BoE confirms what we knew already: migration driving down wages

scorza · 14 May 2015 at 08:20

http://www.telegraph.co.uk/news/116...ng-for-jobs-online-keeping-UK-wages-down.html

Foreign workers are keeping down wages because people are able to find jobs online before arriving in the UK, the Bank of England has suggested, as official figures showed that more EU migrants last year found work in the UK than Britons.
...
It came as the Bank said that net inward migration from European countries is having an “impact on wage pressures”.

Foreigners’ ability to search for jobs before they come to the UK “could make wages less responsive to domestic labour market pressures”, the Bank said in a report.

Helpfully after the election - wouldn't want British people voting while having access to the facts would we?

There's no way we should vote to stay in the EU unless somehow Cameron manages to negotiate an opt-out for Britain on the free movement of people. :mad:

Skeeter · 14 May 2015 at 08:22

I'm confused, are UK workers unable to use the internet?

Cosimo · 14 May 2015 at 08:23

Waits for UKIP to arrive waving flags and signing we told you so...

scorza · 14 May 2015 at 08:24

Skeeter said:
I'm confused, are UK workers unable to use the internet?

I'm confused, I'm sure they are able to but why would that mean anything but an increased supply of workers and therefore lower wages?

Besides, I'm pretty sure the BoE is talking about localised online job site e.g. a Lithuanian web site advertising jobs based in the UK in Lithuanian.

Cosimo said:
Waits for UKIP to arrive waving flags and signing we told you so...

That's what I was going for in the OP

LordSplodge · 14 May 2015 at 08:24

Cosimo said:
Waits for UKIP to arrive waving flags and signing we told you so...

*Paging Mr Robgmun* *Paging Mr Robgmun*

Skeeter · 14 May 2015 at 08:31

scorza said:
I'm confused, I'm sure they are able to but why would that mean anything but an increased supply of workers and therefore lower wages?

How does a non UK resident finding a job online in the UK differ from a UK resident in one region finding a job online in another region?

Is the suggestion that a low skilled worker in Poland would find a job in Yorkshire online and then move, whereas a low skilled worker in Cornwall would move to Yorkshire first and then try and find a job, and complain that the Polish guy beat him?

As always with these things, it says more about the attitude of people in the UK than anything else.

Eliot · 14 May 2015 at 08:34

Well, to be honest if someone that barely speaks english beats you to a job, then you were comprehensively owned.

Freakbro · 14 May 2015 at 08:35

It seems such a complex and confusing topic, who knows?

Anectodately I hear and see evidence around the area I live (Lincolnshire - so a lot of manual labour immigration for years) about wage depression, then you get IFS, OBCR (whatever acronym you want) come out and say there is no evidence of wage depression by immigration and they are overall net contributors.

So I guess it's pick the report you want to suit your agenda.

Orionaut · 14 May 2015 at 08:35

scorza said:
http://www.telegraph.co.uk/news/116...ng-for-jobs-online-keeping-UK-wages-down.html

Helpfully after the election - wouldn't want British people voting while having access to the facts would we?

There's no way we should vote to stay in the EU unless somehow Cameron manages to negotiate an opt-out for Britain on the free movement of people.

Anybody living in traditional working class areas has known this for years.

This is why Labour support has collapsed across the North.

The only reason why the Labour numbers held up this time was because the left leaning middle classes shifted from the lib-dems to Labour. Most of the swing to UKIP (which did very well across the north despite not actually winning any seats) will have come from core labour voters.

I would guess that Labour has lost around 20% (Perhaps more in some areas) of its core vote to UKIP. Having broken the habit of a lifetime I doubt if they will go back. If they play their cards right I expect UKIP will do really rather well in the North at the next election.

(In Scunthorpe, there were some ballot boxes which had come from the poorest areas of the city that were over 50% UKIP. Although individual box results are not officially counted or published, sharp eyed tellers can still count!)

Sankari · 14 May 2015 at 08:36

'British people upset that capitalism is working as intended.'

scorza · 14 May 2015 at 08:39

Skeeter said:
How does a non UK resident finding a job online in the UK differ from a UK resident in one region finding a job online in another region?

Is the suggestion that a low skilled worker in Poland would find a job in Yorkshire online and then move, whereas a low skilled worker in Cornwall would move to Yorkshire first and then try and find a job, and complain that the Polish guy beat him?

As always with these things, it says more about the attitude of people in the UK than anything else.

yes it's all the poor's fault as usual. I know you think you're being clever, but you've not actually addressed the point that stable demand and a higher supply of workers lowers the price of labour. The fact that there are an extra 1 million workers in the UK as a result of the EU's free movement of people has increased the supply of workers quite a lot. What part of that do you disagree with?

StriderX · 14 May 2015 at 08:40

Can we send the chavy lowlifes to Poland then...permanently?

glenimp617 · 14 May 2015 at 08:43

The polish can wash my car for a fiver, the english a tenner

I'll use the polish one thanks

Freakbro · 14 May 2015 at 08:44

Again, anecdotaly, a friend of mine was working on the roads as a sub connie (CIS) for £9+ an hour 5-6 years ago.

Recently there was a job advertised for a similar position, working on repairing the roads (which is a dangerous job) - £6.78 an hour.

It does seem the minimum wage is turning into the maximum wage for a lot of employers and it does seem hard to argue against that an increase in the supply of workers will depress the wages needed to pay, that's just basic economics.

I think the problem is the other reports that show no effect on wage depression are using national averages and all ranges of jobs, which is valid thing to do, but in localised areas and sections of work there has been a dramatic effect. And for those that has affected, they don't care about national averages.

Metallifux · 14 May 2015 at 08:45

scorza said:
yes it's all the poor's fault as usual. I know you think you're being clever, but you've not actually addressed the point that stable demand and a higher supply of workers lowers the price of labour. The fact that there are an extra 1 million workers in the UK as a result of the EU's free movement of people has increased the supply of workers quite a lot. What part of that do you disagree with?

This tbh it's simple supply and demand and employers will always take the cheapest option where available.

Wazz-1 · 14 May 2015 at 08:45

StriderX said:
Can we send the chavy lowlifes to Poland then...permanently?

Or we can cap immigration and the benefits of the chavy lowlifes and get them back to work for a decent wage.

Skeeter · 14 May 2015 at 08:45

scorza said:
yes it's all the poor's fault as usual. I know you think you're being clever, but you've not actually addressed the point that stable demand and a higher supply of workers lowers the price of labour. The fact that there are an extra 1 million workers in the UK as a result of the EU's free movement of people has increased the supply of workers quite a lot. What part of that do you disagree with?

None of it. That all makes perfect sense and I totally agree.

What I don't get is the articles suggestion that its somehow unfair on UK workers that foreign workers can find jobs online.

Skeeter · 14 May 2015 at 08:48

Wazz-1 said:
Or we can cap immigration and the benefits of the chavy lowlifes and get them back to work for a decent wage.

If they can't get a job when their competition is non English speakers who arent even in the country, what makes you think they will get one when their competition is of a higher quality?

drakioned · 14 May 2015 at 08:49

Eliot said:
Well, to be honest if someone that barely speaks english beats you to a job, then you were comprehensively owned.

+1

Arthur Hucksake · 14 May 2015 at 08:52

Skeeter said:
None of it. That all makes perfect sense and I totally agree.

What I don't get is the articles suggestion that its somehow unfair on UK workers that foreign workers can find jobs online.

Companies will purposely place job adverts in Polish, online, knowing full well they are paying less for the type of work involved.

English speaking Brits have zero chance of getting these particular jobs.

This isn't the Poles fault. It's the business owners.

Just glad this has been officially highlighted now. The reason this wasn't being challenged by Government was because they were hoping there would be a boom in small business creation but it hasn't happened.

Explains why Cameron and co. want to re-negotiate our EU position.