Select Committee on Economic Affairs Minutes of Evidence


Memorandum by the Office for National Statistics

SUMMARY

  This submission provides the statistical evidence to the House of Lords Select Committee on Economic Affairs as background to the investigation of the economic impact of immigration. It has been drawn together by the Office for National Statistics, assisted by the Department of Work and Pensions and the Home Office.

  The submission contains evidence on the following:

Background (Section 1)

  Measuring international migration is complex. To meet the key requirements for statistics, timely, accurate estimates are needed of the number of people coming into, going out of and present in the country for different durations and reasons (short and long term residence, seeking refuge, employment, study, etc). This cannot be achieved using a single source of information. Some of the key sources and indicators are described (Total International Migration, International Passenger Survey, Labour Force Survey, National Insurance numbers and the Worker Registration Scheme).

Numbers and characteristics of immigrants (Section 2)

  By 2006, the Labour Force Survey (LFS) indicated that the proportion of the resident population born abroad had risen to 10%. In the years 2001 to 2005, there were 2,258,000 foreign born arrivals into the UK for a year or more and 871,000 departures, indicating a net growth of foreign born residents of 1,387,000. Taking account of a net outflow of the UK-born, the overall effect of long term migration among the foreign and UK born was to add 885,000 to the population in the five years to the end of 2005. Latest figures indicate that, between mid-2001 and mid-2006, the contribution of long term migration to population growth was 939,000. The submission provides details of these flows by year, citizenship, country of birth, duration of stay, age and region. The impact on fertility levels is described.

Population projections and migration (Section 3)

  Population projections based on 2006 estimates will be published on 23 October. They will include a long term assumption, based on past trends, of 190,000 net annual increase in population due to migration. This replaces the 2004-based assumption of 145,000. The 2004-based projections indicated that the population of the UK is expected to continue to grow, driven by positive natural change (more births than deaths) and net in-migration. However, the key demographic challenge for the UK in the years ahead will be population ageing. The 2004-based projections suggest that the proportion of the population that is aged over 65 is expected to rise from 16% in 2007 to 21% in 2027, and then to 26% by 2057.

Employment of immigrants (Section 4)

  A significant proportion of foreign-born workers are working in the public administration, education and health (32%), distribution, hotels and restaurants (21%) and banking, finance and insurance (20%) sectors. A8 foreign-born are particularly concentrated in the distribution, hotels and restaurants (24%), manufacturing (21%) and construction (14%) sectors. The submission provides further details of economic activity rates, wage levels, and proportions self-employed. These are analysed by duration of time in the UK and compared with the UK born. Figures are provided on proportions claiming benefits within six months.

How can data on immigration be improved? (Section 5)

  In May 2006, the Inter-Departmental Task Force on international migration statistics was set up by the National Statistician to recommend timely improvements that could be made to estimates of migration and migrant populations in the United Kingdom, both nationally and at local level. The Task Force report was published in December 2006. The submission summarises the Task force recommendations, describes improvements made to date and plans for further improvements in each of the years 2008 to 2012.

How immigration is reflected in the National Accounts (Annex A)

  Gross Domestic Product (GDP) is the headline summary indicator of economic activity in the UK. There are three approaches to producing one measure of GDP, namely the production, income and expenditure approaches.The national accounts framework allows the capture of immigrants' production, income and expenditure. While there may be issues of under-recording, when activity is illegal or informal, the use of Supply-Use balancing to bring together the three approaches to GDP into a single measure of growth is thought to minimise the problem. Because data collection, estimation and reporting are not structured according to demographic groups, the national accounts framework does not however make it possible to identify the direct contribution of immigrants to the measured levels of economic activity.

SECTION 1 BACKGROUND

    "Understanding the size and characteristics of the population and how it is changing is hugely important for society and the economy. It is essential to have relevant, accurate and timely migration and population statistics to provide the evidence base for managing the economy, developing policies and allocating resources for service delivery ..

    For the last few years migration has been the main factor affecting population numbers in this country. However, there is now a broad recognition that available estimates of migrant numbers are inadequate to meet all the purposes for which they are now required. They are the weakest component in population estimates and projections in the United Kingdom, both nationally and at local level. They are much more difficult to measure accurately than births and deaths, the other major components of population change."

  Karen Dunnell in the Foreword to the Report of the Interdepartmental Task Force on Migration Statistics.

  1.  Measuring international migration is complex. To meet the key requirements for statistics, timely, accurate estimates are needed of the number of people coming into, going out of and present in the country for different durations and reasons (short and long term residence, seeking refuge, employment, study, etc). This cannot be achieved using a single source of information. For this reason, a range of indicators and data sources are needed to illuminate the different requirements. This submission aims to bring a number of these together to provide a coherent picture of how the number and characteristics of migrants are currently affecting the demography and economy of the UK. It then identifies the changes to statistical sources and methods that are needed to improve our understanding of the multi-faceted process that is migration.

  2.  As a preliminary, it is important to recognise the range of current sources of information on migration, how their coverage differs and their individual strengths and limitations. These are summarised below.

1.1: UNITED NATIONS DEFINITION OF MIGRANTS

Long-term international migrant

  The United Nations recommended definition of a long-term international migrant is:

    A person who moves to a country other than that of his or her usual residence for a period of at least a year (12 months), so that the country of destination effectively becomes his or her new country of usual residence. From the perspective of the country of departure the person will be a long-term emigrant and from that of the country of arrival the person will be a long-term immigrant.

  This 12-month migrant definition is used for the UK usually resident population estimate series.

Short-term international migrant

  The United Nations recommended definition of a short-term international migrant is:

    A person who moves to a country other than that of his or her usual residence for a period of at least three months but less than a year (12 months), except in cases where the movement to that country is for purposes of recreation, holiday, visits to friends and relatives, business, medical treatment or religious pilgrimage. For purposes of international migration statistics, the country of usual residence of short-term migrants is considered to be the country of destination during the period they spend in it.

  UK population estimates do not currently include short-term in-migrants as usually resident in the UK, nor do they exclude short-term out-migrants from the usually resident population.

Total International Migration

  3.  Estimates of the total number of people entering or leaving the UK as long term migrants are produced by ONS using a combination of sources:

    —  migration data from the International Passenger Survey (IPS);

    —  visitor data from the IPS to estimate those people who initially come to or leave the UK for a period of less than 12 months, but subsequently stay for a year or longer (visitor switchers);

    —  Home Office data on asylum seekers and their dependants;

    —  estimates of migration between the UK and the Irish Republic.

International Passenger Survey

  4.  This is a sample survey of passengers arriving at, and departing from, the main United Kingdom air and sea ports and the Channel Tunnel. Of those sampled, approximately 1% were migrant interviews in years up to 2007, which amounted to around 3,000 interviews with migrants entering the country and 800 with those departing. From 2007, the number of interviews with departing migrants is being boosted to a comparable level to those on entry. Further details are given in Annex B.

  5.  In terms of measuring migration, the IPS has three main limitations:

    —  it does not cover all types of migration (eg land routes between the UK and the Irish Republic, most asylum seekers and some dependants of asylum seekers);

    —  as a sample survey, the estimates are subject to a degree of uncertainty; and

    —  migration estimates are based on respondents' intentions, which may or may not accord with their final actions. Adjustments are required to account for those who change their intentions, known as "switchers".

  6.  While the IPS is the main source of migrant information data used in estimating Total International Migration, several other key sources are used in this submission. These are summarised below. Further details can be found in Annex B.

Labour Force Survey (LFS)

  7.  The Labour Force Survey (LFS) is a quarterly household survey run by ONS, representative of the household population of the UK. The LFS collects a wide range of information including nationality and country of birth. The data can be used as an indicator of the non-British or foreign born migrant numbers in the UK. The population covered is all people resident in private households. This includes households in multi-occupied dwellings, but excludes most communal establishments (eg migrants in hostels, foreign students living in halls of residence). People who have not lived in the UK for six months are excluded.

National Insurance Number (NINo) Allocations

  8.  National Insurance Numbers are issued to individuals over the age of 16 and are used to record a person's national insurance contributions and social security benefit claims. New numbers are issued to migrants including:

    —  All non-UK born nationals aged 16 or over working, planning to work or claim benefits legally in the UK, regardless of how long individuals intend to stay.

    but excluding:

    —  Dependents of NINo applicants, unless they work or claim benefits.

    —  Individuals from overseas not working, planning to work, or claim benefits—for example, this will include many students.

    —  Migrants who are not of working age and not claiming benefits.

    —  Those with an existing national insurance number, for example returning UK nationals.

  9.  The statistics are derived as a byproduct of an administrative system not designed primarily for statistical purposes. For this reason the statistics do not, for example, distinguish between short-term and long-term migration and hence do not match the UN definition of migration.

The Worker Registration Scheme (WRS)

  10.  Following expansion of the European Union on 1st May 2004, the Government put in place transitional measures to regulate access to the labour market and to restrict access to benefits for nationals from new member states. Nationals of the A8 countries who wish to take up employment in the UK for a period of at least a month are generally required to register with the WRS.

  11.  The population covered on the WRS includes:

    —  Long-term international migrants from A8 countries working as employees in the UK.

    —  Visitors and short term migrants from A8 countries, staying for over a month, and intending to work as employees in the UK.

    —  Dependents of WRS applicants. It is likely that there is some double counting as dependents may also be registered in their own right on the WRS.

    but excludes:

    —  Migrants from A8 countries who are self-employed.

    —  A8 migrants staying for less than a month.

    —  A8 migrants who migrate or visit the UK for reasons other than work, for example including potentially many students.

    —  Migrants from non-A8 countries.

SECTION 2 NUMBERS AND CHARACTERISTICS OF IMMIGRANTS

What numbers are relevant to the impact of recent immigration?

  1.  According to UN statistics, 191 million people across the world were living abroad in 2005. Figures from the UK Census, in 2001, showed nearly 5 million UK residents born abroad. This represented 8% of the population. By 2006, the Labour Force Survey (LFS) indicated that this proportion had risen to 10% of the population. This growth provides one indicator of the effect of recent immigration on population numbers. However it should be recognised that this does not provide a direct measure of new arrivals, simply an indicator of net change in the foreign born resident population.

  2.  The latest available information showing the flow of foreign born long-term migrants into and out of the UK, based on the UN definition (see Box1.1) is for the calendar year 2005. Figures for foreign born migrants in 2006 will be published in Spring 2008. In the years 2001 to 2005, there were 2,258,000 foreign born arrivals into the UK for a year or more and 871,000 departures, indicating a net growth of foreign born residents of 1,387,000. The pattern of flows among UK-born residents over this period was very different. Around 897,000 left the country for a year or more and 394,000 returned, resulting in a net reduction in the UK born population of half a million in the years 2001 to 2005. For these reasons, the combined effect of migration among the foreign and UK born was to add 884,000 to the population in the five years to the end of 2005.

  3.  Trends in foreign born migration are shown in Figure 2.1. In 2005, there were 489, 000 arrivals of foreign born migrants and 193,000 departures indicating a net growth of 296,000 in this population. Overall migration contributed 185,000 to UK population growth, as there was a net fall of 111,000 in the UK born population.

Figure 2.1

FOREIGN BORN TOTAL INTERNATIONAL MIGRATION, 1991 to 2005


Latest figures to mid-2006

  4.  More recent figures, to mid-2006, are available for the total numbers of international migrants, without any separation of UK and foreign born. For the three most recent years, these recent figures include a relatively small improvement in the way ONS takes account of those people whose intentions about length of stay change after entry. Between mid-2001 and mid-2006, these figures indicate that the contribution of long-term migration to population growth was 939,000. Both in migration and out migration have increased since 2001. In the year to mid-2006, the flow of long-term migrants into the UK was 574,000 and the outflow was 385,000. The figures for the three years from mid-2003 to mid-2006 were higher than those seen in any earlier years since current methods for estimating migration were introduced in 1991 (see Figure 2.2)

Figure 2.2

UK TOTAL INTERNATIONAL MIGRATION, MID-1996 TO MID-2006


Source: Office for National Statistics: Registrar General's mid-2006 Population Estimates News Release, 22 August 2007

Citizenship

  5.  Table 2.1 shows the distribution by citizenship, as distinct from country of birth. In the year to mid-2006, there were 468,000 non-British migrants (compared to 505,000 in the year to mid-2005 and 433,000 in the year to mid-2004). Of these, citizens from the eight central and eastern European countries that acceded to the EU on 1 May 2004 (known as the A8) comprised 74,000 in the year to mid-2006, 77,000 to mid-2005 and 20,000 to mid-2004 (the year prior to accession). This change in flows is illustrated in the half-yearly figures for EU citizens shown in Table 2.2.

Table 2.1

TOTAL INTERNATIONAL MIGRATION, MID-YEAR ESTIMATES1: CITIZENSHIP, 2003-04, 2004-05 AND 2005-06


United
Kingdom
thousands
All
British
Non
European Union2
Commonwealth
citizenships
British
EU15
A103
A8
EU254
All
Old
New5
Other
foreign6

Inflow
2003-047
526
93
433
67
21
20
82
195
70
125
155
2004-05
593
87
505
68
78
77
146
202
69
133
157
2005-068
559
91
468
73
76
74
149
179
58
121
140
Outflow
2003-047
353
195
158
37
11
10
40
57
39
18
61
2004-05
334
188
146
37
4
3
42
58
35
23
47
2005-068
383
196
187
45
17
16
62
60
38
22
65
Balance
2003-047
+173
-101
+275
+30
+11
+9
+42
+138
+30
+108
+95
2004-05
+258
-101
+359
+30
+74
+74
+104
+144
+34
+110
+110
2005-068
+176
-105
+281
+28
+59
+57
+87
+119
+20
+99
+75

Crown copyright 2007
  
Source: Office for National Statistics: Registrar General's mid-2006 Population Estimates News Release,
22 August 2007

1  Based mainly on data from the International Passenger Survey. Includes adjustments for (1) those whose intended length of stay changes so that their migrant status changes (or "switchers"); (2) asylum seekers and their dependants not identified by the IPS (AS); and (3) flows between the UK and the Republic of Ireland.

The estimates of total international migration for the UK shown in this table differ from the international migration component of change for the UK. This is due to a slightly different methodology being used in Scotland and Northern Ireland to estimate international migration for the purposes of population estimation.

2  European Union estimates are shown for the EU15 (Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Irish Republic, Italy, Luxembourg, Netherlands, Portugal, Spain and Sweden), the A10 (Malta and Cyprus plus the A8), the A8 (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) and the EU 25 (EU15 and A10 groupings). British citizens are excluded from all groupings and shown separately. These estimates do not include the two new member states admitted to the EU in January 2007. These will be included in the 2007 international migration estimates.

3  The A10 estimates for the second half of 2003 are also included in the New Commonwealth and Other Foreign columns.

4  The EU25 estimate for 2003-04 comprises EU15 for the second half of 2003, EU25 for the first half of 2004.

5  For 2004 onwards, the New Commonwealth excludes Malta and Cyprus, these are included for the second half of 2003.

6  "Other foreign" are all citizenships that are not part of the EU or the Commonwealth groupings. For 2004 onwards, Other foreign excludes the eight Central and Eastern European member states that joined the EU in May 2004. These are included for the second half of 2003.

7  A new assumption for the proportion of visitors and migrants assuming to "switch" categories was introduced in 2004. Therefore, the 2003-04 year uses the previous assumption for the second half of 2003.

8  The 2005-06 estimates may change as they include provisional estimates for the first half of 2006.


Table 2.2

TOTAL INTERNATIONAL MIGRATION, HALF YEAR ESTIMATES1 BY EU CITIZENSHIP, 2004 TO MID-2006


United Kingdom
Thousands
Citizenship
2004
2005
2006
January-June
July-December
January-June
July-December
January-June

EU25
45
83
63
86
62
EU15
30
45
23
46
27
A8
15
38
39
38
36

Source: Office for National Statistics

1  Half year estimates add to the mid-year estimates


  6.  The latest available information showing details of reason for visit, age, gender of those entering the country is for the calendar year 2005. Equivalent detailed information for 2006 will be published in Spring 2008, although total numbers with limited detail (eg citizenship and region) will be published in November 2007.

  7.  Overall, nearly half of all citizens migrating to the UK gave work-related reasons (see Figure 2.3). "Formal study" is another important reason for people migrating to the UK, accounting for almost a quarter of all immigration in 2005. Almost 85% of those A8 citizens migrating to the UK in 2005 came for work reasons, that is, they were "looking for work" or had a "definite job" to go to.

Figure 2.3

TOTAL INTERNATIONAL IN-MIGRATION BY REASON FOR VISIT, 2005


  Source: Office for National Statistics: International Migration, Series MN no 32

  8.  The number of immigrants who were in manual and clerical occupations prior to migration has risen faster than other groups over the last five years (from 91,000 in 2001 to 147,000 in 2005), to comprise around a quarter of migrants in 2005 compared to around one fifth in 2001. In both years, professional and managerial occupations accounted for about a third and students about a quarter. The remainder were children and adults with no usual occupation. Both the number and proportion in these groups fell slightly over the five years.

Age distribution

  9.  The age distribution of migrants differs quite considerably from the population as a whole. Around 40% of long term migrants to the UK in 2005 were aged 15 to 24, compared to 13% for the UK population as a whole. Corresponding figures at ages 25-44 were 48% and 29%. A smaller percentage of migrants were aged under 15 (5%, compared to 18%) or 45 or over (7%, compared to 40%). There was an increase in immigrants aged 15-44, as a percentage of total UK population, between 1997 and 2005 (Figure 2.4).

Figure 2.4

SMOOTHED TOTAL INTERNATIONAL MIGRATION ESTIMATES BY BROAD AGE GROUP AS A PERCENTAGE OF THE TOTAL UK POPULATION (FOR EACH AGE GROUP)


  Source: Office for National Statistics: International Migration, Series MN no 32

  10.  Statistics on overseas nationals allocated a National Insurance number (NiNO) and entering the UK in 2005-06, show that 41% were aged 18-24 and a similar percentage were aged 25-34 (Table 2.3). Males (55%) outnumbered females (45%). This gender difference was evident at ages 25 and over, but not at younger ages. At ages under 18, those in full time education are excluded from figures based on NiNOs.

Table 2.3

OVERSEAS NATIONALS ENTERING THE UK IN 2005-06 AND ALLOCATED A NINO BY AGE AND GENDER


All
Male
Female

All
100%
55%
45%
<18
1%
1%
1%
18-24
41%
21%
21%
25-34
41%
23%
17%
35-44
11%
7%
4%
45-54
5%
3%
2%
55-59
1%
-
-
60+
-
-
-


  Source: 100% extract from National Insurance Recording System at 14 May 2007. Percentages are rounded to the nearest per cent and may not sum due to rounding. Arrivals figures subject to change as some migrants may take several months or years between arrival and NINo application/registration.

  "-" denotes nil or negligible.

Figure 2.5

TOTAL INTERNATIONAL IN-MIGRATION BY INTENDED LENGTH OF STAY, 2005


  Source: Office for National Statistics: International Migration, Series MN no 32

  11.  An estimated 44% of these new immigrants in 2005 intended to stay in the UK for 1-2 years, 19% for 3-4 years and 30% for more than 4 years (7% were not sure). Figure 2.5 shows that the main increase since 2001 has been in those intending to stay for 1-2 years.

Regions

  12.  Over the five year period mid-2001 to mid-2006, migration contributed to population growth in every region (Table 2.4). London received the largest number of international migrants (892,000), but also had the largest number of residents going abroad (491,000). As a result, migration contributed 401,000 to population growth in London.

Table 2.4

INTERNATIONAL MIGRATION: GOVERNMENT OFFICE REGION OF DESTINATION AND DEPARTURE IN ENGLAND, MID-2001 TO MID-2006

Thousands

Region
In Migration
Out Migration
Net Migration

England
2,445
1,554
891
  
North East
61
48
13
North West
196
148
48
Yorkshire and the Humber
213
104
109
East Midlands
151
87
64
West Midlands
166
105
61
East of England
221
154
67
London
892
491
401
South East
361
271
90
South West
184
147
37
Source: Office for National Statistics


  13.  Many local areas experience both high levels of in migration and high levels of out migration. For this reason, growth due to migration may understate the volume of change experienced in an area. Table 2.5 shows local areas where the combined level of in and out migration was high.

Table 2.5

LOCAL AUTHORITY AREAS WITH THE HIGHEST VOLUME OF INTERNATIONAL MIGRATION PER 1,000 POPULATION


Source:   Office for National Statistics

Notes

1.  Volume of migration per 1,000 population is calculated separately for all migration and international migration as (in migration + out migration)/population *1,000.

2.  Rates for the City of London and Isles of Scilly are based on less than 10,000 population.

-  Nil or less than half the final digit shown.

  14.  Table 2.6 shows NINo registrations by Government Office Region in 2006-07 and indicates how many of these were from people coming from the top 10 countries of origin. London accounted for the largest number of registrations (244,020 out of 713,450 for the UK as a whole), of which 43,420 were to those originating from Poland.

Table 2.6

NATIONAL INSURANCE NUMBER REGISTRATIONS IN RESPECT OF NON-UK NATIONALS IN 2006-07 BY GOVERNMENT OFFICE REGION AND TOP TEN COUNTRIES OF ORIGIN


Notes:

1.  Numbers are rounded to the nearest 10.

2.  Total may not sum due to rounding.

3.  Numbers are based on 100% data from the National Insurance Recording System (NIRS).

4.  Government Office Region is assigned by matching postcodes against the relevant postcode directory.

5.  Government Office Region counts are based on the most recently recorded address of the NINO recipient.

6.  "-" denotes nil or negligible.

7.  Overseas Residents—Foreign nationals who have registered for a NINO but reside abroad.

8.  2,260 cases are recorded as from countries which have dissolved (USSR, Czechoslovakia, Yugoslavia). These have been allocated pro-rata to their successor countries.

9.  450 cases had no country of origin recorded and are labelled "Not Specified".

Source: 100% sample at 14 May 2007 from the National Insurance Recording System (NIRS).


Figure 2.6

GEOGRAPHICAL DISTRIBUTION OF EMPLOYERS OF WORKERS REGISTERED ON THE WORKER REGISTRATION SCHEME, MAY 2004 TO JUNE 2007


  Source: Accession monitoring report

www.ind.homeoffice.gov.uk/aboutus/reports/accession_monitoring_report

  15.  Information on the regional distribution of employers of workers from the A8 countries, based on the Worker Registration Scheme, show a different pattern to that of all migrants (Figure 2.6). Between May 2004 and June 2007, Anglia had the greatest number of workers registering with employers in the area (15% of the total). This was followed by the Midlands and London (13 and 12%, respectively).

Births to migrants

  16.  The concentration of migrants in the 25 to 44 age group along with the cumulative growth in numbers born abroad have contributed to an increased proportion of births where one or more parents was born abroad. The figure for England and Wales was 21% in 2000 and rose to 27% in 2005 (Figure 2.7). The latest figure, for 2006, is 28%. By comparison, the figure in 1975 was 15%.

Figure 2.7

PERCENT OF LIVE BIRTHS TO A FOREIGN BORN MOTHER OR FATHER, ENGLAND AND WALES, 1975-2005


  17.  One of the factors contributing to the numbers of births to foreign mothers is the different levels of fertility between UK and foreign born. In both 2002 and 2008, the fertility rate for foreign born was 0.8 higher than for UK born (Table 2.7). Both groups experienced an increase in fertility rates between the two years.

Table 2.7

ESTIMATED TOTAL FERTILITY RATES BY MOTHER'S COUNTRY OF BIRTH, ENGLAND AND WALES


Place of birth of mother
Year
2002
2005

All mothers
1.6
1.8
UK born
1.5
1.7
Foreign born
2.3
2.5

Uses LFS populations by country of birth and birth registration data for E&W, 2002-06.

Source: Office for National Statistics.



SECTION 3 POPULATION PROJECTIONS AND MIGRATION

  1.  National population projections are based on existing population estimates and trend-based assumptions about fertility, mortality and migration. Currently available figures are 2004-based and were prepared by the Government Actuary's Department. They include both principal projections, using a set of central assumptions, and variants that make use of a range of high and low assumptions. New 2006-based projections will be published by ONS on 23 October. The assumptions to be used in producing these were published on 27 September.[1]

  2.  For the 2006-based projections, the new long-term assumption for net migration to the United Kingdom is a net inflow of 190,000 each year, compared with 145,000 a year in the previous projections (Table 3.1). It must be stressed that these assumptions about future migration, along with others in this section, are based on past trends and are not forecasts. The increase in the assumption is partly due to taking account of data for two new years (2004 and 2005) where net migration to the UK has been at record levels, and partly because of the impact of methodological changes following recent announcements of improvements to the estimation of international migration.[2] These methodological improvements also affect the assumed distribution of international migration between the countries of the UK.

Table 3.1

LONG-TERM ASSUMPTIONS FOR THE 2006-BASED NATIONAL POPULATION PROJECTIONS COMPARED WITH ASSUMPTIONS FOR THE 2004-BASED PROJECTIONS


United
Kingdom
England
Wales
Scotland
Northern
Ireland

Fertility—Long term average number of children per woman
2006-based
1.84
1.85
1.85
1.65
1.95
2004-based
1.74
1.75
1.75
1.60
1.80
  
Mortality—Expectation of life in 2031*
Males
2006-based
82.7P
83.0P
82.5P
80.5P
82.3P
  
2004-based
81.4
81.6
81.1
79.2
81.0
Females
2006-based
86.2P
86.4P
86.0P
84.9P
86.1P
2004-based
85.0
85.2
84.8
84.7
84.9
  
Net migration**—Annual long-term assumptions
2006-based
+190,000
+171,500
+9,500
+8,500
+500
2004-based
+145,000
+130,000
+11,500
+4,000
-500


* Expectations of life for 25 years ahead given as specimen year. Note these are period expectations of life based on the mortality rates assumed for the year 2031 and do not take account of the continuing improvement in mortality projected beyond 2031. Cohort life expectancies in the 2006-based projections, allowing for the assumed further mortality improvement, will be about 8.7 years higher for a boy born in the UK in 2031 and about 8.0 years higher for a girl born in 2031 than the period figures shown in the table.
** Net migration includes international migration and cross-border migration between the countries of the UK.
P Provisional.


  3.  The long-term assumption of average family size has been raised for the UK to 1.84 children per woman, an increase of 0.10 compared with the 2004-based projections. The long-term UK fertility assumption in official national projections has been lowered on a number of occasions since the 1960s baby boom,[3] but this is the first time it has been increased during that period. This follows several years of increasing fertility rates in all four countries of the UK.

  4.  The 2004-based projections indicated that the population of the UK is expected to continue to grow, driven by positive natural change (more births than deaths) and net in-migration. However, the key demographic challenge for the UK in the years ahead will be population ageing. Based on these projections, the proportion of the population that is aged over 65 is expected to rise from 16% in 2007 to 21% in 2027, and then to 26% by 2057,[4] due to continued increases in life expectancy and the ageing of the post-WW2 baby boomers.

  5.  A simple measure of demographic pressures associated with population ageing is provided by the dependency ratio. This calculates the ratio of dependents (children and those of state pension age) to those of working age. Under the Government Actuary's Department's 2004-based principal population projections, this dependency ratio rose from 61% in 2007 to 63% in 2027, and then to 74% by 2057.[5] These figures assumed positive long-term net migration to the UK of 145,000 per annum.

  6.  If it is instead assumed that there is zero net migration, the dependency ratio would be slightly higher at 66% in 2027, but would rise to 83% by 2057. This is because migrants into the UK are predominantly adults of young working age.

  7.  In addition, the published dependency ratios from the new projections will take account of the Pensions Bill 2007, which has recently become law. This will raise the state pension age, in three stages, to 68 for both sexes by 2046. However, since work on the new projections is not complete, the current submission is based on the 2004-based projections.

  8.  As part of their 2004-based work, GAD also produced a range of other variant scenarios using different combinations of assumptions about fertility, life expectancy and net migration, which can be compared to see how each affects the resulting dependency ratios. These assumptions, along with those dependency ratios, are shown in Table 3.2.

Table 3.2

DEPENDENCY RATIO PROJECTIONS UNDER VARYING POPULATION ASSUMPTIONS


Assumptions
Dependency Ratio, %
Fertility

Life Expectancy
Long-Term Net
Migrations
(000's pa)
2007
2017
2027
2044
2056
2066
2074

Principal Scenario
Principal
Principal
145
61
60
63
70
74
76
76
Zero Migration
Principal
Principal
0
62
61
66
78
82
84
86
High Medium-Term Dependency
High
High
85
61
63
68
76
N/A
N/A
N/A
Low Medium-Term Dependency
Low
Low
205
61
57
59
63
N/A
N/A
N/A
Young
High
Low
205
61
61
64
67
68
67
66
Low Migration
Principal
Principal
85
61
60
64
72
75
77
78
High Migration
Principal
Principal
205
61
59
63
68
72
74
75
High Fertility
High
Principal
145
61
62
66
71
74
74
74
High Population
High
High
205
61
62
66
73
78
80
81


  9.  For example, the Low Migration and High Migration scenarios demonstrate the effects of varying the migration assumption whilst holding fertility and life expectancy at their central levels. In both cases, the resulting dependency ratio is little different to that produced by the Principal scenario. Combining higher fertility rates with central life expectancy and migration has a slightly bigger impact on dependency ratios in the long term.

How confident can we be in assumptions about migration?

  10.  Migration is the most difficult component of population change to estimate accurately. It is also by far the most difficult component to forecast as migration flows are influenced by a range of socio-economic and political circumstances in sending and receiving countries, many of which will be difficult or even impossible to predict.

  11.  One recent analysis of the accuracy of UK national population projections[6] found that the mean absolute error in assumptions of net migration to the UK has been around 60,000 10 years ahead and 100,000 after twenty years. A separate analysis[7] suggests that the accuracy of UK migration forecasts has been around the European average.

  12.  However, while these total migration errors are sizeable, their impact is spread across a range of ages. Many users of population projections are, of course, more concerned about the size of the population in specific age groups than with the size of the total population. And here, the analysis of past UK projections showed that, in the short to medium-term, projections of the working age population (where migration is the main uncertainty) are far more accurate than those for the very youngest and oldest age groups. For example, errors in projections of the population aged 20-64 10 years ahead have averaged around 1 to 2% compared with errors of around 10% for the 0-4 or 85+ age-groups.

SECTION 4 EMPLOYMENT OF IMMIGRANTS

  1.  The analysis below draws heavily on the Labour Force Survey (LFS). It should be noted that the LFS figures on the foreign-born population do not match the UN definition of "long-term international migration" in Box 1.1 (see Annex B). They cover the foreign-born household population, irrespective of year of arrival. Also they do not cover certain short-term migrants and those living in communal establishments. One consequence of the latter point is that the number of foreign-born workers in sectors such as construction and agriculture may be under-reported.

In what sectors and occupations are immigrants employed?

  2.  A significant proportion of foreign-born are working in the public administration, education and health (32%), distribution, hotels and restaurants (21%) and banking, finance and insurance (20%) sectors (Table 4.1). A8 foreign-born are particularly concentrated in the distribution, hotels and restaurants (24%), manufacturing (21%) and construction (14%) sectors.

Table 4.1

PERCENTAGE OF FOREIGN-BORN AND UK-BORN WORKING IN EACH INDUSTRIAL SECTOR, 2006


Industrial Sector
UK-born
A8 foreign-born
Other foreign-born
%
%
%

Agriculture and fishing
1
1
-
Energy and water
1
-
*
Manufacturing
13
21
10
Construction
9
14
3
Distribution, hotels and restaurants
19
24
21
Transport and communication
7
10
7
Banking, finance and insurance
16
12
20
Public admin, education and health
29
11
32
Other services
6
8
6
Total
100
100
100

Source: A four-quarterly average is used, LFS Q1 to Q4 2006.
*  Denotes where sample size is too small to report a robust estimate.
-  Less than 0.5%.
Totals may not sum due to rounding.


  3.  A large proportion of the foreign-born (49%) work in higher skilled occupations, while only around 12% work in elementary occupations (Table 4.2). The majority of A8 foreign-born work in elementary occupations (38%), as process, plant and machine operatives (16%) and skilled trade occupations (15%).

Table 4.2

PERCENTAGE OF FOREIGN-BORN AND UK-BORN IN EACH OCCUPATIONAL GROUP, 2006


Occupational Group
UK-born
A8 foreign-born
Other foreign-born
%
%
%

Managers and Senior Officials
15
4
16
Professional occupations
13
5
18
Associate Professional and Technical
14
4
15
Administrative and Secretarial
12
5
9
Skilled Trades Occupations
12
15
8
Personal Service Occupations
8
9
8
Sales and Customer Service Occupations
8
4
7
Process, Plant and Machine Operatives
8
16
7
Elementary Occupations
11
38
13
Total
100
100
100

Source: A four-quarterly average is used, LFS Q1 to Q4 2006.
*  Denotes where sample size is too small to report a robust estimate.
Totals may not sum due to rounding.


How do immigrants' labour market outcomes—including their employment rates and earnings—compare to those of local workers?

  4.  The Labour Force Survey shows that both UK and foreign-born employment has risen in the UK over the last 10 years. The UK employment rate rose until 2001 and has remained at around 75% for the last five years. The overall foreign-born employment rate has improved to reach 68%, closing the "UK born/migrant employment rate gap" from 10 percentage points in 1997 to 7 percentage points in 2006 (Figure 4.1). The employment rate of the foreign-born has increased as more migrants appear to be coming to the UK for work-related purposes than in the past. These figures are based on the standard definition of the employment rate (employment as a proportion of the working age population). It is worth noting that employment as a proportion of the total population is higher for the foreign-born than for the UK-born (54% against 48% in the final quarter of 2006), due to the different age profile of migrants.

Figure 4.1

UK AND FOREIGN-BORN EMPLOYMENT RATES, Q2 1997 to Q4 2006


  Source: Labour Force Survey.

  5.  The current foreign-born employment rate of 68% hides a large variation in labour market outcomes for those from different country groups (Figure 4.2).

Figure 4.2

MALE AND FEMALE EMPLOYMENT RATES BY COUNTRY OF ORIGIN, Q4 2006


  Source:  Labour Force Survey.

  6.  Foreign-born men compare quite well to UK men in employment outcomes, with the exception of those from the Middle East who have an employment rate of 56%, 23 percentage points lower than UK men (79%). Further research is needed to understand the reasons for these differences, but one possibility is that different groups have different reasons for coming to the UK. Certain groups may predominantly come to the UK to seek work. Others may come for non-work reasons, for example due to family considerations, lifestyle factors, or to escape from poverty or instability in their country of origin.

  7.  Employment outcomes for foreign-born women are worse than those for UK-born women. This is particularly true for Pakistani women (who have an employment rate of 23%, 50 percentage points lower than UK women) and for Bangladeshi women (who have an employment rate of 19%). This difference could arise for a combination of factors, such as English language ability and cultural differences.

  8.  The approximate 50:50 gender split of the foreign-born UK working age population means that low female employment rates in most migrant groups significantly reduce overall employment rates. For example, the employment rate for Pakistani men is 6 percentage points lower than for UK men, but the female rate is 50 percentage points lower than for UK females, resulting in the overall Pakistani employment rate being 26 percentage points lower than for all UK born.

  9.  Compared to the UK born employment rate of 76%, foreign-born from Romania and Bulgaria (94%), South Africa (85%), Australia and New Zealand (84%), the A8 countries (81%) and EU15 countries (76%) have higher employment rates than UK born workers.

  10.  The employment rate of foreign-born is lower than for UK-born at all levels of education, although the size of the gap falls as the level of education rises (Figure 4.3).

Figure 4.3

EMPLOYMENT RATES BY LEVEL OF EDUCATION, Q4 2006


  Source:  Labour Force Survey.

  11.  The proportion who were economically inactive, in the final quarter of 2006, was 14% of the working age population born in A8 countries and 20% amongst those born in the UK and other EU countries (Figure 4.4). The equivalent figure for all overseas-born was 26%.

Figure 4.4

PROPORTION OF WORKING AGE POPULATION[8] THAT ARE ECONOMICALLY INACTIVE, Q4 2006


  Source:  Labour Force Survey.

  12.  Overall (Figure 4.5), all foreign-born have a similar self-employment rate (15%) to the UK born (13%). Some migrant groups such as those from Romania and Bulgaria (55%), Pakistan (30%) and the Middle East (24%) have above-average proportions of employed workers in self-employment. A8 foreign-born are notable because the proportion in employment that are self-employed has fallen over the last three years from over 21% in the final quarter of 2004 to about 11% in the same quarter of 2006.

Figure 4.5

PROPORTION OF THOSE IN EMPLOYMENT THAT WERE SELF-EMPLOYED, Q4 2004 TO Q4 2006


  Source:  Labour Force Survey.

  13.  Since 2001, average UK-born wage levels have steadily risen while average foreign-born wages have fallen, causing the weekly wage gap to fall from £76 in 2001 to £28 in 2006 (Figure 4.6). This apparent fall in wages amongst foreign-born workers is a composition effect. Over time, the proportion of foreign-born workers from EU15 countries (who tend to be found in well-paid jobs) has fallen, whilst the proportion from other countries (many of whom are found in less well-paid jobs) has risen. In the last three years, the proportion of foreign-born workers from the A8 countries (who typically take low-paid jobs) has increased significantly. Overall, there are now a greater proportion of foreign-born workers in low-paid jobs than five years ago, and so the average wage for foreign-born workers has decreased.

Figure 4.6

MEAN GROSS WEEKLY WAGE OF FOREIGN-BORN AND UK-BORN, 2001-2006, Q4 2007 PRICES


  Source:  Labour Force Survey.

  14.  The figures in Figure 4.7 and 4.8 are calculated on a slightly different basis to those presented above, as they are based only for full-time workers. They demonstrate that full-time workers from developed Western economies and the Middle East earn more than their UK-born counterparts. In contrast, those from the A8 countries earn noticeably less than UK-born workers.

  15.  On average, foreign-born workers in full-time employment have higher skill levels than their UK-born counterparts. This is particularly true for those from the countries on the left-hand side of these figures. These higher average skill levels explain why the foreign-born have higher average wages than the UK-born.

Figure 4.7

MEAN WEEKLY WAGE FOR MALES IN FULL TIME EMPLOYMENT BY REGION OF BIRTH, JANUARY TO DECEMBER 2006


  Source:  Labour Force Survey.

Figure 4.8

MEAN WEEKLY WAGE FOR FEMALES IN FULL TIME EMPLOYMENT BY REGION OF BIRTH, JANUARY TO DECEMBER 2006


  Source:  Labour Force Survey.

Employment by occupation, level of qualification and year of arrival

  16.  As indicated in the first part of this section, figures that focus on all foreign-born residents in the country cover a wider population group than recent migrants. Tables 4.3 and 4.4 provide an indication of the relationships that exist between year of arrival, occupation, level of qualification and country of birth.

Occupations

  17.  As shown in Table 4.3, the proportion of those employed in elementary occupations is higher among the overseas-born (15%) compared with the UK-born (11%), especially among those from EU countries (20%). The difference is greater for those who arrived in the UK within the past five years. For this group, among those from EU countries (other than the UK), 37% were in elementary occupations, compared to 19% for those from outside the EU. The larger percentage for the EU countries is attributable to the high proportion (45%) for those born in the A8 accession countries.

  18.  There were similarly notable differences for this group of recent immigrants in terms of the proportions employed as "managers and senior officials" and in "professional occupations". These two broad groups comprised 14% of those born in EU countries other than the UK but just 5% for the A8-born. This compares with 27% for those from outside the EU, 28% for the UK-born in employment and 34% among those from other EU-15 countries.

  19.  There is a tendency for employment in elementary occupations to be more common among more recent immigrants. This is not a particularly age-related phenomenon. Those under 25 and over 25 showed similar differences in the occupational distribution for the A8-born compared with other migrants.

Table 4.3

PEOPLE IN EMPLOYMENT OF WORKING AGE1 BY COUNTRY OF BIRTH, OCCUPATION AND YEAR OF ARRIVAL. UNITED KINGDOM, 2006


Per cent
Country of birth
  
Total
UK-born
Overseas-born
of whom:
Born outside
EU2
Born in
EU2
Born in
EU-153
Born in A8
countries4

Occupation group
Total
  Total (thousands)5
27,132
24,111
3,022
2,099
922
597
275
  Total (per cent)
100
100
100
100
100
100
100
  1  Managers and Senior Official
15
15
15
15
13
17
3
  2  Professional occupations
13
13
16
17
15
19
5
  3  Associate Professional and Technical
14
14
14
15
12
17
4
  4  Administrative and Secretarial
12
12
9
10
7
8
4
  5  Skilled Trades Occupations
11
12
9
8
11
9
16
  6  Personal Service Occupations
8
8
8
8
8
8
8
  7  Sales and Customer Service Occupations
8
8
7
7
6
6
4
  8  Process Plant and Machine Operatives
7
7
8
7
9
6
17
  9  Elementary Occupations
11
11
15
13
20
12
40
Year of arrival 1996 and earlier
  Total—all occupations (thousands)5
-
:
1,638
1,183
455
391
17
  Total—all occupations (per cent)
-
:
100
100
100
100
100
  1  Managers and Senior Official
-
:
18
19
18
17
16
  2  Professional occupations
-
:
18
18
16
16
21
  3  Associate Professional and Technical
-
:
14
14
16
17
12
  4  Administrative and Secretarial
-
:
10
11
9
9
11
  5  Skilled Trades Occupations
-
:
8
8
9
9
13
  6  Personal Service Occupations
-
:
7
7
7
7
4
  7  Sales and Customer Service Occupations
-
:
6
6
6
6
9
  8  Process Plant and Machine Operatives
-
:
8
8
7
7
8
  9  Elementary Occupations
-
:
10
10
11
11
6
Year of arrival 1997-2001
  Total—all occupations (thousands)5
-
:
528
409
119
92
27
  Total—all occupations (per cent)
-
:
100
100
100
100
100
  1  Managers and Senior Official
-
:
12
11
14
17
6
  2  Professional occupations
-
:
18
17
24
28
10
  3  Associate Professional and Technical
-
:
15
16
14
17
7
  4  Administrative and Secretarial
-
:
8
8
8
8
7
  5  Skilled Trades Occupations
-
:
9
8
13
7
33
  6  Personal Service Occupations
-
:
9
9
9
8
11
  7  Sales and Customer Service Occupations
-
:
8
8
5
5
6
  8  Process Plant and Machine Operatives
-
:
6
8
1
1
2
  9  Elementary Occupations
-
:
14
15
11
9
18
Year of arrival 2002-06
  Total—all occupations (thousands)5
-
:
825
487
338
105
230
  Total—all occupations (per cent)
-
:
100
100
100
100
100
  1  Managers and Senior Official
-
:
9
11
6
13
2
  2  Professional occupations
-
:
13
16
9
21
3
  3  Associate Professional and Technical
-
:
12
16
7
16
3
  4  Administrative and Secretarial
-
:
6
9
3
4
3
  5  Skilled Trades Occupations
-
:
9
7
12
7
14
  6  Personal Service Occupations
-
:
9
10
8
9
8
  7  Sales and Customer Service Occupations
-
:
7
8
5
8
3
  8  Process Plant and Machine Operatives
-
:
9
4
15
4
20
  9  Elementary Occupations
-
:
26
19
37
19
45

Source: ONS Annual Population Survey
1  Men aged 16-64 and women aged 16-59.
2  EU-25 countries (including EU-15, A8 countries plus Cyprus and Malta).
3  France, Germany, Italy, Belgium, Netherlands, Luxembourg, Demark, Ireland, Spain, Portugal, Greece, Austria, Sweden, Finland, UK (not applicable).
4  Hungary, Poland, Czech Republic, Slovakia, Estonia, Latvia, Lithuania and Slovenia.
5  Includes those who did not state their occupation, but percentages are based on totals which exclude this group.
-  Totals for all UK residents by year of arrival not shown as this is only relevant to the overseas-born
:  Not applicable.
It should also be noted that the country of birth question in the APS (and LFS) gives an undercount because:
  —  it excludes those who have not been resident in the UK for six months.
  —  it excludes students in halls who do not have a UK resident parent.
  —  it excludes people in most other types of communal establishments (eg hotels, boarding houses, hostels, mobile home sites).
  —  it is grossed to population estimates that only include migrant staying for 12 months or more.
  —  microdata is only grossed to population estimates consistent with those published in spring 2003 which are significantly lower than the lastest population estimates.


Qualifications

  20.  Table 4.4 shows the proportion of people employed with a degree or equivalent qualification in 2006 was higher among the overseas-born (27%) than the UK-born (22%). This was almost entirely due to the relatively high proportion among those born outside the EU (29%) and those from the EU-15 countries (28%). For the A8-born the proportion was only 9%. Among more recent immigrants (those who came to the UK in the past five years), all these proportions were lower, including those born in A8 countries (7%). The proportions of those employed with no qualification were also notably higher for this group of recent immigrants—18% for those born in A8 countries, 15% for other EU countries overall, 9% for the EU-15 and 10% for those from outside the EU. These compare with 9% for the UK-born. Again, as for the occupation distributions, these differences in qualification profiles do not appear to be caused by any marked age-related effect, comparing the distributions for those under 25 and those over 25.

Occupations and qualifications

  21.  Differences in educational attainment are likely to explain some of the differences in occupational distributions discussed above, but not all. For example, recent immigrants with degrees or equivalent qualifications are less likely than their UK-born counterparts to be employed in managerial and professional occupations (50% compared with 62% respectively) and more likely to be employed in elementary occupations (9% compared with 1%).

Table 4.4

PEOPLE IN EMPLOYMENT OF WORKING AGE1 BY COUNTRY OF BIRTH, HIGHEST QUALIFICATION AND YEAR OF ARRIVAL. UNITED KINGDOM, 2006


  
Per cent
Country of birth
  
Total
UK-born
Overseas-born
of whom:
Born outside
EU2
Born in
EU2
Born in
EU-153
Born in A8
countries4

Highest qualification
Total
  Total (thousands)5
27,132
24,111
3,022
2,099
922
597
275
  Total (per cent)
100
100
100
100
100
100
100
  Degree or equivalent
22
22
27
29
22
28
9
  Other qualification/don't know
69
69
62
60
66
62
75
  No qualification
9
9
11
11
12
10
16
Year of arrival 1996 and earlier
  Total—(thousands)5
-
:
1,638
1,183
455
391
17
  Total—all qualifications (per cent)
-
:
100
100
100
100
100
  Degree or equivalent
-
:
31
33
25
26
32
  Other qualification/don't know
-
:
58
55
64
63
60
  No qualification
-
:
12
12
11
11
6
Year of arrival 1997-2001
  Total—(thousands)5
-
:
528
409
119
92
27
  Total—all qualifications (per cent)
-
:
100
100
100
100
100
  Degree or equivalent
-
:
27
25
35
41
11
  Other qualification/don't know
-
:
63
64
58
51
81
  No qualification
-
:
10
11
7
8
7
Year of arrival 2002-06
  Total—(thousands)5
-
:
825
487
338
105
230
  Total—all qualifications (per cent)
-
:
100
100
100
100
100
  Degree or equivalent
-
:
19
22
14
27
7
  Other qualification/don't know
-
:
69
68
71
64
75
  No qualification
-
:
12
10
15
9
18

Source: ONS Annual Population Survey
1  Men aged 16-64 and women aged 16-59.
2  EU-25 countries (including EU-15, A8 countries plus Cyprus and Malta).
3  France, Germany, Italy, Belgium, Netherlands, Luxembourg, Demark, Ireland, Spain, Portugal, Greece, Austria, Sweden, Finland, UK (not applicable).
4  Hungary, Poland, Czech Republic, Slovakia, Estonia, Latvia, Lithuania and Slovenia.
5  Includes those who did not state their occupation, but percentages are based on totals which exclude this group.
-  Totals for all UK residents by year of arrival not shown as this is only relevant to the overseas-born
:  Not applicable.
It should also be noted that the country of birth question in the APS (and LFS) gives an undercount because:
  —  it excludes those who have not been resident in the UK for six months.
  —  it excludes students in halls who do not have a UK resident parent.
  —  it excludes people in most other types of communal establishments (eg hotels, boarding houses, hostels, mobile home sites).
  —  it is grossed to population estimates that only include migrant staying for 12 months or more.
  —  microdata is only grossed to population estimates consistent with those published in spring 2003 which are significantly lower than the lastest population estimates.


Labour market status of migrants

  22.  An analysis of the labour market status of migrants compared with the UK-born population recently appeared in an article published on the National Statistics website: "Labour market summary for the household population by country of birth" (See

http://www.statistics.gov.uk/cci/article.asp?ID=1736&Pos=1&ColRank=1&Rank=1).

  23.  This analysis of LFS data focused on all the foreign-born population covered by the survey, not just recent immigrants, but it picked out some key developments over the four-year period from 2002 to 2006. In summary:

    —  Over the four years to April-June 2006, the overseas-born population of working age increased by 947,000 (26%) while the UK-born population of working age increased by 44,000 (0.1%).

    —  The A8 group accounts for just 7% of the overseas-born, but showed a much larger percentage increase than other groups over the past four years. There was an increase of over 400% , from nearly 60,000 to around 310,000, for this group.

    —  The employment level for the overseas-born population increased by 740,000 over the same four-year period, to Spring 2006, while the employment level for the UK-born population barely changed. Most of this increase (around 510,000) was amongst those born outside the EU. However the remaining increase of some 230,000 for those born in EU countries, was mostly explained by a very steep rise in employment for the A8-born sub-group of over 210,000, from nearly 40,000 to over 250,000 (an increase of more than 600%).

    —  In 2006, those born in the A8 countries had the highest employment rate (82% of those of working age). This represented a substantial increase from around 60% in 2002 and 2003. By comparison, employment rates in 2006 were 75% for both the UK-born and those from other EU countries and 64% among those of working age from the rest of the world.

    —  The unemployment rate in 2006 among the overseas-born was nearly 8% among those of working age who were economically active. The rate for those from EU countries was similar to UK-born at about 5%, compared with 9% for those from the rest of the world.

    —  The proportion who were economically inactive, in 2006, was 12% of the working age population born in A8 countries, 21% for both UK and other EU countries and 29% for the rest of the world. (27% for all the overseas-born in total).

Benefit claims

  24.  National Insurance Number (NINo) allocation data provide information on the inflows of those overseas nationals who come to the UK in a given year and make a claim for benefits within 6 months of registration. In 2005-06 the level of benefit claims was low with only 16,000 foreign nationals claiming a benefit within six months of registration. This is despite the overall total of those arriving in 2005-06 and registering for a NINO rising to 562,000 from 294,100 in 2001-02. The largest number claimed Job Seekers' Allowance (JSA), but the level was still very low.

Table 4.5

BENEFIT CLAIMS WITHIN SIX MONTHS OF REGISTERING FOR A NATIONAL INSURANCE NUMBER BY CONTINENT OF ORIGIN, 2005-06 ARRIVALS


Continent of
Origin
2005-06
Arrivals
Incapacity Benefit/
Severe Disability
Allowance
Income Support
Job Seekers' Allowance
Number
Number
Rate (Per
1,000)
Number
Rate(Per
1,000)
Number
Rate (Per
1,000)

All
562,200
1,400
3
1,300
2
13,000
23
Accession
262,400
300
1
-
-
1,300
5
Africa
50,700
300
5
600
11
3,200
64
Asia and Middle
East
105,300
200
2
300
3
1,300
12
Australasia and
Oceania
26,900
-
1
-
-
100
5
European Union
(excluding
accession states)[9]
81,400
400
5
300
3
6,300
78
Other
1,300
100
66
-
10
300
223
Other European
11,400
100
5
100
5
300
25
The Americas
22,700
-
1
-
1
200
8

Source: 100% extract from National Insurance Recording System linked with DWP benefit data at 14 May 2007.


  25.  The proportion of Accession state nationals claiming a benefit within six months of registering for a NINo is one of the lowest next to those from Australasia. Those overseas nationals from the EU15, Africa and other countries had the highest claimant rates.

SECTION 5 HOW CAN DATA ON IMMIGRATION BE IMPROVED?

Context

  1.  It is increasingly important to have high quality statistics on migration and the population, for policy development and for planning and providing public services—it is the largest component of population change. Achieving this aim is challenging in the context of increasing globalisation, accompanied by complex individual lifestyles and dramatic changes in patterns of migration to and from the UK over the last decade.

  2.  In a period of rapid change, population migration (that is individuals changing their place of residence) can have a profound effect on economic and social policy and service delivery. In these circumstances relevant, accurate and timely statistics are particularly necessary—to support the development and monitoring of new and existing policies, planning and resource delivery and to describe the social change that is taking place.

  3.  In May 2006, the Inter-Departmental Task Force on international migration statistics was set up by the National Statistician to recommend timely improvements that could be made to estimates of migration and migrant populations in the United Kingdom, both nationally and at local level. The Task Force report was published in December 2006.[10]

The challenges in making accurate estimates

  4.  International migration can often be a very complex process (see example diagram below). It can involve multiple decisions, made at different stages in the process of changing residence, both by the individuals concerned and by others (eg employers and those involved in immigration control). This has made it difficult to adopt a single measurement tool that meets all needs.

Figure 5.1

TIMELINE SHOWING THE RELATION BETWEEN INFORMATION SOURCES AND KEY MIGRATION EVENTS


  5.  The Task Force Report indicated that tracking changes in the pattern of migration in a timely fashion (particularly those resulting from globalisation and EU expansion) has proved difficult using existing sources, methods and definitions because:

    —  no systematic register exists of all people entering or leaving the country;

    —  population and migration statistics are currently based solely on the UN definition of a long-term migrant (a person who migrates for over 12 months, see Box 1;

    —  limited data are available to separately identify short-term migrants (3-12 months) or seasonal workers and even fewer statistics are routinely published about these groups;

    —  information on intended length of stay collected at ports (eg on the International Passenger Survey) may differ from that obtained in-country;

    —  administrative registers (eg NHS patient registers) only collect residence information on migrants once they have registered (by which time they may have moved address several times). No information on intended stay is recorded and actual duration in the country is not well documented. These factors make it difficult to estimate geographic distributions of international migrants or to link length of stay to employment patterns;

    —  most administrative sources that identify new arrivals in the country (eg Worker Registration Scheme) or record place of residence for all those registered (eg NHS and NI registration), have little or no direct information on emigration; and

    —  at present, the only reliable source of information on emigration is the International Passenger Survey. The number of emigrants interviewed in this survey each year is relatively small.

  6.  The exclusion of short term migrants from these figures has, additionally, raised concerns about the relevance of the current range of available population statistics. The numbers of short term migrants present at any time impacts significantly on society and the economy.

  7.  The report concluded that:

    —  there is no quick fix;

    —  there must be a continuous programme of improvement to meet changing needs; and

    —  improvements require central and local government, devolved administrations and other partners to work together.

  8.  It identified an aspiration "to move to a situation where we have timely, accurate estimates of the number of people coming into, going out of and present in the country for different durations and reasons (short and long term residence, seeking refuge, study, etc). Sufficient detail (eg geographic breakdowns) would be available to meet key requirements for population and migration statistics. This would be accompanied by the capacity to interpret trends and anticipate how changes and new uses will impact on the requirement for statistics".

Recommendations of the Task Force

Recommendation A

  Improve information about migrants as they enter or leave the country:

    —  Establish a port survey to capture an increased sample of migrants, especially emigrants. Bring forward key elements of the e-Borders project, including passport scanning. Improvements to statistics could be delivered in three to five years.

    —  Provide more data on controlled migrants from landing cards, in particular, duration of stay and destination in the UK. Link data to subsequent information about the migrant. A sample of all travellers would need to complete a landing card on arrival in the UK.

    —  Collect migration-related information from the points-based information system being developed to manage the flow of migrants coming to the UK to work or study.

Recommendation B

  Improve information about migrants living in this country:

    —  Survey people living in communal establishments, who are not currently covered by ONS household surveys. Make more use of information on migrants collected by local authorities, employers or agencies providing work for migrants.

    —  Include in the 2011 Census questions that identify short-term and long-term migrants.

    —  ONS and devolved administrations should have access to timely administrative information that potentially identifies migrants.

Recommendation C

  Link official data sources to relate migrants' intentions at entry to the UK to subsequent events, such as employment, having a child and when they leave the country:

    —  Explore the potential for using a current survey, the Work and Pensions Longitudinal Study, to provide information on patterns of employment, children and benefits among migrants.

    —  ONS and the devolved administrations should continue to have access to the population statistics items, available on individual level health registers, that are needed to estimate migration.

    —  Access should be provided to individual level School Census data for statistical purposes, to allow linking with other sources so as to improve the statistics on migrants and their families.

Recommendation D

  Improve key indicators of migrant numbers and trends:

    —  Improve the use of statistical and demographic models to enhance migration and population estimates.

    —  Convene an expert committee on migration statistics reporting to the National Statistician to provide an up to date interpretation of current UK migration statistics.

Recommendation E

  Publish all statistics collected across government on migration and migrants in a single UK-wide report:

    —  Provide a more coherent picture than is available from the wide range of disparate information currently available.

    —  The National Statistics Centre for Demography, part of ONS, should publish an Annual Report on Migration Statistics.

What improvements are already being put in place?

  9.  The Government has begun to take action on a number of fronts to improve the range and quality of statistics about international migration.

OFFICE FOR NATIONAL STATISTICS

  10.  ONS is undertaking a substantial and long-term programme of work to improve population statistics. The aim of this work is to improve the quality of both migration and other population statistics so as to minimise the risk of divergence between the 2011 Census population estimates and those based on the 2001 Census. However, recognising that differences between two sets of estimates are inevitable, a key part of the aim of the improvement work is also to provide a better understanding of the differences that remain.

  11.  This work has highlighted several improvements to methodology that can be made immediately. These will principally impact on the distribution of the national population to local areas through making improvements to the distribution of international migrants. Five strands to the improvements to migration estimates were implemented on 22 August 2007:

    —  Combining information from the Labour Force Survey (LFS) and the International Passenger Survey (IPS) to improve the regional distribution of national international in-migration estimates.

    —  Replacing existing intermediate geographies with one that produces more robust estimates.

    —  Improving the way international out-migrant estimates are distributed between local authorities in each region of England and in Wales—by distributing IPS figures to local areas using new factors that reflect propensity to migrate.

    —  Improving the basis for making assumptions about the proportion of people who will not realise their original intentions at the time of travel, in terms of their expected length of stay in the destination country—these are known as migrant switchers and visitor switchers.

    —  Improving the method for estimating the age distribution of international migrants to and from local authorities in England and Wales.

  12.  These improved methods were incorporated in the first release of mid-2006 population estimates and in revisions to published estimates for mid-2002 to mid-2005.[11]

  13.  The improved methods being implemented in 2007 relate to the usually resident population of each area and the international migration component of these figures. For this purpose, the United Nations recommended definition of a long-term international migrant is used (a person who moves to a country other than that of his or her usual residence for a period of at least a year). The estimates do not take account of people moving for less than a year.

  14.  ONS is currently developing estimates of the numbers of short term migrants coming into, going out of and present in the country each year. It is planned to produce estimates at a national level in October 2007, for the years to mid-2004 and mid-2005. These will also include estimates of average length of stay. Methods for producing short-term migration estimates at sub-national levels are being researched.

  15.  For the longer-term, ONS is also looking at the feasibility of producing population estimates on alternative bases, using information obtained from questions being developed for use in the 2011 Census and continuous population surveys.

  16.  ONS development work is focussed on making improvements in data collection and in the statistical methods used to combine the information that exists on migrants from across government. Recent development work to improve data collection and collation is listed below:

    —  The size of the sample of international out-migrants in the IPS was increased from January 2007.

    —  New questions were included in the IPS from 2004 to help estimate how many people change their original intention on length of stay.

    —  Statistical requirements have been fed into the Home Office electronic borders (e-Borders) programme to ensure that benefits become available as the programme is rolled out.

    —  Requirements for collecting better information about migrants have fed into the development of the new enlarged household survey, starting in 2008, and into the 2011 Census.

    —  ONS is currently conducting a review of port surveys and will report its findings in due course.

    —  Recent developments on ONS independence and the Statistics and Registration Services Act have led to the establishment of an Administrative Data Strategic Development (ADSD) Project within ONS to ensure improved access to administrative data and development of record linkage methods.

  17.  A review of the potential use of administrative sources in the estimation of population statistics. This paper compares estimates of international migration at local authority district level available from three administrative data sources (the Worker Registration Scheme, National Insurance Number allocations, and recording of new registrations with NHS General Practitioners). Comparisons are also made with ONS estimates. It concludes that, for the majority of local areas, patterns are similar. However in some areas there are large differences between sources. Among the most important reasons for these differences are that different populations are covered, that inclusion in each source is based on different lengths of stay in the country and that registration is not compulsory on some of the systems.

HOME OFFICE

  18.  The Border and Immigration Agency (BIA) is reviewing what statistics are produced and published and the frequency of publication. This review, following up a National Statistics Quality Review (NSQR)[12] was signalled by the Home Secretary in the House of Commons on 9 July 2007.

  19.  The review will examine the current scope, level of detail and frequency of BIA's published statistics on control of immigration—with a view to more balanced representation of the Agency's operations and responsibilities.

  20.  Good quality and timely data within BIA is essential for both operational purposes and longer term planning purposes. Thus as part of the Home Office reform plan that deals with data quality (including its specification of a minimum quality needed for any published statistics), BIA is striving to improve the quality of its operational data.

DEPARTMENT FOR WORK AND PENSIONS

  21.  The Information Directorate (IFD) within DWP publish annual National Statistics on overseas workers allocated a National Insurance number (NINo) by Jobcentre Plus. Complete NINo-based data are sourced from the National Insurance Register (NIRS) and tabulated by year of arrival and registration, continent/country of origin, region of residence, gender, age band, and subsequent benefit claims. Data are held at individual level with 100% coverage and are particularly valuable as a local area indicator (data are published at Parliamentary Constituency and Local Authority District level) and for longitudinal analysis.

  22.  IFD also hold a range of other information that has been linked, using NINo, to other datasets produced by IFD. One of these data sets, the Lifetime Labour Market Database (L2) is a 1% sample of NIRS providing a comprehensive set of information on NI contributions, tax records, basic pension qualifying years, from which to build up a picture of migrant workers activity and employment patterns. Migrant data has also been linked to the Work and Pensions Longitudinal Study (WPLS), produced by IFD, which covers all benefit and employment spells (employment is based on HMRC P45/46 data).

  23.  IFD now receive quarterly data on migrant worker NINo registrations. Subject to successful completion of ongoing work on automation and quality assurance, IFD aim to release quarterly data from November 2007. Current tabulations include numbers claiming benefit within six months of registration/arrival and, as many are not entitled to claim for the first 12 months, this has limited information value. The possibility of providing information for longer time lapse periods than six months is currently being investigated.

  24.  Work to track cohorts of migrants provides an upper bound on the numbers that may have left the country. Some tracking work has been undertaken using 1% NIRS data and, separately, the Work and Pensions Longitudinal Study (WPLS). The NIRS data is a rich source of information enabling a picture of economic activity to be built up based on contribution data. The WPLS is more timely but a less rich source of information and, unlike the NIRS data, has the advantage of not being sample based. Until further validation, and broader quality assurance work on the employment element of WPLS employment data is completed, the 1% NIRS data is the preferred source of employment information. The intention is to publish preliminary results of this work in late 2007/early 2008.

  25.  DWP has commissioned work from Leicester University and the London School of Economics to use the 1% NIRS data to look at economic activity of migrant workers. The first element of this work is due to report by the end of the calendar year.

  26.  DWP are considering the following forward work Programme:

(i)  Possible work that could be undertaken with existing data within a two year period

  27.  Alignment with International definition of migrant—The International definition of a migrant is based on presence in the country for over a year. DWP data does not currently distinguish between "short term" migrants and the standard International definition. We could obtain a lower bound, for various sub categories, of long term (over a year) migrants by identifying those for whom we have benefit or employment data at least a year after arrival/registration. This would only provide a lower bound to on- flows but would nevertheless aid international comparisons.

  28.  Time series—Quarterly information is available from April 2007 on the number of NINos JobCentre Plus issued. This would enable work to be undertaken on seasonable variation by, for example Local Authority Areas.

  29.  Investigation of patterns of movement over time between LA—Data is stored which would potentially enable identification of, for example, where a person who registered for a NINo in 2002-03 lived in 2006-07 and also, where they lived in 2005-06 and 2004-05 as well. The quality of this information is unknown but could be investigated.

(ii)  Potential for further work within a five year period

  30.  The quality of the information that would be accessed for the following strands of work has not been assessed. Substantive exploratory work would therefore be required to determine if the strands warranted detailed work.

  31.  Extension of the existing preliminary analysis to include New Tax Credit. The exploratory work to track the work and benefit patterns for migrants has been undertaken by matching migrant data to 1% NIRS data and, separately, the Work and Pensions Longitudinal Study (WPLS). Potentially it would be relatively simple to update this work using more timely data. In addition, given some development work, the matching could be extended to include New Tax Credits and HMRC self-assessed information. The New Tax data is currently being assessed but is unlikely to be integrated within the WPLS within the next two years.

  32.  Links with non-WPLS data to identify family composition information—Links with the NINo migrant worker data, if appropriate legalities around data sharing could be satisfactorily resolved, to CSA data, child benefit data and housing benefit information might yield information on family composition of longer term migrants. This could then form a valuable input to population projections as well as take up education, health etc facilities. Links to 100% NIRS data would also be possible if it was practical to overcome the current funding and resource issues around 100% NIRS data.

  33.  Links to survey data—there a number of surveys which, if consent and wider legal issues around data sharing could be resolved, could be linked to the NINo data to provide a rich vein of information on migrants. These include surveys like the Family Resource survey, the Labour Force Survey, the International Passenger Survey etc. There is a possibility that the "Research and Statistics" exemption could be, for example, applied by ONS.

Conclusion

  34.  A report will be published by ONS setting out progress and future plans for taking forward the recommendations of the Inter-departmental Task Force into international migration statistics. This will provide greater detail on work planned over the next two to five years.



1   See Population Trends 129 (http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=6303&Pos=&ColRank=1&Rank=422) Back

2   See http://www.statistics.gov.uk/statbase/Product.asp?vlnk=14834 Back

3   See Population Trends 128, page 13. Back

4   The figures in this section are based on the Government Actuary's Department's 2004-based Principal projections, available at
http://www.gad.gov.uk/Population/index.asp?v=Principal&y=2004&subYear=Continue 
Back

5   The figure for 2007 is based on current state pension age (SPA) of 65 for men and 60 for women and the figures for 2027 and 2057 are based on a common SPA of 65 for both sexes. Under the provisions of the Pensions Bill 2007, SPA will be 66 for both sexes by 2027, and 68 for both sexes by 2057. This would decrease the dependency ratios at 2027 and 2057 to 60% and 64% respectively. Back

6   Shaw C. Fifty years of United Kingdom national population projections: how accurate have they been? Population Trends 128. Back

7   Keilman N. UK national population projections in perspective: how successful compared to those in other European countries? Population Trends 129. Back

8   Males and females. Back

9   Accession States are Poland, Slovakia, Slovenia, Hungary, Czech Republic, Estonia, Latvia, Lithuania, Cyprus, Malta, Romania and Bulgaria. Back

10   See http://www.statistics.gov.uk/about/data/methodology/specific/population/future/imps/updates/default.asp Back

11   See http://www.statistics.gov.uk/pdfdir/popest0807.pdf Back

12   The final report of the NSQR of "Control of Immigration: United Kingdom" publications, and the Home Office's implementation plan, can be found on the National Statistics website.
http://www.statistics.gov.uk/about/data/methodology/quality/reviews/population.asp 
Back


 
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