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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