Migrants in the UK Labour Market: An Overview – Current Trends and Statistics
Introduction:
Migrants have been an essential part of the UK labour market for several decades. This paragraph will provide an overview of the current trends and statistics regarding migrant workers in the United Kingdom.
Migrants’ Contribution to the UK Labour Market:
According to the Office for National Statistics (ONS), in 2019, there were around 8.9 million foreign-born individuals living in the UK – approximately one in eight of the population (link). Migrants contribute significantly to the UK economy through their labour. In 2018, the total contribution of migrant workers to Gross Domestic Product (GDP) was estimated at £65 billion (link).
Current Trends:
The latest labour market statistics show that migrant workers make up a considerable proportion of the UK workforce. In December 2020, the employment rate for non-UK nationals was 75.6%, compared to 71.3% for UK nationals (link). The sectors with the highest proportion of migrant workers include:
Health and social work:
19% of employees in this sector were born abroad.
Construction:
15% of construction employees were foreign-born.
Accommodation and food services:
15% of employees in this sector were born outside the UK.
Statistics and Conclusion:
Migrants continue to play a vital role in the UK labour market, contributing significantly to various sectors. As of December 2020, there were approximately 5.6 million foreign-born workers in the UK labour market (link). These statistics demonstrate the importance of a diverse workforce and the economic benefits it brings to the United Kingdom.
Significance of Migrants in the UK Labour Market
Migrants play a vital role in the UK labour market, contributing significantly to various sectors such as healthcare, education, construction, and hospitality. With over 8% of the population being foreign-born (link), it is essential to understand current trends and statistics surrounding migrant workers in the UK.
Contribution to the Labour Market
Migrants contribute a substantial amount to the UK economy, filling essential roles that British workers may not be willing or able to take on. For instance, in sectors like healthcare and social work, where a shortage of domestic labour exists, migrant workers play an integral role (Migration Observatory, 2018).
Current Trends and Statistics
In recent years, there has been a shift in the demographic makeup of migrant workers. The number of EU migrants has decreased since the Brexit vote, while the number of non-EU workers has increased (link). Additionally, the data reveals that more migrant workers are arriving in skilled occupations compared to previous years (Migrant Worker Statistics, 2019).
Significance of Understanding Current Trends and Statistics
Comprehending current trends and statistics related to migrant workers is crucial for employers, policymakers, and society as a whole. Employers can leverage this information to make informed decisions about their recruitment strategies, while policymakers can create policies that cater to the needs of migrant workers and ensure fair treatment. Society, in turn, benefits from an informed understanding of the role migrants play in the UK labour market.
Historical Context: Migration and Labour Market in the UK
Historical Context: Migration and Labour Market in the UK
Overview of immigration history in the UK since World War II: Since the end of World War II, the United Kingdom (UK) has experienced numerous waves of migration from various parts of the world.
Post-war migration from Europe:
The first major wave came from European countries, particularly those in the European Economic Community (EEC) and the Commonwealth. Many migrants came to fill labour shortages in industries such as coal mining, textiles, engineering, and transport.
Asylum seekers and refugees:
Another significant group of migrants include asylum seekers and refugees, who have sought protection from conflict and persecution in their home countries. Since the 1950s, the UK has received refugees from Hungary, Czechoslovakia, and Uganda, as well as those fleeing conflicts in the Middle East, Africa, and South Asia.
Economic migration from non-European countries:
The UK has also seen economic migration from non-European countries, such as the Indian subcontinent, the Caribbean, and Africa. These migrations were driven by various factors, including poverty, political instability, and the desire for a better life.
Impact on the labour market during different periods:
Post-war boom:
In the post-war period, migration contributed significantly to the economic growth of the UK through its role in filling labour shortages and expanding industries. However, it also led to tensions between different ethnic communities and sparked debates about immigration controls.
Economic downturn in the 1980s and 1990s:
During the economic downturn of the 1980s and 1990s, migration was seen as a major contributor to unemployment and competition for jobs among native workers. This led to stricter immigration policies and increased public opposition to immigration.
Labour shortages in specific sectors:
More recently, the UK has experienced labour shortages in certain sectors, particularly agriculture, healthcare, and construction, which have led to renewed debates about immigration policies and their impact on the labour market.
Policy shifts and their influence on migration and labour market trends: The UK’s immigration policies have undergone significant shifts over the past few decades, from a relatively open approach in the post-war period to more restrictive policies in the 1980s and 1990s.
In 1962, the UK introduced a points system to control immigration from outside the Commonwealth.
However, this was abandoned in the 1970s due to political pressure and economic needs. In the late 1990s, the UK introduced work permits for non-EEA migrants, followed by the introduction of the points-based system in 2008.
More recently, the UK’s decision to leave the EU has raised concerns about the future of migration and its impact on the labour market. While some argue that Brexit will lead to a reduction in immigration, others suggest that the UK may still need to rely on migrant workers to fill labour shortages.
I Current Trends in Migrants’ Participation in the UK Labour Market
Demographic Composition of Migrant Workers
Migrants continue to play a significant role in the UK labour market. According to the link, there were approximately 3.7 million migrant workers in the UK as of 2019. This number includes both EU and non-EU workers. In terms of skill level, migrant workers are distributed across various sectors, including skilled, semi-skilled, and unskilled labour.
Occupational Distribution of Migrant Workers
The occupational distribution of migrant workers in the UK varies significantly. Some sectors, such as healthcare and social work, have a high proportion of migrant workers due to the reliance on foreign labour for filling critical roles. According to the ONS, around 18% of healthcare workers and 24% of social care workers in the UK were born outside the EU. Another sector with a substantial presence of migrant workers is construction, where around 15% of the workforce was born outside the EU in 2019. Additionally, the hospitality and food services sector and manufacturing and production industries have a significant number of migrant workers.
Wages, Working Hours, and Job Security for Migrant Workers
Migrant workers in the UK face various challenges when it comes to wages, working hours, and job security. According to a Resolution Foundation
report, migrant workers typically earn around 5% less than native-born workers in the same occupation. Additionally, they tend to work longer hours and have fewer opportunities for career progression. The Regional Studies journal reported that job insecurity is a significant issue for migrant workers, with those in low-skilled occupations being particularly vulnerable.
Regional Distribution of Migrant Workers and Impact on Local Labour Markets
The regional distribution of migrant workers in the UK has significant implications for local labour markets. London and the South East have the highest concentration of migrant workers, with around 37% of all foreign-born workers residing in these regions. This has led to concerns about the impact on local labour markets and wages. In contrast, other regions, such as the North East and Wales, have a lower proportion of migrant workers but face significant challenges in terms of labour shortages and economic development.
Statistics on Migrants in the UK Labour Market: Key Findings
Employment rates, unemployment rates, and economic activity
According to the Office for National Statistics (ONS), employment rates among migrants have been consistently higher than those of native-born Britons, with 81.2% of non-UK workers aged 16-64 in employment compared to 75.4% for UK-born individuals in the period from 2018 to 2020 (link). Moreover, unemployment rates among migrants were lower (4.9%) than those of UK-born workers (5.1%). This suggests a higher economic activity rate among migrant populations.
Average wages for migrants versus UK residents in various industries
Average wages for migrant workers varied significantly across different industries. For instance, in the period from 2018 to 2020, EU-born workers earned a median hourly wage of £12.40, which was lower than the UK median hourly wage of £13.80 (link). However, non-EU-born workers in sectors such as health and social work, education, and public administration had higher median hourly wages (£17.08) compared to UK-born workers in the same sectors.
Labour market outcomes for different groups of migrants
EU and non-EU migrant labour market integration
The EU migrants‘ labour market outcomes generally mirror those of native-born Britons, with similar employment rates and economic activity levels (link). However, non-EU migrants, particularly those from low- and middle-income countries, faced significant challenges integrating into the UK labour market due to factors like language barriers, lack of qualifications recognised in the UK, and discrimination.
Comparison of labour market integration between recent and historical migrant cohorts
Research indicates that recent migrant cohorts have experienced faster labour market integration than their historical counterparts, with more favourable economic conditions and policies designed to facilitate their integration (link). Nevertheless, long-term integration
(i.e.,, assimilation into British society) still presents challenges for many migrant communities.
E. Analysis of the impact of Brexit on migration flows and labour market trends
The Brexit process
(i.e.,, the UK’s withdrawal from the EU) has resulted in a significant reduction in net migration, particularly from EU countries (link). The labour market implications of this trend remain to be seen, as it may affect various industries that heavily rely on EU workers. Furthermore, changes in immigration policies and work regulations could impact the labour market integration of migrants, particularly those from non-EU countries.
Policies Affecting Migrants in the UK Labour Market: Current Challenges and Future Directions
Immigration policies, including work visas, student visas, and asylum seekers:
- Points-Based System: This immigration system, which was introduced in 2008, allocates points for specific qualities such as qualifications, work experience, and English language ability. It aims to attract skilled workers while limiting access to those without sufficient qualifications.
- EU Settlement Scheme: This policy, which came into effect after the UK’s withdrawal from the European Union, allows European migrants to apply for settled or pre-settled status in the UK, granting them access to various rights and benefits.
Labour market policies addressing migrant workers:
Minimum wage and living wage requirements:
These policies are designed to ensure that workers earn a fair wage, with the minimum wage set at £8.91 per hour for workers aged 23 and over (as of 2021). The living wage, however, is higher and calculated based on the cost of living.
Training and education programs to upskill and reskill workers:
Various government initiatives, such as Apprenticeships and the National Retraining Scheme, aim to provide training opportunities for migrant workers, enabling them to develop new skills and adapt to changing labour market conditions.
Policies addressing discrimination, exploitation, and human rights of migrant workers:
Modern Slavery Act 2015:
This act introduced new measures to combat slavery, human trafficking, and forced labour in the UK. It mandates businesses with a turnover of over £36 million to produce an annual transparency statement detailing their efforts to address these issues in their supply chains.
Equality Act 2010:
This act prohibits discrimination on the basis of various protected characteristics, including race, religion or belief, and nationality. It aims to ensure that all individuals are treated fairly in the labour market and other areas of life.
Potential future policies and their potential impact on migrants in the UK labour market:
Post-Brexit immigration system:
Skills-based immigration system:
The UK’s future immigration policies, post-Brexit, could significantly impact migrant workers in the labour market. Possible changes include increased requirements for work visas and restrictions on low-skilled migration.
This proposed policy would prioritize immigration based on an individual’s skills and qualifications, potentially encouraging more skilled workers to migrate while limiting access for those without sufficient qualifications.
VI. Conclusion:
Understanding current trends and statistics regarding migrants in the UK labour market is of paramount importance for various stakeholders. With nearly 10% of the UK population being foreign-born (ONS, 2020)), migrant workers significantly contribute to the country’s economic growth and labour force. However, as this research has revealed, their integration into the labour market is not without challenges (
see Section V
).
Implications for policymakers, employers, and society at large:
Policymakers must address the challenges presented by migrant workers, such as skills mismatches and language barriers. They should promote inclusive labour policies (
e.g., training programs, language courses, and equal employment opportunities
) to ensure a level playing field for all workers. Employers, on the other hand, have a role in creating an inclusive work environment, fostering diversity and promoting opportunities for career development for migrant workers.
Maximizing opportunities:
By doing so, policymakers and employers can maximize the opportunities presented by migrant workers. These include their diverse skills and experiences, cultural knowledge, and strong work ethic. Society at large also benefits from a more inclusive labour market, as it promotes social cohesion and economic growth.
Call to action:
It is essential that further research and dialogue are initiated on this topic to deepen our understanding of the experiences, challenges, and opportunities presented by migrant workers in the UK labour market. By working together, policymakers, employers, and society at large can create a more inclusive and equitable labour market for all.
References:
ONS. (2020). link. Office for National Statistics.
