Relocation of companies to immigration-friendlier countries to hit British market

Reduction in number of migrant workers to the UK likely to result in job losses, with companies preferring to shift operations to immigration-friendlier countries

Tags: IPPR, CBI, immigration rules

1st September 2009:
Less than a month after apprehensions of highly mobile skilled workers re-migrating to countries like China and India were expressed in a report by the Institute for Public Policy Research, another report suggests British labour market may take a direct hit if companies relocate themselves to more immigration-friendly countries.
Available information indicates the Confederation of British Industry (CBI) found reduction in number of migrant workers from outside Europe to the UK could result in further job losses in the country. This was because the companies would prefer shifting their operations to more immigration-friendly countries.
The new immigration rules were introduced in the UK in February. It is believed these rules make recruitment of skilled overseas workers tough.
It is already apprehended that almost 1million migrants who came to the UK will leave over the next five years, though they have made a huge impact on the UK economy over the past 30 years. The IPPR report says the migrants have, rather, played a vital role in the country’s economy, and as such incentives should be introduced to persuade the highly mobile individuals to stay back. The report also recommends that the highly skilled migrants, committed to remain here, should be given extra points.
The general perception is the highly mobile individuals are the brightest of the foreign workers. They stay in Britain for less than four years; and move several times in their lifetimes to take advantage of globalization.
Quoting statistics, the IPPR report asserts recession will compel more than 950,000 migrants to leave the UK over the next five years. The number of migrants arriving each year will either fall or ‘at least stabilise’.

By Monika

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