For my final post in this space before 2008, I return to an old favourite topic - migration. This is for two reasons. Firstly there is a report looking at the effects of migrant workers on the UK economy knocking around and I always like to comment on them. Secondly tomorrow sees the expansion of the Schengen agreement area in Europe, which the UK is not party to, but which is forecast to bring economic benefits to the European tourism industry.
The Ernst & Young ITEM Club has published an economic analysis of the impact of migration - it was reported on by the Daily Telegraph on the 18th December under the highly balanced headline "100,000 lose out to migrants in hunt for work". In fact the report does say that potentially 100,000 young Britons may be unemployed as migrant workers have taken jobs they might have taken, but does also point out that migrant workers have gone into jobs that British people do not want to do.
Migrant workers taking the dirty jobs have kept a number of industries going and prospering. The report quotes and I can confirm that the Scottish fish industry is based now on migrant workers at the processing end (mainly Estonians I gather).
The report indicates that economic growth is boosted by migrant workers, which has impacted favourably on interest rates, wage inflation, and headline inflation. In an interesting juxtaposition, the Telegraph article also advises that there will be a clamp down on entry visas for visitors.
The rest of Europe is considering the economic and social impact of the widening of the Schengen arrangement. This removes boundary controls between currently 15 European states (not the UK and Ireland), widening to 24 European states tomorrow, and Switzerland joins the group in 2008.
The tourism industry is hailing this as a great thing, as it is perceived that the need for border controls and individual visas is a barrier for Russians in particular, who are as likely to visit Turkey, where there are no visa requirements, as the 15 old Schengen states, where one visa is required.
To be fair, there is also some consternation as to whether this will make it more difficult to combat organised crime, illegal immigration and terrorism. However to watch images of EU nationals being able to go through borders without controls makes me wonder why people want to go to Britain, where even returning ex-pats are made to feel guilty as they line up to have their passports checked.
Father Christmas will have an easier time getting round the rest of Europe next week than he will getting into the UK to hand out presents to the good children. After all, he comes in from the Norway/Finland border, so who knows, he could actually be Russian (do you really trust all his little helpers?), and aiming to steal our dirty jobs!
Seasons Greetings and see you in the New Year!
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