Why an immigration amnesty could benefit British workers

An amnesty for illegal immigrants can help boost their income, reducing socio-economic disparities.

One of the most depressing things about contemporary British politics is the extent to which one of the key arguments of the anti-immigrant right, that immigration increases unemployment among British-born workers, has gone unchallenged. Indeed, two years ago this capitulation reached its nadir with Gordon Brown's infamous slogan of "British jobs for British workers". This is a pity, because economists who have studied this area increasingly believe that the relationship between immigration and native-born unemployment is not straightforward. Also, there is evidence that restrictive immigration policies may make things worse for unskilled workers, not better.

Indeed a study by Harvard academics George Borjas and Lawrence Katz, found that immigration had a two-stage effect on wages and employment. Although unanticipated surges in immigration were found to depress wages in the short run, these lower wages then encouraged firms to increase investment, causing wages to rebound and unemployment to fall. Indeed, the post-war British and American labour markets have been able to deal with changes that were far more disruptive and wide-ranging than immigration, such as the simultaneous decline of manufacturing and rise of the service sector, the revolution in information technology and the breakdown of traditional gender roles.

Opponents of immigration also like to quote factoids that imply that immigrants are draining public services. For instance, Migration Watch claim that "there are more than 300 primary schools in which over 70 per cent have English as a second language; this is nearly a half million children". However, since new arrivals tend to be younger than the average Briton, and many return home during periods of unemployment, they consistently make a net contribution to the public finances. In some cases this can be substantial, with the Institute of Fiscal Studies finding that immigrants from countries that joined the EU in 2004 used £9.7bn worth of public services but paid £13.6bn in taxes between 2005/6 and 2008/9.

Paradoxically, some of the arguments made by the anti-immigration lobby inadvertently make the case for a relaxation of controls, rather than further crackdowns. Although the tendency of illegal migrants to cluster in low-paid and casual sectors of the economy contributes to increased inequality, this mostly occurs because short-sighted immigration controls restrict their opportunities to gain more productive employment. Just as the development community has gradually become aware of the importance of property rights in reducing the size of the black market in emerging economies, some far-sighted policymakers are beginning to realize that regularizing the status of illegal immigrants in the developed world may allow them to begin the process of joining the middle class.

Indeed, there is conclusive evidence that granting amnesty to illegal immigrants enables them to boost their income, reducing socio-economic disparities. As part of the last attempt at immigration reform 25 years ago, the United States granted amnesty to nearly 3 million immigrants. A study carried out last November by the American Immigration Council found that whereas their homeownership rates and skills levels lagged those of equivalent ages who had been born in the United States, this gap had almost completely disappeared by 2006. Indeed, many of those who came to the United States in their late 20s and early 30s without the equivalent of a secondary education had improved their levels of qualifications, suggesting that they had invested time and money in remedial education.

Therefore progressives need to be less apologetic about their support for immigration and more ready to confront those who use crocodile tears for working families to mask old-fashioned bigotry. Ed Miliband was correct to say in his inaugural speech as leader that, "we did not do enough to address concerns about some of the consequences of globalisation, including migration". However, addressing concerns means explaining the benefits of an open labour market and enabling illegal immigrants to work legally, not pandering to the fears and prejudices of Daily Mail leader writers or xenophobic think tanks.

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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.