(10 years, 8 months ago)
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Yes, my hon. Friend is absolutely right. It can be no surprise that the public have great concern about what might happen when new nations have unfettered access to free movement, given that our experience with other eastern European nations gaining such freedom is that so many of their nationals chose to come to this country. I accept that most of them chose to come here to work, but that leaves us with the fundamental question of how to deal with that when unemployment in this country is still far higher than we would like.
I realise that my hon. Friend is trying to make progress, but he makes an important point about the contradiction between people coming from Europe, eastern Europe in particular, because they believe jobs are here, and the perception of people locally that they are taking jobs. The reality is that many local people simply will not take those jobs; that is why they are being filled by eastern Europeans. That is the skills gap at the low end. It is not that there are no jobs; many people locally will simply not take the jobs, because they do not want to work for such pay or in those particular roles. That is the issue.
My hon. Friend raises an important point. One of the drivers of the Government’s welfare reforms is to encourage people to take work if they are offered it; if they choose not to take work that is available, they do not get the benefits that they would presumably like to keep. For the welfare reforms to work, however, we need jobs to be available, so that people can be gently encouraged to take them, even if they are perhaps not their first choice. If the jobs that exist are taken by those who have just arrived in this country, those necessary and important welfare reforms become much harder to achieve. We must remember that a first job can be the start of the career ladder; it is not necessarily the end of it. Encouraging people to take jobs even if they do not think that they are suited to them, or if the jobs are not quite what they are after, is perfectly appropriate policy.
I shall try to get back to the thread of my argument. Let me set out why I tabled an amendment in Committee to keep in place transitional restrictions—and I am grateful that 73 other MPs have chosen to sign that amendment for Report. Looking at the criteria in the accession treaties that allowed us and other western European nations to keep restrictions until the last possible minute, we were allowed the restrictions, and chose to keep them, because there was still serious disruption in our employment market.
Two years ago, the Government commissioned an independent assessment from the Migration Advisory Committee of whether the test was still being met. The main criteria looked at were levels of employment and unemployment, the claimant count, and vacancies, both in 2011 and pre-recession. The pre-recession level of employment was 72.7%; two years ago, that was down at 70.6%. Unemployment before the recession was 5.1%; two years ago, it was 7.8%. The claimant count was 3% pre-recession and 4.6% two years ago; vacancies had been 621,000, but were down to 469,000. Those figures were the justification for saying, “We need to keep these restrictions for another two years. Our labour market can’t cope with the potential disruption of a large number of people arriving.”