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Amid the racist, far right violence sweeping the UK this week has been a theme present in anti-immigration politics around the world: the idea that immigrants are “taking” jobs that would otherwise go to native-born residents. The economics of labour migration are complicated, and there has been plenty of research over the years that shows this trope is not true.
The violence targeting asylum hotels is particularly horrific, as well as misguided. The UK currently has one of the strictest bans in Europe on asylum seekers entering the labour market. Put simply: asylum seekers aren’t “taking” British jobs – they aren’t allowed to.
Giving asylum seekers the right to work, however, would improve society for the whole of the UK, bringing economic benefits and enabling better integration of newcomers.
Under current immigration rules, asylum seekers are prohibited from working while their claims are being processed. After 12 months, they can work only in certain roles – until recently, these were jobs on the shortage occupations list. On April 4 2024, it was announced that this would be changed to jobs on the immigration salary list. This remains a very limited list and a long ban on employment.
Campaigners have long called for the rules to be relaxed, arguing that the restrictions have a negative effect on both refugee integration and the economy.
In a report published in April, a cross-party group of MPs and peers called for a policy change that would allow asylum seekers to work after six months of waiting for a decision on their applications.
Some countries, such as Portugal and Sweden, grant access to the labour market immediately. Others, including France and Spain, within six months of applying for asylum. Some, like Cyprus and Hungary, impose longer waits. With 12 months, the UK is among the countries with the longest employment ban. Given the current asylum backlog, which means thousands of people have already been waiting for more than six months, many will end up having the right to work anyway by the time their waiting period ends.
Employment bans force asylum seekers into vulnerable positions as they rely on government support, which is often not sufficient. In the UK, the allowance for asylum seekers is currently £49.18 per week. This amount barely covers basic needs such as food and hygiene products.
The ban also takes a toll on mental health, leading to feelings of hopelessness and depression due to enforced idleness and uncertainty. Extended periods without work erode people’s professional skills and confidence, making it harder for asylum seekers to find employment once they are granted refugee status and permitted to work. Research shows that exposure to an employment ban upon arrival reduces people’s employment probability in the years following the ban by 15%. These effects can persist for up to ten years after arrival.
The inability to work also hinders social integration, preventing asylum seekers from interacting with locals, learning the language and understanding local customs.
Employment bans also lead many asylum seekers to take part in exploitative or illicit work. Often resorting to informal labour to survive, asylum seekers engage in low-paid, cash-in-hand and unregulated jobs, making them vulnerable to exploitation.
Unlocking economic potential
Several European countries have reduced the length of employment bans for asylum seekers in recent years. In 2021, Ireland shortened the period from nine to six months following a government review, though critics have said this is still too long.
In 2023, Greece announced a new law which reduces the ban for asylum seekers from six months to 60 days after lodging their asylum request. These policy changes aim to help asylum seekers have faster economic integration, as well as help employers take advantage of the skills that they bring.
The UK government spends upwards of £5 billion on asylum support, resettlement and accommodation. While necessary to prevent asylum seekers from becoming destitute, this cost could be reduced if they were granted the right to work.
Various studies and reports show that lifting employment bans can yield significant economic benefits both for asylum seekers, and the countries that host them.
A 2021 study examining the impact of employment bans on asylum seekers who arrived in Europe during the “crisis” years of 2015–16 highlights a substantial output loss for the EU economy. The study estimated that €37.6 billion in potential economic output was lost over an eight-year period due to the restrictions on asylum seekers’ ability to work.
Similarly, a 2023 study focused on the UK estimated that allowing asylum seekers to work could result in increased tax revenue (£1.3 billion), reduced government expenditure (£6.7 billion) and increased GDP (£1.6 billion) annually.
Other estimates show that allowing asylum seekers to work could lead to significant savings for the UK Treasury. By reducing the cost of the asylum support system and levying tax and national insurance payments from asylum seekers’ income, the Treasury could potentially gain £181 million annually. Top-end estimates have reached £650 million.
As MPs explore reforming asylum policies, giving asylum seekers the right to work earlier seems a logical step. All the evidence points to a win-win, for the wellbeing of asylum seekers coming to a new country, and for the UK’s economy and social cohesion.
Katrin Marchand does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
