Migrants in the workforce: facts v fiction

Government policy does mercifully little to affect the labour market, even if it could be doing better.

NIESR's Jonathan Portes takes the time to critique Home Office minister Mark Harper. Harper said, in a comment on last week's labour force data release:

These figures show we are building a better immigration system that works in the national interest and is supporting growth. The rise in numbers in employment has benefited British citizens first, but our system is still allowing skilled migrants to come to the UK where they are needed by British businesses.

Portes argues that the labour force survey shows no such thing. When we look at the proportions of the working age population and of people in employment who are foreign born, we find a stark correlation, and a smooth trend. The trend is slightly accelerated by the new EU member states in 2004, and temporarily stalled by the recession, but largely consistent:

 

As Portes writes:

It is difficult - or at least certainly far too early - to see any significant change in the long run trend here. It is therefore difficult to see how changes to the immigration system could have had any substantial impact, as yet, on the employment of the UK born.

Thankfully, if the solution is imaginary, so too is the problem. Harper is continuing a Tory meme that "new jobs go to migrants".

Here's Fraser Nelson's take on the meme, for instance:

Over the 12-month period to which Osborne refers [Q2 2010 to Q2 2011], 90.1 per cent of the extra employment amongst the working-age population can be accounted for by an increase in foreign nationals working in the UK.

As Portes points out, thought through for a couple of seconds, such a claim is clearly nonsense:

Think about where you work. How many of the last ten people who were hired were immigrants? In most workplaces, probably none, one, or two. Very roughly, about 20,000 people start a new job every working day in the UK — the vast majority were born here.

The claim is actually just a restatement of arithmetic fact. The proportion of the population which is foreign born is increasing almost as quickly as the workforce. Rephrasing that as "foreign nationals taking most jobs" is as untrue as it would be to say that between 2009 and 2011 219 per cent of new jobs were taken by disabled people.

The government's policy has little effect on the stats cited above because the government's policy has little effect on immigration. It can only fiddle at the margins, thanks to the combined pressures of EU migration and British emigration. That's not to say it can't still do a huge amount of damage, as Cameron learned to his cost when he had to go pleading to India to promise better treatment at the hands of UKBA; and if we're talking about pro-growth migration policies, there's only one, and it's more migration.

But we'll still see the same old hackneyed arguments come up tomorrow, when the immigration statistics come out. So consider this a pre-buttal. Whether or not the government has achieved its populist target of slashing net migration, it's doing mercifully little to affect the labour market, even if it could be doing better.

"So, which line is the one for the job-stealing scum and which is for patriotic Brits spreading wealth abroad?" Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

How Jim Murphy's mistake cost Labour - and helped make Ruth Davidson

Scottish Labour's former leader's great mistake was to run away from Labour's Scottish referendum, not on it.

The strange revival of Conservative Scotland? Another poll from north of the border, this time from the Times and YouGov, shows the Tories experiencing a revival in Scotland, up to 28 per cent of the vote, enough to net seven extra seats from the SNP.

Adding to the Nationalists’ misery, according to the same poll, they would lose East Dunbartonshire to the Liberal Democrats, reducing their strength in the Commons to a still-formidable 47 seats.

It could be worse than the polls suggest, however. In the elections to the Scottish Parliament last year, parties which backed a No vote in the referendum did better in the first-past-the-post seats than the polls would have suggested – thanks to tactical voting by No voters, who backed whichever party had the best chance of beating the SNP.

The strategic insight of Ruth Davidson, the Conservative leader in Scotland, was to to recast her party as the loudest defender of the Union between Scotland and the rest of the United Kingdom. She has absorbed large chunks of that vote from the Liberal Democrats and Labour, but, paradoxically, at the Holyrood elections at least, the “Unionist coalition” she assembled helped those parties even though it cost the vote share.

The big thing to watch is not just where the parties of the Union make gains, but where they successfully form strong second-places against whoever the strongest pro-Union party is.

Davidson’s popularity and eye for a good photo opportunity – which came first is an interesting question – mean that the natural benefactor in most places will likely be the Tories.

But it could have been very different. The first politician to hit successfully upon the “last defender of the Union” routine was Ian Murray, the last Labour MP in Scotland, who squeezed both the  Liberal Democrat and Conservative vote in his seat of Edinburgh South.

His then-leader in Scotland, Jim Murphy, had a different idea. He fought the election in 2015 to the SNP’s left, with the slogan of “Whether you’re Yes, or No, the Tories have got to go”.  There were a couple of problems with that approach, as one  former staffer put it: “Firstly, the SNP weren’t going to put the Tories in, and everyone knew it. Secondly, no-one but us wanted to move on [from the referendum]”.

Then again under different leadership, this time under Kezia Dugdale, Scottish Labour once again fought a campaign explicitly to the left of the SNP, promising to increase taxation to blunt cuts devolved from Westminster, and an agnostic position on the referendum. Dugdale said she’d be open to voting to leave the United Kingdom if Britain left the European Union. Senior Scottish Labour figures flirted with the idea that the party might be neutral in a forthcoming election. Once again, the party tried to move on – but no-one else wanted to move on.

How different things might be if instead of running away from their referendum campaign, Jim Murphy had run towards it in 2015. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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