UK needs more migrants

The newly introduced points-based system (PBS) is the biggest shake up of the immigration system of the UK for 45 years. The 80 existing ways for economic migrants to enter the UK have been consolidated into five tiers, all of which are points-based. Under the new system, migrants are required to pass a points-based assessment before they are given permission to enter or remain in the UK. The points will be awarded to reflect the migrant's ability, experience, age and when appropriate the level of need within the sector the migrant will be working.The Tier 2 system came into effect on 28 November 2008. As it is a major route through which majority of prospective skilled migrants will enter the UK, its criteria for work permit will affect some two lakh individuals, who come to work, train or study in the UK every year from countries outside Europe's internal market, known as the European Economic Area (EEA).The citizens and for that matter the governments of major migrant-recipient countries are frequently suspicious of incomers, which is due to a political/populist conviction that immigrants not only reduce wages and increase unemployment among resident citizens but also destruct its culture; push up the crime rate; and exploit the social services provided by the host community. This conviction has given rise to hostility and racism.In contrast to the popular (mis)understanding, empirical studies show that immigrants complement natives in the production process, thereby increasing the productivity of natives and creating extra demand for goods and services. In studies by Glover et al. (2001) and Gott and Johnston (2002), it is found that the foreign-born population contribute around 10 per cent more to government revenues than they receive in expenditure, thus considerably reducing the taxation burden for the community at large. It is estimated that in 1999-2000, immigrants to the UK contributed £31.2 billion in taxes and consumed £28.8 billion in benefits and state services, a net contribution of £2.5 billion. It shows that overall immigrants contribute more in taxes than they receive in benefits. In another study by Sriskandarajah et al. (2005), it is found that between 1999 and 2004, the relative net contribution of immigrants to public finances increased to £41.2 billion in 2003-2004, a 22 per cent increase (compared with a six per cent increase from people born in the UK). It is further found in the House of Lords Report (2005) that, migration has supported prosperity and growth and added value to the UK domestic products and to jobs.Though the new system to curb the inflow of migrants gives an impression that the UK has over-supply of migrants, but in reality it needs more migrants than it has now to sustain its economy. With ageing and declining populations in Europe, there is a 'demographic deficit' which is estimated to grow in days to come as the Eurostat Report (2005) says that by 2025 there will be a 20 million shortfall of workers across the EU. The 'greying' of Europe's population means many EU members like the UK will have to depend on migrants from non-EU countries to fill job vacancies. But, with the improvement of the situation back home and opening of other attractive EU job markets, the UK will look less attractive destination for young skilled migrants. So in days to come, the debate may shift from too many migrants to not having many.There is no denying the fact that migration needs to be regulated in the interests of the receiving countries, the sending countries and the migrants themselves. The newly introduced PBS system promises objective, transparent and efficient way of migration control. It remains to be seen how this new system suits the UK labour market which can not afford an under-supply of migrants to sustain its economy as Lord Swaraj Paul has said, "…the status Britain has enjoyed throughout its history compared to its size and population is largely due to the fact that we welcome immigrants from all over the world and have recognized their value and contribution."