Migrants 'should be retained'

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Migrant workers fill skill gaps and do jobs British workers do not want to do, the report said.

But the Institute for Public Policy Research (IPPR) found that employers and local economies are not reaping the full benefits because many migrants are staying for short periods instead of settling in the UK.

The full report is not published until next month, but the centre-left IPPR said local economies benefit because migrants may have different skills which can lead to the establishment of new types of businesses and they tend to be more entrepreneurial.

Migrants can also expand the market for firms in the area they move to by establishing links to their countries of origin.

IPPR analysis of immigration statistics showed that over a million migrants came to the UK from the eight countries that joined the EU in May 2004, but around half of those have now returned home. The report recommends that local councils and the Government should ensure they are doing enough to attract and retain migrants.

At the same time, the IPPR said the Government should ensure that British-born workers receive adequate training and career development opportunities. The think tank argued that local authorities and employers need to ensure that British workers' wages and job opportunities are not damaged and that firms do not become overly reliant on migrant workers.

IPPR research fellow Laura Chappell said: "Migrant workers can bring enormous benefits to local businesses and areas. However, many of these contributions - such as new ideas and ways of working, and an entrepreneurial spirit - may have been neglected in the past.

"To get the most out of migration, local communities, alongside local leaders, businesses, universities, and central government, need to recognise the variety of benefits that migrants can bring, and plan accordingly.

"Political leaders also need to sharpen their narrative about migration, particularly on the longer-term effects on local areas. Migration flows are critical, but the bigger story is how we manage more diverse communities to deliver the greatest benefits for all."