Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

UK Government Report Gives Annual £6 billion Positive Spin To Migrant Workers

Politics / Immigration Oct 16, 2007 - 08:18 PM GMT

By: Nadeem_Walayat

Politics UK Migrant workersA new report from the governments Migration Impact Forum (Treasury and Home Office departments) concludes that migrant workers contribute to the British Economy to the tune of £6 billion pounds a year.


The report also stated that there is net annual migration to the UK of approx. 200,000 a year, with migrant workers on average earning more than their British counterparts for the same job.

However some of the reports findings do not make sense and smell more of political spin than facts, such as an increase in the worker population pool does not result in British people losing their jobs. Which is a pretty farcical statement, as the migrant workforce has increased by 70% over the last 10 years, then that extra pool of labour will to some extent take jobs that would have been done by British workers.

The report also makes the statement that worker migration has had no significant impact on unemployment rates amongst British citizens ? A 70% increase in skilled competitive and highly motivated migrant worker pool having no significant impact on UK unemployment?

UK unemploymeny currently stands at 5.5% (ILO) despite a phenomenal increase in UK economic growth. Not withstanding that the true rate of UK unemployment using the governments own statistics is many times higher than the headline rate. For instance recent ONS statistics class 1.65 million as unemployed. However this excludes 8 million people of working age who are classed as 'economically inactive' or what commonsense would suggest unemployed. Therefore the true rate of unemployment in the UK is nearly 30%, and clearly impacted by a significant degree by migrant workers which amount to some 12.5% of those employed. As the pool of 8 million 'economically inactive' citizens are costing the nation in terms of public spending to the tune of at least £50 billions per year and possibly as high as £70 billions. Thus even a one million cut would reduce the annual cost by an estimated £9 billions, coupled with increased tax revenues, which is far greater than the £6 billions of reported positive migrant contribution to the economy.

The report also fails to address the costs to the public sector, which is disproportionately high because the public sector has repeatedly shown itself to be highly unproductive where generally a 10% increase in demand would require an 100% increase in expenditure as the expectation would be for just a 10% increase in output. Therefore a 2% rise in demand due to increase in the migrant population base over the last 5 years would be expected to result in an expectation of 20% increase in costs, which if failed to materialize results in breakdown of services as many areas of Britian are witnessing. Some areas of Britian have seen as much as a 20% increase in population due to migrant workers with the associated increase in public spending budgets failing to match due to failure to recognize the inherent unproductive nature of the public sector at the marginal end of the spending spectrum i.e. impacts of increases in expenditure that normally result in 90p of waste for every additional £1 spent.

Whilst the exact %'s can be disputed, what cannot be disputed is the fact that there are clear examples of public sector waste and un productivity which has been most evident in the NHS that despite a tripling in expenditure, is barely showing a 30% increase in output.

Therefore the true cost of the increase in migrant population at 2% of the general population is more likely to be in the order of £10 billions which is far greater than the government reported benefit of £6 billions. However the real impact being felt is much greater due to the failure of the unproductive public sector to meet the extra demand competitively. This is clearly evident to those living in areas where migrant workers have settled in significant numbers as they wonder why the public services are failing to cope despite announcements of increases in expenditure.

The obvious solution is to reduce the size of the public sector rather than flushing ever more money down the proverbial public sector toilet, unfortunately this realisation is not going to take place under New Labour that has seen the public sector grow from 34% of GDP to about 40% of GDP, this despite an unprecedented increase in UK GDP growth for the life time of the labour government.

The only way to make the public sector competitive is to privatize the sacred cows such as the NHS and to fully open them up to market forces. Which would not only make the services more competitive but provide better service, much better than the recent headlines of thousands of patients dieing unnecessary deaths in NHS hospitals due to incompetence.

The conclusion is that when all things are considered, there is little net gain from migrant workers to the UK economy, and likely a large net negative when the economically inactive are taken into account.

By Nadeem Walayat
(c) 2005-07 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 100 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules