LONDON, (Pakistan Point News - APP - 16th Augst,2016) - The weak outlook for the UK economy will outweigh any potential pay rise for British workers if the country's EU exit leads to immigration cuts, a report warned on Monday. Future cuts to immigration could have a positive impact on the income of some British workers, but they will still be exposed to Brexit's impact on the broader economy, the Resolution Foundation think tank said.
Cleaners, security employees and sales staff are among those who have seen their income fall in recent years as a result of immigration, it said in an analysis. These workers could see their income increase by between 0.2 and 0.6 percent by 2018 if immigration fell immediately to tens of thousands a year -- a key policy pledge by former prime minister David Cameron. But such a salary boost would not shelter workers from the wider economic consequences from Brexit, the think tank said.
The Bank of England earlier this month issued its biggest-ever downgrade of a GDP forecast in the light of Britain's looming EU exit. Its growth forecast was slashed from 2.3 percent for both 2017 and 2018 to 0.8 percent next year and 1.8 percent the year after. "Those expecting a wage boost off the back of a post-Brexit fall in migration are likely to be disappointed," said Stephen Clarke, a policy analyst at the Resolution Foundation.