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UK: EU Accession, Immigration, social benefits, economic impact, A8, labour migr

Labour migrants from A8-Accession Countries have positive impact on British economy

 

LONDON – In the aftermath of the EU enlargement in April 2004 some 346,000 labour migrants mainly from Poland, Lithuania and Slovakia have come to Britain. Their impact on British economy is modest but broadly positive and there is no evidence for a particular burden on social benefits or employment a UK government report published on 28 February 2006 shows.

The restrictions of the freedom of movement

 

In 2004, most of the EU15 countries did not open their labour markets for citizens from the new accession countries in order to protect national markets against cheap labour. Only the UK, along with Ireland and Sweden, granted full freedom of movement to new EU citizens. Thus, scale and impact of labour migration from these countries are of particular interest for other countries and the EU commission.

 

Scale of “new EU” immigrants

 

According to the Government report, since May 2004 around 346,000 people came to the UK whereof most of them came from Poland (204,895), Lithuania (44,715) and Slovakia (36,355). It is worth noting that more than 80% of the newcomers are young, between 18 and 34 and single, thus the ideal immigrants for the often wanted ‘replacement migration’ which is needed due to the population aging within the next fifty years.

 

But, towards the end of 2005, the initial surge in applications from workers coming from Central and Eastern Europe had begun to lessen.

 

No contribution to rise in social benefit claimants


A key conclusion of the Government study is that there is "no discernible statistical evidence" that migrant workers from these countries had caused or contributed to the rise in social benefit claimants or that they contributed to unemployment. On the contrary,
"overall, the economic impact of migration from the new EU member states has been modest, but broadly positive," the report states.


The ‘Financial Times’ cited UK immigration minister Tony McNulty who said that the new workers were "filling important vacancies, supporting the provision of public services in communities across the UK and making a welcome contribution to our economy and society"

In public sector alone, about 9,300 workers from accession countries registered as care workers, 5,000 as bus or lorry drivers, 1,400 as medical specialists - doctors or nurses - and 1,200 as teachers or other school staff, by the end of 2005.

 

Perspectives until 2011

 

Until April this year, EU member states that did not open their labour market yet, have to report to the Commission which steps they will take in this direction. According to EU law, member states may restrict accession to their labour markets until 2011. However, the Commission aims at promoting complete freedom of movement before that date. A European Commission study earlier this month said fears of an influx of cheap labour and welfare tourism had proved groundless and Britain, Ireland and Sweden had enjoyed high economic growth and high employment despite opening their labour markets.

Spain, Portugal and Finland have already announced that they will follow suit the example of Britain, Ireland and Sweden. However, Belgium, Austria and Germany made clear they would extend the temporary work barriers for another three years.

 

Indeed, initial concerns on mass inflows of cheap labour appear to be overstated. Nonetheless, countries like Germany have to consider that the vicinity to Eastern Europe may attract much more people since the transaction cost for working in Germany are much lesser than going to the UK, Ireland or Sweden. Anyway, the results from Britain make us hope that labour migration may bring significant benefits to host and sending countries and of course to migrants themselves.

by
Daniel Naujoks

 

Further Information:

 

The full UK Government report




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