Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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