New report presents clear evidence that foreign-born workers face higher rates of precarity than UK-born counterparts
The Resolution Foundation has today released a comprehensive new report on the labour market experiences of foreign-born workers in the UK.
You can download the 31-page report here.
The report, produced as part of a three-year research programme supported by Unbound Philanthropy, examines the labour market challenges confronting a significant minority of foreign-born workers in the UK. It provides robust evidence that these workers are disproportionately exposed to precarious and insecure employment, with risks particularly pronounced among recent arrivals, non-citizens, and individuals from ethnic minority backgrounds.
As the report highlights, foreign-born workers who arrived in the UK within the past five years are significantly more likely to be employed on flexible contracts, such as zero-hours, variable-hours, or temporary contracts, compared to their UK-born counterparts. This disparity persists even after adjusting for differences in age, sex, and qualifications. The report reveals that recently arrived migrants are 2.4 times as likely as comparable UK-born workers to be on a flexible contract. However, this gap narrows over time, with foreign-born workers who have lived in the UK for more than five years or acquired UK citizenship having similar proportions on flexible contracts as UK-born workers.
Qualitative research indicates that certain migrant groups are disproportionately subjected to unlawful workplace practices, including underpayment of the minimum wage. The report finds that foreign-born workers without UK citizenship are approximately three times more likely than their UK-born counterparts to participate in the gig economy—an employment sphere where such risks are particularly concentrated. Among those who have lived in the UK for five years or more, 4.9 per cent report being self-employed while either lacking autonomy or paying tax through an employer—both indicators of potential bogus self-employment. This figure is nearly double that observed among UK-born workers.
The report also highlights the financial instability faced by foreign-born workers in precarious work. Around 16% of foreign-born workers, both recent arrivals and those who have lived in the UK for five years or more, are in precarious work and are either low-paid or live in households with below-average income.
The Resolution Foundation explained: "Overall, one-in-six foreign-born workers – 15 per cent of those who have lived in the UK for five years or more, and 16 per cent of more recent arrivals – are both in precarious work and are either low-paid or live in households with below-average income, making them less able to cope with the financial instability that precarious work can bring. And although these challenges by no means define the experiences of all foreignborn workers – who are also over-represented in many high-skilled and well-paying occupations – substantial inequalities mean some groups are particularly hard hit. For example, more than a quarter (26 per cent) of foreign-born workers from the Pakistani ethnic group, and a fifth (22 per cent) of those from the Bangladeshi ethnic group, are in precarious work, compared to 12 per cent of White foreign-born workers."
Insecurity extends beyond contract type, with foreign-born employees with UK citizenship being 2.7 times as likely as those born in the UK to believe they may lose their job in the next year. For many migrants, job loss comes with greater consequences, as those without indefinite leave to remain have limited access to the welfare system due to the 'No Recourse to Public Funds' policy. Additionally, those on employer-sponsored visas risk losing the right to remain in the UK, with tied visas linked to serious exploitation.
While the report raises clear concerns for some foreign-born workers, the Resolution Foundation emphasises that these findings have broader implications for the UK labour market as a whole. The heightened vulnerability of this group reflects deeper structural inequalities, with the mistreatment of migrant workers raising the risk of a wider deterioration—or ‘race to the bottom’—in employment standards across the economy.
The Resolution Foundation calls for urgent policy action to address the exploitation linked to tied visas and recommends several approaches, including making it easier for workers to switch sponsors and introducing 'bridging visas' that enable workers to leave exploitative employers and look for another.
The Employment Rights Bill, introduced to Parliament on 10 October 2024, is seen as a positive step towards stronger protections and enforcement for all employees. The report suggests that the Government should build on this momentum to ensure robust protections for foreign-born workers. It recommends a data firewall between the new Fair Work Agency (FWA) and Immigration Enforcement to protect vulnerable workers and improve the FWA's ability to detect and address non-compliance. A firewall, the report notes, would allow foreign-born workers to report unlawful treatment without fearing immigration repercussions.
Hannah Slaughter, Senior Economist at the Resolution Foundation and co-author of the report, commented: "The Government's Employment Rights Bill will offer vital additional protections to all workers – but without creating a data firewall between labour market and immigration enforcement bodies, there remains a risk that worker exploitation will continue to go unreported."
Additionally, the report recommends that the Government should accelerate the planned simplification of worker status and ensure that misclassification of worker status is within the FWA's remit. Trade unions, charities, and 'Workertech' platforms also have a valuable role to play in supporting migrant workers.
The Resolution Foundation concludes: "By implementing these recommendations, the Government would not only address the challenges facing foreign-born workers – it would also be taking meaningful steps towards raising standards across the economy and supporting its goal of creating fair work for all."