UK workers won't benefit from migration cuts
THE weak outlook for the UK economy will outweigh any potential pay rise for British workers if the country’s EU exit leads to immigration cuts, a report has warned.
Future cuts to immigration could have a positive impact on the income of some British workers, but they will still be exposed to Brexit’s impact on the broader economy, the Resolution Foundation think tank said.
Cleaners, security employees and sales staff are among those who have seen their income fall in recent years as a result of immigration, it said in an analysis.
These workers could see their income increase by between 0.2 and 0.6 percent by 2018 if immigration fell immediately to tens of thousands a year.
But such a salary boost would not shelter workers from the wider economic consequences from Brexit, the think tank said.
The Bank of England recently issued its biggest-ever downgrade of a GDP forecast in the light of Britain’s looming EU exit.
Its growth forecast was slashed from 2.3pc for both 2017 and 2018 to 0.8pc and 1.8pc.
The think tank warned a cut to migration would prove challenging for food and clothing manufacturers, as well as domestic personnel services, which rely more heavily on a foreign labour force. –
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