"The recovery has stalled. ...with current policy settings the pace will be insufficient to absorb significant slack in the economy, raising the risk of a permanent loss of productive capacity. Demand support is needed."
"To restore Britain’s competitiveness we must begin by deregulating the labour market. Political objections must be overridden. It is too difficult to hire and fire and too expensive to take on new employees."
"rights without jobs are a mere mockery, and the excessive emphasis on rights has deterred employers from taking on new workers, unless they are Eastern Europeans, who proclaim their willingness to work with every molecule of their being."
So the changes to skilled migration introduced by the government - a set of new burdensome and bureaucratic rules and regulations, including a quota on skilled migrants - are new labour market regulations. Indeed, in contrast to almost all other such regulations, which are at least designed with an eye to ensuring that the benefits to employers and employees outweigh the costs, these changes were designed expressly to make it more difficult for businesses to employ the workers they want.
"The extra employment regulation that the Government has imposed on employers wishing to employ migrant workers—the cap on skilled migration—will, using the Government's own methodology, reduce UK output by between £2 and 4 billion by the end of the Parliament."
None of this is news to economists; most of us, wherever we are on the political spectrum, think that well-functioning markets usually do a pretty good job of allocating resources. That goes for the labour market too, so it is no surprise that liberal (in the true sense of the word) immigration policies are good for the economy, and restrictive ones are not. So simply reversing the new regulations introduced by this government, let alone further deregulation, could yield large gains. Moreover, in contrast to some other policy changes that might promote growth, the fiscal impact would be positive, not negative; the deficit would be some hundreds of millions of pounds lower.
"We interpret these results as consistent with the idea that immigration enriches the skill and idea variety of countries, increases their productivity and eﬃciency and, in the long run, it is an important contributor to their economic success."
"this crisis provides an opportunity to make some difficult trade-offs in favour of growth that might get parked in the "too difficult" box in calmer times."