1. Introduction

The phenomenon of immigration is a critical challenge for every country regarding socio-economic terms (Grande et al., 2019). During the past two decades, the United Kingdom UK has gradually received migrants from all over the world into their state. The immigration rate in EU countries has risen in the last three decades. Nine million immigrants (7.4 million individuals of working age) are currently live in the UK. Thus, immigration has had a dynamic effect on the British economy, including salary and compensation, inflation, economic growth, productivity, and tax income (Howley et al., 2020).

Furthermore, immigration seems to have a huge influence on the Economy of the UK substantially. Initially, the population of commonwealth immigrants helped a lot in sustaining the services for transportation and healthcare. However, several successful British company owners and leaders have come to settle as a migrant in the United Kingdom. Immigration allows drastic improvement in efficiency by lowering the expense of complementary skills and increasing employees' incentives to better develop their skills for the UK's economy (Burnett and Chebe, 2020). To understand the impact of immigration on the UK's economy, the current study gives recent insights through authentic sources for reference.

2. Description of Literature and Data 

In the literature section, the study provides details about immigration and its impact on the UK economy.

2.1. Immigration and its impact on UK's Economy

The immigration program is deemed the most successful way to monitor the workforce, particularly controlling population growth patterns (Vilella et al., 2020). To create a constructive effect from migrants, the country must incorporate them into the culture through an integration system (Dustmann and Frattini, 2014). However, integration is an essential aspect of the public recognition of minority communities. Integration is not necessarily the same for all; it relies on several variables such as immigration status, legal structure, and the country's economic conditions. In the context of the United Kingdom, UK, immigration plays the most significant role during the last two decades for the nation's success and growth (Coulter, 2018). It has helped the UK to become a more competitive and successful nation (Alfano et al., 2020). The immigrants are considered as the weak part of the population; therefore, they are responsible for two reasons of involving in inappropriate activities: firstly, the immigrant wants some work to be performed (for sustaining himself and his family) and to be willing to work with his company in a stronger position for oneself. Thus, immigrants help in contributing to the economy of the UK (Ruhs and Anderson, 2010).

Migrants usually appear to be of working age and moved to the UK to get an adequate job. They may carry investment income, but the immigration rate usually contributes to an increase in workforce, a decrease in the poverty rate, and an increase in the UK's economic potential production ability (Chakravorty, 2019). Additionally, the high immigration rate in the UK may lead to a high rate of aggregate demand. Migrants may help the economy to get stronger. A major cause for immigration is higher education. Around 485,645 overseas students studied in the UK in 2018/19. However, these students do not usually do something in long-term migration patterns; but the short-term effects are also very important (McLeay et al., 2020).

Recent migration statistics have revealed that nearly 6.2 million citizens of migrants residing in the UK in 2019 (UK Parliament). The increase in population may also lead to some negative consequences in UK's economy. Moreover, the increase in population may impose pressure on government, infrastructure and other services such as housing and healthcare, to accommodate the migrants and the native residents in the UK. An additional negative aspect is that the growing rate of migration is the risk of conflict between the residents and immigrants; the unemployment rate of native residents in the UK increases with the increasing immigration rate. However, the residents feel insecure regarding the unemployment. A previous study revealed that there is a negative link between immigrants' employment share and native employment ratio (Angioloni and Wu, 2020).