Immigration that fills gaps in the UK’s domestic jobs market can help push down inflation, the deputy head of the International Monetary Fund has said. Gita Gopinath told BBC Newsnight that “with inflation as high as it is, having workers who can fill the shortages in some of the sectors that we’re seeing right now will help with bringing inflation down.” Economists have identified the UK’s tight labour market, exacerbated by the impact of Brexit on flows of European Union workers and the impact of the pandemic, as one of the main contributory factors to high domestic inflation. Meanwhile, in an interview with the Financial Times, Gopinath warns that artificial intelligence risks “substantial disruptions” and calls on governments to craft new rules to prepare for the nascent technology
Our Comments: – Immigration can help push down UK inflation, says IMF deputy
Matthew Pinto-Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “We have written a number of blogs on inflation and the current skill shortage in the UK and this recent article demonstrates one opinion of from the IMF but what are your views on this? I know from talking to former colleagues within the retail and catering industry that this is currently a major issue with employment but will be interesting to hear from others?”
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