Memorandum by the Learning and Skills
Council
1. INTRODUCTION
1.1 The Learning and Skills Council (LSC)
is a Government-funded public body that exists to improve the
skills of young people and adults in England, in the interests
of having a workforce of world-class standards. We are responsible
for planning and funding high-quality education and training for
everyone over 16 (except higher education) in England, including
provision in school sixth forms. The range of qualifications and
programmes that the LSC funds is diverse, and includes AS and
A-levels, Advanced Vocational Certificates in Education (AVCEs),
National Vocational Qualifications (NVQs) and Apprenticeships.
1.2 This submission responds to lines of
enquiry upon which the work and experience of the LSC can provide
evidence of use to the committee.
2. RESPONSE TO
CALL FOR
EVIDENCE:
2.1 Section 2: In what sectors and occupations
are immigrants employed? How do migrants' labour market outcomes—including
their employment rates and earnings—compare to those of
local workers? What determines migrants' performance and integration
in the UK labour market?
2.1.1 The labour market outcomes of migrants
vary massively from one group to another. For instance, very low
employment rates are recorded for immigrants from some countries
such as Somalia, Angola, Iran, Albania and Ethiopia. Research
has also in the past identified differences between white and
non-white immigrants, with the former demonstrating participation
rates similar to those of the UK-born white population while the
latter have historically had much lower participation rates and
been much more vulnerable to changes in the economic cycle.
2.1.2 This research also suggests that there
are cases where the second generation of immigrant families have
higher rates of participation in the labour market than newly
arrived migrants (Dustmann et al., 2003). Other research suggests
that the employment rate of white immigrants may be higher because
they are from English-speaking and industrialised countries with
relatively high rates of employment for immigrants from Australia
and North America but lower employment rates from non-EU countries
in Western Europe. Inactivity is relatively pronounced among women
from non-EU west European countries and the Indian sub-continent
(Haque, 2002: 17).
2.1.3 Contemporary analysis of more recent
migrants to the UK from the A8 countries shows rapidly increasing
employment rates during the period since accession. For instance,
in summer 2003, the employment rate for A8 migrants was 57.3%,
below that of non-migrants and the migrant average. By summer
2005, this had risen to 80.6%. It is argued that this reflects
both a decrease in illegal working and the motivations of A8 migrants
as being work related.
2.1.4 Migrants are more likely to be employed
in the service sector than are the UK born, regardless of country
of origin (Haque, 2002:). Using relatively recent LFS data, the
Institute for Public Policy Research (IPPR) suggests that migrants
are disproportionately represented in banking, finance and insurance
and distribution, and hotels and catering when compared with the
UK-born population (IPPR, 2005: 5-6). However, again, migrants
are not a homogeneous group. For instance, there are variations
in industrial sector of employment according to country of origin.
Thus, those from the Indian sub-continent and the rest of Asia
are concentrated in distribution, hotels and catering, while those
from Australasia are concentrated in financial and business services
(Haque, 2002: 19). Migrants from African states tend to cluster
in transport and communications industries (Salt, 2005: 43).
2.1.5 Research on the industrial distribution
of A8 migrants shows that they are most commonly found in distribution,
hotels and catering, manufacturing and agriculture. However, this
varies between regions, reflecting the regional prominence of
different sectors. For instance, in London, the majority of A8
migrants are registered to work in distribution, and hotels and
catering, while in more rural areas such as Kent, the Marches,
Norfolk, Lincolnshire and Cambridgeshire, the majority are registered
to work in primary and agricultural industries (Gilpin et al.,
2006: 20-1; Salt, 2005: 45). Generally, the impact of A8 migration
is increasing the proportion of migrant workers in lower skilled
employment (Gilpin et al., 2006: 20-1).
2.1.6 Data on the levels of pay of migrant
workers suggests that they are relatively over-represented when
compared with UK-born workers in the highest pay brackets and
also in some of the lower pay brackets (IPPR, 2005: 5-6), possibly
reflecting the skills profile documented below (see paras 34-8).
Generally, migrants have been thought to earn more than their
UK-born counterparts, a finding that held when compared at different
skills levels. That is, a UK-born degree holder was thought to
earn less than a migrant worker with comparable qualifications
(Haque, 2002: 21-2). However, the data can be confusing in aggregate
form. For instance, other research compares the ethnicity of migrants
and suggests that while white immigrants tend to have relatively
high earnings when compared with both non-white immigrants and
UK-born workers, the earnings of some non-white (particularly
Bangladeshi and Pakistani) immigrants are much lower (Dustmann
et al., 2003: 47-8). In addition, analysis of earnings data for
A8 migrants on the WRS scheme suggests that their average earnings
are somewhere between 47 and 63% of UK average earnings (Gilpin
et al., 2006: 20-1). Should current A8 migration trends continue,
the average pay of migrants may reduce significantly. This is
despite the relatively high level of skills held by many of these
migrants.
2.1.7 Some factors might include skills
deficiencies for some migrant groups, difficulties in gaining
recognition for qualifications, cultural barriers (especially
for women from some migrant countries) and labour market discrimination.
Several research studies suggest that language proficiency is
one of the major determinants of labour market success both in
terms of participation rates and also wage gaps (Dustmann et al.,
2003: 56-7; Institute for Employment Studies, 2004). The Institute
for Employment Research suggests that the barriers faced by migrants
include a lack of understanding of the labour market and the job-search
process and a lack of appropriate work experience (Green et al.,
2006: 17).
2.2 Section 3. Why do employers want to hire
immigrants? Which sectors and occupations in the UK economy are
particularly dependent on migrant labour and why? What is the
impact of immigration on mechanisation and investment in technical
change? What are the alternatives to immigration to reduce labour
shortages?
2.2.1 The LSC commissioned some research
to examine why employers hire immigrants. The research considered
the views and practices of employers towards migrants (Directions
Research and Marketing, 2006). It found three main types of employer
attitude in relation to employing migrants. These were negative
"reluctants", dispassionate "pragmatists",
who focused simply on the potential contribution from migrants
and issues of cost, and finally "advocates", who were
extremely positive.
2.2.2 This research was focused on employers
who were employing migrants performing relatively low-skilled
roles. It found that while employers recruited migrants because
they could not source UK-born staff, this was not necessarily
because of skills deficiencies but because of crucial differences
in work orientation and attitude. Migrants were reported to be:
eager to please, more determined to succeed,
reliable and punctual, courteous and polite, obedient and respectful
of authority and able to work flexible and longer hours as they
often have fewer social or familial commitments. Directions Research
and Marketing, 2006: 16
2.2.3 These employers did not think that
there were skills or training needs associated with employing
migrants, other than in relation to English language skills, and
skills and knowledge associated with settling in a new country,
for example in relation to culture, the tax, benefits and public
service systems, health and safety, and basic office and computer
skills.
2.3 Section 9. How has immigration affected
public services such as health care, education and social housing?
How has this varied across the country? (and) Section 10. How
does the impact of immigration vary across different regions of
the UK?
2.3.1 It is clear that different types of
migrant may require different types of skills provision in terms
of the subject area, the level of provision, the method of accessing
it, and also, potentially, the provider of education and training.
There are also differences according to whether or not migrants
are already in employment and, if so, the nature of their employer.
For instance, some migrants, such as those entering the UK through
the Highly Skilled Migrant Programme, may be relatively well qualified
already and using these skills in high-level work, thus requiring
little public intervention to provide training.
2.3.2 On the other hand, other groups clearly
require significant public intervention to enable them to overcome
structural barriers to labour market participation, most notably
cultural acclimatisation and awareness and English language skills.
Indeed, overcoming these barriers is an important first step in
accessing training and education provision (Green et al., 2005:
17). Those in work will require flexible means of access. The
transitory nature of some migrants suggests the need for transferable
and flexible awards. Research on refugee needs suggests that the
nature of the provider is a factor, with the role of nongovernmental
organisations (NGOs) and refugee and diaspora networks being important
in facilitating access (Green et al., 2005: 18).
2.3.3 There may also be a need for some
education and training of employers in relation to the comparability
of overseas qualifications to ensure that migrant workers are
not disbarred from the labour market on the grounds of misunderstanding.
2.3.4 Research also suggests that information,
advice and guidance (IAG) is important in facilitating access
to both training and education and also to the labour market itself,
with many migrants not understanding how the labour market works
or what labour market and vacancy information is available and
from where (LSC, 2006b: 4).
2.3.5 In other, more specific cases, such
as in relation to migrants from A8 countries, some migrants are
clearly working in roles that do not utilise all their skills.
This suggests that IAG on life and labour market skills such as
job-search and the operation of the labour market might help to
raise aggregate productivity by making better use of these skills.
However, consideration would need to be given to understanding
the impacts that this might have in relation to wages, competition
and displacement in other parts of the labour market. More research
would be needed into the specific skills, qualifications and aspirations
of A8 migrants, the barriers to their undertaking work more suited
to their level of qualifications and how this meets the needs
of the UK labour market.
3. ESOL PROVISION
3.1 The LSC commissioned research on ESOL
provision. This research recognises that there are distinct groups
of migrants with differing needs in terms of access to ESOL provision,
such as asylum seekers needing help with integration, foreign-born
citizens seeking citizenship and migrant workers seeking English
language competency for work-permit purposes. The KPMG study reveals
that there were nearly 500,000 ESOL learners in 2004-05 enrolled
at FE colleges. Taking into account the large proportion of part-time
learners in this group, this equated to just over 215,000 full-time
equivalent (FTE) learners. Of the FTE ESOL learners, 15% were
asylum seekers.
3.2 The study shows that provision is greatest
in London, which is in line with the needs of the migrant population.
However, across the board there are challenges associated with
the proportion of enrolments that are on National Qualification
Framework (NQF) courses and that count towards the Public Service
Agreement (PSA) targets, and therefore are a priority for public
funding, and those that are not. This is again highest in London
but even there is only 13% and 7% respectively. In many other
regions, including the regions where new migrant flows are also
concentrated (such as the South East, East of England and Yorkshire
and the Humber), the proportion of ESOL enrolments that are on
NQF courses and that count towards PSA targets is minimal.
3.3 Since this research was carried out,
Skills for Life policy has moved provision heavily towards NQF
qualifications. The Learning and Skills Council expects 80% of
publicly funded Skills for Life provision (including ESOL) to
be NQF qualifications.
3.4 It is also important to note that a
large proportion of Asylum Seekers have their applications rejected
after a relatively short period of time, thus making them unsuitable
for enrolment onto longer, nationally approved qualifications.
The Government and the Learning and Skills Council are keen to
ensure that public funds are invested on those who will remain
in the country for longer periods of time. As a result changes
have been introduced for the 07/08 academic year that removed
eligibility for FE funding from Asylum Seekers, unless there case
remains unresolved six months after initial application. This
is to ensure that a large amount of public funding is not spent
on individuals who will not remain in England.
3.5 The Committee of Inquiry on ESOL, established
by the National Institute of continuing Adult Education (NIACE),
was critical of the links between employability and ESOL provision.
It also criticised the quality of ESOL provision and suggested
that additional emphasis needs to be given to ensuring that ESOL
teachers can act as a point of referral to IAG (NIACE, 2006).
Most ESOL learners are from UK-born minority ethnic groups, with
British Asian learners being the biggest group among them (LSC,
2006c: 4). A large proportion of the total is unhelpfully recorded
as "white (other)", though the NIACE Inquiry suggested
that an increasing (now 6%) proportion (over 13-fold since 2003)
of these is from the A8. Polish enrolments have increased 18-fold
over that period (LSC, 2006a).
3.6 The increase in demand from A8 migrants
for ESOL provision is part of a general picture of excess demand
with inadequate supply, meaning that some providers are increasing
or introducing entry criteria. This may help to meet the national
PSA targets, but will also clearly limit access by some potential
learners with the greatest need.
3.7 The research undertaken for the LSC
strongly suggests that increased provision is needed to meet the
demand from A8 migrants in particular. While there is no evidence
to question this assertion, it will be important to heed the suggestion
in the same report that additional research is needed on the nature,
scale and character of the demand for learning from A8 migrants.
3.8 The total spend on ESOL provision has
escalated significantly in recent years, rising from £103
million following the launch of the Skills for Life strategy in
2000-01, to £298 million in 2005-06. The picture is given
below:
|
| Year | Enrolments
(000s)
| Costs
(£m)
|
|
| 2000-01 | 158,891
| 103 |
| 2001-02 | 302,254
| 185 |
| 2002-03 | 413,322
| 235 |
| 2003-04 | 488,138
| 267 |
| 2004-05 | 563,000
| 289 |
| 2005-06 | 490,000
| 298 |
|
3.9 The reason for the drop in enrolments is not due
to lower demand in 2005-06 compared to 2004-05. Rather it reflects
the change in the FE sector towards approved qualifications, that
are longer and more expensive to deliver. These qualifications
are more portable, and help to ensure quality of provision meets
nationally approved standards.
4. FUTURE NEEDS
4.1 There is likely to be continuing high demand for
ESOL and a need to address the large number of detailed recommendations
regarding ESOL provision made by the NIACE Committee of Inquiry.
In particular, there will be a need to ensure increased provision,
better quality of provision, more links with other vocational
and employability courses (a point also made by Leitch, 2006)
and enhanced transferability between providers of accrued learner
credits. In addition, a variety of different types of provision,
including distance and flexible provision, will also be necessary
to meet the needs of excluded groups, including migrants working
in inaccessible locations.
4.2 Research for the LSC also suggests that A8 migrants
may wish to progress to further education (FE) and higher education
(HE) study as they become competent in English and that planning
needs to be put in place to address this. Additionally, several
recent government reviews have emphasised the need to strengthen
skills provision to enable progression in the labour market and
this will be as important to migrants as it is to the rest of
the population, but may again require increased links between
ESOL provision, IAG and investment and planning for progression.
4.3 Whilst there appears to be an undoubted excess demand
for ESOL there is a problem that the LSC is only currently supported
by DIUS. If demand is to be met by an increase in supply this
will require cross government support.
5. Section 12. How do differences in migrants' skills affect
the economic impact of immigration? Does immigration fill skill
gaps? What impact, if any, has immigration had on education and
training? What is the relationship between the Government's migration
policies and labour market policies?
5.1 Data from the LFS can offer a snapshot of the skills
of foreign nationals based in the UK, using the usual proxy of
highest qualification attained. At the broadest level, research,
using LFS data from 2000, shows that, overall, immigrants tend
to be more polarised in terms of their educational attainment
than the wider population. For instance, the proportion of immigrants
to the UK with a degree level qualification as against those with
no qualification at all is higher than for the rest of the population.
5.2 However, migrants are not a homogeneous group and
qualification levels differ widely between the migrants from different
countries of origin. For instance, the proportion of immigrants
with degree level qualifications is substantially higher for Africans
(33%), Chinese (31%) and people from English-speaking developed
countries (26%) such as the US, Australia and New Zealand and
those categorised only as "other white" (32%) (Dustmann
et al., 2003). Qualification rates are also likely to differ widely
by a number of other causal variables such as method of entry
to the UK, level of education, English language proficiency and
years since migration (Green et al., 2006).
5.3 More recent research using data from the LFS for
2005 confirms the polarisation of migrants' qualification profile
in relation to that of the wider population. However, the apparent
polarisation might at least be partly explained by the number
of migrant LFS responders that cite "other" qualifications
as a result of difficulties in mapping their qualifications to
the UK system (IPPR, 2005). While this might be relatively straightforward
at degree level, it is much more difficult for other qualifications.
5.4 This work did not explore issues related to the different
qualification profile of migrants from different countries but,
interestingly, did consider differences in the skills profile
of migrants in different host countries. This comparison suggests,
first, that migrants in the UK are more likely to have higher-level
qualifications than in many other countries (the UK was behind
Canada and Australia on this measure but ahead of the US, Sweden,
France and Germany). However, it also supports the notion that
migrants in the UK are polarised in terms of qualifications, with
Sweden in particular having a more equal distribution. France,
Germany and the Netherlands have a less-skilled migrant population
than the UK, according to this research.
5.5 Research undertaken on behalf of the LSC by the Learning
and Skills Development Agency (LSDA, now the Learning and Skills
Network) suggests that new migrants from the A8 countries tend
to be highly qualified but lacking English language skills (Sachdev
and Harries, 2006). However, these findings were based on small-scale
qualitative research and there is insufficient evidence available
at the present time from other sources to enable the wider relevance
of these findings to be interpreted. What is agreed on by several
sources is that, regardless of their technical capacity and qualifications,
these migrants tend not to be occupying high-skilled roles (Salt,
2005), suggesting a need for further research into the extent
to which A8 migrants are working on a temporary basis in order
to improve their English language skills before moving into occupational
roles in a global labour market (which might mean further periods
of work in the UK) more suited to their skills and qualifications.
The findings of such research would be instructive in shaping
decisions about the type of learning provision to be offered to
A8 migrants and the responsibility for funding it.
6. ENGLISH LANGUAGE
SKILLS
6.1 Much of the research on the labour market performance
of migrants, both new and long term, suggests or implies that
a large number of migrants lack English language skills. For instance,
Green et al. (2005) draws on local case study data to suggest
that there is currently an unmet demand for English language skills
provision. However, while there is no reason to question the conclusion,
it does need to be contextualised. For instance, the case study
research was undertaken during a period of high migration. Together
with the changing pattern of migration, with increasing short-term
flows from A8 countries as a proportion of the whole, this may
mean that there is a need to differentiate between the skills
needs of existing settled communities, new migrants joining these
communities and refugees on the one hand, and short-term flows
from A8 countries on the other.
6.2 On this issue, several reports suggest that A8 migrants
also require access to English language skills provision, though
the data that underpins these conclusions is less clear, and sources
do acknowledge the need for better quality data about the specific
types of demand from different. For instance, the ways in which
A8 migrants might access provision in English for speakers of
other languages (ESOL) might be different from those of other
communities. Additional research appears to be necessary to find
out more about the nature of the needs of different migrant groups
and to understand the specific nature of that demand, including
barriers and attitudes to learning.
6.3 The Learning and Skills Council remains committed
to investing public finance to support the long term needs of
the country, whilst targeting this spending on those with the
greatest individual need for support.
28 September 2007
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