The Effect of COVID-19 ‘Furlough’ Scheme on Italian Skilled Migrants in Britain: Inclusive and Nonhostile Policies Improve Market Integration and Skills Match

Abstract

The role of the ethnic economy in immigrant arrival and adaptation has been studied extensively with regard to unskilled or low-skilled migrants. However, their role and function for skilled migrants is less well understood. This research explores the use of ethnic economies for 20 Italian skilled migrants in Britain during the cost-of-living crisis (2021–2022). Our research offers two key insights. First, we find that skilled migrants utilize the ethnic economy within London to secure housing and employment. In line with experiences of low-skilled laborers, skilled migrants are limited in their ability to improve their economic or social position due to employment conditions. Yet, we find their dependence on the ethnic economy in this case was undone by the unusual extension of social welfare during COVID-19 to migrants. The British government provided furlough—80% payment in lieu of working—to all eligible workers in the country. This contravenes their normal ‘hostile environment’ policies toward migrants, which exclude them from accessing public funds. Their inclusion in this program allowed Italian skilled migrants the time necessary to invest in capital acquisition through education and network building. This was, in turn, leveraged into better-paying work that matched their skills outside the ethnic economy.