Briefing pack for new ministers

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							Migration and the UK labour market
                 Eamonn Davern
                  Prague November 2011
                  UK Policy Headlines on Migration

UK Policy Headlines on Migration

A commitment to reduce net migration from hundreds
 of thousands to tens of thousands during this
 Parliament (2014/15).
Following a public consultation, a limit on Tier 2
 migration for non EU nationals has been set at
 20,700 for the year to April 2012.The MAC are
 currently reviewing this for the following year.
Tightened guidelines around English language
 requirements and definitions of highly skilled workers.
                                                              Long run net migration levels


700,000
                               Long run net migration
600,000                          refers to those who
500,000                         enter or leave the UK
                               for at least 12 months
400,000
300,000
200,000
100,000
      0
-100,000
-200,000
           1975-76

                     1977-78

                                1979-80

                                          1981-82

                                                    1983-84

                                                               1985-86

                                                                         1987-88

                                                                                   1989-90

                                                                                             1992-93

                                                                                                       1994-95

                                                                                                                 1996-97

                                                                                                                             1998-99

                                                                                                                                       2000-01

                                                                                                                                                 2002-03

                                                                                                                                                           2004-05

                                                                                                                                                                     2006-07



                                                                                                                                                                                         2010-11 P
                                                                                                                                                                               2008-09
                                                              Net Flow                       Inflow                        Outflow
             Foreign worker employment levels by nationality

700,000
                                            The largest group of employed migrants come
600,000                                     from the expanded European Union (EU) of 27
                                               countries; around 595,000 from the EU15,
                                              651,000 from the eight Central and Eastern
500,000                                      European countries (A8), 220,000 from Africa
                                           (excluding South Africa) and just under 200,000
                                                               from India.
400,000


300,000


200,000


100,000


     0
          EUA8




                                                                                                USA
                 EU14




                                       India
                        South Africa




                                                                                 South Africa
                                                  Pakistan and



                                                                 Australia and
                                                                 New Zealand
                                                  Bangladesh
                         excluding
                           Africa
                              Foreign and UK National Employment


30,000,000                                                                        80.0

                                                                                  70.0
25,000,000
                                                                                  60.0
20,000,000
                                                                                  50.0

15,000,000                                                                        40.0
                                                Foreign nationals make up a
                                                small proportion of the total     30.0
10,000,000
                                                  number in employment.
                                                                                  20.0
 5,000,000
                                                                                  10.0

        0                                                                         0.0
              Q2   Q2   Q2   Q2   Q2   Q2   Q2   Q2   Q2   Q2   Q2   Q2
             2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

             Employment level UK nationals   Employment level Foreign nationals

             Employment rate UK nationals    Employment rate Foreign nationals
                       Number of foreign born in selected countries

     Figures show foreign born population in selected OECD countries as a
     proportion of total population:

Country        2004          2006          2008           2009

Germany        n/a           12.7%         12.9%          12.9%

France         10.8%         11.2%         11.4%          11.6%

UK             8.9%          9.6%          11.0%          11.3%

Canada         18.4%         19.0%         19.4%          19.6%

Australia      23.8%         24.6%         25.8%          23.5%

New            19.5%         21.0%         22.3%          22.7%
Zealand
                       Migration policy in the UK


Aside from asylum and refugee policy, UK policy on immigration falls
 into two distinct categories:
   - migrants from within the European Economic Area (EEA) are
     guaranteed free movement and right to reside in any nation within
     the area, meaning no restrictions for people moving to the UK (or
     for UK nationals moving within the EEA); and
   - since November 2008 migrants from outside the EEA have had to
     pass a Points Based Assessment to enter or remain in the UK.
The Migration Advisory Committee (MAC) provides independent and
 evidence-based advice to government on specific sectors and
 occupations in the labour market where shortages exist which can
 sensibly be filled by migration. It can also be asked to advise on other
 matters relating to migration.
                             Existing system

Measures are in place to control immigration from the new EU member
states, including the Worker Registration Scheme (WRS) and some limited
schemes for A2 (Romania and Bulgaria). Under EU law these can run for
maximum of seven years, so they must be removed for A8 nationals by May
2011 and for A2 nationals by January 2014.
The MAC has recently published a report on the impact of removing
restrictions on A2 nationals – the government will announce its decision on
whether to extend these by the end of the year.
Measures in place to control migration from outside of the EU
 - Points Based System (PBS) - rolled out between February 2008 and the
   end of March 2009, individuals can enter the UK using five tiers:
    Tier 1: Highly Skilled migrants
    Tier 2: Skilled workers with a job offer – jobs are either on the Shortage
     Occupation List or subject to the Resident Labour Market Test (RLMT)
    Tier 3: Low skilled workers (currently closed)
    Tier 4: Students
    Tier 5: Temporary workers and youth mobility – mainly non-economic
     reasons.
Inflows and Outflows by Reason for
Migration - 2009
                      Further restrictions for non EU migration

 Controlled Migration: The UK Government believes that Britain
can benefit from migration but not uncontrolled migration. Britain
remains open for business and we will continue to attract and
retain the brightest and the best people who can add to our
economic growth, but unlimited migration places unacceptable
pressure on public services.
 Reduction in Net Migration: It is our aim to reduce the level of
net migration back down to the levels of the 1990s - tens of
thousands each year, not hundreds of thousands.
 Migration Limit: a limit on Tier 2 migration for non EU nationals
has been set at 20,700 for the year to April 2012.The MAC are
currently reviewing this for the following year.
 Non-economic Migration: Other entry routes outside of Tiers 1
and 2, such as students and family, will also be reviewed.
                         DWP/Jobcentre Plus role

Shortage Occupations: We have a key interest to maintain labour
   market flexibility and avoid a rise in skill shortages, the supply of
   domestic workers will need to be able to meet any gaps caused
   by lower migration.
Improved Signposting: The Work Programme and benefit reform
   are designed to address shortage occupations. We will introduce
   further actions to point jobseekers towards sectors with a
   shortage of skilled domestic workers.
Increased Labour Market Participation: By ensuring that people
   are better prepared, have more incentive and face more
   requirements to take up work, demand for migrant workers can
   be reduced.
The Resident Labour Market Test: ensures resident jobseekers
   have early access to vacancies in skilled jobs not on the
   shortage occupation list.

						
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