A Study on the Impacts of Immigrants on UK Native Employment

This report investigates the multifaceted effects of immigration on employment within the United Kingdom, focusing on the interplay between immigrants and native-born workers. The research aims to determine how immigration influences job opportunities and wage rates, providing insights for entrepreneurs and policymakers. The study employs a quantitative research methodology, utilizing questionnaires based on a Likert scale administered to employees in various restaurants. Data analysis, conducted using SPSS, reveals that while immigration may not significantly impact unemployment rates, it does affect wage rates. The findings suggest that immigration contributes to the growth and development of the UK economy. The report includes a literature review examining job opportunities and wages, alongside a detailed analysis of the research methodology and data. The conclusion and recommendations offer practical implications based on the research findings.

Impacts of Immigrants on UK
Native Employment

ABSTRACT
Immigration has been increased in United Kingdom since last decade. People migrated in UK
with the hope to find good earning opportunities to live a sustainable and happy life. This
research aim to find out the effects of immigrations on employment in UK. As the result can help
the entrepreneur who running the business or thinking to have one, to see if immigrants are good
for economy or not. The objectives of this research are to explore there relationship between
immigrant and employment in UK. To determine the effect of immigrant on native born in UK.
The researcher has used precise research methodology in order to accomplish the aim and
objectives of the study. The participants of the research study were the employees working at
different restaurant. Questionnaire research instrument has been provided to them which
questions was based on likert scale. The analysis was done using SPSS. It was identified that
immigration does not affect as effectively on unemployment rate as it affect on wage rates.
Participants responds that immigration helps in enhancing the growth and development of UK.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
CHAPTER 2: Literature review.......................................................................................................4
Job Opportunity......................................................................................................................4
Wages...................................................................................................................................12
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................20
3.1 Research Strategy...........................................................................................................20
3.2 Quantitative research method.........................................................................................21
3.3 Ethical Considerations....................................................................................................29
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................32
4.1 Introduction....................................................................................................................32
4.2 Primary data analysis......................................................................................................32
4.3 Findings and analysis.....................................................................................................47
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................50
5.1 Conclusion......................................................................................................................50
5.2 Recommendation............................................................................................................50
REFERENCES..............................................................................................................................52

CHAPTER 1: INTRODUCTION
“ Decades of record immigration have produced lower wages and higher unemployment
for our citizens” Donald Trump (2016) said, but Hillary Clinton (2016) said that “I believe that
when we have millions of hardworking immigrants contributing to our economy, it would be
self-defeating and inhumane to try to kick them out”. After I heard these two quotes from two of
the most influence person of the world said. I decided to work on this topic to find the result.
Migration can be temporary or permanent move of a person or a group of people from one
geographic location to another, there are many reasons that motivated such as a better
employment, education, safer or even persecution to the host country (Zanker 2008). I also have
the same thought as them, UK has a better life quality so I decided to study in UK and it’s like a
dream to be able to get a job in UK to gain experiences. Moreover, in the future I want to start
my own business and in the present my country has many immigrant workers in the workforce.
Then I have a question in my mind, does immigrants make a benefit to the host country or they
just jeopardize the host economy and slow it down? So I decided to do research on this topic.
This paper has focus on the employment for UK native born on job opportunity and wages which
be affected by immigrants.
Figure 1: Latest changes in migration, UK, YE September 2014 and YE September 2015
Source: Office for National Statistics
From this chart it’s showed that the immigration in UK was higher than emigration which means
that more people coming in than getting out of the country and also the immigration rate is
increasing. It’s interesting to do this research to find out the impacts of these immigration to see
if it benefit and developing the host country orjust holding back the economy.
Why do people come to the UK
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(Home office 2017) stated that there are 4 reasons why people come to the UK, which are Visit,
Work, Study and Family.
Visit
In the year ending June 2016, there were 9.3 million non-EEA or European Economic Area
arrived in UK as the same as the previous 12 months. Which 29% of arrivals were United States
nationals, many nationalities including US nationals do not need visa to visit UK. So the number
of visas that were granted is much lower than the total number of non-EEA arrivals. More than
2.5 Million visas has been granted in the year ending March 2017 and almost 2 million were
visiting UK. There were 61,220 (3%) increasing in Visitors visas granted in the year ending
March 2017. There were increased of Chinese visitors at 99,940 or 25% to 506,580 (excluding
Hong Kong), and Indian were increased at 20,662 or 6% to 393,929. The below chart show the
type and number of entry visas granted in the year ending March 2017.
Figure: 2 Visa table
Source: Home Office, Immigration Statistics January to March 2017
Work
There were 93,566 Tier 2 Skilled work visas that have been granted in the year ending March
2017, increased 2% from 91,797 last year. 56,051 of the Tier 2 Skilled work-sponsored visa
in the year ending March 2017, 23,316 working in the Information and Communication
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sector accounted for 42%. Of 4,677 Tier 1 visas granted in the year ending March 2017, 501
of Tier 1 visas granted were Exceptional talent visas.
Study
Beside from visitor visa, the most general visa granted to non-EEA nationals was study visa
which 208,906 in tear ending March 2017; accounted for 8% of all visas granted to non-EEA
nationals and increase 1% from previous year. Study visa increase in the three largest non-
EEA student, Chinese increased 10% to 77,290, United States increased 2% to 14,268 and
Indian increased 9% to 11,642. For the main applicant which is university-sponsored study
visa applications rose 3% to 168,591 and increased 7% for Russel Group universities to
80,664. While further education were falls 6% to 14,534 as the chart below.
Figure 3: Study-related sponsored visa application by sector
Source: Home Office, Immigration Statistics January to March 2017
Family
All total number of family-related visas granted, including EEA family and non-EEA nationals,
and visas granted to dependants of different visa holders (exclude visitors) increased 2% to
136,787 in the year ending March 2017.
Refugee
Moreover, refugee is other reason why immigrant move to UK. As (British Red Cross 2017) said
that there are around 118,995 refugees living in the UK right now and it’s just 0.18% of
total population in UK. While the estimated 65 million people all around the world have
been forced to flee their homes. The long protracted conflict have increased which create
more than 22 million refugees worldwide but developing countries host more than 80 of
refugee. In 2016 UK received 38,500 asylum application which less than Germany with
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587,346, Sweden 83,103 and France 62,771. Most of the world’s refugees come from just
three countries: Syria: 5.5 million, Afghanistan 2.5 million and South Sudan 1.4 million,
accounted 55%. Red Cross has reunion travel assistance programme to reunited more than
750 family last year and almost 1,900 children
1 Aim and objectives
This research aim to find out the effects of immigrations on employment in UK. As the result can
help the entrepreneur who running the business or thinking to have one, to see if immigrants
are good for economy or not. The objectives of this research are to explore the relationship
between immigrant and employment in UK. To determine the effect of immigrant on native
born in UK.
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CHAPTER 2: Literature review
Job Opportunity
Increased job opportunity
(Somerville and Sumption 2009) suggests that most of the native workers employment are not
affected by the immigrant worker and even gain benefit from them. Which there are two
reasons to explain why. First, the inflow of immigrants who has variety of skills can create
the number of jobs available in the labor market that can create more employment to the
native worker. Second, the native react to the immigrant’s arrival to protect themselves by
changing their job or the working field to avoid the job displacement by the immigrants
(Peri 2016) has limit his study on immigration’s effect on labor markets and on productivity in
the US. He says that there was a growing benefit in the analysis of foreign student as they
are the faster-growing group of immigrant in the US Education seems to be a source of
significant growth for jobs, value-added and (service) export for the US economy. Foreign-
born students can increase the demand for these service and when they graduate with US
degree, they are usually hired in high position to work as a productive workers and
professionals. So US education services can be a sector that foreign-born boost demand as
student and supply as researchers or professors with effective skills to make a contribution
to US workforce and to local economies. He also mentioned that immigration of scientist
and engineers, especially the one with talent skill to make ability distribution, should get
more specific attention. Among the US-based Noble laureates in Medicine, Physics, and
Chemistry in the past 10 years, 17 out of 33 were foreign-born. Top science institution can
effectively create large effects on innovation and growth for the world, the work of high-
skilled workers can create an innovation (most of them in the US) can contributing to global
science and global growth. The relationship between high-skilled foreign born worker on
technological and scientific progress, it affect to the demand for high-skilled immigrant but
it the very important factor for economic for the world and US in the long run. To support
this research (Glitz 2014) also find that immigrant create positive effect for native born
workers. It because in the most countries that immigrant migrate to, immigrant does not
compete directly to the native workers in the workforce but rather share skills that create
benefit and knowledge to natives. Moreover, the arrival of skilled immigrants distribute
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innovation activities which led to productivity growth in the host countries then the benefit
go to the native workers.
In addition, (Islam 2007) study the immigration unemployment relationship in Canada. He say
that immigration does not increase unemployment rate. Moreover, in the long run
immigration can increase the job opportunity. The estimation show that in the short-run,
there is a one relationship between unemployment and immigration, that is higher
unemployment causes less immigration in Canada. The long run coefficient estimate suggest
that there is no negative impact from immigration on unemployment. Thus, there is a
temporary unemployment cause by immigration but it disappears in the long run. In the long
run, it has positive effects on employment as the increase in labor demand is matched by an
increase in labor supply that come from immigration or it can say that the firm demand more
worker and create more job opportunity. Furthermore, native born also got benefit as wages
rise due to the increase of immigration, the higher short-term unemployment might from the
employing less of Canadian born worker as immigrant and native have different wages. But
in the long run things have changes wages adjust, labor demand is restored and then
Canadian born worker can gain benefit. Immigrant also distribute different skill to the
existing workforce or the native worker which can reduce the unemployment as the native
can improve their skill and get a better job.
Another study also find the evidence in the same direction as above, (Etzo et al. 2015) study
impact of immigrant on the number of organization and employee in Italy. The result show
that the increase population of immigrant worker give a positive impact on the local
economy by attracting new local units, it could be the result of relocation or the new
establish firm. An increase number of immigrant worker could have good impact on
consumption such as tourism. At the nation level, an increase number of immigrant worker
create positive effect to the number of firm in Italy. Turning to the macro-areas perspective,
the impact from immigrant on the firm is positive and significant for both Center-North and
the South, it appear to be a little stronger for Southern provinces than the rest of Italy. This
come from the effect of the different in the number of worker in the workforce. Which the
Southern provinces are those who experienced the highest population and growth rates of
immigrant. The study found the two main sectors who gain most benefit that are
Manufacture and Service. By having new firm or relocated firm will create more job
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opportunity for the workforce. By having more immigrant worker create positive effect at
nationwide level and for macro-areas too. As the effect of immigrant to native employment,
evidence show no impact on displacement between immigrant and low-skilled native
worker, plus the estimated result show high-skilled native gain positive effect. Also low-
skilled native workers are not affect by immigrant at all, high-skilled natives seem to gain
benefit from immigrant influx.
Decreased job opportunity
(Kasnauskiene and Vebraite 2013a) found that immigrants have replace native worker in the
labor market. As the immigrants have similar or the same skill sets as the local worker so
they can compete with the local in the labor market. From this competition the
unemployment rate in the host country increase. Normally, immigrant ask lower wages than
local worker in the labor market of the host country; so the employer prefer immigrants than
local worker when compare the wages. While in Germany (Bonin 2005a) find that the
period after 1990 a 10% increase in number of immigrant in labor market would increase the
unemployment rate of native born workers by 1.5%. Anyway the effect of immigrant influx
do not impact all segments of the workforce. He has find some evidence that the negative
effects are worse for the unskilled and older native born workers. On the other hand, (Jean et
al. 2007) find that the immigrant worker of given skill has small impact on the
unemployment rate of native born worker with the similar skills and experience. At the
overall level, an increase in immigrant workers in workforce would increase unemployment
rate of native born, but the impact is just temporary and disappear between 4 and 9 years
after the shock. After this period, the level of immigrant population in workforce does not
affect the native unemployment as immigrants assimilate to natives.
While another research by (Migration Advisory Committee (MAC) 2012) found that in the
period of 1995 to 2010, non-EU immigrants has relationship with reduction in native-born
employment and the result is statistically significant at the 1%. MAC suggest that the
increase of 100 in the non-EU working-age workers has reduce 23 of native-born
employment. They also estimate that foreign-born workers has relationship with reduction in
native-born employment, the increase of 100 in the foreign-born working-age workers has
reduce 30 of native born employment: it result in statistically significant at the 5 per cent.
However, MAC suggests that the relationship between immigrants and native employment
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rates is statistically insignificant when the economic is going well or economic boom. Then
when the economic is slowing down the immigrants are likely to compete for jobs with the
native-born while the unemployment rate it high and job vacancies are low. (Shapira 2010)
studied impact on employment and occupation opportunities created by immigrant in UK,
she confirmed that immigrants do not have any negative effect on occupational opportunities
of native who have average level of education. But for the unskilled occupations, it seems
that immigrant are more likely to look for a job or work than British-born population. While
the native born who live in the area with high population of immigrants would rather exit
from the workforce than work in unskilled job which natives can be substitute by the
immigrants. It could be that the natives has more choices to low paid job and can relies more
on state benefits or personal saving than immigrants. Also it can explain that immigrants are
looking and taking jobs which natives are not really looking for.
(Avila and Bacarreza 2016) study effect of immigrant on unemployment with native born
workers in the US. Their evidence show that no severe effect on availability of jobs for
unemployed native born and no effects on decreasing of native born worker. But there is still
small marginal effect, they find that native born who living in the states with high
population of immigration are less likely to remain unemployed for an additional month and
more likely to leave the workforce. They suggest that the main cause of this effect is the
expectation which immigrant decrease wages and reduce the numbers of jobs that available
in the job market. So its create a discourages effect to the worker it make people who want
to work in the workforce change to quit the job. To support this research, they find three
addition of evidence. First, they find that young and low educated native born worker who is
the most likely to face the competition with immigrants and also the most affected by the
existence of immigrant in the workforce. Second, individuals who have some kind of
connection with immigrants, such as first-generation people or individual with Hispanic
heritage do not seem to be affected by the existence of immigrant. Last, only illegal
immigration is found to be related to the observed differences in the changing rate of
unemployment and who quit the workforce. In addition, (Krueger et el. 2014) find that as
the job vacancies are decrease, it create short and long term unemployed. Which long-term
unemployed have faced more difficulty to regain steady to get a job and full-time
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employment, as the long-term unemployed tend to quit from the workforce. While the short-
term unemployed tend to get the job back more than long-term unemployed.
Another research by (Card 1997) has study the impact of immigrant on wages in the US. He find
that a 10% increase of immigrant workers in a given skill group reduce about 1% in the
native employment rate of men in the group, and a lightly smaller reduction for native
women and older immigrants in the same skill group. The result indicate that the inflow of
immigrant reduce the employment rate for unskilled native worker and the earlier immigrant
in a typical city around 1-2% and 3-5 times as much in cities with high immigrant
population like Los Angeles or Miami. The effect of immigrant on moderately or high
skilled native workers and previous immigrant are much smaller. Moreover, (Ozden and
Wagner 2013) find that immigrant in Malaysia actually does create the negative effect to
native born worker as they can be substitute, so immigrant result in being wanted that shock
the native born. By the low wages of immigrant make firm likely to employ immigrant to
expand their business widely then it displace native born. Even immigrants make Malaysian
or native born have to relocate their job across the industries, but immigrant also affect to
the previous immigrant who can be perfectly substitute. Also in Thailand as (Kulkolkarn and
Potipiti 2007) studied the immigrants from Myanmar to Thailand, they found that in the area
with high population of immigrants will increase natives unemployment rate 0.5% as 1%
increase in number of immigrants. The most natives that affected are the unskilled workers,
the young and agricultural workers.
(Borjas 2005) has use data from 1960-2000 decennial Censuses in the US. To study the effect of
immigration on wage structure and internal migration for native born workers in the
workforce. The evidence show that native internal migration relate to the increase immigrant
labor force. Also the number of native in a particular skill group grew slowest in wherever
parts of the country with the large number of immigrant. Immigrant create two effects to the
native born both of decline in native in-migration and an increase in native out-migration.
For every 10 immigrants increase in a particular state 2 less native choose to live in that
state. The effect even larger at the city area level, for every 10 immigrants increase in a
particular area between 3 and 6 native will not live and work in that area. These migration
activity are large enough to explain this important findings as the wage effects of
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