Press Release

Economic slowdown reduces impact of migrant worker drain

Thursday, August 21 2008

Figures released today by the Home Office indicate that work related migration from the eight central and eastern European countries has fallen to its lowest level since 2004. Gerwyn Davies, Public Policy Adviser at the Chartered Institute of Personnel and Development (CIPD), believes the pill is less bitter for employers as it coincides with employment prospects falling to their lowest level in a decade.

However, despite the slowdown, many sectors such as agriculture will be concerned about filling jobs in the short-term as it also coincides with the gradual introduction of a points-based system for managing migration outside the EU. 

Gerwyn Davies comments: "The tide of immigrants from the A8 countries has clearly bottomed out as more find jobs at home or elsewhere in Europe. The government's official barometer shows that the number of eastern Europeans applying to work in the UK has fallen by 9,000 during the past quarter; which indicates that the credit crunch has had a particularly negative impact.

"Employers have benefitted from the increased supply of skilled and unskilled labour from Eastern Europe.  They report that workers from the EU accession countries are more willing, loyal and productive than non-migrant workers, particularly among those who hire unskilled workers.

"However, Government and employers may face challenges in particular sectors, as they have relied on the ready supply of UK and EU workers to fill these jobs. On the flip side, this situation might improve the job prospects for the young and less-skilled non-migrant workers who have lost out in the competition for jobs in recent years.

"However, the wider economy looks set to be less affected as unemployment gains worrying momentum. The latest CIPD/KPMG/IPSOS-MORI Labour Market Outlook survey – published last week- indicates that the jobs situation will continue to deteriorate in the coming quarter. With economic prospects improving in the Accession countries relative to the UK’s position, it is unsurprising that the Eastern Europeans are leaving the country in greater numbers than before."