Impact of High Skilled Workers on UK Economy

A recent study by the Centre for Economics and Business Research (CEBR) provided a detailed analysis on the impact that highly skilled workers have on the UK economy. CEBR defines highly skilled migrants as highly skilled managers, senior officials and those involved in professional, associate professional and technical occupations. The report found that by 2012 a total of 2.8% of the workforce will comprise of highly skilled migrants and that the majority of skilled workers will be employed in the health, education and government services sectors. Further, their contribution to the UK is estimated to grow to around £77bn a year.The number of highly skilled migrants entering the UK has more than doubled over the past decade. Following the notorious dotcom crash of the late Nineties, the numbers of highly skilled workers migrating to the UK fell sharply, but these numbers grew rapidly following the addition of 10 new countries into the European Union (EU) in 2004. The majority of highly skilled workers come to the UK from the EU, Asia and Africa.

While the study highlights the well voiced argument that highly skilled migrants fill skills gaps within the UK economy, it is the other, less well known impacts of highly skilled workers on the wider UK economy that is of interest. In fact, the report postulates that there will be 812,000 highly skilled workers in the UK by 2012, which represents an increase of 14% on 2007 figures. In fact, in 2006, highly skilled migrant workers actually accounted for a massive 5% of UK Gross Domestic Product (GDP) growth. A joint study by the Treasury, Home Office and Department for Work and Pensions confirmed this remarkable statistic and put the contribution figure at £6bn.

To highlight the wide-ranging benefit of highly skilled migrants to the UK economy, the report estimates that direct spending on goods and services by highly skilled workers already in the UK is currently at £8.4bn and forecast to rise to £13bn in 2012.

The CEBR report concludes that the growth in demand for overseas qualified nurses and midwives will keep 31.2% of highly skilled migrants employed in the education, health and government services sectors. Further, the report highlighted the potential for significant growth in the IT, telecoms and transport sectors, with roughly 19,000 more highly skilled workers being employed between now and 2012. As the UK economy develops to be more service driven, demand for software and e-commerce specialists is driving this growth. The utilities sector is also highlighted for its growth in use of highly skilled migrants. Growth is forecast to be as much as 44% translating to roughly 649,000 jobs for highly skilled workers.

At the local level, London, as is true historically, will have the largest concentration of highly skilled workers at around 45% of the labour market. By 2012, the report forecasts that 365,000 highly skilled migrants will live in the London, 100,000 will live in the south-east and 49,000 in the east of England.

The patterns of highly skilled worker migration detailed in CEBR’s study add significant weight to the new UK work permit system, the points-based highly skilled migrant programme.

Changes to the UK Work Permit Forms and Guidance Notes

The Home Office has recently announced some subtle changes to the UK work permit forms and guidance notes. The new application forms and guidance notes should be used for applications sent to the UK Border Agency for UK work permit applications made on or after April 1^st 2008. These changes have come about following the change in name of the UK Border and Immigration Agency to the UK Border Agency.

The UK work permit application forms and guidance notes have been re branded to reflect this change in name: UK work permit forms are now branded as UK Border Agency. Secondly, UK work permit application forms for non Bulgarian and Romanian nationals, and the corresponding guidance notes, will only be available via the new UK Border Agency website. This can be accessed at http://www.ukba.homeoffice.gov.uk.

The Home Office has also reported that previous versions of the UK work permit application forms will continue to be accepted by the UK Border Agency

You will be able to access these new forms either using the link above or by calling the Home Office distribution center on 0117 344 1471.

Please remember that UK work permit arrangements will change during 2008 – 9. The new points based system will then come into force. We will continue to bring you further information surrounding this change.

 

Quick Update

Quick yes, well it is a Saturday night

Just to let you know we will shortly be bringing you a very comprehensive  analysis of all the different visa types. Our new links and resources section, which is currently being done, will be upped shortly too.

Have a great Easter!

Delays to British Citizenship

Hi Guys,

As some of you may already know, the Home Office has reported quite a large back-log of British Citizenship applications. The Home Office nationality team is currently experiencing an increase in applications and have reported that there may be a delay in processing British Citizenship Applications.

The Home Office are working to reduce these British Citizenship backlogs and minimise delays and have recommended that in order to provide the best possible service and reduce backlogs as quickly as possible, please do not contact them to check the progress of your application within the average processing times.

The Home Office will continue to update British Citizenship applicants and advise them to check the Home Office waiting times page for up-to-date information.

Update on Biometric Travel Documents

The Home Office began issuing biometric travel documents from the 17 March 2008. While the documents may have changed, the application process has not; all applications must be made by post and the correct fee and supporting documents must still be enclosed.What is a Biometric Travel Document?

The biometric travel document has a new design and security features including a biometric chip. The chip contains the holder’s details such as name, nationality, sex, place and date of birth, signature and a scanned photograph.

How Secure is the Biometric Travel Document?

The biometric chip is completely tamperproof. All UK immigration ports and EU member states have the capability to read the data.

Click here to read the full article on biometric travel documents.

Work Permit Guidance Notes

The current UK Work Permit guidance notes which were due to expire on 30 March 2008 have been extended, and are now valid until 31 March 2008. Updated Work Permit guidance notes effective from 1 April 2008 will be published on this blog when they have been made available.

HSMP Changes to Improve UK Immigration

The new Highly Skilled Migrant Programme, HSMP, points-based system for immigrants, which came into force on the 29th of February 2008, will, according to PM Gordon Brown, let the right people into the UK. Based on the Australian points system, the new HSMP is a five-tier system replacing the previous 80 migration routes to the UK. The HSMP only applies to people from outside the UK and favours skilled and qualified immigrants.

Applicants under the HSMP will receive a score based on factors such as their age, education, work experience and command of English. In fact, all applicants will have to pass an English test, unless they have £1m or more to invest. Under the new HSMP, skilled wokers in occupations where there is a shortage will also be able to enter, as long as they have a job offer lined up. Read the full article here: HSMP Changes to Improve UK Immigration

UK immigration to Crack Down on UK Visa Fraud

New immigration rules surrounding UK Visas are being put in place to prevent UK visas fraud. These more stringent rules will come into affect in March 2008. Read the full article here: UK Immigration to Crack Down on UK Visa Fraud