In this report, “the Office for Budget Responsibility (OBR) says the unexpected rise in net migration to 298,000 in the last year has been a factor in its decision to upgrade its forecasts for Britain’s economic growth.
As reported by Alan Travis (who’s done a good job in translating the OBR’s language!), in The Guardian, “net migration will add 0.6% to the potential output of the British economy and increase net tax receipts rather than be a burden, as most migrants are of working age rather than retired or children.
“The official economic watchdog says that the age structure of the latest waves of mass migration is skewed to those of working age – they are mostly coming to Britain to work or study. It says this implies that they are just as likely to be employed as those already here and that adds a further 0.1% to the growth in the economy, outweighing potential falls in productivity in the existing UK labour force. …
“… the OBR adds that the “GDP per capita” rate – how much it costs or benefits the individual – is also positive due to the higher employment rate.
“On top of this, the latest labour market survey figures show that the latest rise in net inward migration does not appear to have led to widespread displacement of existing workers. They show while an extra 239,000 non-UK nationals are in jobs in Britain compared with a year ago, the number of UK nationals in work rose by even more – 375,000.
“As a recent University College London study showed, the average profile of a recent migrant is more likely to be a young graduate from western or eastern Europe working in the financial, tech or creative services than our more traditional image of an unskilled migrant labourer.”
The full article is here.
The full OBR report is here.