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Tens of thousands of Britons have been forced out of work because of the arrival of a wave of migrant workers from Eastern Europe, experts warn.
Authoritative new research suggests almost 100,000 people have become unemployed as a result - though even that may be a significant underestimate.
The findings from the respected National Institute for Economic and Social Research (NIESR) are a serious blow to the Government, which has repeatedly insisted there is no link between unemployment and immigration.
Its study concludes Britain has experienced a huge economic 'shock' because of an unprecedented flow of workers from Poland and elsewhere in eastern Europe.
The unemployment rate has soared to 5.5 per cent, its highest level in six years.
The new research concludes that between 60,000 and 90,000 of the rise in joblessness since 2004 can be directly attributed to competition for jobs from foreigners.
That is likely to be a significant under-estimate, because NIESR said its calculations were based on official Government figures that understate the number of foreigners in Britain.
Unemployment in Britain is now rising faster than in any other major European country. Official figures show nearly 1.7million are jobless.
There has been an increase of 242,000 over the last year, the biggest annual rise for more than a decade. It coincides with Britain's decision to open its doors to a wave of workers from new EU members.
Ministers hopelessly underestimated the scale of the influx by predicting just 13,000 would arrive. The real figure so far is close to 700,000.
For the Tories, shadow immigration minister Damian Green said: "This shows how disingenuous the Treasury have been when they talk about employment levels but fail to talk about unemployment levels, which are affected by immigration.
"It is vital that we have thoughtful, balanced and considered debate on immigration policy so that it can be of real benefit to this country. The only way that immigration can be of benefit is if it is controlled."
Economists increasingly dispute the Government's argument that there is no link between immigration and unemployment.
They say there is increasing evidence that lower-skilled people at the bottom end of the jobs market are, in fact, increasingly affected.
The vast bulk of Eastern European workers are employed in shops, hotels, catering and agriculture, all seen as low-skilled work.
A recent Home Office study suggested idle British workers were being put to shame by hardworking East Europeans, who were happy to endure long hours for low wages and were often favoured by employers because of their strong work ethic.
The latest research showed that there have been significant benefits from influx of foreigners, as well as huge social strains.
It also concludes that after the initial shock, with the resulting surge in unemployment, the unemployment rate will fall back again as the economy adjusts.
Martin Weale, the organisation’s director, estimates that economic output is receiving a £39 billion annual boost because of the presence of workers who arrived in Britain since 1997.
But much of the income generated in the UK may be ending up in the pockets of families abroad, as many workers repatriate their wages. Wage growth is being held down because more people are looking for jobs, meaning employers do not have to be so generous to their recruits.
That is good news for borrowers because it allows interest rates to be kept relatively low.
But on the other hand, "wage earners may feel that migration makes them worse off" because their salaries appear to be static, the report said.
Because many of the migrants are in their 20s and 30s, they will are probably making a positive contribution to tax revenue, Niesr said.
Extraordinarily, it calculates that over ten per cent of all 25-34 year olds in Britain arrived in the country since 1998.
Any benefit could be undermined if the migrants remain in the country into their old age, when they are likely to become a drain on the state.
Tens of thousands of Britons have been forced out of work because of the arrival of a wave of migrant workers from Eastern Europe, experts warn.
Authoritative new research suggests almost 100,000 people have become unemployed as a result - though even that may be a significant underestimate.
The findings from the respected National Institute for Economic and Social Research (NIESR) are a serious blow to the Government, which has repeatedly insisted there is no link between unemployment and immigration.
Its study concludes Britain has experienced a huge economic 'shock' because of an unprecedented flow of workers from Poland and elsewhere in eastern Europe.
The unemployment rate has soared to 5.5 per cent, its highest level in six years.
The new research concludes that between 60,000 and 90,000 of the rise in joblessness since 2004 can be directly attributed to competition for jobs from foreigners.
That is likely to be a significant under-estimate, because NIESR said its calculations were based on official Government figures that understate the number of foreigners in Britain.
Unemployment in Britain is now rising faster than in any other major European country. Official figures show nearly 1.7million are jobless.
There has been an increase of 242,000 over the last year, the biggest annual rise for more than a decade. It coincides with Britain's decision to open its doors to a wave of workers from new EU members.
Ministers hopelessly underestimated the scale of the influx by predicting just 13,000 would arrive. The real figure so far is close to 700,000.
For the Tories, shadow immigration minister Damian Green said: "This shows how disingenuous the Treasury have been when they talk about employment levels but fail to talk about unemployment levels, which are affected by immigration.
"It is vital that we have thoughtful, balanced and considered debate on immigration policy so that it can be of real benefit to this country. The only way that immigration can be of benefit is if it is controlled."
Economists increasingly dispute the Government's argument that there is no link between immigration and unemployment.
They say there is increasing evidence that lower-skilled people at the bottom end of the jobs market are, in fact, increasingly affected.
The vast bulk of Eastern European workers are employed in shops, hotels, catering and agriculture, all seen as low-skilled work.
A recent Home Office study suggested idle British workers were being put to shame by hardworking East Europeans, who were happy to endure long hours for low wages and were often favoured by employers because of their strong work ethic.
The latest research showed that there have been significant benefits from influx of foreigners, as well as huge social strains.
It also concludes that after the initial shock, with the resulting surge in unemployment, the unemployment rate will fall back again as the economy adjusts.
Martin Weale, the organisation’s director, estimates that economic output is receiving a £39 billion annual boost because of the presence of workers who arrived in Britain since 1997.
But much of the income generated in the UK may be ending up in the pockets of families abroad, as many workers repatriate their wages. Wage growth is being held down because more people are looking for jobs, meaning employers do not have to be so generous to their recruits.
That is good news for borrowers because it allows interest rates to be kept relatively low.
But on the other hand, "wage earners may feel that migration makes them worse off" because their salaries appear to be static, the report said.
Because many of the migrants are in their 20s and 30s, they will are probably making a positive contribution to tax revenue, Niesr said.
Extraordinarily, it calculates that over ten per cent of all 25-34 year olds in Britain arrived in the country since 1998.
Any benefit could be undermined if the migrants remain in the country into their old age, when they are likely to become a drain on the state.
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