The UK's Eastern European Migrants reduce wages at the bottom end of the labour market,

On the 17 January 2010, the Equality and Human Rights Commission, a statutory body established under the Equality Act 2006, which took over the responsibilities of Commission for Racial Equality, Disability Rights Commission and Equal Opportunities Commission which , and is the independent advocate for equality and human rights in Britain. published the first comprehensive report looking at the skills and employment patterns of Britain’s eastern European migrants.

In 2004, 10 new member states joined the European Union (EU), eight of which were eastern European countries with income levels well below the western European average The countries being Poland, Czech Republic, Estonia, Latvia, Lithuania, Hungary, Slovakia and Slovenia.(often referred to as the A8). In 2007 they were joined by two other countries: Romania and Bulgaria (the A2)

About 1.5 million workers from A8 countries have come to the UK since May 2004, and the number of A8 nationals resident in the UK has increased to about 700,000.

Eastern Europeans (referring to citizens from both A8 & A2 countries) made up about half of labour immigration in recent years.

In the report entitled “The UK’s New Europeans Report “, which looked at the skills and employment patterns of eastern Europeans since their countries joined the European Union,in answer to the question,
'How has the recent migration affected local communities and workers?
it states;
"Despite large and unexpected inflows since 2004, eastern European migrants still make up only a small proportion of the labour force. International experience suggests that labour markets can absorb immigration ‘shocks’ significantly larger than the recent labour movement to the UK. A relatively limited evidence base suggests that eastern European immigration has brought economic benefits, including greater labour market efficiency and potential increases in average wages. However, the recent migration may have reduced wages slightly at the bottom end of the labour market, especially for certain groups of vulnerable workers, and there is a risk that it could contribute to a ‘low-skill equilibrium’ in some economically depressed local areas".

The report found that as a group, eastern Europeans enjoyed a significantly lower rate of unemployment compared to British-born workers and their use of the welfare system was less than half that of British-born residents. Eastern European unemployment stood at approximately five per cent in 2009, compared to 7.8 per cent for UK-born residents. Eastern Europeans use welfare and public services 60 per cent less than UK-born residents: new Europeans put in more than they take out.

Commenting on the conclusions of the report Andrea Murray, Acting Group Director Strategy for the Commission said:

"Eastern European workers have provided a boost to Britain’s economy, although more than half of them have now returned home. Despite being over educated for many roles, they have been willing to take on jobs that many other workers do not wish to do. While low skilled, low paid jobs are important to the British economy, the education level of many of these migrants highlights that Britain may not be making the most of the talents they offer.

This report highlights the need to provide help for the most vulnerable, with evidence revealing that many eastern European workers may be in precarious employment circumstances and suffering exploitation in some industries. If we are to properly promote equality we need to focus on a number of key issues for both UK born and migrant workers. This should include measures such as gaining better recognition for the qualifications migrants have acquired in their home countries. We should be reassessing how well we enforce laws designed to prevent the exploitation of vulnerable workers and provide adequate supports to regions with substantial numbers of new migrants, particularly those where this is a new experience.”

The Guardian looks at the report under the headline Eastern European immigration 'has hit low-paid Britons' whilst the Daily Mail says Migrants are driving down wages of the poor as equalities watchdog blames East European influx.

The full report 'The UK's New Europeans'