It suggests that local authorities and employers underestimate the value of migrant workers and their role in filling key skills gaps.
The report claims that as well as boosting diversity, migration can also help to improve the skills mix and improve productivity in local areas.
Laura Chappell, a research fellow at the IPPR, said: "To get the most out of migration, local communities, alongside local leaders, businesses, universities, and central government, need to recognise the variety of benefits that migrants can bring."
The IPPR points out that strategies should be adopted by local authorities and employers to ensure that migrant workers and indigenous employees can co-exist and that businesses do not become too reliant on overseas job seekers to fill their vacancies.
Statistics from the Home Office released in August reveal a drop in the number of eastern European migrants looking for jobs in the UK.
