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Study - Reduced Migration Levels will not Improve Wages in UK

August 2016, 16
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As per a latest study by Resolution Foundation, the wage levels in the country may not be affected even after Britain’s exit from the European Union. 

The decrease in the number of immigrants from EU may not benefit the UK to a great extent. This will also witness a downfall in overall value of sterling in near future and the growth rate will be slow as compared in future. According to the study, if the authorities as per their plan reduces the net immigration to 100000 to 330000, the increase in the earnings of the less paid work force will vary between 0.2 to 0.6 %.

The Leave campaigners during the referendum campaign vouched for higher pay if Britain leaves the European Union, as the open migration policy adversely affected the incomes of UK nationals (by 10 %). The continuous pay squeeze would gain the attention of the Remain campaigners, who accused them of making false promises to spend more on the National Health Services (NHS) and reducing the immigration. 

The wage revision would be a hindrance for Theresa May, who considered her industrial policy as “rewarding hard-working people with higher wages.”

The study reveals that, the rise in migration influx over the last decade has not affected the wages of British workers. According to a statement given by Stephen Clarke’s, policy analyst at the foundation, “Those expecting a wage boost off the back of a post-Brexit fall in migration is likely to be disappointed. Any such gains will be dwarfed by the losses caused by the post-referendum slowdown in the economy.”

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