For every four non-European Union migrants in the U.K., one Briton is displaced from the labor market, according to the Migration Advisory Committee.
The report, which is the first of its kind to look at the impact of immigration in the U.K., found that immigration has kept resident workers out of jobs.
In the last five years the number of non-EU migrants of working age increased by 700,000 meaning some 160,000 Britons did not get jobs, according to the report.
"Our research suggests that non-European Economic Area migration is associated with the displacement of British workers" said Professor David Metcalf, chairman of the committee.
Metcalf concludes that the impact of migration on the economic wellbeing of the resident population should be the focus.
Metcalf said the jobs most impacted by immigration are in the information and communications technology and hospitality and retail where a large amount of foreign students are employed.
The findings are in contrast to a study by the National Institute of Economic and Social Research, which claimed the number of immigrants coming to the UK had little or no impact on the number of unemployed.
Professor Metcalf said the current system, which uses GDP to look at the impact on both UK residenta and migrants, is the wrong way to measure the impact of immigration.
"GDP does not paint a true picture" said Metcalf.
It would be better to consider the impact of immigration by looking at the economic wellbeing of the reisdent population only, says Metcalf.
Dr. Scott Binder, a senior researcher at the Migration Observatory said "This report highlights the need to decide and articulate more clearly whose needs Government is prioritizing when developing immigration policy."
Immigration Minister Damian Green said "This government is working to reduce net migration from the hundreds of thousands a year we saw under the last government, to the tens of thousdands we saw in the 1990s."
"Controlled immigration can bring benefits to the UK, but uncontrolled immigration can put pressure on public services, on infrastructure and on community relations."
"This report makes clear that uncontrolled immigration can also put pressure on the local labor market."
Updated: Wed, Jan 11th 2012 @ 11:41am EST