Migrant workers hold key to UK's future eco growth

Migrant workers are essential to the UK economy and could be a key driver of future economic growth, provided businesses fully utilise the skills on offer. This is the finding from a new report 'Attracting Talent'* from Experian, the global economic forecasting group.

The study found that the cities and regions that are most successful in attracting mobile talent from overseas are those with strong economies and jobs growth, universities with a high international student intake, quality of life features that attract diverse groups and existing international communities.

However, Experian's 6-month research programme, which included a series of case-studies on areas across the UK, also shows that attracting people is only part of the story for ensuring sustainable economic benefits from inward migration. In contrast to a common misperception, migrant workers from Central and Eastern Europe are frequently not low skilled, although the jobs they do in the UK often can be.

Tim Sydenham, Associate Director of Economic Policy and Research at Experian, comments: "Migrants are increasingly working in higher skilled occupations and are becoming more able to work to their full potential once they have overcome barriers, such as language and culture. Moreover, the research found that international migrants settling in the UK are highly entrepreneurial, although it often takes time for them to develop the knowledge, skills and support necessary to initiate an enterprise in the UK.

"These findings suggest that it is in a region or city's interest not only to attract international migrants but to retain them, help them integrate and help them to overcome common barriers, such as culture, institutions and language. Such interventions have considerable economic benefits, as well as the social cohesion benefits which are often sought by public and voluntary agencies."

Internal migration, too, is crucial to the UK economy. Within England alone, an estimated one million people moved in 2004 and crossed into a different UK region as they did so. This represents a considerable movement of labour. From analysis of Experian's migration data, the study found that the migratory population is dominated by well educated, skilled and young people, showing the importance of internal migration to the UK labour market. All regions benefit from movements of labour, although London and the greater South East tend to attract the highest skilled more successfully than the other regions.

The study concludes that the labour market impacts of migration, both internal and international, are considerable and regional development and sector organisations should promote and cater for migration in the future. Over the next ten years, Experian expects the Greater South East of the UK to gain population through both international inward migration, especially to London, and internal migration flows. Although other UK regions are expected to lose population through internal migration patterns, which favour the south of the UK, the losses are relatively minor and could possibly be overturned with effective policy interventions.

Tim Sydenham concludes: "Migration carries risks and challenges but Experian found conclusive, objective proof that there are few economic downsides. Although unemployment was greater this summer than in 2005, there is little evidence to suggest that immigration is the cause. Employment growth has slowed this year and more people are seeking work than in 2005. These patterns will balance out and Experian expects migrant workers and longer term immigrants to provide a significant contribution to UK labour supply, enterprise and communities going forward."

About Experian: Experian is a global leader in providing analytical and information services to organisations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organisations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organisations from financial services, retail and catalogue, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.

Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE-100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, California and Nottingham, UK. Experian employs more than 12,500 people in 34 countries worldwide, supporting clients in more than 60 countries. Annual sales are $3.1 billion (£1.7bn/€2.5bn).