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Last Updated: 14. November 2018

The Impact Of Immigrants in the UK Labour Market

The following infographic, created by Market Inspector, is a summary of the migration data on the foreign-born UK population. Most of the analysis discusses data on immigrants in UK, defined as foreign-born people who have been living in UK for 5 years or less. In parallel, comparisons of foreign-born and UK-born population are examined. Those comparisons are based on different criteria and characteristics such as: average working age, finished education, competences, and occupational distribution.

The results of those comparisons suggests that immigration has a small impact on average wages of existing workers, but more visible effects for defined groups: medium- and high-paid workers gain, while low-paid workers lose. 

Impact Of Immigrants UK

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<a href="" target="_blank"> <img src="" alt="Impact of Immigrants UK" style="width: 100%; max-width: 770px;" border="0px" /></a>

How the Immigration Flow Effects the UK Market

A main concern when it comes to the topic of immigrants in UK, is whether they contribute a fair share to the country`s tax and welfare system. However, researches draw a positive picture of the immigrants` input and clarify that European immigrants in the UK have paid more in taxes than they received in benefits. Thus, they have helped the country to relieve the fiscal burden on UK-born workers. The foreign-born workers also contribute to the financing of public services. Moreover, the analysis of the provided data reveals that immigration has no significant impact on unemployment status in the UK.

Furthermore, the infographic presents data of the cross-country fiscal impact of the migration and labour market outcomes applying that immigration to the UK since 2000 has had a positive net fiscal benefit for the country. “European immigrants, particularly, both from new accession countries and the rest of the European Union, make the most substantial contributions. This is mainly down to their higher average labour market participation.” – Professor Christian Dusmann, Director of CReAM.

In addition, a prognosis of the potential financial outcomes after Brexit are done. This prognosis suggests that a fall in EU immigration is most likely to lead to lower living standards for the UK-born population.