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 CIPD PRESS RELEASE 21 August 2008
Economic slowdown reduces impact of migrant worker drain
Figures released today by the Home Office indicate that work
related migration from the eight central and eastern European
countries has fallen to its lowest level since 2004. Gerwyn
Davies, Public Policy Adviser at the Chartered Institute of
Personnel and Development (CIPD), believes the pill is less
bitter for employers as it coincides with employment prospects
falling to their lowest level in a decade. However, despite
the slowdown, many sectors such as agriculture will be
concerned about filling jobs in the short-term as it also
coincides with the gradual introduction of a points-based
system for managing migration outside the EU.
Gerwyn Davies comments:
"The tide of immigrants from the A8 countries has clearly
bottomed out as more find jobs at home or elsewhere in
Europe. The government's official barometer shows that the
number of eastern Europeans applying to work in the UK has
fallen by 9,000 during the past quarter; which indicates
that the credit crunch has had a particularly negative impact.
"Employers have benefitted from the increased supply of
skilled and unskilled labour from Eastern Europe. They
report that workers from the EU accession countries are more
willing, loyal and productive than non-migrant workers, particularly
among those who hire unskilled workers. However, Government
and employers may face challenges in particular sectors, as
they have relied on the ready supply of UK and EU workers to
fill these jobs. On the flip side, this situation might
improve the job prospects for the young and less-skilled
non-migrant workers who have lost out in the competition for
jobs in recent years.
"However, the wider economy looks set to be less affected as
unemployment gains worrying momentum. The latest
CIPD/KPMG/IPSOS-MORI Labour Market Outlook survey - published
last week- indicates that the jobs situation will continue to
deteriorate in the coming quarter. With economic prospects
improving in the Accession countries relative to the UK's
position, it is unsurprising that the Eastern Europeans are
leaving the country in greater numbers than before."
Notes to editors
* Gerwyn Davies is available for interview.
* The Chartered Institute of Personnel and Development (CIPD)
has over 130,000 members and is the leading professional
institute for those involved in the management and development
of people.
Conference Press Enquiries
Gregor Ridley / Christian Zarro / Jemma Walsh
Tel: 020 8612 6400
Email: mailto:press@cipd.co.uk
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