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House of Lords written question – answered on 20th July 2011.

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Photo of Lord Laird Lord Laird UUP

To ask Her Majesty's Government, further to the Written Answer by Baroness Browning on 6 July (WA 78), (a) what is the evidence from economic literature that, in the absence of non-European Union student workers, non-migrant labour will not be sufficient; and (b) whether the figure used in the published Impact Assessment of a loss of output of £2 billion to the United Kingdom economy was based on the assumption that none of the current output by students could be effected by British workers.

Photo of Baroness Browning Baroness Browning Minister of State (Home Office)

The economic literature for the UK has provided no evidence of displacement by migrants, either for students in employment or non migrant workers generally.

On this basis, the student impact assessment assumed that none of the lost output is taken up by British workers. As set out in the Written Answer on 6 July (WA 78) "it is not clear that this necessarily applies at a time when growth in the economy is less well-established. If there was some displacement, the economic impacts would be significantly lower".

The Home Secretary has commissioned the Migration Advisory Committee to research the labour market, social and public service impacts of migration, including the issue of displacement, and it is due to report in November.

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