Report shows positive impact of London’s migrants to the capital’s economy
Not only do London’s migrants add £83bn to the economy every year, they also support job creation.
New analysis by lobby group London First and PwC reveals the positive impact of London’s EU and non-EU migrant workers to the capital. The report estimates that on average, each full-time migrant worker contributes a net additional £46,000 to London’s economy every year. This is approximately £83bn and equates to around 22% of all London’s GVA.
Their calculations also suggest that the additional money generated by 10 migrant workers supports an additional 4 jobs in the UK economy. A report by the British Hospitality Association also suggests that immigration helps create jobs in the hospitality industry. And it warned of the danger of immigration restrictions to businesses. It said that “without immigrant workers from the EU and elsewhere many businesses in the sector will fail, taking all their jobs, local and migrant, with them.”
The Financial Times quotes London First chief executive Jasmine Whitbread as saying the report shows the idea that migrants are “taking jobs from UK-born citizens” is a myth. Instead, she points out that “the number of UK-born citizens without jobs has actually reduced while the number of migrants has grown.”
The report also shows that there is a positive impact of London’s migrant workers on the rest of the UK economy. In a statement about the report, Whitbread said that “35p of every extra pound of value created by an EU worker spreads around the UK”.
You can find the full report at londonfirst.co.uk.
Business wants certainty. Guaranteeing the rights of EU citizens in the UK is a good first step
Whitbread welcomed the House of Lords vote in support of the Article 50 bill amendment to secure the rights of EU citizens in the UK. She said that the prime minister “would do well to listen to this and act on her previously announced intention to provide this certainty.”
Doing so would also be in line with two of the government’s Brexit priorities in their white paper:
- to provide certainty and clarity; and
- to secure the rights for EU nationals in the UK and UK nationals in the EU.
In an earlier post, we pointed out why doing would only serve as benefitting UK nationals in the EU. And that there were assurances the government could already give for UK nationals in the EU.