Impact of Immigration on the UK Economy

This report discusses the impact of immigration on the UK economy, including its effects on population, wages, productivity, economic growth, and tax revenues. It explores the literature and data related to immigration, as well as the factors that contribute to its influence on the UK economy. The report concludes that immigration has both positive and negative impacts on the economy, with benefits such as increased aggregate demand and labor force, as well as challenges like labor market flexibility and dependency ratio.

Impact on the
Immigration on the UK
Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature description and data....................................................................................................1
The process used to select the literature and data including a discussion on how to ensure
references are reputable and reliable...........................................................................................4
Literature and data summary. .....................................................................................................4
Evaluation of the relevance and reliability of the literature sources..........................................6
Reflection of the learning ...........................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Immigration refers to the process by which individuals can become a permanent residents
of the different country. Immigration process creates and provides different social, economical
and cultural benefits to the states and the countries. Immigration creates a impact on the
economy of the countries. As for the economic effects, immigration can proved to be a beneficial
for the countries in receiving and sending countries. Immigration creates an positive impact on
the native population and the economy. (Gudgin and et.al, 2018))As immigration leads to have
increase in the labour force as most of the migrants shifts to the other countries in search of
work, immigration leads to increase in aggregate demand and real gross domestic products as net
inflows of the people leads to increase in the demand of the country, immigration created a
labour market flexibility in the UK markets as net migration of the people can create more
flexible labour markets in the country , immigration creates a positive impact on the dependency
ratio to forecast the increase in the ratio from the migrants and immigration can lead to have
more higher education services as most the migrants move to different countries for higher
education. The report is based on the impact of immigration on UK economy. The below report
includes the literature description and data, process that is used to select the literature and data
including a discussion on how to ensure references are reputable and reliable, literature and data
summary, evaluation of the relevance and reliability of the literature sources along with its
conclusion.
MAIN BODY
Literature description and data
As per the viewpoint of Tejvan Pettinger,2019, The UK has faced a increasing flow of
the net migrants into its economy. The net migration has a wide impact on the UK's population,
wages, productivity, economic growth and the tax revenues(Edo, 2019).
1

The graphs represents that:
 In the year of 2016, the net long term international migration was found to be 248,000+
and immigration was found to be 5,88,000 and the emigration is 3,39,000.
 9,634 people were granted an alternative form of the protection in 2017 year.
 In the last five years the population of UK has been boosted and increase by the net
migration to around 1,000,000.
Impact of immigration that is created on the UK economy are as follows:
 Increase in the aggregate demand and real gross domestic product : The net inflows of
the people that lead to an increase in the aggregate demands. Migrants will increase the
total spending with in the economy. (McCombie and Spreafico, 2018).As well as
increasing there is a increase in the supply of labour relating to the spending within the
economy. As a result the net migration can lead in the increase of the UK 's GDP.
2

 Impact on the particular sector : The most important and essential reason for migration
of the people to the different countries is due to higher education. The immigrated
students can not be shown as the long term migration trends.
 Increase in the labour force : The majority of the migrants shifts from one country to the
another country in search of work. The net immigration leads to an increase in the labour
force of the country(Chang, 2018). Labour market flexibility : The immigration of the people to one country to the another
country as it helps in creating a more flexible labour market. The migrants can be
specifically attracted to shift to UK if they feel that there are job vacancies in a specific
area.
 Positive impact on the dependency ratio : Immigration can lead to create a positive
impact on the dependency ratio as net immigration helps in reducing the dependency
3

ratio. Migrants are said to be the source of the working age people and this hel0ps in
reducing the dependency ratio of the UK economy.
The process used to select the literature and data including a discussion on how to ensure
references are reputable and reliable.
As from the above collected literature review it has been analysed that all the data and
the sources are much reliable and reputable. With this literature it has been analysed that the it
has better outcome can be achieved by sustained information that is collected about the impact of
immigration on the UK economy with the factors of having the higher education, labour force
and reduced dependency ratio, the reliability of the topic is based on the impact of immigration
on UK economy with the source by taking into the consideration of gathering the information
from the journal, articles, books, charts and the graphs that are the sources which contains the
values that defines that reputation of the specific topic in context to create the relation of
immigration on the UK economy. (Jaeger, Ruist and Stuhler, 2018)The different approaches are
used to determine the impact of immigration on the UK economy. As these approaches can
proved to be more reliable in learning from the economic platform, reputation of the project
information are more dependable upon the approach that are initiated by the articles and journals.
All the information regarding this project are particular and accurate that depicts and identifies
about the immigration that have the importance to the economy in different aspects.
Literature and data summary.
The impact of immigration on the UK economy are relatively the most essential factor
that deals with the new information and the data that can important in maintaining the different
sources in relation with the data of a specific topic. (Damstra, and et.al, 2019)It can be
summarizes as the impact of immigration on the economy of UK has created different benefits
for the country. As generally immigration is proved to be fruitful for building up the economy of
any country. Majorly it has been summarised that immigration of people has created a positive
impact on the economy of the UK. As UK is considered as the country of having different
opportunities. And the majority of the people has shifted to UK and taken its citizenship in order
to grab opportunities, learning something new and many different reasons. The people have
migrated to UK in search of opportunities, having jobs and learning for higher education. With
the cause of grabbing the opportunities it has created a positive impact on the UK economy. As it
leads in the reduction of the dependency ratios of the country, increasing the gross domestic
4

product of the country which helps in building the economy of the country, increasing the
demand of the labour cost that results in the increase in the employment factor of the country.
Immigration helps in increasing he demand of jobs and has created different sectors for having
and pursuing the higher education in the country. (Hantzsche, Kara and Young, 2018)All these
factors helps in generating the revenues for the country and financial gains to build the country's
economy.
The summarisation of the literature states the importance of having immigration in the
UK economy that relates the relationship of building the economy aspects for the development
of the country. The process summarises that immigration is effective in building the economy of
the country. The data is essential of the readers as the reader will get know about how
immigration plays an effective roles in building the economy of the country. According to the
above literature source it had been analysed that immigration was important in terms of benefits
also but in some cases it impacted the economy in negative way also. As, there are different view
points of everyone so their perspectives are also different. In accordance with Tejan Pettinger,
economy was affected in the negative way because immigration was very high. If immigration
would be high then problems in context with unemployment would increase because it is not
possible to tackle all immigrants employment issues. There are positive as well as the negative
points of the impact of immigration the economy of the UK. (Ee and Gándara, 2020)With this
the reader will get to know about the different factors and aspects that are responsible for
creating a positive and the negative impact on building and reducing the economy of the country.
As the literature depicts the values and the factors that relates with the economy. As economy for
any is necessary to be carried in building the reputation and a sense of reliableness of the
sources. As immigration leads to have increase in the labour force as most of the migrants shifts
to the other countries in search of work, immigration leads to increase in aggregate demand and
real gross domestic products as net inflows of the people leads to increase in the demand of the
country, immigration created a labour market flexibility in the UK markets as net migration of
the people can create more flexible labour markets in the country , immigration creates a positive
impact on the dependency ratio to forecast the increase in the ratio from the migrants and
immigration can lead to have more higher education services as most the migrants move to
different countries for higher education.
5

Evaluation of the relevance and reliability of the literature sources.
It has been evaluated from the sources, books, journals and articles that the sources that
are used to identify and determine the impact of immigration on the UK economy. Immigration
of the people that has been shifted to the UK has created a beneficial point on the UK economy.
The data that is used to identify the sources which are responsible for the growth and benefits the
UK economy. With help of the charts and the graphs the data is represented in different sectors
and the in different ratios. (Floyd, 2019)The literature source is essential for determining the
positive and negative effects of immigration on the UK economy. It has been valued the data and
has been justified that examining the different factors according to its need in the markets and
according to the economy of the country. (Llull, 2020)The sources and the data which are used to
represent the need of immigration are reliable and accurate that helps in identifying the different
present factors. It is essential for the country to examine the net immigration inflows and
outflows of the country that creates an effect on the UK economy.
Reflection of the learning .
While carrying this research I am able to make a learning about the concept of
immigration as it refers to the process of shifting the people 's permanent residence from the one
country to another country. The project is based on the impact of the immigration on the UK
economy as the I am able to identify the sources, factors and aspects that were responsible for the
immigration of the people to UK. I learned about the benefits of the immigration on the UK
economy. As there are various factors which are responsible for the shifting of the people from
the one country to UK. I am able to know that for it is essential for any country to keep building
its economy and immigration plays a vital role on the increasing the level of the economy as
immigration helps in increasing the labour rates as majority of the people from their country to
UK as there are various job opportunities that are available in UK. I got to know about the
different sectors which are responsible for the shifting of the people to UK. With the help of this
project I am able to learn about the economy factors and the aspects of the economy that helps in
building the country 's GDP.
CONCLUSION
From the above report it can be concluded that immigration is the process through an
individual can become the permanent citizen of the another county. Immigration is proved to be
6

a important part in building and reducing the economy of the countries. Immigration creates an
effective impact on the country 's economy. The above report explains the impact of the
immigration on the UK economy. As the recent years UK has experienced and faced the steady
flow of the net migrants into its economy. The impact of immigration shows the workers are
likely to be enhanced and flexible and they are willing to travel in search of work.
7

REFERENCES
Books and Journals
Chang, W.W., 2018. Brexit and its economic consequences.The world economy,41(9), pp.2349-
2373.
Damstra, A., and et.al, 2019. The impact of immigration news on anti-immigrant party support:
unpacking agenda-setting and issue ownership effects over time.Journal of Elections,
Public Opinion and Parties, pp.1-22.
Edo, A., 2019. The impact of immigration on the labor market.Journal of Economic
Surveys,33(3), pp.922-948.
Ee, J. and Gándara, P., 2020. The impact of immigration enforcement on the nation’s
schools.American Educational Research Journal,57(2), pp.840-871.
Floyd, D., 2019. How has the presence of an increasingly more global labor market softened the
impact of the financial crisis 2008 for the UK economy?.Strategic Change,28(5),
pp.321-323.
Gudgin, G., and et.al, 2018. The macro-economic impact of Brexit: using the CBR macro-
economic model of the UK economy (UKMOD).Journal of Self-Governance and
Management Economics,6(2), pp.7-49.
Hantzsche, A., Kara, A. and Young, G., 2018. Prospects for the UK Economy. National Institute
Economic Review,246, pp.F4-F35.
Jaeger, D.A., Ruist, J. and Stuhler, J., 2018.Shift-share instruments and the impact of
immigration(No. w24285). National Bureau of Economic Research.
Llull, J., 2020. The impact of immigration on productivity. In Understanding Migration with
Macroeconomics(pp. 27-58). Palgrave Macmillan, Cham.
McCombie, J.S. and Spreafico, M.R., 2018. Brexit and its possible implications for the UK
economy and its regions: A post‐Keynesian perspective.Papers in Regional
Science,97(1), pp.133-149.
Online source
Pettinger,2019, Impact of Immigration on UK Economy[Online] Available Through:
<https://www.economicshelp.org/blog/6399/economics/impact-of-immigration-on-uk-
economy/>
8