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Immigration 'not affecting wages'
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19 January 2007
Most immigrants to the UK now come from Poland, followed by India and the United States, a study by the Centre for Economic Performance (CEP) said.
But the report added: "Nevertheless, there may be some downward pressure in the low wage labour market where (despite their higher relative education levels) many new immigrants tend to find work."
According to the Labour Force Survey, by 2007 12.5% of the UK's working age population was born abroad, up from around 8% in 1995. There are now 4.3 million adults of working age in the UK who were born abroad.
The UK is still "middle-ranking" in terms of its share of immigrants in the total population (9.3%), lower than Australia (23.6%), France (10%), Germany (13%) and the United States (12.8%), the report said.
Compared with people born in the UK, immigrants were on average younger, better educated and concentrated in London. And new immigrants were on average more educated than immigrants who arrived in the past, the CEP said.
Immigrants from poorer and less democratic countries assimilated faster into a British identity, with this partly explained by their greater tendency to take up citizenship.
The report concluded: "During periods of strong economic growth, migration is and has always been important for filling gaps in the labour market. The recent increases in net immigration to the UK are therefore a sign of the strength of the economy. While the UK has been successful in attracting much-needed workers at different skill levels, the proportion of new arrivals is still below that of many other developed countries.
"The evidence so far suggests that, overall, immigration has had few adverse effects on the labour market performance of the UK-born workforce, though this average may disguise some negative effects in the low wage market and positive effects in the higher wage labour markets.
"While immigrants employed in the low wage sector will be exposed to the job instability and working environment characteristic of that sector, there is little evidence to suggest that it is any harder now for immigrants to assimilate in terms of relative wage and employment prospects than in the past."
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