Immigration has cost a minimum of £62 billion between 2001 and 2011
If you’ve been listening to the radio you may have heard the BBC telling us that ‘immigration’, not just EU immigration, has benefited this country as ‘immigrants’ pay more in tax than they take in benefits.
Recent immigrants to UK ‘make net contribution’
Immigrants to the UK since 2000 have made a “substantial” contribution to public finances, a report says.
The study by University College London said recent immigrants were less likely to claim benefits and live in social housing than people born in Britain.
The authors said rather than being a “drain”, their contribution had been “remarkably strong”.
The trouble is ‘immigration’ as a whole does not benefit us….but that fact is missing from the BBC reports.
The source for these ‘facts’ is the Centre for Research and Analysis of Migration, funded partly by the European Union…..and staffed by mainly immigrants:
Research staff
External fellows
In 2007 this is what they were telling us:
Policy formation is likely to be influenced by the subjective opinion of domestic residents. This creates a dilemma for policy: while liberal immigration policies may benefit the industrial society, these may be difficult to implement due to public antipathy.
Understanding the process of attitude formation and how it works through the media is essential to an appropriate policy response.
That good old ‘Manufacturing of Consent’.
The BBC is happy to oblige, trying to persuade us that immigration benefits us….they do that by missing out essential facts…as does the CRAM.
This is what we are told:
The net fiscal balance of overall immigration to the UK between 2001 and 2011 amounts therefore to a positive net contribution of about 25 billion GBP.
Unfortunately that isn’t so……hidden on page 41 we get the real figures…..
1995-2011 Non EU immigrants cost £104 billion
2001-2011 Non EU immigrants cost £87 billion
Now subtract a positive £25 billion from a cost of £87 billion and I make that a total cost of £62 billion.
Immigration has cost a minimum of £62 billion between 2001 and 2011
And that doesn’t include all the costs of course.
Take a look at the ‘research’ for yourself.
It’s fairly opaque in style and is impossible for most people to check their sources and conclusions.
But wander through it and cherry pick things that catch your eye and some of these might be of interest and raise a few questions:
The first point is that that whacking great loss isn’t quantified in the body of the text…you have to dig for it yourself….which raises the question as to why?
Fair comparison?
A major point is that immigrants don’t have all the costs put onto them that the natives do…..things that would be paid for whether or not immigrants were here, ‘pure’ public goods, such as defence, roads, the Civil Service and Government etc, are left out….but such costs are included for the natives when comparing expenditure by government on them and taxes paid…hardly a fair comparison…..
We assign the cost of all these “pure” public goods only to natives, meaning that the expenditure column represents the cost of pure public goods that natives would have to bear in the absence of any immigrant population.
Wages
The report says by ratio immigrants are better educated than natives but….
These stark educational differences between immigrants and natives are not, however, reflected by wage differences, as we show in Table 2a: the median wages of natives and non-EEA immigrants are nearly the same, while the median wages for EEA immigrants are substantially below those of natives, by about 15% in 2011
Hang on…..immigrants apparently pay more taxes and yet they earn less than the natives?
Employment
Whilst EU immigrants are apparently slightly more likely to have a job by percentage than the natives, non-EU immigrants are far less likely:
Since the mid-2000s, employment rates have also been slightly higher for EEA immigrants than for natives, 75% versus 70% in 2011(see Table 2b). The employment rate of non-EEAs, on the other hand, is substantially lower in all years, only 62% in 2011
But all those unemployed….25% of EU and 38% of non-EU immigrants will be claiming benefits or costing us in some shape or form.
Housing
The report tells us:
‘…recent immigrants overall are over 3 percentage points less likely to live in social housing than natives
Recent non-EEA immigrants, in contrast, are 2.6 percentage points more likely than natives to live in social housing.‘
Hmmm….2/3rds of immigrants are non-EU…..so 2/3rds of immigrants are 2.6% more likely to be in social housing than natives…..
…and yet the report says that overall, immigrants are 3% less likely to be in social housing.
I don’t know about you but I find those figures, em, confusing.
And what isn’t quantified is the cost of all those immigrants filling up the housing stock
Some more doubtful figures
Between 2007 and 2011, recent EEA immigrants made a net contribution of 15.2billion GBP (expressed in 2011 equivalency) to UK public finances, which amounts to an annual average of 2,610 GBP per capita over the 5-year period. Over the same time frame, the annual net fiscal cost of UK natives amounted to about 1,900 GBP per capita and the net fiscal cost of recent non-EEA immigrants to about 332 GBP per capita.
So EU immigrants contributed £2,610 each to the economy whilst a British native cost £1,900 over and above taxes paid annually….that’s around £100 billion annually (based on a population of 60 million).
Of course they did.
The trouble is that not all the costs of immigration are taken into account….housing for a start…the massive house inflation and subsequent lack of housing, NHS, the schools costs, the roads and maintenance of those, the policing, judicial and prison systems, cost of unemployment of natives unable to get a job etc.
In 2007 they recognised such costs were relevant, not just financial but social, political and religious….
Over the years labour migration has been important for economic growth and contributed to economic prosperity in Germany and the UK. It remains a crucial issue (economically and politically) and is one whereby economies can remedy unforeseen skill gaps which may otherwise have detrimental effects on the competitiveness of industry.
However, although migration can offer benefits by leading to relief of skill shortages, it may also adversely affect labour market prospects of resident workers, put additional strain on the welfare system, lead to an increase in criminal activity, or otherwise unfavourably affect social cohesion (see Dustmann and Glitz 2005 and Dustman et al. 2005 for discussion). While the primary motivation for allowing immigration is because of temporary labour market demands, migrants and their children tend to remain in the receiving economy long after labour market conditions have changed. All this may lead to questions whether the possibly short term benefits from immigration may be outweighed by other consequences.
I don’t know about you but I find the ‘research’ from the Centre for Research and Analysis of Migration less than convincing on my quick overview and the BBC’s reporting highly partisan and clearly designed to emphasise apparent benefits of immigration whilst hiding the negative.
You have to believe the figures and the interpretation put on them by the researchers to believe that overall EU immigrants benefit the economy.
I don’t believe the CRAM is independent and I believe it starts off from the point of view that immigration is beneficial and has been looking for facts to prove that….its hiding of the costs of non-EU immigration might suggest that attitude on their part.