Immigration has helped to keep the British economic recovery on course, argues
John Cridland, the CBI director-general
As a proud Bostonian, the change in my Lincolnshire home town over the past
decade is striking. West Street is now interspersed with vibrant Polski
skleps selling an array of Eastern European goods. And while it was unusual
to hear so many languages spoken when I was a boy, Slav languages are now
being taught in local schools.
I understand that immigration has social and cultural impacts that can’t be
ignored. But as head of the UK’s biggest business group, I am concerned
about where the debate on immigration is heading. I know business leaders
share this unease.
Across the political spectrum, there is a mismatch between rhetoric and
reality. Immigration has helped keep the wheels of this recovery turning by
plugging skills shortages. This has led to more jobs for British people and
driven growth. Without free movement of workers, the recovery would grind to
a halt.
Our hospitals and care homes couldn’t function without overseas workers;
building sites that we need to deliver more homes and big infrastructure
projects, such as the roll-out of broadband, would also stall.
EU migration also has a positive impact on the UK’s fiscal position. Research
from University College London shows that over the decade since 2001 EU
migrants made a positive net contribution of £2,732 per person per year.
Businesses benefit too, with 63pc of CBI members saying free movement of
labour has been beneficial. And that free movement cuts both ways: well over
a million Britons live and work in the EU.
Of course, there are concerns around immigration. Here are the most common.
One most immigrants to the UK are from Eastern Europe. While this may have
been the case a decade ago, recent figures from the Office for National
Statistics suggest many are from countries such as France, Germany and Italy.
Two EU migrants are unskilled. In fact, many are well-educated and plug
shortages in sectors such as IT and engineering.
Three unemployment is higher due to EU migration. The reality is the UK has
an excellent record of creating jobs and the employment rate has risen to
73pc among the best in Europe and just short of a record high for Britain.
Four immigration depresses wages. The latest report from the Migration
Advisory Committee an independent public body that advises the Government
found that the link between immigration and pay is weak.
Five migrants do not come here to work, but for our benefits system. Data
from the Office for National Statistics show two thirds of EU citizens in
the year to 2013 migrated for work, and a fifth for study.
Six some migrants abuse our benefits system. We agree that we need to ensure
the system rewards those who come to work, not the few who do not
contribute. There is no European social security system, so all member
states are free to decide who is insured under their legislation and which
benefits are given. And we should work with other countries to ensure that
EU rules are fit for purpose.
Seven UK citizens are losing out. What we need is for the Government and
businesses to help people here get the right skills to get into work.
Businesses need to do more: from investing in apprenticeships and on-the-job
training to getting stuck into schools and colleges and providing work
experience.
We’ve seen proposals for restricting EU migration, from quotas to emergency
brakes capping the number of National Insurance numbers. Since freedom of
movement for workers is an essential part of the EU, changing this will be
tough. Then there are the practicalities of restrictions. We’re not
convinced it would be feasible to have controls just for low-skilled
workers. That would mean checking whether anyone entering the UK was
low-skilled, creating a bureaucratic permit system for all workers. As for
denying national insurance numbers to those arriving from Europe that’s
likely to bring a rise in illegal working, which would depress wages.
The CBI is clear. We support the Government’s attempts to make Europe more
competitive and open. And our members are clear: they want the UK to stay in
a reformed EU because that’s the best guarantee of jobs, growth and
prosperity.
John Cridland is director-general of the CBI