENCE
The Economic Affairs Committee has decided to conduct
an inquiry into 'The Economic Impact of Immigration'.
Evidence is invited by 30 September 2007. The Committee
will welcome written submissions on any or all of the issues set
out below.
Immigration rose much faster than the Government
expected after May 2004, when the citizens of eight Central and
Eastern European countries gained the right to work in the UK.
Over 600,000 have registered to work in the last three years from
these eight countries. The unexpected increase has thrown up many
questions about the impact on the UK, the quality of data on immigration
and the Government's migration policy.
The Government has argued that immigration has helped
Britain achieve its long-running economic boom without triggering
high inflation. It also argues that immigrants fill gaps in the
labour market.
But others have voiced concerns that not everyone
benefits from immigration. Some claim that low-skilled workers
in the UK face greater competition for jobs from immigrants, which
holds back or even decreases their wages and/or causes more unemployment.
Some local councils have warned that the rise in the number of
immigrants has put pressure on public services such as schools
and hospitals.
Assessing the economic impact has been difficult
as precise data on immigration are hard to come by. Last year,
the National Statistician unveiled plans to improve estimates
of migrant numbers which are "inadequate for managing the
economy, policies and services".
Nonetheless, the unexpected increase led the Government
to pursue a less open policy as new countries joined the EU this
year. Citizens of Romania and Bulgaria, which joined the EU in
January, can visit Britain without a visa but their access to
Britain's labour market remains restricted.
Whilst immigration from Central and Eastern Europe
has dominated the headlines, official estimates for 2005 suggest
it accounts for under a fifth of immigration into the UK. For
migrants from outside the EU, the Government is introducing a
new points-based immigration system. Those with more skills and
qualifications score higher, which increases their chances of
entry into the UK. The Government will give preference to skills
where it believes there is a shortfall in the UK.
Immigration has, of course, not only an economic
impact on the UK, but also social, cultural and political implications.
It is well recognised too that it can have major economic and
other implications for the countries of origin of the migrants.
However, this inquiry will focus on the economic
impact on the UK. It will seek answers to questions such as:
1. What are the numbers and characteristics of recent
immigrantsage, gender, country of origin, immigration status,
duration of stay, skills and qualifications? How do the characteristics
of EU migrants differ from other migrant groups? What are the
expected future trends for immigration from within and outside
the EU?
2. In what sectors and occupations are immigrants
employed? How do migrants' labour market outcomesincluding
their employment rates and earningscompare to those of
local workers? What determines migrants' performance and integration
in the UK labour market?
3. Why do employers want to hire immigrants? Which
sectors and occupations in the UK economy are particularly dependent
on migrant labour and why? What is the impact of immigration on
mechanisation and investment in technical change? What are the
alternatives to immigration to reduce labour shortages?
4. What impact has immigration had on the labour
market, including wages, unemployment and other employment conditions
of the UK workforce, and has it differed for skilled and unskilled
employees? How does the minimum wage affect the impact of immigration?
5. What is the economic impact of illegal immigration,
including on employment, wages and the fiscal balance?
6. What is the economic impact of a net change in
the UK population? If there is a net increase, does the impact
differ when this comes from higher immigration rather than from
changes in birth and death rates?
7. What has been the impact of immigration on key
macroeconomic indicators: GDP and GDP per head, unemployment,
productivity, investment, inflation and asset prices especially
housing? Do the economic effects of immigration vary over time?
8. How does immigration affect the public finances?
Do immigrants contribute more in taxes than they use in public
services? As the UK population ages, does immigration affect the
shortfall in pension funding?
9. How has immigration affected public services such
as health care, education and social housing? How has this varied
across the country?
10. How does the impact of immigration vary across
different regions of the UK?
11. Are there any relevant parallels and lessons
for the UK from the economic impact of immigration on other OECD
countries?
12. How do differences in migrants' skills affect
the economic impact of immigration? Does immigration fill skill
gaps? What impact, if any, has immigration had on education and
training? What is the relationship between the Government's migration
policies and labour market policies?
13. How can data on immigration be improved? What
improvements are already being put in place? To what extent have
"inadequate data" affected public policy? How confident
can we be in forecasts of future immigration and how important
is it that such forecasts are accurate?
14. How do the Government's policies, including immigration
and labour market policies, affect the scale, composition and
impacts of migration? How will the points system for immigrants
from outside the EU operate? How will the Government decide where
there are skill shortages in the economy as the basis for its
points system? What has been the international experience, e.g.
in Australia and Canada, of such a points system? How will the
Government respond to employers asking for non-EU workers to fill
low-skilled jobs?
15. Should more be done to help immigrants boost
their productivity in the UK?
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