Focus Topic: Migration

Migration into the UK has become a hot topic of the moment mainly because of the low employment rates among UK nationals. Recent data shows that unemployment now stands at 2.6 million, the highest level since 1994 (Source: BBC). Unemployment seems to be particularly troublesome between the ages of 18 and 24. Mayor Boris Johnson has added to the debate by claiming that the youth find themselves in this predicament because they lack the energy, drive and determination that so many of the migrants have. But is it really that simple? Is it just a case of cultural differences and expectations that prevent UK nationals seeking employment?

I must admit that to a certain degree there is a case to be heard here. The different characteristics of migrants and UK nationals do play a role in how they respond to current job opportunities.  Several studies have confirmed this. Migrants have been noted to be more flexible and entrepreneurial, factors which can go a long way in locking down a job. More importantly however, studies also highlight that migrants tend to have a higher level of education, which would explain why migrants have higher paying jobs than UK nationals in some sectors.

In general, most research has shown that migration into the UK has little effect overall on UK resident’s wages. Although if separate industries are put under analysis, individuals in the higher paid jobs tend to benefit whilst those at the lower end of the pay spectrum loose out. I guess this is the main reason why there is much concern about “migrants taking jobs away”. In this instance, where competition is stronger, an increase in the labour supply will depress wages for everyone. If this has the effect of reducing the wages below a point where UK nationals are willing to work, then it could increase unemployment. However, there is also evidence that shows this effect is very minimal.

So what does this all mean for UK nationals? Should we all try and find a new lease of life, become more self-confident and flexible? Even if that was the case, there are still no guarantees that we would get the job. A recent article published in the Evening Standard (23/01/2012) entitled “Why can’t a Brit get a Job at Pret?” (available here)  describes how a  British brand only has 19% of its staff as British. The Evening Standard follows the application of 4 British young workers as they try and get a job within the chain. But they all fall at the first hurdle and none are invited for interview. Joshi Hermann, the writer of the article, gets the opportunity to work in one of the stores and explains quite interestingly that an applicant’s final fate rests in the hands of the current staff. Pret calls this a democratic process. Now, if the majority of staff members are from one region, wouldn’t they tend to side with someone that they have some type of cultural affinity with? Even if it is unspoken.

Without concrete figures, this is all speculation.

For further information see articles by Glover et. al, Dustmann and the UK Border Agency.