Impact of Immigration on the UK Economy

This research report analyzes the impact of immigration on the economy of the UK. It explores the positive and negative effects of immigration on the labor force, GDP, and domestic growth. The report also discusses the reasons leading to immigration and the relevance of immigration policies.

Impact of immigration
on the UK economy

Table of Contents
Introduction......................................................................................................................................3
Research aim and objective.............................................................................................................3
Research aim..........................................................................................................................3
Research objectives................................................................................................................3
Literature Review.............................................................................................................................3
To know about the concept of immigration...........................................................................3
Research Methodology...........................................................................................................7
Summary of Literature...........................................................................................................8
Evaluation of the relevance of sources................................................................................10
Reflection.............................................................................................................................11
REFERENCES..............................................................................................................................12

Introduction
Immigration is the international movement of individual to a destination country off where
they do not possess citizenship or which they are not natives in order to settle as permanent
residents or citizens. In addition to this, it is the process by which people become permanent
citizen or resident of a country. The objective of this research report is to analyse the impact of
immigration on the economy of UK. There are various factors due to immigration take place
such as work, study call mom personal issues and many more (Portes, 2016. It results into both
negative and positive influence on the economy. UK is one of the most preferred nation to visit
and is one of the internationalized country in world that has strong political, technological and
culture influence globally. The report will cover about the influence of immigration on the UK
economy. In addition to this, the description of literature an information along with the relevance
as well as reliability of the literature sources is elaborated in the report. In the last, there is a
reflection about the learning gained by researcher during the research.
Research aim and objective
“The main Objective of research is to know about the impact of immigration on UK
economy”.
Research aim
“To analyse relationship among the immigration and economy”. A study on UK.
Research objectives
 To know about the concept of immigration.
 To find out the reason leading to immigration.
 To determine the influence of immigration on UK economy.
Literature Review
To know about the concept of immigration.
As per Bohman & Hjerm, (2016), Immigration is basically the process of movement of
individuals across the countries in which they did not possess the Beaumont in citizenship by
birth. Along with this it is the procedure in which people move to another country with an
objective to get the citizenship and become resident or citizen of that particular country. There
are mainly three times off immigration that is humanitarian immigration, employment

immigration, family immigration. It is determined that there are various reasons of immigration
and to get the citizenship an individual is required to fulfill all the procedures and policies that is
developed by the government (Soroka, Harell and Iyengar, 2016). A documentation process is
also held by the government so that the citizenship is given to the right person so that there is no
issue arise do to the immigrant person. It is analyzed that government provide the citizenship by
verifying all the documents along with the past of on individual that assist in providing
citizenship to the right people.
To find out the reason leading to immigration.
According to D’aoust, (2017), It is analyze that there are various reasons that causes the
movement of an individual to another country. The two main reasons are push as well as pull
factors. In relation to pull factors, it involves those forces that attract People to settle in that
particular country. On the other hand, the push factors consist of forces that make an individual
to leave the country of origin. There are also other reasons of immigration that is personal reason
like security of native place, explore Employment Opportunity, raising number of opportunities
in another country, education and many more (Dedeoğlu, Koçak and Uucak, 2017). It is analyzed
that immigrants play vital role in shaping the economy of a country that impact positively on the
development of the country.
After the World War II, immigration is rising because of colonization as well as refugee
movement. There are large number of people move from the places to UK and France that help
in growth and development of economies. The pull factors that attract one person to settle in
another country are personal reason, social economic factors, skills, increase opportunity and so
on. The push factors which make an individual to detach from the native place are low
Employment Opportunity, unsuitable weather, threatened lives, discrimination, undeveloped
economic structure, climate and many more. All these factors make the migration of an
individual to another country that poses the people to get citizenship of the country.
To determine the influence of immigration on UK economy.
As per Otjes and Green Pedersen, (2019) It is stated that UK is one of the preferred
migration city after Europe as owing its status off most developed and powerful nation. It is
determined that United Kingdom has strong financial centre and has high income population.
Immigration has boot positive as well as negative influence on the economy of UK (Portes,
2016). If it is talking about the positive influence, there is increase in number of labour force

which is one of the main reason of development and growth of United Kingdom. Along with
this, it also retain an epidemic centre of financial as well as technological centre. It is analyse
that the major immigration take place from the working age population that develop UK as a
place where they can gain higher growth and development, acquire advantage of raising new
education facility that is not possible in some other countries. This outcome as a decline in
dependency ratio & results in raise in output capacity of economy of UK. Raise in production as
well as output capacity influence positively on the GDP of UK. Moreover, the positive
immigration of individuals within the economy results in raise in demand and spending power of
people. It directly results into the domestic growth of economy which in turn effect on
international performance. In context to the negative influence, ageing population is tailed by the
high efforts of working age immigrants. It is stated that ageing population is a liability on a
country that impact on the UK productivity and is being advantageous by working age energies
that outcome on net positive increase of economy of UK (Valverde and Latorre, 2018).
Furthermore, the people who are being act as a local resident of that particular pays different
forms of taxes that contributes mainly to the development of country’s economy in a positive
manner.

Research Methodology
The present research is conducted by using two techniques, which are as follows:
Quantitative technique: it is the method together in formation in enclosed ended option.
The objective is to collect information by using numbers and graphs.
Qualitative technique: this technique mainly emphasize on gaining the individuals opinions
and ideas and involved open-ended questions. The results are analyzed by concluding and
summarizing the inference is received by researcher.
In order to collect data about the research objectives and topic, there are two methods that is
given below:
Primary method: here in, the information is collected for the first time an is original in
nature (Brady, Ferejohn and Paparo, 2018). The sources to collect primary information are
survey, questionnaire, interviews and many more.
Secondary method: It is basically the pre existing in formation that is collected by various
sources such as government handbooks, journals, articles, different publications and so on.
In the present results, the secondary data collection method is used as it save time and cost
of researcher. In addition to this, it is not convenient and physical to conduct primary research

because of pandemic so secondary source is used that assist researcher to gain positive outcome
and draw valid conclusion.
Summary of Literature
The secondary sources of data collection are used in reserves as it helped in getting valid
and reliable data you to which the research objective is attained effectively. It is summarized and
Brexit also affected the immigration within the United Kingdom. The European migrants were
also major citizens within the UK (Bansak, Simpson and Zavodny, 2020). It is determined that
after the Brexit, there is decline in immigration from the European countries. The immigration of
China were also reduced because of deteriorated relations among the government. The
government has also enhanced the restrictions and develop the existing immigration rules more
strong so that they can manage immigration in a proper manner.
The visa complexities, taxes and policies were changed and developed more stringent for
ordering the curve of increased migraines. In the year 2008, the government had changed the
immigration system to the point based system. In this, the group were categorized as further
importance, skills and knowledge within United Kingdom economy. After this, the groups were
categorized as highly skilled individuals, semi skilled people comas kill people that will assist to
attain productivity and drives innovation. It was then grouped as low skilled as well as temporary
people that will help in attaining short targets. It helped to manage the enhanced migration and
secured the rights of you gave an individual’s. The threshold limit was set within every area in
order to secure the rights of domestic citizens.
The increase in level of immigration leads to culture conflicts, increased inflation, education
shortage, problem to the born people of UK. So, in every industry that is IT, education the
threshold limit were revised in order to protect and provide fair treatment to the domestic
resident and permanent citizens (Bansak, Simpson and Zavodny, 2020). The raised population
also affected the employment as well as wages in both positive and negative manner. It can be
stated due to the more population enhancement the supply of demand that resulting in to lower
wages full storm but, when the workforce denied to work below certain pay limit dove love the
wage line to rise and if there is decline in workers they are paid more but up to a limit of
business cycle that never remained constant. There are various factors caused shift in the
movement of wages and salary. It is attained equilibrium based on the government rules and
policies so set with context to industry trend.

The competition within the market is increased causing the born residents of UK to give
themselves killed an upgraded. This affect on the productivity of country in a positive manner.
With this, the immigrants are also burden due to high taxes they are required to pay in case of
natives. This may government to spend high for providing them facility (Nethery and Silverman,
2015). It is determined that UK is benefited through imposing high tax rates from the immigrants
will stop Moreover, all such factors are being Inter dependent with productivity, wages with
growth of the economy. Furthermore, the immigration causes negative and positive influenced
and is depend on the government policies that is being revised by considering the financial and
economic conditions of the country.

Evaluation of the relevance of sources
The secondary data used is more accurate as well as reliable in order to gain understanding
about the results of objective. In the present situation of pandemic, it is not feasible and
convenient to go out on conduct primary research data survey. For this investigation is more
accurate and credible sources as it is collected from the published sources. The present
investigation required an enormous figures and fact in order to analyse as well as interpret the
findings. One of the advantage of using secondary sources that it consumes less time and also
occur less cost to the researcher. In addition to this, the research needed extensive study of facts
and figures in order to maintain the credibility and reliability of the investigation. The data from
different countries is needed in order to judge the relation among both variables and to draw a
valid conclusion (Rosamond, 2019). With the assistance of secondary data that is websites,
journals, government websites, published articles, the researcher will be able to conclude the
findings in a proper manner. The sources are conducted within an ethical manner that will assist
in to maintain the reliability and validity of research.

Reflection
From the above findings, it is analyzed by me that immigration is the movement of people to
another country with an object to gain citizenship or permanent resident of that particular
country. It is determined by me that immigration results in improving the opportunities present
within the other countries. Immigration affects both positively and negatively on the economy of
a country. I analyzed that you get is one of the most preferable destination for the individual to
immigrate as it is more powerful and strong in comparison to other economies. The development
and innovation which it offered to every sector a drunk large number of people do get permanent
citizenship of the country. The health, IT and education are the major industry that attracts
immigrants to explore and gain the advantage of these industries. According to me, I felt that
United Kingdom maintains well as its immigration policies addresses the rights of UK born
people and immigrants in a right and proper manner. It is determined by me that immigration
impact positively on the economy of UK and has developed as well as flourished more
significantly.

REFERENCES
Books and Journals
Portes, J., 2016. Immigration, free movement and the EU referendum. National Institute
Economic Review, 236(1), pp.14-22.
Soroka, S., Harell, A. and Iyengar, S., 2016. Heterogeneity in the impact of immigration on
social welfare spending. In Handbook on Migration and Social Policy. Edward Elgar
Publishing.
Dedeoğlu, M., Koçak, E. and Uucak, Z.Ş., 2017. The impact of immigration on human capital
and carbon dioxide emissions in the USA: an empirical investigation. Air Quality,
Atmosphere & Health, pp.1-10.
Portes, J., 2016. Immigration after brexit. National Institute Economic Review, 238(1), pp.R13-
R21.
Valverde, G.O. and Latorre, M.C., 2018. The economic impact of potential migration policies in
the UK after Brexit. Contemporary Social Science.
Brady, D., Ferejohn, J.A. and Paparo, A., 2018. Political Economy and Immigration. NYU
School of Law, Public Law Research Paper, (19-03).
Bansak, C., Simpson, N. and Zavodny, M., 2020. The economics of immigration. Routledge.
Nethery, A. and Silverman, S.J. eds., 2015. Immigration detention: The migration of a policy and
its human impact. Routledge.
Rosamond, B., 2019. Brexit and the politics of UK growth models. New political
economy, 24(3), pp.408-421.
Murray, C.R.G. and Wincott, D., 2020. Partition by degrees: Routine exceptions in border and
immigration practice between the UK and Ireland, 1921–1972. Journal of Law and
Society, 47, pp.S145-S163.
Wright, C.F., 2017. Employer organizations and labour immigration policy in Australia and the
United Kingdom: The power of political salience and social institutional
legacies. British Journal of Industrial Relations, 55(2), pp.347-371.
Online Source
Economic Impacts of Immigration to the UK, 2016 [Online] Available Through
<https://www.migrationwatchuk.org/briefing-paper/235/economic-impacts-of-
immigration-to-the-uk>

EU immigration to the UK, 2021 [Online] Available Through
<https://fullfact.org/immigration/eu-migration-and-uk/>
Brexit: How does the new UK points-based immigration system work?, 2020 [Online] Available
Through <https://www.bbc.com/news/uk-48785695>