The Contribution of Immigrants to the UK Economy 1

The Contribution of Immigrants to the UK Economy 2

Economic Contributions of Immigrants

Immigrants in the UK have made significant contributions to the country’s economy. According to a report released by the Migration Advisory Committee (MAC), immigrants have been found to have a positive impact on the UK’s economy. The report stated that in 2016 to 2017, immigrants contributed £47bn to the country’s economic output.

The report also revealed that between 2001 and 2011, immigrants contributed £25bn more in taxes than they had received in state benefits. It concluded that the impact of immigration on the labor market is small, with most immigrants filling skill shortages and positions that would otherwise remain vacant.

Inclusive Workforce

One of the reasons for the contribution of immigrants to the UK economy is the inclusive workforce. Inclusive workplaces cultivate an environment that is welcoming of people from diverse backgrounds. This environment allows for a greater pool of talent. Inclusive workplaces have higher levels of productivity and employee morale, resulting in better performance output.

When immigrants are removed from an economy, productivity falls, and the cost of goods and services increases. This ultimately creates negative impacts on wider society, with primary effects felt by those who are lowest wage earners.

Innovation Centre

The contribution of immigrants to innovation centers in the UK is significant. According to a report by the Centre for Entrepreneurs, immigrants are more likely to be productive entrepreneurs compared to the native-born population. They are responsible for founding 16% of all UK businesses but account for just 7% of the population.

Immigrants bring diversified knowledge, skills, and entrepreneurship experience, which results in greater innovation, job creation, and commercial growth. The Centre for Entrepreneurs stated that skilled immigrants provide the UK’s startup ecosystem with expertise and develop hybrid businesses that combine innovation with niche markets.

Contribution to UK Gross Domestic Product

Immigrants play an essential role in the UK economy by contributing to Gross Domestic Product (GDP). Immigrants’ contribution to GDP is the value that they add to the overall wealth of the country. In 2017, the contribution of migrants to the UK economy rose to its highest level since 2010.

The latest report from Oxford Economics, commissioned by the Centre for Entrepreneurs, reveals that the 900,000 privately-run businesses led by migrants in the UK generate a turnover of £1bn and employ 7.5 million people.


Immigrants have historically contributed to the growth of economies and the UK economy is no exception. They have a positive impact on GDP growth; they fuel entrepreneurship and innovation, cultivate diversity, and create employment opportunities for native-born people. Policymakers should adopt and implement policies that support a more inclusive and diverse workforce, recognize and encourage entrepreneurship, and develop opportunities and support networks that enable immigrants to integrate into the UK Economy. Immerse yourself in the topic and uncover new insights using this handpicked external material for you.!

Discover more information in the related posts we’ve gathered for you:

Delve into this valuable research

Learn from this interesting research



Comments are closed