Is Brown’s stimulus going to miss its domestic target?

Will Gordon Brown’s stimulus serve only to suck in more immigrants? The Prime Minister should ask himself this as he visits the London Olympic 2012 site – it’s a classic example of the problem. Sure, there have been plenty of jobs created by the construction. But which English borough registered the biggest increase in National Insurance numbers to foreign nationals last year? Newham – where the site is based. A full 21,510 of them (Fig6, pdf) – and this is in a constituency where there are 32,800 working-aged people on benefits. As I argued in the News of the World last October, most of these have been claiming for five years or more.

My point: you cannot understand the UK labour market without taking in immigration. In the 1970s you could argue that saving a British factory through subsidy would protect British business and British jobs.