Select Committee on Economic Affairs First Report


APPENDIX 9: MEASURING AND PREDICTING IMMIGRATION FROM EASTERN EUROPE

A study[83] commissioned by the Home Office before EU enlargement in May 2004 predicted that enlargement would lead to an average annual net immigration of 5,000-13,000 A8 nationals for the period up to 2010. According to ONS data, annual net immigration of A8 nationals during 2005-06 was 66,000, more than four times higher than predicted. It is likely that, in practice, the discrepancy between predicted and actual net immigration of A8 workers is even higher. ONS data suggest that the annual gross inflow of A8 immigrants during 2005-06 was 84,000. [84] In contrast, according to data from the Worker Registration Scheme (WRS) that was set up in May 2004, the average annual number of A8 workers registering for employment during 2005-06 was 216,000, almost three times the ONS figure (which excludes immigrants who say that they intend to stay for less than 12 months when they arrive in the UK).[85]

In total, more than 765,000 A8 workers—of whom two thirds are from Poland—have registered for employment in the UK since gaining free access to the UK's labour market when their countries joined the EU in May 2004. Although the WRS data include short and long term migrant workers, they underestimate the total inflow of A8 workers as a number of groups are exempted from the registration requirement, most notably self-employed persons and students (some of whom will take up part-time employment). The WRS figures also exclude A8 nationals who choose not to register and those who do not take up employment (in which case there is no registration requirement).

Professor Christian Dustmann, one of the authors of the study commissioned by the Home Office, pointed out that the predictions were based on two important limitations which partly explain the discrepancy with the actual level of net immigration of A8 nationals since May 2004. First, due to a lack of historical data on immigration from A8 countries to the UK, the predictions for post-enlargement immigration from the A8 countries came from a model whose parameters had to be estimated using historical data for a different set of countries. Second, the estimate assumed that all 15 member states of the pre-enlarged EU would open their labour markets to workers from the new EU member states at the same time. In the end, only three countries granted A8 workers the unrestricted right to work in May 2004 (the UK, Ireland and Sweden), which boosted the number of A8 workers that came to the UK. Professor Dustmann said he was "absolutely sure that if Germany had opened its labour market to the accession countries we would have seen lower inflows to the UK" (Q 179).


83   Dustmann et al. (2003) The impact of EU enlargement on migration flows, Home Office Online Report 25/03 Back

84   ONS, Total International Migration (TIM) tables, 1991-2006 Back

85   Home Office 2008, Accession Monitoring Report, May 2004-December 2007 Back


 
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