Attracting highly qualified and qualified third country nationals - UK National Contribution
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Attracting highly qualified and qualified third country nationals UK National Contribution Juta Kawalerowicz UK National Contact Point Home Office 3rd Floor, Seacole Building (SW) 2 Marsham Street, London, SW1P 4DF emn@homeoffice.gsi.gov.uk www.emnukncp.org
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 2 Attracting highly qualified and qualified third country nationals
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.
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Table 1 Changes to the Points-Based System affecting Tier 1 and Tier 2, 2011–20131
The introduction of a new Tier 1 (Exceptional Talent) route.
2011
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.
The introduction of a new Tier 1 (Graduate Entrepreneur) route.
2012
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’.
Further expansion of Tier 1 (Graduate Entrepreneur) route with an additional 1,000 places available to
2013
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
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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.
14
12
10
Professional,
Scien=fic
and
Technical
Ac=vi=es
Thousands
8
Financial
and
Insurance
Ac=vi=es
6
Informa=on
and
Communica=on
4
Total
2
0
Source: Immigration Statistics, 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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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. 6 Attracting highly qualified and qualified third country nationals
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
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Table 2 Summary of Tier 1 routes for highly qualified third country nationals
Investor Entrepreneur Graduate entrepreneur Exceptional Talent
For high net-worth For individuals who For MBAs (Masters of For people who are
individuals who wish to invest by Business Administration) internationally recognised as
wish to invest in the setting up or taking or other graduates of world leaders or potential
UK. Funds must be over, and being higher education world-leading talent in the
held in a regulated actively involved in institutions who wish to fields of science, humanities
financial institution running a business in establish one or more and arts and who wish to work
Definition and must be the UK. businesses in the UK. This in the UK.
disposable in the category also applies to
UK. Applicants are overseas graduates who
assessed solely on have been identified by UK
their ability to make Trade Investment as elite
a substantial global graduate
financial investment. entrepreneurs.
n/a n/a - Minimum Bachelor’s - PhD (ISCED Level 6) for
degree (ISCED natural and social
Level 5A Medium), scientists, medical
MBA (ISCED researchers, engineers or
Level 5A Long) for scholars in the field of
Education
global graduates. humanities. No formal
requirement for
exceptionally talented
applicants in the field of
arts and culture.
Salary n/a n/a n/a n/a
n/a n/a - Applicants need to be - Successful candidates
recent graduates. need to be endorsed by a
designated competent
body that recognises that
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Experience
applicants’ work is of
exceptional quality and
has international
recognition.
- Availability of - Availability of - Letter of endorsement - 1,000 places per year
at least £1 £200,000 to invest from higher education
million to invest in the business or institution.
in the UK. access to £50,000 - Availability of a
- No quota on if it is obtained minimum of £1,800
the number of from a specified maintenance funds.
visas issued. source. 113
- Knowledge of English
- Availability of a equivalent to CEFR
minimum of B1.
Other
£3,100 - 2,000 places per year.
maintenance
funds.
- Knowledge of
English equivalent
to CEFR B1.
- No quota on the
number of visas
issued.
Note: ISCED refers to International Classification 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.
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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 For workers of multinational companies who are
job that cannot be filled by a settled worker. This being transferred to a UK-based branch of the
category also includes applicants coming to same organisation either on a long-term basis
the UK to fill jobs on the Shortage Occupation
or for frequent short visits. In 2011 a distinction
List, which is recommended by the Migration
was introduced between short- and long-term
Advisory Committee (MAC) and updated14 to ICTs to break the link between employment and
reflect current shortages in the labour market.15 settlement in the UK.
A current list of skilled occupations and shortage
occupations is provided in Appendix B.
Education - Occupation skilled at NQF Level 6 or above - Occupation skilled at NQF Level 6 or above
(ISCED Level 5A Medium and above). (ISCED Level 5A Medium and above).
Salary - Minimum salary of £20,300 per year or - At least £24,300 (or the appropriate rate16)
the appropriate rate for the job, whichever for short-term staff and at least £40,600 (or
is higher. the appropriate rate) for long-term staff.
Experience n/a n/a
Other - Applicants must score a total of 70 points: - Applicants must score a minimum of 60
30 points for certificate of sponsorship points: 30 points for certificate of
from a licensed sponsor;17 20 points for sponsorship from a licensed sponsor; 20
annual salary of £20,300 or more;18 10 points for annual salary of £24,300 or more;
points for knowledge of English equivalent and 10 points for availability of a minimum
to CEFR B2; and 10 points availability of a of £900 maintenance funds.
minimum of £900 maintenance funds. - No limit.
- 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.
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.
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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.
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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.
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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. 12 Attracting qualified and highly qualified third country nationals
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). 13 Attracting qualified and highly qualified third country nationals
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. 14 Attracting qualified and highly qualified third country nationals
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 Accelerated settlement rights. An entrepreneur can
example, with an investment of no less than £10 million apply for settlement after 3 years if he or she has
TCNs can apply for permanent settlement in the UK created 10 full time jobs for resident workers for at least
after 2 years instead of having to wait 5 years to apply 12 months or if the company of which the entrepreneur
for settlement right if a smaller investment is made. is a director has generated a total turnover of £5 million
Similarly, those who invest at least £5 million can apply over the 3-year period for new business or an additional
for permanent settlement after 3 years. turnover of at least £5 million compared with the
previous 3 years for existing businesses.
Allowable absences from the UK have been The normal £200,000 funding threshold has been
increased from 90 to 180 days a year to give more reduced to £50,000 if an applicant or joint applicants
flexibility for investors. have access to £50,000 of qualifying funding.
Applicants no longer need to meet minimum English Allowable absences from the UK have been increased from
language requirements. 90 to 180 days a year.
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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 16 Attracting qualified and highly qualified third country nationals
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.
Q13.a. If yes, please elaborate concisely.
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
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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 18 Attracting qualified and highly qualified third country nationals
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.
400
350
300
250
ISCO
1
Legislators,
senior
officials
Thousands
and
managers
200
ISCO
2
Professionals
150
100
ISCO
3
Technicians
and
associate
professionals
50
0
2008
2009
2010
2011
2012
Year
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.
80
70
Thousands
60
50
40
30
20
10
0
2008
2009
2010
2011
2012
Year
Source: UK LFS 2008-2012. Data in Table 11.
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.
7,000
6,000
Thousands
5,000
ISCO
1
Legislators,
senior
officials
4,000
and
managers
3,000
ISCO
2
Professionals
2,000
ISCO
3
Technicians
and
associate
professionals
1,000
0
2008
2009
2010
2011
2012
Year
Source: UK LFS 2008-2012. Data in Table 13.
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.
800
700
600
Thousands
500
400
300
200
100
0
2008
2009
2010
2011
2012
Year
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.
30
25
Thousands
20
15
10
5
0
2008
2009
2010
2011
2012
Year
Source: Eurostat data provided by the EMN. Data in Table 20.
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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.
80
70
60
Thousands
50
40
30
20
10
0
2008
2009
2010
2011
2012
Year
Source: Eurostat data provided by the EMN. Data in Table 24.
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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