Immigrants from Eastern Europe have pushed young people out of work and have caused some wages to rise, despite hopes that they would dampen down inflation, Barclays Capital, the City investment bank claims.
In a report, Immigration and the UK economy, published yesterday by Barclays Capital, the bank’s analysis suggests that the Bank of England may have to tighten monetary policy more than previously thought, as it shows that any loosening in the labour market caused by the influx of about 600,000 migrants over the past two years has now faded away.
The report debunks some of the optimism around the decision to allow citizens of Poland and nine other new EU nations immediate rights to work in Britain. It finds that unemployment has risen by 2.7 percentage points, or some 124,000, among 18 to 24-year-olds over the past two years, a much sharper increase than in any other adult age group.
2006-10-26
16:22:44
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