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BRIEFING

Non-European Labour Migration to the UK

AUTHOR: DR SCOTT BLINDER PUBLISHED: 30/01/2012 NEXT UPDATE: 30/01/2013
1st Revision

www.migrationobservatory.ox.ac.uk

BRIEFING: Non-European Labour Migration to the UK

This briefing examines labour migration to the UK among people who are not from the European Economic Area (EEA). Labour migrants are those whose primary reason for migrating or whose legal permission to enter the UK is for employment.

Key Points
Non-EEA labour migration increased over the 1990s and early 2000s but has declined since a peak in 2004-2006. Skilled and highly-skilled workers (Tier 1 and 2 of the Points-Based System) take up slightly less than half of entry visas issued for work. A majority of non-EEA labour migrants coming to the UK are male; a majority of newly arriving labour migrants are aged 25-44. The largest numbers of non-EEA labour migrants are nationals of Asian countries, followed by the Americas; labour migration among Africans has declined since at least 2004.

Understanding the evidence
Labour migration involves people coming to the UK for the purpose of paid work. Depending on the source of data, measures of labour migration might involve people who say that they are coming to the UK because of a definite job or to look for work (International Passenger Survey data), or people who have permission to enter the UK through a workrelated visa (administrative data on visas and passenger entries). IPS and administrative data also differ on definitions of a migrant – IPS counts only those who intend to stay in the UK for at least a year, while visa and passenger entry data do not account for length of stay. This briefing focuses mainly on migrants who are from outside the European Economic Area and Switzerland, and who are therefore subject to immigration controls and tracked in Home Office data on visas issued and passengers entering. Of course, many EEA and Swiss nationals do come to the UK to work, and are included in IPS data (along with British nationals). EEA/A8 migration is considered separately (see the briefing on ‘Migration Flows of A8 and other EU Migrants to and from the UK’).

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BRIEFING: Non-European Labour Migration to the UK

Labour migrant arrivals: increasing until mid 2000s, declining since

Non-European labour migration increased from 1991 until the mid-2000s but has decreased since then, according to multiple data sources. The growth over the 1990s and early 2000s is shown in IPS data on non-EU labour migration in Figure 1. IPS estimates of non-EU labour migration increased from 19,000 in 1991 to a peak of 114,000 in 2004 before declining to 52,000 by 2010. Figure 1

The decline since the mid-2000s is apparent in recent administrative data as well. Work-related entry visas declined from 193,855 in 2005 to 113,920 in 2010. Passenger entries show a similar decline in labour migration, as shown in Figure 1. Notice that visas and passenger entries exceed IPS estimates of work-related migration. The discrepancies in raw numbers between data sources cannot be fully explained, but there are a few likely sources of these differences. For example, administrative data sources include an unknown number of people who are not defined as migrants by the Office for National Statistics Long Term International Migration (LTIM) data, notably, those who intend to stay for less than 12 months. Passenger entry data and visa data have only been available in their present form since 2005, but the trends in IPS data are confirmed in work permit data. The number of work permits approved rose from 21,688 to 77,887 between 1995 and 2006 before falling to 67,637 in 2008 (Salt 2010).

Tiers 1 and 2 are just under half of work entry visas

Data are available since 2005 on how many visas go to Tier 1 highly-skilled workers, Tier 2 skilled workers with job offers, Tier 5 temporary workers, and other categories within or outside of the Points-Based System. As shown in Figure 2, Tiers 1 and 2 together make up slightly less than half of the total of 113,920 work visas issued in 2010, with 14% (16,005) in Tier 1 and 35% (39,930) in Tier 2. Tier 5 visas were 32% (36,545) of work visas in 2010. Non-PBS categories comprise (18%) of 2010 work visas. These include domestic workers in private households and those granted permission to work due to UK ancestry. Note that these figures are for “out-of-country” or “entry

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BRIEFING: Non-European Labour Migration to the UK clearance” visas only. Another 88,695 work visas were issued “in-country,” allowing extended leave to non-EEA nationals already in the UK. In-country visas are not considered further here, to limit the focus of this briefing to migrants entering the UK. Figure 2

Data on sub-categories within each Tier reveals that 65% of Tier 1 visas (10,130) in 2010 were in the Tier 1-General category. (Statistics on sub-categories are not illustrated in the figures in this briefing.) This sub-tier was eliminated in 2011, to be replaced by a category reserved for people of “exceptional talent”, limited at 1,000 people annually. Most of the rest of Tier 1 was made up of out-of-country Post-Study Work visas (5,360), allowing international students to remain in the UK for up to two years after getting their degree. This sub-tier is being converted to Tier 2 (though without the usual Tier 2 resident labour market test). Finally, a few hundred Tier 1 visas went to special categories for investors and entrepreneurs. Within Tier 2, the largest category in 2010 was Intra Company Transfers (ICTs) (29,175 visas, or 73% of the Tier 2 total of 39,930). ICTs refer to employees transferring from a non-UK workplace to a UK workplace within the same company. Another 25% (9,915) of Tier 2 went to a Tier 2-General category, for those coming to work for a new employer, as opposed to ICTs. The remaining 2% went to ministers of religion, sports people, and a few hundred work permit holders from the pre-PBS system. The majority of Tier 5 visas in 2010 went to Youth Mobility Scheme workers (57%, or 20,720 visas), for people not over 30 years of age to stay and work in the UK for at most two years. Most of the rest of Tier 5 visas went to creative and sporting workers (21%), government authorised exchanges (9%), charity workers (6%) and religious workers (4%). Visas in non-PBS work categories went mainly to domestic workers (15,350) and people whose right to enter is based on UK ancestry (4,770).

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BRIEFING: Non-European Labour Migration to the UK

Labour migrants more likely to be young and male

Looking at the demographic characteristics of labour migrants, they are more likely than other sorts of migrants to be young and male. LTIM estimates show that among those citing a definite job or looking for work as their reason for migrating, a majority Figure 3 have been male in every year dating back to 1991, including 62% in 2010. As seen in Figure 3, the labour pathway is more maledominated than study or family (which is majorityfemale). Note that these data include European as well as non-European migrants. (ONS does not make available data disaggregated simultaneously by gender, nationality, and reason for migration. Data on gender, nationality and occupation at time of migration to or from Britain are available, but have large margins of error and seem to fluctuate considerably from year to year.) By IPS estimates of age composition, 60% or more of labour migrants have been aged 25-44 in most years since 1991, with the majority Figure 4 of the remainder aged 15-24. Again, these estimates (shown in Figure 4) refer to all nationalities, including British and European arrivals. Passenger entry data by nationality show that the largest share of labour migrants is of nationals of Asian countries, followed by those from the Americas. Meanwhile, non-EEA European migration has become a very small proportion of labour migration.

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BRIEFING: Non-European Labour Migration to the UK
Figure 5

Tier 1 and Tier 2 (with dependents) are main contributors to settled population

Dependents of migrants under the PBS system may also come to the UK (if they can demonstrate sufficient financial support). In 2010 visas were issued to 52,745 dependents of people issued work-related entry visas. Of these, at least 86% were known to be issued to dependents of Tier 1 or Tier 2 migrants, 32 % in Tier 1 (16,960) and 54% in Tier 2 (28,280). Just 2% (1,280) were dependents of Tier 5 migrants. (Some 5,890 dependents appear unable to be classified, and have been included in Home Office data under “other permit-free employment”—hence the “at least” qualifier above.) Figure 6 The ratio of dependants to main applicants appears to have increased in the last two years for Tiers 1 and 2, while decreasing for Tier 5 compared with the pre-PBS equivalents. In 2010, there were 10.6 dependent visas for every 10 Tier 1 visas going to main applicants. The equivalent ratios were 7.1 in Tier 2, 0.4 in Tier 5, and 2.9 in non-PBS categories (again, mainly domestic workers and people admitted on the basis of UK ancestry).

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BRIEFING: Non-European Labour Migration to the UK
Labour migrants admitted on a path to citizenship attain settlement (ILR) in the UK at higher rates than those admitted without such a path. In the 2004 cohort of arrivals, 40% those entering the UK on work visas potentially leading to citizenship (roughly the pre-PBS equivalent to Tiers 1 and 2) still had leave to remain in the UK by 2009, including 29% who had been granted settlement (Achato et al. 2010). These rates were higher than those for student migrants but less than for family migrants. By contrast, among those entering in 2004 as temporary work migrants without a direct path to citizenship, 11% still had leave to remain in 2009 (fewer even than among student migrants) and only 3% had attained settlement (the same as among student migrants). Figure 7

Evidence gaps and limitations

As suggested above, the main sources of data on labour migration are not directly comparable as they measAs suggested above, the main sources of data on labour migration are not directly comparable as they measure different things. For IPS/LTIM estimates, labour migrants are identified by their self-reported primary reason for migrating. (Alternatively, using IPS data, labour migration can also be estimated by looking at migrants’ “usual occupation” prior to migration.) Administrative data classify labour migrants on the basis of legal permission to enter the UK. These groups are probably similar but not identical – some migrants may arrive as a Tier 1 migrant but report their primary reason for migrating as accompanying or joining a family member, for instance. Also, no data source provides a reliable indicator of net labour migration. Administrative data count entries but not exits. IPS data include exits, but the survey asks about the primary reason for emigration rather than asking exiting respondents to recall their primary reason for immigrating to the UK when they originally arrived. Thus, if many migrants enter for formal study and leave to find work, then net labour migration will be underestimated, since the exit gets credited to labour while the entry is allocated to formal study. Each data source has its own limitations as well. The IPS, for example, does not distinguish migrants by PBS Tiers. IPS/LTIM estimates also do not tell us how many family-related migrants arrive as dependents of workrelated migrants, as opposed to other reasons. Thus, it cannot provide a full estimate of the labour path, including dependents.

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BRIEFING: Non-European Labour Migration to the UK
Home Office administrative data count labour migration through both border entries (measured via a sample of arriving passengers’ landing cards) and visas issued for the purpose of work. Since 2008, both visa data and passenger entry data have classified people according to their status in the Points-Based system. It is not possible to precisely determine length of stay from entry data, which means that some portion of visas and entries go to people who do not qualify as migrants because they will not stay for the requisite twelve months. Administrative data also count visas and border entries for family members coming to the UK as dependents of labour migrants. In contrast to the IPS/LTIM estimates, this allows for more complete counts of the full numerical impact of the labour pathway including the family members that labour migrants bring. Additional sources of data may be useful as comparisons or supplements. The Home Office’s recent report “The Migrant Journey” (Achato et al. 2010) includes detailed information about settlement patterns for the cohort of labour migrants arriving in 2004. Workers on the path to settlement are treated separately from those with only temporary, non-extendable permission to stay. National Insurance registration numbers (NINo’s) are sometimes used to measure labour migration, but these are more useful for EEA/A8 migrants who are not counted in other administrative data and for people not labelled as labour migrants but who are in the labour market, such as working students. Finally, the Labour Force Survey (LFS) is also widely used to examine labour migration, but more commonly to assess the stock of migrants already in the UK as opposed to arrivals and departures. Some analyses have used LFS data to estimate migration flows, by calculating annual changes in the size of the UK’s migrant population. The Migration Advisory Committee shows that LFS estimates of net migration often yield smaller estimates of net migration (Migration Advisory Committee 2010: Figure 3.12). However, LFS does not include information on migrants’ visa status, and so cannot precisely determine net labour migration.

References
• • •

Achato, Lorrah, Mike Eaton, and Chris Jones. “The Migrant Journey.” Research Report 43, Home Office, London, 2010. Migration Advisory Committee. “Limits on Migration: Limits on Tier 1 and Tier 2 for 2011/12 and Supporting Policies.” UK Border Agency, London, 2010. Salt, J. “International Migration and the United Kingdom, 2009.” Report of the United Kingdom SOPEMI correspondent to the OECD, Migration Research Unit, University College London, 2010. http://www.geog.ucl. ac.uk/research/mobility-identity-and-security/migration-research-unit/pdfs/Sop09_Final_ONSCmnts_SE.pdf

Further Resources


Dustmann, Christian, and Yoram Weiss. “Return Migration: Theory and Empirical Evidence.” CReAM Discussion Paper No 02/07, Centre for Research and Analysis of Migration, University College London, 2007.

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BRIEFING: Non-European Labour Migration to the UK

The Migration Observatory
Based at the Centre on Migration, Policy and Society (COMPAS) at the University of Oxford, the Migration Observatory provides independent, authoritative, evidence-based analysis of data on migration and migrants in the UK, to inform media, public and policy debates, and to generate high quality research on international migration and public policy issues. The Observatory’s analysis involves experts from a wide range of disciplines and departments at the University of Oxford.

COMPAS
The Migration Observatory is based at the ESRC Centre on Migration, Policy and Society (COMPAS) at the University of Oxford. The mission of COMPAS is to conduct high quality research in order to develop theory and knowledge, inform policy-making and public debate, and engage users of research within the field of migration. www.compas.ox.ac.uk

About the author

Dr Scott Blinder Senior Researcher, COMPAS scott.blinder@compas.ox.ac.uk

Press contact

Rob McNeil robert.mcneil@compas.ox.ac.uk + 44 (0)1865 274568 + 44 (0)7500 970081

Glossary and Terms
• Short-term International Migrant: according to international standards is a person who changes his or her country of usual residence for three months or more, but for less than one year for employment or study. The ONS uses a second definition that categorizes short-term migrants as those who change their country of usual residence for 1-12 months. Short-term Migration In-stock: refers to the number of migrants present in the UK during a specified period. The estimate provides a number based on persons years that is equivalent to long-term migration stays. Short-term Migration Out-stock: refers to the number of individuals who are usual residents of the UK and are residing temporarily abroad. Short-term Migration In-flow: denotes short-term migration visits from individuals that typically reside outside the UK (individuals must reside outside the UK for 12 months). Short-term Migration Out-flow: denotes short-term migration visits to other countries (i.e. outside the UK) of individuals that typically reside in the UK. Long-term International Migrant: individual who moves to the UK for one year or more. International Passenger Survey: survey of passengers entering and leaving the UK by air, sea or the Channel Tunnel. It is the main tool to estimate long term international migration in the UK.

• • • • • •

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...International Business Management Section A: Part One: 1. What is the series consideration for strategy implementation? 2. The major activity in global marketing is: d. All of the above 3. 3. The third „P‟ in the international marketing mix is: d. Place 4. The European Economic Community was established in____________ d. 1957 5. Environment Protection Act on______________ a. 1986 6. People‟s attitude toward time depend on: 7. Culture necessitates adaption of : 8. The legal term for brand is: All of the above 9. FDI flows are often a reflection of rivalry among firms in____________ 10. ISO certification is: d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies An inward- oriented policy, usually , means over protection. What is less obvious is that sheltering domestic industries puts exports at a great disadvantage because it raises the cost of the foreign inputs used in their production. Moreover, an increase in the relative costs of domestic inputs may also occur through inflation or because of appreciation of the exchange rate as import restrictions are introduced. In practice, the distinction between inward-looking and outward looking approaches gets blurred. Most of the less developed countries have employed both strategies with different degrees of emphasis at one time or another 2. What is „Factor Endowments Theory‟? The factor endowments is a “modern” extension of the classical approach and attempts to explain the...

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