attracting highly qualified and qualified third country nationals · 2017-01-04 · attracting...

Attracting highly qualified and qualified third country nationalsUK National Contribution

Juta Kawalerowicz

UK National Contact PointHome Office3rd Floor, Seacole Building (SW)2 Marsham Street, London, SW1P [email protected]

2 Attracting highly qualified and qualified third country nationals

Contents

Executive Summary…………………………………………………………………………………….3

Section 1 - National Policies and Measures ................................................................................ 7

Section 2 - Evaluation and Effectiveness of Measures .............................................................. 18

Section 3 - Challenges and Barriers ......................................................................................... 31

Section 4 - Conclusions ........................................................................................................... 33

References .............................................................................................................................. 34

Appendix A - Data Tables ........................................................................................................ 37

Appendix B - List of shortage occupations and skilled occupations ......................................... 44

Appendix C - List of countries that should not have active recruitment ..................................... 51

Appendix D - Mapping between classifications of occupation .................................................. 54

Appendix E - Factors invloved in estimates of TCNs in skilled occupations .............................. 60

Appendix F – Nationality breakdown of successful Tier 1 applicants in 2012…………...……….61


Executive Summary

National contribution

Overview of the National Contribution – introducing the study and drawing out key facts and figures from across all sections of the focused study, with a particular emphasis on elements that will be of relevance to (national) policymakers.

The UK Immigration system

The UK Government is committed to ensuring that the brightest and best migrants continue to come to the UK.

Immigration to the UK is managed through a tiered system introduced initially in 2008, but which has since been substantially revised. It is a hybrid immigration system, consisting of both points-based and demand-led elements, as well as a numerical limit on certain categories of migrant.

• Tier 1 is for “high-value” migrants who contribute to growth and productivity. This tier currently

(2013) consists of the Investor, Entrepreneur, Graduate Entrepreneur and Exceptional Talent routes.

• Tier 2 is for “skilled” workers with a job offer. Its primary objective is to help to fill skills gaps in UK labour market. This tier currently consists of the General, Intra-Company Transfer, Sportspersons and Minister of Religion routes.

• Tier 3 is for low-skilled workers needed to fill specific temporary labour market shortages. This Tier has never been opened primarily due to an influx of A8 migrants who filled shortages in low-skilled occupations.

• Tier 4 is for students.

• Tier 5 is for youth mobility programmes and temporary workers falling under one of the categories: creative and sporting sector, charity workers, religious workers, and those coming under government-authorised exchange or international agreement.

Highly qualified third country nationals (TCNs) can enter the country under Tier 1 for high value migrants, with routes for investors, entrepreneurs, graduate entrepreneurs and exceptionally talented individuals.

Migration of other skilled TCNs is managed through Tier 2 General and Intra-Company Transfer (ICT) routes for skilled workers. Tier 2 applicants must be sponsored by an employer who has to prove that the job could not be filled by a resident worker; this requirement is waived for TCNs who fill skill gaps in the labour market by taking jobs on the Shortage Occupation List and for ICTs.


Table 1 Changes to the Points-Based System affecting Tier 1 and Tier 2, 2011–20131

2011

The introduction of a new Tier 1 (Exceptional Talent) route.

Level of contribution linked with accelerated settlement rights for Tier 1 (Investors) and Tier 1 (Entrepreneur) routes.

The introduction of an annual limit on the number of places available under Tier 2 (General) route (but no limit on numbers for ICTs).

Closure of Tier 1 (General) route in the light of emerging evidence that a significant proportion of TCNs admitted under this highly skilled route failed to find skilled employment.

Minimum qualification for skilled occupations was raised from National Qualification Framework (NQF) Level 3 to Level 4 in line with the ‘brightest and best’ strategy.

2012

The introduction of a new Tier 1 (Graduate Entrepreneur) route.

Closure of Tier 1 (Post Study Work) route to protect the resident population at a time of high unemployment among UK graduates.

Minimum qualification for skilled occupations was raised from NQF Level 4 to Level 6 in line with the ‘brightest and best strategy’.

2013

Further expansion of Tier 1 (Graduate Entrepreneur) route with an additional 1,000 places available to MBA graduates, including 100 places for elite global graduate entrepreneurs.

Major reforms to the system were introduced from April 2011, affecting all migration routes.

With regard to work migrants, Tier 1 has been transformed from a route that allowed for high volumes of migrants with unrestricted access to the UK labour market to one that is focused on providing small numbers of high-value migrants across specialised routes for investors, entrepreneurs and exceptionally talented individuals, for example academics or researchers with special and exceptional scientific expertise.

In the same year an annual limit of 20,700 was introduced on the Tier 2 (General) route with additional requirements added to ensure that applicants enter a graduate-level job, speak an intermediate level of English and meet specific salary and employment criteria. The Tier 2 Intra-Company Transfer (ICT) route has been made purely temporary. It was revised to introduce separate classes for short and longer ICTs, with the maximum length of employment linked to salary levels (but with no limit on numbers in either category).

These measures were introduced to provide strong incentives for companies to look to domestic workers, without restricting their ability to recruit from abroad where necessary, and with an objective of breaking the link between employment and settlement.

Numbers of highly qualified third country nationals

In 2012 there were 566,800 TCNs in highly skilled occupations, representing 4 per cent of all workers in managerial, professional and technical occupations2 (see Tables 9 and 13). Additionally, data show that there were 66,900 self-employed TCNs in occupations which fall to ISCO Major Groups 1-3, corresponding to 4 per cent of all self-employed workers that year (see Tables 11 and 15). With respect to educational attainment, in 2012 there were 685,900 TCNs with degree-level

1 Covering changes until May 2013. 2 Data from UK Labour Force Survey 2008-2012


qualifications or above,3 which represented 6 per cent of all workers with a degree-level qualification or more (see Tables 20 and 21). Estimates for 2012 released by the Office of National Statistics4 (ONS) reveal that 4 per cent of the resident population of the UK comprised nationals of non-EU countries, suggesting that TCNs are overrepresented among the highly educated, reflecting the changes brought into the immigration system to focus more on the recruitment of the brightest and the best, and restrict the numbers of low-skilled TCN migrants.

Visa statistics can be used to show the flows of highly qualified and qualified TCNs. In 2012 there were 1,231 entry clearance visas issued under the Tier 1 Investor, Entrepreneur, Graduate Entrepreneur and Exceptional Talent routes and 38,676 entry clearance visas issued under the Tier 2 General and ICT routes. As can be seen on Figure 1, the majority (74 per cent in 2012, see Table 8) of TCNs were concentrated in three types of highly-skilled industry: Professional, Scientific and Technical Activities, Financial and Insurance Activities and Information and Communication. Estimating the stock of highly qualified and qualified TCNs in line with the current (2013) national definition5 is not a straightforward task because requirements for Tier 1 and 2 routes cannot be easily mapped into the occupational or education scales given in available population surveys. Nevertheless, the number of qualified TCNs was estimated by counting non-EU workers in skilled occupations.6 In 2012 there were 353,500 TCNs in skilled occupations.

Figure 1 Tier 2 visa applications for all industries and the top 3 industries by volume, quarter 1 2010 - quarter 1 2013.

Source: Immigrat ion Stat ist ics, January to March 2013. Data in Table 8.

This study focuses on levels of highly qualified and qualified migrants between 2008 and 2012. Major policy reforms affecting the Tier 1 and 2 routes were introduced in the second quarter of 2011 and hence it is desirable to capture at least part of the potential impact of these changes in

3 International Standard Classification of Education (ISCED) Levels 5 and 6. 4 http://www.ons.gov.uk/ons/dcp171776_324663.pdf 5 Which can be found on UK Border Agency website at https://www.gov.uk/browse/visas-immigration/work-visas 6 As defined by the Migration Advisory Committee (MAC).

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Professional, Scien=fic and Technical Ac=vi=es

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the data. It should be emphasised that changes in the number of TCNs are affected by other factors, such as the economic climate and labour market conditions in the UK, as well as conditions in sending countries.

Analysis of visa statistics shows that the take-up of Tier 1 Investor and Entrepreneur visas increased in the second quarter of 2011, which overlaps with the introduction of accelerated settlement rights for high contributors. Following the changes to Immigration Rules, Tier 1 Entrepreneur visas increased by 78 per cent to 520 in the 12 months to the end of June 2012, compared with 293 in the same period a year earlier. In the same period there was a similar increase in the number of Tier 1 Investor visas, which jumped by 78 per cent reaching 419, representing an additional investment of at least £184 million7 (see Table 29).

The analysis of occupational trends suggests that between 2010 and 2012 the proportion of TCNs in professional occupations grew by 7 per cent and by 18 per cent for self-employed TCNs8 (see Tables 9 and 11). Additionally, the number of TCNs with first stage tertiary qualifications9 went up between 2010 and 2012 by 57 per cent, from 425,700 to 667,000 while a decline of 27 per cent has been observed for TCNs with second stage of tertiary education (see Table 20). At the same time qualified TCNs continued to take employment in the UK, with no sizable change in the number of Tier 2 entry clearance visas issued following the introduction of the limit for the Tier 2 (General) route. It is also worth noting that the limit for the Tier 2 (General) route has not been reached so far; in 2012 only one-half of the places were used, suggesting that there is scope for further growth within the new policy framework. Another finding is that the redefinition of skilled employment, with a minimum qualification level for skilled occupation raised from NQF Level 3 to Level 6,10 has been associated with an increase in the proportion of TCNs in occupations skilled to NQF Level 6 by 9 per cent between 2010 and 2012 (see Table 26).

The experience of UK with regards to attracting highly qualified and qualified TCNs shows that routes for these groups need to be carefully calibrated with their effectiveness evaluated. The UK also offers an insight of how policymaking can be based on and improved by research. For example, analysis prepared by the Migration Advisory Committee (MAC) was used to identify occupations that are officially in shortage in the UK and to classify occupations according to their skill level, while research findings published by the UK Border Agency influenced a decision to close the Tier 1 (General) route.

7 Assuming that each successful applicant invested a minimum of £1 million required to obtain Tier 1 Investor visa. 8 The change of occupational classification is also the reason why we chose to use UK Labour Force Survey data instead of

Eurostat data. During the period of investigation the Office of National Statistics (ONS) stopped using SOC2000 classification and replaced it by a revised occupational classification scheme called SOC2010. For this analysis we converted occupational classification in UK Labour Force Survey 2008-2010 to SOC2010 to ensure comparability.

9 ISCED Level 5. 10 Where the former corresponds to A-level qualifications and the latter to graduate diplomas.

Attracting qualified and highly qualified third country nationals 7

1. National Policies and Measures

This section reviews the national policies and measures that Member States employ in order to attract highly qualified and qualified third country nationals.

1.1 Policies

Q.1. Are there national policies in place for the attraction of highly qualified and qualified third country nationals?

Yes.

Q1.a. If Yes, please indicate the following:

National definition of highly qualified and qualified third country nationals, including references to relevant international standards such as ISCED/ISCO and/or salary thresholds.

Tier 1 consists of five high priority routes available to investors, entrepreneurs and those who are exceptionally talented in the fields of the sciences, humanities and arts. A summary of these routes is provided in Table 2. In the past Tier 1 consisted of two additional routes. Tier 1 (General), which was closed in 2011, was for highly-skilled third country nationals (TCNs) who could look for work or self-employment opportunities in the UK. Tier 1 (Post Study Work) was for international graduates who studied in the UK; it was closed in 2012. This was essentially a route allowing highly skilled individuals to come to the UK without a firm job offer in order to look for appropriate skilled employment. The intention to close these routes was announced in November 2010. Home Office research (2010)11had shown that migrants coming under Tier 1 (General) were not always able to obtain highly skilled work; around 30 per cent of migrants admitted under this route worked in low-skilled occupations or had no job at all, with a much higher rate of low-skilled employment evidenced for the Post-Study Work route, that is foreign migrants remaining in the UK after completing their studies. The closure of the Tier 1 (Post Study Work) route was also motivated by the need to manage the admission of foreign graduates in the UK labour market at a time when unemployment was high among UK graduates.

Tier 2 is for skilled migrants and enables UK employers to hire qualified employees in order to fill skilled jobs that cannot be filled by settled workers. It therefore requires a foreign migrant to have a competent sponsor who is willing to employ them. Skilled routes for qualified TCNs under Tier 2 are summarised in Table 3. To ensure that a TCN does not displace a suitable settled worker, employers are required to go through a process known as the Resident Labour Market Test where they have to advertise a vacancy through a government-funded employment agency (Job Centre Plus) and at least one other medium for four weeks. If such an advertisement does not produce a suitable resident candidate for the job, the employer can sponsor a TCN to fill the position. Tier 2 is a route for TCNs taking skilled jobs.

11 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/115913/occ91.pdf


Table 2 Summary of Tier 1 routes for highly qualified third country nationals

Note: ISCED refers to Internat ional Classif icat ion of Education and CEFR to Common European Framework of

Reference for Language.

12 Competent bodies include the Royal Society, Royal Academy of Engineering, British Academy or Arts Council 13 ‘Specified sources’ means one or more registered venture capital firms regulated by the Financial Services Authority; OR

one or more UK entrepreneurial seed funding competitions that is listed as endorsed on the UK Trade & Investment website; OR one or more UK government departments or devolved government departments in Scotland, Wales or Northern Ireland, which is made available by the department(s) for the specific purpose of establishing or expanding a UK business.

Investor Entrepreneur Graduate entrepreneur Exceptional Talent

Definition

For high net-worth individuals who wish to invest in the UK. Funds must be held in a regulated financial institution and must be disposable in the UK. Applicants are assessed solely on their ability to make a substantial financial investment.

For individuals who wish to invest by setting up or taking over, and being actively involved in running a business in the UK.

For MBAs (Masters of Business Administration) or other graduates of higher education institutions who wish to establish one or more businesses in the UK. This category also applies to overseas graduates who have been identified by UK Trade Investment as elite global graduate entrepreneurs.

For people who are internationally recognised as world leaders or potential world-leading talent in the fields of science, humanities and arts and who wish to work in the UK.

Education

n/a n/a - Minimum Bachelor’s degree (ISCED Level 5A Medium), MBA (ISCED Level 5A Long) for global graduates.

- PhD (ISCED Level 6) for natural and social scientists, medical researchers, engineers or scholars in the field of humanities. No formal requirement for exceptionally talented applicants in the field of arts and culture.

Salary n/a n/a n/a n/a

Experience

n/a n/a - Applicants need to be recent graduates.

- Successful candidates need to be endorsed by a designated competent body12 that recognises that applicants’ work is of exceptional quality and has international recognition.

Other

- Availability of at least £1 million to invest in the UK.

- No quota on the number of visas issued.

- Availability of £200,000 to invest in the business or access to £50,000 if it is obtained from a specified source.113

- Availability of a minimum of £3,100 maintenance funds.

- Knowledge of English equivalent to CEFR B1.

- No quota on the number of visas issued.

- Letter of endorsement from higher education institution.

- Availability of a minimum of £1,800 maintenance funds.

- Knowledge of English equivalent to CEFR B1.

- 2,000 places per year.

- 1,000 places per year


Table 3 Summary of Tier 2 routes for qualified third country nationals

General Intra-Company Transfers (ICTs)

Definition For individuals who have been offered a skilled job that cannot be filled by a settled worker. This category also includes applicants coming to the UK to fill jobs on the Shortage Occupation List, which is recommended by the Migration Advisory Committee (MAC) and updated14 to reflect current shortages in the labour market.15 A current list of skilled occupations and shortage occupations is provided in Appendix B.

For workers of multinational companies who are being transferred to a UK-based branch of the same organisation either on a long-term basis or for frequent short visits. In 2011 a distinction was introduced between short- and long-term ICTs to break the link between employment and settlement in the UK.

Education - Occupation skilled at NQF Level 6 or above (ISCED Level 5A Medium and above).

- Occupation skilled at NQF Level 6 or above (ISCED Level 5A Medium and above).

Salary - Minimum salary of £20,300 per year or the appropriate rate for the job, whichever is higher.

- At least £24,300 (or the appropriate rate16) for short-term staff and at least £40,600 (or the appropriate rate) for long-term staff.

Experience n/a n/a

Other - Applicants must score a total of 70 points: 30 points for certificate of sponsorship from a licensed sponsor;17 20 points for annual salary of £20,300 or more;18 10 points for knowledge of English equivalent to CEFR B2; and 10 points availability of a minimum of £900 maintenance funds.

- A requirement to pass the Resident Labour Market Test; those entering jobs on the Shortage Occupation List are exempt from this requirement.

- 20,700 places. - TCNs with an annual salary of at

least £152,100 are exempt from the limit.

- Applicants must score a minimum of 60 points: 30 points for certificate of sponsorship from a licensed sponsor; 20 points for annual salary of £24,300 or more; and 10 points for availability of a minimum of £900 maintenance funds.

- No limit.

14 There is no set time period that has to pass before MAC updates the list. So far assessments of skilled occupations or Shortage Occupation Lists have been carried out every year since 2008.

15 To include a certain occupation on the Shortage Occupation List, MAC analyses whether it is skilled to National Qualifications Framework (NQF) Level 6 or above, whether there is shortage of labour in the occupation and whether it is sensible to fill the labour shortage with a non-European Economic Area (EEA) workforce.

16 It is possible to include allowances and bonuses. 17 These can be issued when (a) the job has an annual salary of £152,000 or more, or (b) the job is on the Shortage

Occupation List (c) the applicant is moving into post-study work (d) the sponsor has completed a Resident Labour Market Test (or an exemption applies) (e) the applicant wants to extend their Tier 2 (General) visa and is working for the same sponsor in the same job.

18 The 20 points for salary can be awarded when annual salary is under £20,300 and an applicant has or last had permission to stay in the UK as: (a) Tier 2 (General) migrants under the Immigration Rules in place before 6 April 2011 (b) a Jewish agency employee (c) a member of the operational ground staff of an overseas-owned airline (d) a minister of religion, missionary or member of a religious order (e) a representative of an overseas newspaper, news agency or broadcasting organisation (f) a work permit holder. The 10 points for maintenance funds can be awarded without maintenance funds if applicant is in the UK under one of these categories (a) any Tier 2 category (b) a Jewish agency employee (c) a member of the operational ground staff of an overseas-owned airline (d) a minister of religion, missionary, or member of a religious order (e) a representative of an overseas newspaper, news agency or broadcasting organisation (f) a work permit holder.


Skilled employment is determined by the relevant skills level of the job (not the individual migrant), which is assessed using the National Qualifications Framework (NQF), salary and occupational classification19 developed by the National Office of Statistics (ONS). In June 2012 the minimum requirement for skilled employment was raised from NQF Level 4 to Level 6,20 where the former corresponds to a Certificate of Higher Education21 and the latter to graduate diplomas.22 A group of independent advisers from the Migration Advisory Committee (MAC)23 has been commissioned by the Government to publish and update a list of skilled occupations; the current (2013) list is available at Appendix B. This list is regularly revised; the latest list contained 97 occupations out of the total 369 Standard Occupational Classification 2010 (SOC 2010) occupations that are skilled at NQF Level 6 or above, with employment in these occupations corresponding to about one-third of all full-time jobs in the UK.

Q1.b. If Yes, do the policies distinguish between highly qualified and qualified third country nationals?

Yes (but note the precise definitions used for different skill levels).

Q1.c. If Yes, please indicate the rationale for their distinction.

Tiers 1 and 2 are routes for ‘high value’ and ‘skilled’ respectively. This distinction does not really reflect a division between highly qualified and qualified migrants. Tier 1 of the Points-Based System (PBS) is for ‘high-value’ migrants and specifically includes investors, entrepreneurs and those who are determined as ‘exceptionally talented’, which has a clear and specific definition in the UK context. Tier 1 migrants are not filling short-term gaps in the labour market but rather are seen as high contributors who can create jobs, growth and investment in the UK. These routes are unsponsored, which means that TCNs are not required to have a job offer at the time of applying. In contrast, Tier 2 is designed for skilled workers with the purpose of filling short-term gaps in the labour market identified by employers. Their migration is generally seen as temporary with responsibility taken by the employers through sponsorship.

Q1.d. If Yes, what is the main rationale for these policies? What is the objective? Please consider whether this rationale is linked to circular, temporary or permanent migration.

The objective of these policies is to attract the brightest and best migrants to the UK, that is those who can create growth, jobs and investment while facilitating entry for migrants who can fill skills gaps in the UK labour market that cannot be filled by resident workers. The policies aim to clarify the distinction between temporary and permanent migration, by emphasising the value placed on temporary migrants under Tier 2, which is designed to enable businesses to meet skilled labour shortages or provide short-term skills unavailable from the resident labour market. Tier 2 is not intended as a permanent migration route, although there are opportunities for skilled

19 In the UK each occupation on the Standard Occupational Classification (SOC 2010) is assigned a corresponding skill level that is arrived at by using multiple indicators. Currently an occupation is recognised as skilled at NQF Level 6 or above if it passes at least two of the three requirements which are (a) median hourly earnings for full-time employees within a given occupation is at least £15.74 per hour, (b) 34 per cent or more of the workforce within a given occupation are qualified at NQF Level 6 or above and (c) a given occupation is classified as skilled (Level 4) in SOC 2010.

20 In April 2011 the minimum level was raised from NQF Level 3 to Level 4. 21 Equivalent to ISCED Level 5B Short. 22 Equivalent to ISCED Level 5A Medium. 23 MAC is a non-statutory, non-time limited, non-departmental public body, sponsored by the UK Border Agency of the Home

Office. Its main function is to advise the Government on migration issues.


migrants to apply to remain in the UK permanently (see below). Furthermore, these policies have been designed to place more control in the hands of employers – so that skilled migrants are clearly wanted in terms of current labour market conditions and needs – whilst also ensuring that employers are ‘Highly Trusted’ and fulfil their obligations with respect to the employment of TCNs.

Applicants coming under Tier 1 for high-value migrants are exempt from requirements that Tier 2 applicants must fulfil. For example, employers of Tier 1 applicants are not required to pass the Resident Labour Market Test to provide evidence that a vacancy could not be filled by a resident worker, applicants also don’t need to prove a sufficient knowledge of the English language.

Q1.e. If Yes, briefly outline the main features of the policies.

Immigration to the UK is managed through a tiered system introduced initially in 2008, but which has since been substantially revised. It is a hybrid immigration system, consisting of both points-based and demand-led elements, as well as a numerical limit on certain categories of migrant.

• Tier 1 is for ‘high-value’ migrants who contribute to growth and productivity. This tier currently (2013) consists of the Investor, Entrepreneur, Graduate Entrepreneur and Exceptional Talent routes.

• Tier 2 is for ‘skilled’ workers with a job offer. Its primary objective is to help to fill skills gaps in UK labour market. This tier currently consists of the General, Intra-Company Transfer, Sportspersons and Minister of Religion routes.

• Tier 3 is for low-skilled workers needed to fill specific temporary labour market shortages. This Tier has never been opened primarily due to an influx of A824 migrants who filled shortages in low-skilled occupations.

• Tier 4 is for students.

• Tier 5 is for youth mobility programmes and temporary workers falling under one of the categories: creative and sporting sector, charity workers, religious workers, and those coming under government-authorised exchange or international agreement.

The PBS underwent a major reform in April 2011 with policy changes affecting Tiers 1 and 2. Tier 1 has been transformed from a route that generated high volumes of migrants with unrestricted access to the UK labour market to one that seeks to generate small numbers of high-value migrants across specialised routes for investors, entrepreneurs and exceptionally talented individuals. In the same year an annual limit of 20,700 was introduced on the Tier 2 (General) route with additional requirements added to ensure that applicants enter a graduate-level job, speak an intermediate level of English and meet specific salary and employment criteria. The Tier 2 ICT route has also been revised with separate routes for short and long ICTs, with the maximum length of employment linked to salary levels (but currently with no limit on numbers). This measure was introduced with an objective of breaking the link between employment and settlement rights.

24 Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.


Q.2. Are other groups of third country nationals included in the national policies on attracting (highly) qualified third country nationals?

Yes.

Q2.a. If Yes, please indicate what other groups are included (i.e. investors, entrepreneurs, international graduates, transferred workers, etc.)?

Please refer to Section 1.1, Question 1.a.

Q.3. Do the policies in your Member State focus on specific occupations?

Yes.

If Yes, please briefly indicate the specific areas of occupations and their link with the policies.

TCNs can only be recruited into occupations skilled to a certain level, currently (2013) NQF Level 6 or above.25 It is expected that this skill level normally requires at least a degree-level education. For example, some of the occupations that fulfil NQF Level 6 criteria are dentists, software developers and architects. In contrast, some of the occupations that are skilled to NQF Level 4 but not NQF Level 6 are dental technicians, IT operation technicians and chartered architectural technologists. A list of eligible occupations is included in the Immigration Rules relating to skilled workers (for details see Appendix B).

Additionally, the Government publishes a list of occupations that are officially in shortage (the Shortage Occupation List) in the UK. This list is produced by the MAC based on a wide range of data analysis and consultation with employers. For occupations on the Shortage Occupation List it is not necessary for an employer to conduct a Resident Labour Market Test to seek a suitably skilled settled worker prior to offering a job to a TCN.

Q.4. Has the transposition of EU Directives26 led to more favourable legislation/ measures/conditions for specific groups of (highly) qualified third country nationals?

No.

Q4.a. If Yes, please indicate the relevant Directives and the more favourable legislation/measures/conditions which were created for these specific groups (i.e. EU Blue Card Directive and Researchers Directive).

The UK has opted out of these Directives. It believes that the policies in place within the UK are currently (as at 2013) sufficient for its purposes.

25 Equivalent to ISCED Level 5A Medium. 26 For example, EU Blue Card Directive and Researchers Directive.


Q.5. Are the national policies addressing the aspect of brain drain in the countries of origin?

Yes.

Q.6. Are the national policies addressing the aspect of brain circulation with the countries of origin?

Yes.

Q6.a. If Yes (to either of these questions), please briefly indicate how the national policies address these aspects, supporting your answers with reference to research or any other sources of information.

Brain drain

One example of national policies aimed at addressing the issue of brain drain can be found in legislation on recruitment of foreign healthcare professionals. In response to growing concerns over the recruitment of doctors and nurses from some developing countries, in 1999 the Department of Health published guidelines that stated that National Health Service (NHS) employers should not recruit in South Africa and the West Indies. Further measures were taken with introduction of a Code of Practice for international recruitment for NHS employers in 2001, which was subsequently strengthened in 2004 to cover recruitment agencies and temporary staff, as well as private sector organisations providing services for the NHS. The key point of the UK Code of Practice is that healthcare professionals should not be actively recruited from developing countries, unless there is a bilateral governmental agreement that supports such recruitment.27 There have been a number of such bilateral agreements; the UK currently (2013) has such agreements with China, India and the Philippines.

In 2011 this policy was subject to evaluation; the Home Office estimated that the number of foreign nationals employed by the NHS has been declining:

“Between 2003 and 2008 the number of new full registrations of foreign-trained doctors fell by 64 %, from 14,000 to 5,000, and UK registration of foreign-trained nurses fell by 82% between 2001 and 2008, from 12,500 to 2,300.” (Home Office, 2011)

Other evaluations of the effectiveness of the Code of Practice suggest that while there has been a significant reduction in the inflow of healthcare professionals, other factors may have also influenced this trend (Buchan et al., 2009). Buchan et al. proposed that the reduction in the inflow of healthcare professionals might be explained by declining demand for foreign healthcare workers. It has been suggested that changes to immigration policy – the revision of Shortage Occupation Lists, EU enlargement and prioritisation of European Economic Area (EEA) nationals for employment – as well as the introduction of bilateral agreements with key source countries, also reduced new registrations (Migration Advisory Committee, 2013; Blacklock et al., 2012). Additionally, Blacklock et al. note that although the impact of the Code has been limited, it should be commended because “it has been a focus of considerable international discussion and a forerunner for subsequent international codes, such as the WHO 2012 code”.

27 The list of developing countries was produced by the Department of Health and the Department for International Development based on the Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee’s list of aid recipients. The list currently (2013) consists of 156 countries (see Appendix C).


Brain circulation

Immigration policy gives special provisions for temporary work and training schemes that are available under Tier 5 of the PBS. These schemes offer a temporary route of entry and hence they seek to promote circular migration so that successful applicants can return to their home countries and apply the skills and knowledge developed during their stay in the UK.

Q.7. Have your national policies been the subject of public debate?

Yes.

Q7.a. If Yes, please briefly indicate the main features of the policies which were debated as well as the reasons for such debate and the level at which these occurred (e.g. Parliament, society, media). Please support your answer with reference to research or any other sources of information.

Major proposals on immigration reform have been the subject of a public consultation prior to changes being made. The consultation process is initiated by Ministers, who invite relevant stakeholders (including stakeholders from the commercial sector) to submit evidence in relation to the anticipated outcomes of proposed changes.

In recent years the MAC has been commissioned to oversee the public consultation process on some issues, such as the proposal to introduce a limit on the number of Tier 2 General migrants and the closure of the Tier 1 General route, and to review the Shortage Occupation List. For example, prior to the introduction of the limit on the Tier 2 (General) route, the MAC invited over 500 corporate partners, the UK Border Agency and all Tier 2 sponsors28 to submit evidence, receiving over 400 responses. Statements of changes are also debated in the Houses of Parliament. For other policy changes, the Home Office has overseen the public consultation.

Regarding debate in the media, there has been mixed reactions to recent reforms and the overall strategy with regards to highly qualified and qualified migrants. Some voices were content that recent changes meant that the immigration system will work in the national interest by promoting employment for resident workers (Montgomerie, 2012) and improving integration (Goodhart, 2013). Commentators also praised the overall objective of reducing immigration (Soames and Field, 2013). Other commentators were concerned that the reforms will send the wrong message and make it more difficult to take up skilled employment in some of the key sectors for the UK economy (Sherman and Watson, 2012). This concern, combined with increasing attention to the emigration of highly skilled workers, has led some commentators to question whether the UK is doing enough to attract and retain global talent (Hopkins and Levy, 2012; The Economist, 2012).

28 Some 17,000 individual employers.


1.2 Measures

Refer to the legal framework in case relevant changes to labour migration legislation have occurred as compared to the information contained in the EMN Study on Satisfying Labour Demand through Migration.

Q.8. Does your Member State employ concrete measures in order to satisfy the policy goals?

Yes.

Q8.a. If Yes, please indicate the measures that contribute to the implementation of the national policies and indicate their specific goals.

Measures can be divided into the following categories.

Operational processes such as:

• linking accelerated settlement rights with levels of contribution (Table 4); • availability of premium customer services for UK Border Agency customers; • trials of fast track visa processing in key countries such as Brazil and China; • involvement of high profile competent bodies in the endorsement process of Tier 1

(Exceptional Talent) applications; • availability of new routes under Tier 1 (Exceptional Talent and Graduate Entrepreneur); and • open business plan competition on 100 places reserved for international graduates with

generous support package for winners.

Also, the Business User Group Forum provides a feedback mechanism that allows stakeholders to give evidence on the operational processes and their impact on UK business. Furthermore, following an evaluation undertaken in 2012, it has been decided that from April 2013 Tier 1 (Exceptional Talent) applicants will be allowed to switch between immigration routes while in the UK with the Tier 1 (Exceptional Talent) application process split into two parts to lower the upfront fee and encourage more migrants to apply.

Table 4 Measures to attract investors and entrepreneurs implemented in 2011

Tier 1 Investor Tier 1 Entrepreneur

Accelerated settlement rights linked to investment. For example, with an investment of no less than £10 million TCNs can apply for permanent settlement in the UK after 2 years instead of having to wait 5 years to apply for settlement right if a smaller investment is made. Similarly, those who invest at least £5 million can apply for permanent settlement after 3 years.

Accelerated settlement rights. An entrepreneur can apply for settlement after 3 years if he or she has created 10 full time jobs for resident workers for at least 12 months or if the company of which the entrepreneur is a director has generated a total turnover of £5 million over the 3-year period for new business or an additional turnover of at least £5 million compared with the previous 3 years for existing businesses.

Allowable absences from the UK have been increased from 90 to 180 days a year to give more flexibility for investors.

The normal £200,000 funding threshold has been reduced to £50,000 if an applicant or joint applicants have access to £50,000 of qualifying funding.

Applicants no longer need to meet minimum English language requirements.

Allowable absences from the UK have been increased from 90 to 180 days a year.


Marketing measures, such as the GREAT campaign, which promotes the UK as an attractive destination for business and investment, and campaigns and trips by high profile officials to promote the message that the UK is open for business.

Indirect measures, such as free access to the labour market for Tier 1 migrants, ability to bring dependants (subject to sufficient maintenance funds) and that dependants have free access to UK labour market.

Q8.b. If Yes, are there any measures aimed at facilitating the integration of (highly) qualified third country nationals?

Yes, there are English language requirements that apply to most categories of migrants covered by the PBS and to those seeking settlement (Indefinite Leave to Remain) in the UK. In addition, those seeking settlement are required to complete and pass a ‘Life in the UK’ test. This test (based on information contained in the Life in the UK handbook) is designed to ensure that those who settle in the UK have a thorough understanding of the history and culture of the UK. It is also expected that integration of qualified migrants will be enhanced by the sponsorship requirement, which underlines that employers have duties towards their TCN employees – a difference from the previous unsponsored route available to skilled migrants.

Q.9. Do public policies exist in your Member State that specifically aim at positively influencing the immigration decision of (highly) qualified third country nationals?

Yes.

Q9.a. If Yes, please also indicate such incentives.

There are arrangements in place for accelerated settlement for TCNs who invest large sums of money or TCNs who establish businesses that create jobs or have a significant turnover. Also, prospective entrepreneurs can apply for a visit visa enabling them to come to the UK to seek investment prior to making a full Tier 1 (Entrepreneur) application.

1.3 Relations with third countries and labour migration agreements

Q.10. Do the policies in your Member State focus on specific third countries?

No, measures are applied equally to all countries.

Q10.a. If Yes, please list these third countries, providing a brief indication of the reasons for focusing on specific third countries?

N/A

Q.11. Has your Member State entered into labour migration agreements relating to attracting qualified and/or highly qualified third country nationals to the national territory?

The UK does not have many bilateral agreements on economic migration. There are arrangements to control recruitment of healthcare professionals from developing countries and some free trade


agreements, including ‘Mode 4’29 arrangements of the General Agreement on Trade in Services (GATS), which aim to facilitate specific categories of workers. Although these are generally intended to be country-specific, the UK applies these provisions, if agreed, to all nationalities.

Q11.a. If Yes, what roles do these labour migration agreements play in executing your Member State’s policies?

N/A

Q11.b. If Yes, please fill out the following:

N/A

Q.12. Has your Member State adopted legislation facilitating labour migration from specific third countries ('country-specific legislation')?

No.

Q12.a. If yes, please elaborate concisely.

N/A

Q.13. Has your Member State entered into other more favourable arrangements with non-EU/EEA countries and/or regions relating to attracting qualified and/or highly qualified third country nationals to the national territory?

No.


N/A

29 This refers to one of the four modes of the World Trade Organisation (WTO) GATS. Mode 4 is about movement of persons and allows temporary movement of natural persons, for example, when independent service providers or employees of a multinational company temporarily move to another country. For more details check: http://www.wto.org/english/tratop_e/serv_e/mouvement_persons_e/mouvement_persons_e.htm


2. Evaluation and Effectiveness of Measures

This section reflects on the effectiveness of national measures as described in Section 1 and the methods used for evaluation. This analysis shall help to identify good practices and lessons learnt in Section 4.

2.1 Evidence of effectiveness based on statistics

2.1.1 Occupation of third country nationals

According to UK Labour Force Survey30 in 2012 there were 566,800 third country nationals (TCNs) working in occupations in the International Standard Classification of Occupations (ISCO) Major Group 1 (legislators, senior officials and managers), ISCO Major Group 2 (professionals) and ISCO Major Group 3 (technicians and associate professionals). TCNs represented 4 per cent of the UK workforce in these highly skilled occupational groups (see Tables 9 and 13). In addition, there were 66,900 self-employed TCNs in ISCO Major Groups 1–3, which corresponds to 4 per cent of all self-employed workers (see Tables 11 and 15).

Professionals in ISCO 2 occupational group represented the largest share (62 per cent in 2012) of TCNs in highly skilled occupations (see Table 9). We estimate that between 2010 and 2012 the number of TCNs in professional occupations (ISCO 2) grew by 7 per cent, corresponding to the additional 23,500 TCNs workers in these occupations. This growth in the number of TCNs employed in ISCO 2 occupations was accompanied by a growth in the number of TCNs in ISCO 1 (8 per cent) and ISCO 3 (5 per cent) occupations. It is worth noting that professional workers are generally admitted under the Tier 2 routes for skilled migrants, hence this growth in the number of professional TCN workers is observed despite the introduction of a limit on the Tier 2 (General) route. It seems plausible that this growth was driven by an influx of Tier 2 ICT workers, especially the IT professionals. The number of self-employed TCNs in ISCO 1–3 occupations steadily increased over the last five years (Figure 3), with a notable 13 per cent jump between 2010 and 2011 (see Table 11). However, changes in the number of employed and self-employed TCNs could have been driven by other factors as they reflect changes in the economic climate and labour market conditions in the UK, as well as conditions in sending countries.

Changes in employment of highly qualified and qualified TCNs should be analysed in the context of corresponding trends in the UK labour market (see Table 13). Between 2010 and 2012 the number of UK workers in highly skilled employment (ISCO 1-3) grew by 4 per cent, which was to a large degree driven by a growth of 5 per cent among professionals (ISCO 2), who constitute the largest share of workers in highly skilled occupations (Figure 4). Are there difference between overall

30 We chose to use UK LSF rather than Eurostat data due to a change in occupational classification scheme which happened in the period under investigation. In 2011 the ONS introduced Standard Occupational Classification 2010 (SOC2010) which replaced previously used Standard Occupational Classification 2000 (SOC2000). As shown by Elias and Birch (2010), some occupations were re-classified to other occupation groups making overtime comparisons unreliable. The fact that Eurostat data shows a large jump between 2010 and 2011 (see Tables 10 and 14) indicates that most likely it does not account for the change in occupational scheme. For analysis of occupation of TCNs we used UK LFS data and run SPSS syntax code provided by the ONS which allowed to convert data from 2008-2010 to SOC2010 occupational classification


employment of highly skilled workers in the UK and employment of TCNs in highly skilled occupations? First, we observe that in comparison to the overall trends in UK labour market, the number of TCNs in highly skilled occupations grew at a faster rate in the period between 2010 and 2012. Secondly, we note that TCNs in highly skilled occupations tend to cluster in professional occupations. For instance in 2012 there was a difference of 10 per cent points between proportion of ISCO 2 group among TCNs and all workers, also when we compare overall employment in highly skilled occupations with highly skilled employment among TCNs, in the latter groups there was proportionally less ISCO 1 (by 6 per cent point) and ISCO 3 (by 5 per cent point) employment (see Tables 9 and 13).

Regarding demographic characteristics of TCNs (see Tables 16 and 18), in 2012 male workers constituted 61 per cent of the TCN workforce in highly skilled occupations. The proportion is higher than the corresponding 54 per cent for the UK workforce in ISCO 1-3.

Figure 2 Employment of third country nationals in highly skilled occupations in the UK, 2008–2012.

Source: UK LFS 2008-2012. Data in Table 9.

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Figure 3 Self-employment of third country nationals in high-skilled occupations in the UK, 2008–2012.


TCNs working in highly skilled occupations are relatively young; in 2012, 45 per cent were aged 25–34 (see Table 18). Following its peak in 2008 the share of young TCNs aged 25–34 in ISCO Major Groups 1–3 started to fall. In the same time, a plausible explanation for the increase in the absolute number of young workers between 2008 and 2009 could be that this group was affected by the fact that Tier 1 (General) route admitted predominantly young workers.31

Figure 4 Employment in high-skilled occupations in the UK, 2008–2012.


31 There was a preference for young workers, reflected in more points being awarded to younger applicants.

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The closure of Tier 1 (General) route was announced in November 2010 and came into effect in December 2010 so it is unlikely to explain the fall in young workers between 2009 and 2010, although it is possible that the numbers dropped in anticipation of changes in immigration policy.

2.1.2. Education of third country nationals

Figure 5 Employment of third country nationals with International Standard Classification of Education Level 5 qualifications in the UK, 2008–2012.

Source: Eurostat data provided by the EMN. Data in Table 20.

Figure 6 Employment of third country nationals with International Standard Classification of Education Level 6 qualifications in the UK, 2008–2012.


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In 2012 there were 667,000 and 18,900 TCNs with International Standard Classification of Education (ISCED) Levels 5 and 6 educational qualifications respectively (Figures 5 and 6). These levels correspond to first and second stage of tertiary education; holders of such qualifications are referred to as highly educated. TCNs with ISCED Levels 5 or 6 qualifications constitute 6 per cent of the highly educated workforce in the UK (see Table 20 and 21). Additionally, in 2010 there were some 74,300 self-employed TCNs with ISCED Levels 5 or 6 qualifications (Figure 7).

Figure 7 Self-employed third country nationals with International Standard Classification of Education Levels 5 and 6 qualifications in the UK, 2008–2012.


Between 2010 and 2012 there was a sizable growth of 57 per cent in the number of TCNs with first stage tertiary qualifications (see Table 20). This could be associated with an increase in professional employment where workers are usually required to have degree-level qualifications. In the same period the number of TCNs with second stage tertiary education declined by 27 per cent. These trends could be linked to changes in immigration policy. The increase in the number of TCNs with ISCED Level 5 qualifications may be driven by an influx of TCNs working in professional occupations (ISCO 2) while the decrease in the number of TCNs educated to ISCED Level 6 could be associated with the closure of the Tier 1 (General) and Post Study Work routes.

2.1.3. Resident permits

Statistics on the number of first residence permits issued for the purpose of highly skilled employment present mixed evidence and should be approached with caution. First it should be noted that the UK does not have a residence permit register and statistics submitted to Eurostat are estimates based on information about passengers given leave to enter the country (Eurostat, 2013). Secondly, the category of highly skilled refers to workers who had been admitted under Tier 1 of the PBS, which was subject to considerable change in the period under consideration. Also, statistics for 2008 include some workers admitted under the Tier 2 (Skilled workers) and Tier 5 (Youth mobility and temporary workers) routes.

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Figure 8 Residence permits issued in the UK, 2008–2012.

Source: Eurostat [migr_res dataset]. Data in Table 25.

Between 2008 and 2009 the number of permits issued for highly skilled worker increased more than threefold (from 5,900 to 18,900). This change was accompanied by a corresponding fall (from 139,733 to 116,668) in the number of all residence permits issued for the purpose of remunerated activity (Figure 8). After 2009 the number of permits issued for highly skilled employment declined. Data for 2012 have not yet been published and detailed breakdowns by sex and age groups are not available for the UK.

2.1.4 UK national definitions

It should be emphasised that it is not possible to establish a direct mapping between occupational or educational classifications such as ISCO and ISCED and national definitions of highly qualified and qualified TCNs because UK definitions are not set in terms of educational or occupational classifications. Also, there is the issue of hierarchy; for example, highly qualified investors or entrepreneurs admitted under Tier 1 for high-value migrants may be on average less educated than qualified doctors, lawyers or university lecturers who are usually admitted under Tier 2 for skilled migrants. It is possible, however, to get estimates of the number of TCNs in skilled occupations, which are obtained by counting TCNs in the Standard Occupational Classification 2010 (SOC 2010) occupations skilled at National Qualifications Framework (NQF)32 Levels 6, 4 and 333 (Figure 9).

In 2012 there were 353,500 TCNs working in occupations skilled to NQF Level 6. Between 2008 and 2012 this group grew by 7 per cent. Similarly, in this period there was a 17 per cent growth in the number of TCNs working in occupations skilled to NQF Level 4, with numbers going up from

32 NQF stands for National Qualification Framework and is the most commonly used educational classification in the UK. 33 Note: NQF Levels 6, 4 and 3 refer to the skill level for a given occupation, not an individual worker. All three levels have

been provided because the definition of skilled employment was revised and upgraded in the period being considered.

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60,500 in 2008 to 70,800 in 2012. The number of TCNs in occupations skilled to NQF Level 3 grew at a slower rate by 6 per cent, from 100,800 in 2008 to 107,000 in 2012 (see Table 26).

Figure 9 Third country nationals employed in skilled occupations in the UK, 2008–2012.

Source: UK Labour Force Survey, 2008-2012. Data in Table 26.

2.1.5 Visa statistics

Additional information about highly qualified and qualified TCNs can be found in visa statistics recorded by the Home Office.

Highly qualified

All Tier 1 routes for highly qualified TCNs had seen an increase between 2008 and 201234 (Tables 27 and 29). The highest increase was observed for the Tier 1 Entrepreneurs category where the number of visas issued increased from 27 in 2008 to 702 in 2012. Take-up of investor visas also increased, reaching 470 issues in 2012, up from 43 in 2008. As seen on Figure 12, between 2008 and 2010 there were more investors than entrepreneurs, this relation reversed after 2010. The fact that there were no entry clearance visas issued for Graduate Entrepreneurs can be explained by the recent introduction of this new route, which opened in April 2012, with Home Office operational data showing that 112 applications had been approved as at the end of April 2013.

These increases were driven by relatively few nationalities. For example, in 2012 Chinese and Russian nationals represented respectively 29 per cent and 27 per cent of successful Tier 1 Investor applicants. The next nationality with the highest number of visas issued were US nationals, accounting for 5 per cent of successful applicants. Visas were more equally distributed across nationalities for the Tier 1 Entrepreneur route. In 2012 the largest groups were Pakistanis (20 per cent), followed by the US (19 per cent) and Chinese (12 per cent) entrepreneurs (for a detailed breakdown see Tables in Appendix F).

34This would be expected for the routes that were introduced in this period such as Tier 1 Exceptional Talent or Tier 1 Graduate Entrepreneur.

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Figure 10 Entry clearance visas issued for Tier 1 highly qualified third country nationals in the UK, 2008–2012.


Qualified

The number of Tier 2 and pre-Tier 2 visas issued for work fell from around 54,900 in 2008 to 38,700 in 2012. These changes may be partly associated with closure of the Work Permit route in 2008 and additional requirements set for the Tier 2 (General) route, but are also likely to be a reflection of the poor economic climate and the onset of the recession. By 2010 the number of entry clearance visas issued for the Work Permit route had sharply gone down to levels below 200, with skilled migration channelled through the remaining Tier 2 routes. As can be seen on Figure 11, a large proportion of all Tier 2 visas are issued for the Intra-Company Transfer (ICT) routes with a smaller proportion going to Tier 2 (General) applicants.

As seen in Figure 11, the number of TCNs obtaining visas in order to take up skilled employment in the UK had been fluctuating with trends in migration of qualified TCNs possibly linked to the economic situation during the recession (second quarter of 2008 – second quarter of 2009). The introduction of the limit on the Tier 2 (General) routes is not associated with a decline in the number of visas issued for applicants in this route.

Additionally, from 2010 data are available that allow linking visas to the type of industry where applicants are employed. Table 5 shows the quarter-by-quarter breakdown of Tier 2 visa applicants for work by industry type.35 It shows a decline in the proportion of workers employed in accommodation and food service activities (from 52 per cent of Tier 2 (General) visas issued in 2010 to 2 per cent in 2012). This decline could be associated with introduction of a new requirement for chefs in 2011.36 There was also a decline in human health and social work activities (from 7 per cent down to 4 per cent), which may have been affected by the removal

35 Sectors that were selected had an average of at least 100 successful applicants in the period. 36 To qualify for the Shortage Occupation List, they had to earn at least £28,260 per year, have five years experience and work

in food outlets other than fast-food restaurants.

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of some nursing and care occupations from the Shortage Occupation List in 2009 and 2010. At the same time highly skilled sectors such as Education, Professional, Scientific and Technical Activities or Information and Communication enlarged their share of Tier 2 visas.

Figure 11 Entry clearance visas issued under Tier 2 and an earlier equivalent route for third country nationals in the UK between first quarter of 2008 and first quarter of 2013. Red box shows periods of economic recession37.


Table 5 Applicants for visas for work using sponsorship certificates, by tier and industry type Industry 2010 2011 2012

Total 42,433 39,508 40,740

Information and Communication 17,083 16,771 17,453

Professional, Scientific and Technical Activities 6,799 7,171 7,312

Financial and Insurance Activities 5,800 5,558 5,303

Manufacturing 2,021 2,243 2,315

Education 1,610 1,339 2,035

Human Health and Social Work Activities 2,953 1,586 1,593

Mining and Quarrying 670 936 841

Other Service Activities 622 634 731

Wholesale and Retail Trade; Vehicle Repairs 548 533 598

Arts, Entertainment and Recreation 633 690 574

Construction of buildings 320 308 513

Accommodation and Food Service Activities 2,213 798 441

Other Service Activities 1,193 978 1,079

Source: Immigrat ion Stat ist ics, January to March 2013

37 Defined as at least two consecutive quarters of negative economic growth.

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Q.14. Is there any evidence (quantitative and/or qualitative) of a link existing between the measures outlined in Section 1 and the immigration of highly qualified and qualified third country nationals?

Yes.


It is too early to evaluate reliably the impact of recent policy changes. However, the following observations can be made.

Figure 12 Entry clearance visas issued for Tier 1 highly qualified TCNs in the UK, quarter 1 2008- quarter 1 2013.

Source: Immigration Statistics, January to March 2013.. Data in Table 29.

• Take-up of Tier 1 Investor and Entrepreneur visas increased from April 2011 when amendments were made to the Tier 1 routes to encourage more high-value applicants. Following the changes to the Immigration Rules, Tier 1 Entrepreneur visas increased by 77 per cent to 520 in the 12 months to the end of June 201238, compared with 293 in the same period the year earlier. In the same period there was a similar increase in the number of Tier 1 Investor visas, which jumped by 78 per cent reaching 419, representing an additional investment of at least £184 million (see Figure 12).

• The introduction of the category of skilled employment with upgrading the skill level to NQF

38 Note that we are looking at period between quarter 3 of 2011, quarter 4 of 2011, quarter 1 of 2012 and quarter 2 of 2012 because policy changes took place in quarter 2 of 2011, hence it makes sense to look at a year before and after the policy change.

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Level 3, NQF Level 4 and NQF Level 6 seems to have had an effect on employment of TCNs. As shown in Figure 9 with slower growth in employment in occupations skilled to NQF 3 than in occupation skilled to NQF 4 and NQF 6.

Q.15. Is there a quota for highly qualified and qualified TCNs?

Some of the immigration routes are subject to an annual limit:

• 20,700 places for Tier 2 General applicants; • 1,000 places for Tier 1 Exceptional Talent; and • 2,000 places for Tier 1 Graduate Entrepreneur.

Q15.a. If Yes, is the quota exhausted?

No. Detailed breakdowns are given in Table 6.

Table 6 Immigration routes that are subject to an annual limit, 2011/12–2012/13

Quota Used in 2011/12 Used in 2012/13

Tier 2 General certificate of sponsorship granted

20,700 43% 49%

Tier 1 Exceptional Talent Approved

1,000 3% 5%

Tier 1 Graduate Entrepreneur Approved

1,000 n/a 11%

Source: UK Border Agency

Q.16. Is there any evidence (quantitative and/or qualitative) of a link existing between the labour migration agreements (also in the framework of Mobility Partnerships) outlined in Section 1 and the immigration of highly qualified and qualified third country nationals?

N/A


N/A

If (statistical) evidence as requested above regarding concrete measures and labour migration agreements is not available, please outline and analyse any other statistics which may provide indications of the effectiveness of the national policies and measures.

N/A


2.2 National methods of evaluation

Q.17. Does primary research (using any methods) exist in your Member State evaluating the national policies, related practical measures and labour migration agreements (also in the framework of Mobility Partnerships) implemented to attract highly qualified and qualified third country nationals?

Yes.

Q17.a. If Yes, which methods have been used?

One study by the UK Border Agency looked at all applications submitted in June 2010. The authors extracted employment status of Tier 1 visa holders (a subsample of those applying for a dependant to join them) and coded their occupations according to the skill level of the main visa holder (UK Border Agency, 2010).

In another study the UK Border Agency sought to explore whether users were satisfied with the Points-Based System (PBS), with an objective of identifying possible areas of improvement (UK Border Agency, 2011). The research was conducted using an online survey with Tier 1 users (1,564 respondents) who were surveyed between February and April 2008, Tier 2 users (1,105 respondents), and Tier 2 and Tier 5 sponsors (1,521 respondents) who were surveyed between February and March 2010.

Q17.b. If Yes, what is the outcome regarding the effectiveness of these measures and labour migration agreements?

The study on occupational destinations of Tier 1 applicants found that 29 per cent of 1,184 sampled migrants were employed in lower-skilled jobs, such as shop assistants and supermarket cashiers. These findings were similar to results from an earlier survey published by the UK Border Agency that found that 30 per cent of Tier 1 applicants were either employed or worked in unskilled jobs (Hanson et al., 2009).

The assessment of users’ views of the PBS found that users overall were satisfied with their interaction with the PBS, with 82 per cent of Tier 1 and 81 per cent of Tier 2 applicants, and 86 per cent of Tier 2 and Tier 5 sponsors agreeing that they were very or fairly satisfied with their experience with the PBS. The study found that some Tier 1 applicants reported dissatisfaction with the speed of decision-making (66% of Tier 1 applicants said that it took longer than expected). This concern has been addressed by the introduction of additional premium services where decisions can normally be given within 24 hours of an appointment. These services are quite popular, the UK Border Agency estimates that in 2010 there were 91,149 premium service appointments offered through the year.39

39 These appointment figures do not include family members.


2.3 Policy makers’ or other stakeholders’ (that is, academics, non-governmental or private sector representatives) experience

Q.18. If evidence (see 2.1 and 2.2) is not available, what is then the national policies makers’ or other stakeholders’ experience and assessment regarding the (perceived) effectiveness of measures (see also questions under 2.2)?

UK immigration policy on highly qualified and qualified migrants has been subject to assessment by different stakeholders on a number of occupations. In recent years the Tier 2 (General) route in particular came to attention with some commentators expressing a concern that the limit on the 0immigration of skilled workers could have an adverse impact of the economy. However, in practice the limit has not yet come close to being reached and there is no evidence of actual adverse effects. Stakeholders’ evidence submitted to the Migration Advisory Committee (MAC) prior to the introduction of a limit on the Tier 2 (General) route indicated that some employers were concerned about the potential impact of the cap on UK businesses. The MAC noted that although with a wide range of consulted organisations a variety of views was put forward some of them “argued that restrictions on migration could restrict businesses’ ability to be competitive and could stunt economic recovery” and expressed a concern that “limits on economic migration would send the signal that the UK was ‘not open for business’” (Migration Advisory Committee, 2010b).

In a survey of 437 senior HR professionals conducted by King’s College London (KCL) Human Resource Learning Board together with City law firm Speechly Bircham in November 2010 the authors found that 48 per cent of sampled businesses40 employed TCNs and 42 per cent of these reported that the introduction of the interim cap had negative consequences in terms of skills shortages in their organisation (Speechly Bircham, 2011). Another report conducted in 2011 revealed that 72 per cent of businesses were trying to resolve their skills shortage through finding staff within the UK, a significant increase from a corresponding 54 per cent a year before (Speechly Bircham, 2012). This could indicate that employers may have changed their recruitment strategies because of, or in anticipation of, changes in immigration policy.

Additionally, as reported by the Financial Times, some immigration law firms reported that the increased interest in Tier 1 Entrepreneurs and Investors visas seems to be associated with increasingly tight rules on immigration, which has boosted the popularity of routes for high-value migrants (Warwick-Ching, 2013) with some firms commenting that the increase in the number of investors from certain countries may be associated with conflict in the area (Valdini, 2012; Warwick-Ching, 2012).

40 In the State of HR Survey 2010 the following sectors were represented in the survey: professional services (17 per cent); charities and Nor for profit organisations (13 per cent); financial services (11 per cent); manufacturing (11 per cent); other business services (9 per cent); retail and leisure (8 per cent); media and entertainment (6 per cent); education (6 per cent); other public sector (5 per cent); health (5 per cent); real estate and construction (4 per cent); transport and communication (4 per cent); and utilities (2 per cent).


3. Challenges and Barriers

This section reflects on possible challenges and barriers that may affect the attractiveness of a Member State for highly qualified and qualified third country nationals’ immigration.

3.1 Possible challenges and barriers

Q.19. Have challenges and barriers in your country been identified based on previous research which affect the attractiveness of your Member State for (highly) qualified third country nationals?

Yes.

Q19.a. If Yes, please indicate these factors.

Immigration policy is subject to consultations and is evaluated on a regular basis with the objective of identifying possible areas of improvement. Following are some examples of how routes for highly qualified and qualified third country nationals (TCNs) have been improved in recent years.

Table 7 Challenges and barriers

Challenge Response

To ensure migrants using highly skilled routes were obtaining only highly skilled jobs.

In the light of evidence that many TCNs admitted under routes for highly skilled migrants failed to find highly skilled employment, in 2010 the decision was made to close the Open Tier 1 General route and instead make skilled migration demand-led and thereby responsive to employer needs. Tier 1 was refocused on attracting smaller numbers of high-value migrants with routes dedicated to investors, entrepreneurs and exceptionally talented individuals instead.

Concerns that the number of skilled TCNs would reduce following the introduction of the Tier 2 (General) limit with negative impacts on economic growth.

These concerns have proven unfounded. The limit of 20,700 skilled workers has not been reached since its introduction in 2011. About one-half of the allocated places have been used. The Government has committed to review the level of the limit every two years, in the light of the economic conditions at that time.


Challenge Response

Evidence that entrepreneur and investor routes were being misused in order to obtain entry for other TCNs.

New measures were introduced in December 2012 to assess the credibility of potential entrepreneurs. Applicants may be requested to provide additional information about their business, for example, by submitting a business plan or showing that they have conducted market research.

Additionally, applicants may be asked to demonstrate that they continue to have access to the funds ahead of investment in a UK business. 41

Concerns that a requirement to provide at least £50,000 in funding could deter young investors.

A new route for Graduate Entrepreneurs opened in 2012. From 2013 this route has been expanded with a businessman competition for international MBA graduates

Lack of awareness of the new routes such as Tier 1 (Exceptional Talent) or Tier 1 (Graduate Entrepreneur).

Take up of the new route for exceptionally talented individuals are not as well-used as expected. Meetings have been arranged with UK universities and competent bodies to understand the reasons for this and to ensure they are fully aware of the new opportunities.

Q.20. If such evidence is not available, what is then the national policies makers’ or other stakeholders’ experience and assessment regarding the challenges and barriers which affect the attractiveness of your Member State for (highly) qualified third country nationals?

N/A

41 If money has been moved to UK, applicants need to provide evidence of this. Applicants need to provide the business accounts or accountant certificate showing that they have invested the funds in the business, together with updated evidence of any remaining monies to make up their full investment.


4. Conclusions

The Synthesis Report will outline the main findings of the Study and present conclusions relevant for policymakers at national and EU level.

Q.21. What conclusions would you draw from your findings that are relevant to the aims of this Focused Study? Can you identify good practices and lessons learnt with regard to attracting highly qualified and qualified third country nationals? What is the relevance of your findings to (national and/or EU level) policymakers?

Changes in the immigration policy in the UK over the last five years reflect a shift towards a greater selectivity of the Points-Based System (PBS) combined with a redefinition of who are the brightest and the best of migrants. The UK moved away from admitting highly qualified migrants on the grounds of the migrants’ educational attainment and used the level of contribution as a measure of desirability instead.42

Consequently, the first lesson is that the routes for highly qualified third country nationals (TCNs) need to be carefully calibrated with their effectiveness evaluated on regular basis.

Secondly, the UK offers an insight of how policymaking can be based on and improved by research such as analysis prepared by the Migration Advisory Committee (MAC) or UK Border Agency evaluations.

The third lesson is that attractiveness of immigration routes is likely to be connected with incentives such as rights to accelerated settlement. However, as the UK experience shows immigration of qualified TCNs has not been halted by the introduction of measures that sought to break the link between employment and settlement. Additionally, upgrading of the skill levels of highly qualified and qualified occupations overlaps with compositional changes of TCNs in skilled occupations, with more migrants in occupations skilled to a degree level – National Qualifications Framework (NQF) Level 6 – and fewer in occupations skilled to NQF Level 3, which corresponds to A-level qualifications.

Additionally, there are the following good practices.

• Replacement of generic highly skilled routes by more specialised routes for exceptionally talented individuals, skilled workers and employees of international companies.

• National institutions can be involved in scrutinising whether applicants are of the right calibre for the talent routes. The UK experience shows that such institutions are well-equipped to identify exceptionally talented applicants.

• Premium services may help to speed up the processing time for highly qualified TCNs.

42 This can also be seen in a change of name of the Tier 1 system, from a route for highly skilled migrants in 2008 to one for high-value migrants from 2011 onwards.


References

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Appendix A: Data Tables

Table 8 Tier 2 visa applications for all industries and the top 3 industries, quarter 1 2010 - quarter 1 2013. (’000s)

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

2011 Q2

2011 Q3

2011 Q4

Total 10.8 11.3 12.0 8.3 9.7 9.8 11.3 8.8

Information and Communication

4.2 4.7 4.6 3.6 4.3 4.0 4.7 3.8

Financial and Insurance Activities

1.4 1.6 1.8 1.0 1.2 1.6 1.7 1.0

Professional, Scientific and Technical Activities

1.7 1.7 1.8 1.6 1.6 1.7 2.1 1.7

2012 Q1

2012 Q2

2012 Q3

2012 Q4

2013 Q1

Total 9.7 10.7 11.2 9.2 11.0

Information and Communication

4.0 4.7 4.7 4.0 4.6

Financial and Insurance Activities

1.3 1.4 1.6 1.1 1.3

Professional, Scientific and Technical Activities

1.8 2.0 1.9 1.7 2.0

Source: Immigration Statistics, January to March 2013. Note: Main applicants.

Table 9 Employment of third country nationals in high-skilled occupations, 2008–2012. (’000s)

2008 2009 2010 2011 2012

ISCO 1: Legislators, senior officials and managers

87.8 86.7 87.1 90.8 93.7

ISCO 2: Professionals 327.2 344.6 327.7 339.1 351.2

ISCO 3: Technicians and associate professionals

109.2 112.9 116.6 121.2 121.9

Total 524.2 544.2 531.4 551.1 566.8

Source: UK Labour Force Survey 2008-2012. Note: Totals on rounded data, people aged 25-64. ISCO is the International Standard Classification of Occupations. These figures account for the effect of changes in ONS occupational classification scheme.


Table 10 Employment of third country nationals in high-skilled occupations, 2008-2012 (’000s)

2008 2009 2010 2011 2012

ISCO 1: Legislators, senior officials and managers 147.2 129.2 115.1 93.9 95.1

ISCO 2: Professionals 213.8 231.8 212.7 349.4 362.0

ISCO 3: Technicians and associate professionals 162.5 167.2 148.0 118.2 117.0

Total 523.4 528.3 475.8 561.5 574.1

Source: Eurostat data provided by the EMN.

Note: People aged 25-64. ISCO is the International Standard Classification of Occupations.

Table 11 Self-employment of third country nationals for high-skilled occupations, 2008–2012. (’000s)

2008 2009 2010 2011 2012

ISCO 1–3 54.5 56.4 56.8 64.5 66.9

Source: UK Labour Force Survey 2008-2012. Note: People aged 25-64. ISCO is the International Standard Classification of Occupations. These figures account for the effect of changes in ONS occupational classification scheme.

Table 12 Self-employment of third country nationals for high-skilled occupations, 2008-2012. (’000s)

2008 2009 2010 2011 2012

ISCO 1–3 70.3 68.0 57.4 79.3 71.3

Source: Eurostat data provided by the EMN. Note: people aged 25-64. ISCO is the International Standard Classification of Occupations.

Table 13 Employment in high-skilled occupations in the UK, 2008–2012. (’000s)

2008 2009 2010 2011 2012

ISCO 1: Legislators, senior officials and managers

2,832.2 2,803.4 2,805.7 2,750.9 2,816.3

ISCO 2: Professionals 5,993.5 6,108.1 6,245.7 6,406.4 6,537.3

ISCO 3: Technicians and associate professionals

3,230.5 3,196.2 3,148.1 3,220.7 3,278.4

Total 12,056.2 12,107.7 12,199.5 12,378.0 12,632.0

Source: UK Labour Force Survey 2008-2012 Note: Totals on rounded data, people aged 25-64. ISCO is the International Standard Classification of Occupations. These figures account for the effect of changes in ONS occupational classification scheme.


Table 14 Employment in high-skilled occupations in the UK, 2008–2012. (’000s)

2008 2009 2010 2011 2012


4,247.3 4,199.7 4,130.6 2,762.9 2,852.0

ISCO 2 Professionals 3,844.5 3,952.9 4,066.6 6,453.7 6,518.3


3,315.0 3,315.8 3,309.5 3,225.7 3,347.7

Total 11,406.8 11,468.4 11,506.7 12,442.3 12,718.0

Source: Eurostat data [lfsa_egais dataset] Note: people aged 25-64. ISCO is the International Standard Classification of Occupations.

Table 15 Self-employment in high-skilled occupations in the UK, 2008–2012. (’000s)

2008 2009 2010 2011 2012

ISCO 1–3 1,384.5 1,375.4 1,430.9 1,444.9 1,538.4

Source: UK Labour Force Survey 2008-2012. Note: People aged 25-64. ISCO is the International Standard Classification of Occupations. These figures account for the effect of changes in ONS occupational classification scheme.

Table 16 Employment of third country nationals in high-skilled occupations, by sex, 2008–2012. (’000s)

2008 2009 2010 2011 2012

Male 309.4 312.1 314.6 326.8 344.4

Female 214.9 232.1 216.7 224.3 222.4

Total 524.3 544.2 531.3 551.1 566.8

Source: UK Labour Force Survey 2008-2012. Note: Totals on rounded data, people aged 25-64.

Table 17 Employment of third country nationals in high-skilled occupations, by sex, 2008–2012. (’000s)

2008 2009 2010 2011 2012

Male 308.8 307.7 279.4 336.8 348.1

Female 214.6 220.6 196.4 224.7 226.0

Total 523.4 528.3 475.8 561.5 574.1

Source: Eurostat data provided by the EMN. Note: people aged 25-64.


Table 18 Employment of third country nationals in high-skilled occupations, by age group, 2008–2012. (’000s)

2008 2009 2010 2011 2012

25–34 248.3 252.4 249.9 249.5 255.4

35–44 167.4 180.0 173.1 184.7 198.1

45–54 77.0 77.5 75.2 82.6 79.7

55–64 31.5 34.2 33.1 34.2 33.6

Total 524.2 544.1 531.3 551.0 566.8

Source: UK Labour Force Survey 2008-2012. Note: Totals on rounded data, people aged 25-64.

Table 19 Employment of third country nationals in high-skilled occupations, by age group, 2008–2012. (’000s)

2008 2009 2010 2011 2012

25–34 239.4 264.1 221.1 252.6 257.6

35–44 179.2 164.3 155.6 196.7 197.9

45–54 77.9 72.0 66.5 81.3 86.3

55–64 26.9 27.8 32.5 30.8 32.3

Total 523.4 528.3 475.8 561.5 574.1

Source: Eurostat data provided by the EMN. Note: People aged 25-64.

Table 20 Employment of highly educated third country nationals, 2008–2012. (’000s)

2008 2009 2010 2011 2012

ISCED Level 5 414.1 457.7 425.7 658.5 667.0

ISCED Level 6 23.3 27.2 26.0 19.8 18.9

Total 437.4 485.0 451.8 678.3 685.9

Source: Eurostat data provided by the EMN. Note: People aged 25-64. ISCED is the International Standard Classification of Education. Level 5 corresponds to first stage of tertiary education; Level 6 to second stage of tertiary education.

Table 21 Employment of highly educated in the UK, 2008-2012. (’000s)

2008 2009 2010 2011 2012

ISCED Level 5

ISCED Level 6

Total 8,821.4 9,183.0 9,626.4 10,050.0 10,561.7

Source: Eurostat data [lfsa_egaed dataset]. Note: People aged 25-64. ISCED is the International Standard Classification of Education. Level 5 corresponds to first stage of tertiary education; Level 6 to second stage of tertiary education.


Table 22 Employment of highly educated third country nationals, by sex, 2008–2012. (’000s) 2008 2009 2010 2011 2012

Male 247.6 269.1 253.3 398.4 389.8

Female 189.7 215.9 198.5 279.9 296.1

Total 437.4 485.0 451.8 678.3 685.9


Table 23 Employment of highly educated third country nationals, by age group, 2008–2012. (’000s) 2008 2009 2010 2011 2012

25–34 219.2 259.5 230.5 346.8 339.5

35–44 135.1 138.1 136.9 221.1 223.4

45–54 57.2 63.6 58.2 84.7 91.6

55–64 25.8 23.7 26.2 25.7 31.4

Total 437.4 485.0 451.8 678.3 685.9


Table 24 Self-employment of highly educated third country nationals, 2008–2012. (’000s) 2008 2009 2010 2011 2012

ISCED Levels 5 or 6 42.7 45.7 36.5 74.3 74.3

Source: Eurostat data provided by the EMN. Note: People aged 25-64. ISCED is the International Standard Classification of Education. Level 5 corresponds to first stage of tertiary education; Level 6 to second stage of tertiary education.

Table 25 Residence permits issued to third country nationals for remunerated activities, 2008–2012. (’000s) 2008 2009 2010 2011

Total number of first permits issued for remunerated activities

139.7 116.7 121.4 108.2

Remunerated activity reasons: Highly skilled workers

5.9 18.9 16.4 11.7

Source: Eurostat [migr_res dataset].


Table 26 Third country nationals in skilled occupations, by educational attainment, 2008–2012. (’000s) 2008 2009 2010 2011 2012

NQF Level 6 331.8 345.3 324.4 338.6 353.5

NQF Level 4 60.5 61.3 62.6 63.3 70.8

NQF Level 3 100.8 97.7 91.7 107.9 107

Source: UK Labour Force Survey, 2008-2012. Note: People aged 25-64. NQF is the National Qualifications Framework in the UK. Level 3 is equivalent to A-level qualifications (ISCED 3A); Level 4 to Certificate of Higher Education qualifications (ISCED 4A/5B Short); Level 6 to first stage of tertiary education (ISCED 5A Medium).

Table 27 Entry clearance visas issued by category, Tier 1 highly qualified categories, 2008–2012.

2008 2009 2010 2011 2012

Investors 43 153 211 331 470

Entrepreneurs 27 118 189 421 702

Graduate Entrepreneurs 0

Exceptional Talent 7 59

Total 70 271 400 759 1,231

Source: Immigrat ion Stat ist ics – January to March 2013. Note: Main applicants, excluding general, post study, other and other/high value permits.

Table 28 Entry clearance visas issued by category, Tier 2 qualified categories, 2008–2012.

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

Tier 2 (General) 17 905 2,196 2,940 2,515


47 4,356 5,662 6,091 5,920

Work Permit Holders 13,253 13,918 15,816 11,914 3,905 698 294 127

Total 13,253 13,918 15,816 11,914 9,166 8,556 9,325 8,562

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

2011 Q2

2011 Q3

2011 Q4

Tier 2 (General) 2,629 2,930 3,138 1,217 1,447 1,946 2,562 1,809


7,378 7,164 8,046 6,582 7,375 7,409 8,417 6,507

Work Permit Holders 94 71 49 27 17 8 10 5

Total 10,101 10,165 11,233 7,826 8,839 9,363 10,989 8,321


2012 Q1

2012 Q2

2012 Q3

2012 Q4

2013 Q1

Tier 2 (General) 2,106 2,450 2,874 1,991 2,572


7,083 7,562 8,028 6,582 7,677

Work Permit Holders 15 1 7 5 5

Total 9,204 10,013 10,909 8,578 10,254

Source: Immigrat ion Stat ist ics – January to March 2013. Note: Main applicants, excluding ministers of religion and sportspersons.

Table 29 Entry clearance visas issued by category, Tier 1 highly qualified categories, 2008–2012.

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

Tier 1 - Investors 19 24 31 32 53 37

Tier 1 - Entrepreneurs 6 21 20 23 40 35

Tier 1 - Graduate entrepreneurs

Tier 1 - Exceptional Talent

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

2011 Q2

2011 Q3

2011 Q4

Tier 1 - Investors 49 41 60 61 44 70 126 91

Tier 1 - Entrepreneurs 40 53 56 40 95 102 123 101



0 1 6

2012 Q1

2012 Q2

2012 Q3

2012 Q4

2013 Q1

Tier 1 - Investors 100 102 147 121 105

Tier 1 - Entrepreneurs 129 167 192 214 305


0 0 0 0


13 11 20 15 15

Source: Immigrat ion Stat ist ics – January to March 2013. Note: Main applicants, excluding general, post study, other and other/high value permits.


Appendix B – List of shortage occupations and skilled occupations

This appendix provides a list of shortage occupations and skilled occupations as defined by the Migration Advisory Committee (MAC). The list has been mapped to the International Standard Classification of Occupations (ISCO)-08 using Statistical Package for the Social Sciences (SPSS) syntax developed by the Office of National Statistics (ONS). Note that this list includes only occupation titles on the Shortage Occupation List. There are additional two occupations on the Shortage Occupation List for Scotland. For details please check the UK Border Agency’s website.

Notes: ‘n.e.c.’ stands for ‘nowhere else classified’. Also, some of the occupations have additional salary, experience or other requirements attached.43

Table 30 Shortage Occupation List valid from 6 April 2013.

ISCO-08 Occupation code

ISCO-08 Occupation title

2114 Geologists and geophysicists

2131 Biologists, botanists, zoologists and related professionals

2133 Environmental protection professionals

2141 Industrial and production engineers

2142 Civil engineers

2144 Mechanical engineers

2149 Engineering professionals n.e.c.

2151 Electrical engineers

2152 Electronics engineers

2166 Graphic and multimedia designers

2212 Specialist medical practitioners

2221 Nursing professionals

2330 Secondary education teachers

2355 Other arts teachers

2511 Systems analysts

43 For a full list of Standard Occupational Classification (SOC) 2010 occupations with additional requirements, see: https://www.gov.uk/government/collections/migration-‐advisory-‐committee-‐recommended-‐shortage-‐lists


2512 Software developers

2635 Social work and counselling professionals

2651 Visual artists

2652 Musicians, singers and composers

2654 Film, stage and related directors and producers

3115 Mechanical engineering technicians

3211 Medical imaging and therapeutic equipment technicians

3323 Buyers

3434 Chefs

7212 Welders and flame cutters

7232 Aircraft engine mechanics and repairers

7421 Electronics mechanics and servicers

Source: Tier 2 Shortage Occupation List – Government approved version valid from 6 April 2013.

Table 31 Occupations skilled to PhD level.



1223 Research and development managers

2113 Chemists

2114 Geologists and geophysicists


2310 University and higher education teachers

2632 Sociologists, anthropologists and related professionals

Source: Immigration Rules. Appendix J: Codes of Practice for Tier 2 Sponsors, Tier 5 Sponsors and employers of Work Permit Holders.

Table 32 Occupations skilled at National Qualifications Framework Level 6 or above.



All occupations skilled at PhD level

1111 Legislators

1120 Managing directors and chief executives

1211 Finance managers

1212 Human resource managers

1213 Policy and planning managers

1221 Sales and marketing managers


1222 Advertising and public relations managers

1321 Manufacturing managers

1322 Mining managers

1323 Construction managers

1324 Supply, distribution and related managers

1330 Information and communications technology service managers

1342 Health service managers

1344 Social welfare managers

1345 Education managers

1346 Financial and insurance services branch managers

1349 Professional services managers n.e.c.

2120 Mathematicians, actuaries and statisticians

2133 Environmental protection professionals

2141 Industrial and production engineers

2142 Civil engineers

2144 Mechanical engineers

2149 Engineering professionals n.e.c.

2151 Electrical engineers

2152 Electronics engineers

2161 Building architects

2164 Town and traffic planners

2165 Cartographers and surveyors

2211 Generalist medical practitioners

2221 Nursing professionals

2222 Midwifery professionals

2250 Veterinarians

2261 Dentists

2262 Pharmacists

2263 Environmental and occupational health and hygiene professionals

2264 Physiotherapists

2266 Audiologists and speech therapists

2267 Optometrists and ophthalmic opticians

2269 Health professionals n.e.c.

2320 Vocational education teachers

2330 Secondary education teachers

2341 Primary school teachers


2351 Education methods specialists

2352 Special needs teachers

2359 Teaching professionals n.e.c.

2411 Accountants

2412 Financial and investment advisers

2421 Management and organisation analysts

2422 Policy administration professionals

2431 Advertising and marketing professionals

2432 Public relations professionals

2433 Technical and medical sales professionals (excluding information and communications technology)



2513 Web and multimedia developers

2519 Software and applications developers and analysts n.e.c.

2611 Lawyers

2621 Archivists and curators

2622 Librarians and related information professionals

2634 Psychologists


2642 Journalists

2652 Musicians, singers and composers

2654 Film, stage and related directors and producers

3153 Aircraft pilots and related associate professionals


3311 Securities and finance dealers and brokers

3313 Accounting associate professionals

3355 Police inspectors and detectives

Source: Immigration Rules. Appendix J: Codes of Practice for Tier 2 Sponsors, Tier 5 Sponsors and employers of Work Permit

Holders.


Table 33 Occupations skilled to National Qualifications Framework Level 4 or above.



All occupations skilled at NQF 6 or above

1311 Agricultural and forestry production managers

1343 Aged care service managers

1439 Services managers n.e.c.

2161 Building architects

2355 Other arts teachers

2411 Legal and related associate professionals

2423 Personnel and careers professionals

2424 Training and staff development professionals


2641 Authors and related writers

2651 Visual artists

2655 Actors

3112 Civil engineering technicians

3139 Process control technicians n.e.c.

3152 Ships deck officers and pilots


3230 Traditional and complementary medicine associate professionals

3257 Environmental and occupational health inspectors and associates

3258 Ambulance workers

3314 Statistical, mathematical and related associate professionals

3315 Valuers and loss assessors

3323 Buyers

3332 Conference and event planners

3341 Office supervisors

3344 Medical secretaries

3359 Government regulatory associate professionals n.e.c.

3432 Interior designers and decorators

3511 Information and communications technology operations technicians

5419 Protective services workers n.e.c.

Source: Immigration Rules. Appendix J: Codes of Practice for Tier 2 Sponsors, Tier 5 Sponsors and employers of Work Permit

Holders.


Table 34 Occupations skilled to National Qualifications Framework Level 3 or above.



All occupations skilled at NQF 4 or above

1211 Finance managers


1411 Hotel managers

1420 Retail and wholesale trade managers

1431 Sports, recreation and cultural centre managers


2153 Telecommunications engineers

2166 Graphic and multimedia designers



3111 Chemical and physical science technicians


3113 Electrical engineering technicians

3115 Mechanical engineering technicians

3118 Draughtspersons

3119 Physical and engineering science technicians n.e.c.

3132 Incinerator and water treatment plant operators

3143 Forestry technicians

3154 Air traffic controllers

3240 Veterinary technicians and assistants

3254 Dispensing opticians

3321 Insurance representatives

3322 Commercial sales representatives

3324 Trade brokers

3334 Real estate agents and property managers

3343 Administrative and executive secretaries

3353 Government social benefits officials

3411 Legal and related associate professionals

3412 Social work associate professionals

3423 Fitness and recreation instructors and programme leaders

4110 General office clerks

4227 Survey and market research interviewers


4323 Transport clerks

5111 Travel attendants and travel stewards

5112 Transport conductors

5165 Driving instructors

5221 Shopkeepers

5222 Shop supervisors

5242 Sales demonstrators

5249 Sales workers n.e.c.

5329 Personal care workers in health services n.e.c.

5411 Fire fighters

5412 Police officers

7111 House builders

7121 Roofers

7126 Plumbers and pipe fitters

7132 Spray painters and varnishers

7213 Sheet-metal workers

7214 Structural-metal preparers and erectors

7221 Blacksmiths, hammersmiths and forging press workers

7222 Toolmakers and related workers

7223 Metal working machine tool setters and operators

7231 Motor vehicle mechanics and repairers

7311 Precision-instrument makers and repairers

7314 Potters and related workers

7316 Sign writers, decorative painters, engravers and etchers

7318 Handicraft workers in textile, leather and related materials

7321 Pre-press technicians

7322 Printers

7323 Print finishing and binding workers

7422 Information and communications technology installers and servicers

7511 Butchers, fishmongers and related food preparers

7512 Bakers, pastry-cooks and confectionery makers

7522 Cabinet-makers and related workers

7534 Upholsterers and related workers

7536 Shoemakers and related workers

8182 Steam engine and boiler operators

Source: Immigration Rules. Appx J: Codes of Practice for Tier 2 Sponsors, Tier 5 Sponsors and employers of Work Permit Holders.


Appendix C – List of countries that should not have active recruitment

The list of developing countries and countries that should not have active recruitment was produced by the Department of Health and the Department for International Development based on the Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee’s list of aid recipients.

Table 35 List of developing countries and countries that should not have active recruitment.

Afghanistan Albania

Algeria Angola

Anguilla Antigua and Barbuda

Armenia Aruba

Azerbaijan Bahamas

Bahrain Bangladesh

Barbados Belize

Benin Bermuda

Bhutan Bolivia

Bosnia and Herzegovina Botswana

Brazil Burkina Faso

Burundi Cambodia

Cameroon Cape Verde

Central African Republic Chad

Chile China

The Chinese Government has requested that China is removed from this list but that no recruitment should take place in small rural areas.

Chinese Taipei Columbia

Comoros Congo, Republic of

Cook Islands Costa Rica

Cote d’Ivoire Cuba

Democratic Republic of Congo Djibouti


Dominica Dominican Republic

East Timor Ecuador

Egypt El Salvador

Equatorial Guinea Eritrea

Ethiopia Fiji

Gabon Gambia

Georgia Ghana

Grenada Guatemala

Guinea Guinea-Bissau

Guyana Haiti

Honduras India After discussions with the Department for International Development (DFID) and the UK High Commission in India, it was confirmed that agencies can recruit healthcare professionals from India. However, there are four states that receive DFID aid that should not be targeted for recruitment. These are Andhra Pradesh, Madhya Pradesh, Orissa and West Bengal.

Indonesia Iran

Iraq Jamaica

Jordan Kazakhstan

Kenya Kiribati

Korea, Democratic Republic Kyrgyz Republic

Laos Lebanon

Lesotho Liberia

Macedonia Madagascar

Malawi Malaysia

Maldives Mali

Marshall Islands Mauritania

Mauritius Mayotte

Mexico Micronesia

Moldova Mongolia

Montserrat Morocco

Mozambique Myanmar

Namibia Nauru

Nepal Nicaragua

Niger Nigeria


Niue Pakistan

Palau Islands Panama

Papua New Guinea Paraguay

Peru Philippines

There is a Memorandum of Understanding between the UK and Philippine Governments to enable the UK to recruit registered nurses and other healthcare professionals. The term ‘other healthcare professionals’ refers to physiotherapists, radiographers, occupational therapists, biomedical scientists and other allied health professionals that are regulated by the appropriate professional bodies in both countries.

Rwanda Samoa

Sao Tome and Principe Saudi Arabia

Senegal Seychelles

Sierra Leone Solomon Islands

Somalia South Africa

Sri Lanka St Helena

St Kitts and Nevis St Lucia

St Vincent and Grenadines Sudan

Suriname Swaziland

Syria Tajikistan

Tanzania Thailand

Togo Tokelau

Tonga Trinidad and Tobago

Tunisia Turkey

Turkmenistan Turks and Caicos Islands

Tuvalu Uganda

Uruguay Uzbekistan

Vanuatu Venezuela

Vietnam Virgin Islands

Wallis and Futuna West Bank and Gaza Strip

Yemen Yugoslavia

Zambia Zimbabwe


Appendix D – Mapping between classifications of occupation

Table 36 Mapping between the Standard Occupational Classification 2010 and International Standard Classification of Occupations 2008 for all occupations in Standard Occupational Classification Major Groups 1–3.

SOC 2010 occupation code

SOC 2010 occupation title ISCO-08 occupation code

ISCO-08 occupation title

1115 Chief executives and senior officials 1120 Managing directors and chief executives

1116 Elected officers and representatives 1111 Legislators

1121 Production managers and directors in manufacturing

1321 Manufacturing managers

1122 Production managers and directors in construction


1123 Production managers and directors in mining and energy

1322 Mining managers

1131 Financial managers and directors 1211 Finance managers

1132 Marketing and sales directors 1221 Sales and marketing managers

1133 Purchasing managers and directors 1324 Supply, distribution and related managers

1134 Advertising and public relations directors 1222 Advertising and public relations managers

1135 Human resource managers and directors 1212 Human resource managers

1136 Information technology and telecommunications directors

1330 Information and communications technology service managers

1139 Functional managers and directors n.e.c. 1213 Policy and planning managers

1150 Financial institution managers and directors

1346 Financial and insurance services branch managers

1161 Managers and directors in transport and distribution


1162 Managers and directors in storage and warehousing


1171 Officers in armed forces 110 Commissioned armed forces officers

1172 Senior police officers 3355 Police inspectors and detectives

1173 Senior officers in fire, ambulance, prison and related services

1349 Professional services managers n.e.c.

1181 Health services and public health managers and directors

1342 Health service managers

1184 Social services managers and directors 1344 Social welfare managers

1190 Managers and directors in retail and wholesale

1420 Retail and wholesale trade managers





1211 Managers and proprietors in agriculture and horticulture


1213 Managers and proprietors in forestry, fishing and related services


1221 Hotel and accommodation managers and proprietors

1411 Hotel managers

1223 Restaurant and catering establishment managers and proprietors

1412 Restaurant managers

1224 Publicans and managers of licensed premises

1411 Hotel managers

1225 Leisure and sports managers 1431 Sports, recreation and cultural centre managers

1226 Travel agency managers and proprietors 1439 Services managers n.e.c.

1241 Health care practice managers 3344 Medical secretaries

1242 Residential, day and domiciliary care managers and proprietors

1343 Aged care service managers

1251 Property, housing and estate managers 1439 Services managers n.e.c.

1252 Garage managers and proprietors 1439 Services managers n.e.c.

1253 Hairdressing and beauty salon managers and proprietors


1254 Shopkeepers and proprietors – wholesale and retail

5221 Shopkeepers

1255 Waste disposal and environmental services managers


1259 Managers and proprietors in other services n.e.c.


2111 Chemical scientists 2113 Chemists

2112 Biological scientists and biochemists 2131 Biologists, botanists, zoologists and related professionals

2113 Physical scientists 2111 Physicists and astronomers

2114 Social and humanities scientists 2632 Sociologists, anthropologists and related professionals

2119 Natural and social science professionals n.e.c.


2122 Mechanical engineers 2144 Mechanical engineers

2123 Electrical engineers 2151 Electrical engineers

2124 Electronics engineers 2152 Electronics engineers

2126 Design and development engineers 2149 Engineering professionals n.e.c.

2127 Production and process engineers 2141 Industrial and production engineers

2129 Engineering professionals n.e.c. 2149 Engineering professionals n.e.c.

2133 IT specialist managers 2519 Software and applications developers and analysts n.e.c.

2134 IT project and programme managers 2519 Software and applications developers and analysts n.e.c.





2135 IT business analysts, architects and systems designers


2136 Programmers and software development professionals


2137 Web design and development professionals

2513 Web and multimedia developers

2139 Information technology and telecommunications professionals n.e.c.

2519 Software and applications developers and analysts n.e.c.

2141 Conservation professionals 2133 Environmental protection professionals

2142 Environment professionals 2133 Environmental protection professionals

2150 Research and development managers 1223 Research and development managers

2211 Medical practitioners 2212 Specialist medical practitioners

2212 Psychologists 2634 Psychologists

2213 Pharmacists 2262 Pharmacists

2214 Ophthalmic opticians 2267 Optometrists and ophthalmic opticians

2215 Dental practitioners 2261 Dentists

2216 Veterinarians 2250 Veterinarians

2217 Medical radiographers 3211 Medical imaging and therapeutic equipment technicians

2218 Podiatrists 2269 Health professionals n.e.c.

2219 Health professionals n.e.c. 2269 Health professionals n.e.c.

2221 Physiotherapists 2264 Physiotherapists

2222 Occupational therapists 2269 Health professionals n.e.c.

2223 Speech and language therapists 2266 Audiologists and speech therapists

2229 Therapy professionals n.e.c. 2634 Psychologists

2231 Nurses 2221 Nursing professionals

2232 Midwives 2222 Midwifery professionals

2311 Higher education teaching professionals 2310 University and higher education teachers

2312 Further education teaching professionals 2320 Vocational education teachers

2412 Barristers and judges 2611 Lawyers

2413 Solicitors 2611 Lawyers

2419 Legal professionals n.e.c. 2611 Lawyers

2421 Chartered and certified accountants 2411 Accountants

2423 Management consultants and business analysts


2424 Business and financial project management professionals


2425 Actuaries, economists and statisticians 2120 Mathematicians, actuaries and statisticians

2426 Business and related research professionals






2429 Business, research and administrative professionals n.e.c.


2431 Architects 2161 Building architects

2432 Town planning officers 2164 Town and traffic planners

2433 Quantity surveyors 2149 Engineering professionals n.e.c.

2434 Chartered surveyors 2165 Cartographers and surveyors

2435 Chartered architectural technologists 2161 Building architects

2436 Construction project managers and related professionals


2442 Social workers 2635 Social work and counselling professionals

2443 Probation officers 2635 Social work and counselling professionals

2444 Clergy 2636 Religious professionals

2449 Welfare professionals n.e.c. 2635 Social work and counselling professionals

2451 Librarians 2622 Librarians and related information professionals

2452 Archivists and curators 2621 Archivists and curators

2461 Quality control and planning engineers 2149 Engineering professionals n.e.c.

2462 Quality assurance and regulatory professionals


2463 Environmental health professionals 2263 Environmental and occupational health and hygiene professionals

2471 Journalists, newspaper and periodical editors

2642 Journalists

2472 Public relations professionals 2432 Public relations professionals

2473 Advertising accounts managers and creative directors


3111 Laboratory technicians 3111 Chemical and physical science technicians

3112 Electrical and electronics technicians 3113 Electrical engineering technicians

3113 Engineering technicians 3115 Mechanical engineering technicians

3114 Building and civil engineering technicians 3112 Civil engineering technicians

3115 Quality assurance technicians 3119 Physical and engineering science technicians n.e.c.

3116 Planning, process and production technicians

3139 Process control technicians n.e.c.

3119 Science, engineering and production technicians n.e.c.

3119 Physical and engineering science technicians n.e.c.

3121 Architectural and town planning technicians


3122 Draughtspersons 3118 Draughtspersons





3131 IT operations technicians 3511 Information and communications technology operations technicians

3132 IT user support technicians 3512 Information and communications technology user support technicians

3213 Paramedics 3258 Ambulance workers

3216 Dispensing opticians 3254 Dispensing opticians

3217 Pharmaceutical technicians 3213 Pharmaceutical technicians and assistants

3218 Medical and dental technicians 3211 Medical imaging and therapeutic equipment technicians

3219 Health associate professionals n.e.c. 3230 Traditional and complementary medicine associate professionals

3231 Youth and community workers 3412 Social work associate professionals

3233 Child and early years officers 3412 Social work associate professionals

3234 Housing officers 3412 Social work associate professionals

3235 Counsellors 2635 Social work and counselling professionals

3239 Welfare and housing associate professionals n.e.c.

3412 Social work associate professionals

3311 Non-commissioned officers and other ranks

310 Armed forces occupations, other ranks

3312 Police officers (sergeant and below) 5412 Police officers

3313 Fire service officers (watch manager and below)

5411 Fire fighters

3314 Prison service officers (below principal officer)

5413 Prison guards

3315 Police community support officers 5412 Police officers

3319 Protective service associate professionals n.e.c.

5419 Protective services workers n.e.c.

3411 Artists 2651 Visual artists

3412 Authors, writers and translators 2641 Authors and related writers

3413 Actors, entertainers and presenters 2655 Actors

3414 Dancers and choreographers 2355 Other arts teachers

3415 Musicians 2652 Musicians, singers and composers

3416 Arts officers, producers and directors 2654 Film, stage and related directors and producers

3417 Photographers, audio-visual and broadcasting equipment operators

3521 Broadcasting and audio-visual technicians

3421 Graphic designers 2166 Graphic and multimedia designers

3422 Product, clothing and related designers 2163 Product and garment designers

3441 Sports players 3421 Athletes and sports players

3442 Sports coaches, instructors and officials 3422 Sports coaches, instructors and officials

3443 Fitness instructors 3423 Fitness and recreation instructors and programme leaders





3511 Air traffic controllers 3154 Air traffic controllers

3512 Aircraft pilots and flight engineers 3153 Aircraft pilots and related associate professionals

3513 Ship and hovercraft officers 3152 Ships deck officers and pilots

3520 Legal associate professionals 3411 Legal and related associate professionals

3531 Estimators, valuers and assessors 3315 Valuers and loss assessors

3532 Brokers 3311 Securities and finance dealers and brokers

3533 Insurance underwriters 3321 Insurance representatives

3534 Finance and investment analysts and advisers

2412 Financial and investment advisers

3535 Taxation experts 2411 Accountants

3536 Importers and exporters 3324 Trade brokers

3537 Financial and accounting technicians 3313 Accounting associate professionals

3538 Financial accounts managers 3313 Accounting associate professionals

3539 Business and related associate professionals n.e.c.

3314 Statistical, mathematical and related associate professionals

3541 Buyers and procurement officers 3323 Buyers

3542 Business sales executives 3322 Commercial sales representatives

3543 Marketing associate professionals 2431 Advertising and marketing professionals

3544 Estate agents and auctioneers 3334 Real estate agents and property managers

3545 Sales accounts and business development managers

2433 Technical and medical sales professionals (excluding information and communications technology)

3546 Conference and exhibition managers and organisers

3332 Conference and event planners

3550 Conservation and environmental associate professionals

3143 Forestry technicians

3561 Public services associate professionals 3359 Government regulatory associate professionals n.e.c.

3562 Human resources and industrial relations officers


3563 Vocational and industrial trainers and instructors

2424 Training and staff development professionals

3564 Careers advisers and vocational guidance specialists


3565 Inspectors of standards and regulations 3359 Government regulatory associate professionals n.e.c.

3567 Health and safety officers 3257 Environmental and occupational health inspectors and associates

Source: Standard Occupational Classification 2010, Volume 1 Structure and descriptions of unit groups.

Note: ‘n.e.c.’ stands for ‘nowhere else classified’.


Appendix E – Factors involved in estimates of TCNs in skilled occupations

Appendix E describes how the estimates of third country nationals (TNCs) in skilled occupations are arrived at.

To provide estimates of qualified TCNs in line with the national definition of qualified migrants, the number of TCNs in the Standard Occupational Classification (SOC) 2010 occupations skilled at National Qualifications Framework (NQF) Levels 6, 4 and 3 were analysed. The list of skilled occupations is published and updated by the Migration Advisory Committee (MAC). To decide whether a given occupation is skilled or not MAC analyses if people who work in this occupation:

• earn sufficient median hourly earnings; • whether the minimal proportion of the workforce is qualified to a corresponding level; and • if the occupation is classified as appropriately skilled in the SOC 2010 occupational hierarchy.

Importantly, the definition of a ‘skilled’ occupation has been revised three times in the last five years (Migration Advisory Committee, 2011). In 2008 it was proposed that skilled employment should include occupations that are skilled to NQF Level 3, at least International Standard Classification of Education (ISCED) Level 3A. In 2011 this requirement was replaced by NQF Level 4 (at least ISCED level 4A/5B Short), and in 2013 it was announced that skilled occupations need to pass the NQF Level 6 (ISCED Level 5A Medium) benchmark.


Appendix F – Nationality breakdown of successful Tier 1 applicants in 2012

The following tables present a detailed breakdown of successful Tier 1 applicants in 2012, by nationality.

Table 37 Entry clearance visas issued under Tier 1 (Entrepreneur) route in 2012, by nationality.

Entrepreneurs

Pakistan 140

United States 130

China 84

India 53

Australia 35

Egypt 33

Iran 25

Canada 24

Russia 17

Other 161

Total 702

Source: Immigration Statistics, January to March 2013.

Table 38 Entry clearance visas issued under Tier 1 (Investor) route in 2012, by nationality.

Investors

China 138

Russia 125

United States 25

Hong Kong 14

Egypt 12

India 12

Canada 11

Malaysia 11

Ukraine 10

Other 112

Total 470



Table 39 Entry clearance visas issued under Tier 1 (Exceptional Talent) route in 2012, by nationality.

Exceptional Talent

United States 21

Canada 5

Australia 4

China 4

India 4

Iran 2

Korea (South) 2

New Zealand 2

Russia 2

Other 13

Total 59


attracting highly qualified and qualified third country nationals · 2017-01-04 · attracting...

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