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Migration in the UK Trends and Economic Effects

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Social (e.g. family reunion, students) Humanitarian (refugees, asylum seekers) All 3 categories have seen increasing numbers of entrants recently ... – PowerPoint PPT presentation

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Title: Migration in the UK Trends and Economic Effects


1
Migration in the UK - Trends and Economic Effects
  • Jeremy Kempton
  • Economic Resource Analysis Group
  • Home Office

2
Migration Overview
  • 3 principal types of entry route
  • Economic
  • Social (e.g. family reunion, students)
  • Humanitarian (refugees, asylum seekers)
  • All 3 categories have seen increasing numbers of
    entrants recently
  • Important impacts on labour market
  • Implications for most government Departments
  • Recent research into economic effects by Home
    Office and DWP

3
Net Migration to the UK since 1992
4
Managed Migration
  • Migration brings benefits increased supply of
    skills, enhanced levels of economic activity,
    cultural diversity and global links. But it can
    also raise tensions unless properly understood
    and well managed.
  • Migration policies must complement other policies
    for the labour market, integration and
    international development. Investment in skills
    and abilities of the existing population remains
    our priority.
  • Carefully managed migration to meet particular
    needs within a particular sector or at a
    particular skill level, can help to support these
    policies.

5
Breakdown of numbers (net 000s) by category 2001
6
Migrants represent a significant minority in the
UK population
9.7
8.0
Migrants as a percentage of UK population
Source DWP
7
with the largest group still coming from the EU
Stock of working age foreign born population in
2001
upward trend downward trend
Source DWP
8
Migrants generally highly qualified.
Source DWP
Percentage at each qualification level
9
Those who do find work tend to concentrate in the
service sectors
employed in services
Source DWP
10
Knowledge Migrants
  • HO/DTI research looked at motivations and
    experiences in of skilled workers in IT, finance,
    health and bio-tech industries
  • Found that career enhancement key motivation for
    migrant workers rather than purely financial
    reasons.
  • UK seen as centre of excellence

11
Economic Impacts
  • Complement UK-born workers little evidence of
    displacement at aggregate level
  • Help alleviate recruitment difficulties (at least
    in short-term).
  • Expand into new sectors
  • More entrepreneurial?
  • Fiscal contribution - 2.5bn in 1999/00. Key
    determinant - work.

12
Displacement effects??
  • HO commissioned research found no evidence of
    adverse impacts on unemployment and wages of the
    UK-born
  • Indeed some evidence of positive impact on wages
    of the UK-born, suggesting complementarity
  • Need for further research at group level
  • e.g. semi-skilled may be more likely to be
    unemployed
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