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.

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