UK work­ers won't ben­e­fit from mi­gra­tion cuts

The Myanmar Times - - In­ter­na­tional Busi­ness -

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. –

Photo: EPA

The il­lu­mi­nated logo of Ger­man car man­u­fac­turer Volk­swa­gen beck­ons from the VW Tower in Hanover, Ger­many.

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