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Immigrant workers vital to the UK's economic recovery

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09 December 2008

An essential part of the UK’s economic recovery will rest on ensuring migrant workers are not prevented from coming to the UK, says the Institute for Public Policy Research (ippr) in a new report published today (Tuesday 9 December).

A new ippr report argues that migrant workers will continue to be a small but essential part of the UK construction workforce, even during recession, helping to deliver key construction. If they go ahead, planned construction projects such as the Olympics will require an additional 40,000 workers per year until 2012, above and beyond those already in the sector. Migrant workers will play a vital role in ensuring that these projects can be successfully completed helping to fill skills gaps.

ippr says that the UK should introduce more flexible immigration policies which allow the UK to attract and retain the migrants who help to keep certain economic sectors like construction afloat. The amount of migrant workers fluctuates according to demand, with migrants often coming for short periods or on short term contracts. Migrants often come to the UK when there is work but travel elsewhere when there is not. This flexible labour force is essential for sectors like construction.

ippr’s research reveals that the common idea that migrant workers make up most of the construction workforce is not true. In fact, only six per cent of our total construction workforce are foreign nationals. This figure comprises four per cent who have come to the UK in the last 10 years and two per cent who have lived here longer.

ippr’s report argues that although migration is widely accepted and welcomed as an integral part of the construction industry, the Government needs to ensure that sufficient regulations are in place to protect both migrant and domestic workers from exploitive employers who hire illegal workers. This would help to reduce the demand for illegal labour, improve minimum standards and prevent low wages.

Lisa Harker , ippr Co Director, said:

“It is more important than ever that the Government does not use the recession as an excuse to restrict the numbers of migrant workers coming to the UK. Our research shows that, even in recession, migrant workers are essential in delivering the key construction projects that will help boost local economies.

"The government must also to help British workers reap the benefits of these projects, by ensuring they have access to training that is properly targeted at giving them the skills needed for future jobs.

“Just as migrant workers helped to boost the UK economy on its way up, they are even more essential in a recession, helping to keep afloat industries like construction and hospitality which rely on a flexible workforce happy to do contractual work and able to travel for work.

"As long as we get our training structures right and plenty of importance is placed on ensuring fair competition by cracking down on exploitative employers, then UK workers who want to work in construction should be able to build a career in the construction industry. Migrants will not be a barrier to their success."

The report found that the most important factor in helping local people into construction jobs is ensuring that they can access training which meets their interests and is based on industry need. ippr recognised the National Skills Academy as a good model - working with employers to identify skills training gaps.

Building a new home: migration in the UK construction sector by Laura Chappell, Dhananjayan Sriskandarajah and Tracy K Swinburn is available on request from the ippr press office or to download in full from www.ippr.org.uk/publicationsandreports/