UK productivity not harmed by foreign workers

Analysts worry that a bigger pool of available workers has dissuaded firms from investing in productivity-boosting technology.

 

But rising numbers of UK nationals willing to work have had a greater impact on the labour force than migrant labour, said Mr Carney. 

The UK should hold its EU referendum "as soon as necessary", he added.

This is because businesses may delay making investments while there is uncertainty over Britain's future in the EU.

"We talk to a lot of bosses and there has been uncertainty whether it's for the election or the referendum [on UK continued EU membership]," says Mr Carney.

'Dampen down'

Older people willing to work and workers seeking more hours had added 500,000 to the labour force over the last two years, said Mr Carney.

That was 10 times more than immigration, he said.

Mr Carney told the BBC's Today programme that he would "really dampen down" the argument that foreign workers were to blame.

As the number of jobseekers falls, attention will turn to productivity, he added.

"Now that spare capacity is being used up," said Mr Carney. "For the economy to move forward, it's going to be a story of increased productivity.

"We think that it's going to start to pick up over the next few years."