Accredited official statistics

Work

Published 25 August 2016

Valid: 25 August 2016 to 30 November 2016

Data relate to the year ending June 2016 and all comparisons are with the year ending June 2015, unless indicated otherwise.

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1. Key facts

There were 93,935 Tier 2 skilled work visas granted in the year ending June 2016, 1% higher than the previous year (92,567), and 43,356 Tier 5 Youth Mobility and temporary visas granted, down 3% (-1,273). Of the 96,514 decisions made on entry clearance applications for skilled work, just 3% were refusals (2,388).

There were also fewer Tier 1 unsponsored work visas granted (-3,382; -43%). This was largely due to fewer grants in the Tier 1 Investor category, down 78% (-1,710), reflecting changes introduced to the category in November 2014 and fewer grants to dependants in routes now closed to new applicants (Tier 1 General -1,217; Tier 1 Post Study Work -38).

In the year ending March 2016, the Office for National Statistics (ONS) estimates there were 71,000 non-EU long-term immigrants for work, an increase of 9% (+6,000) compared with the previous 12 months. However, this increase was not statistically significant. Over the same period, long-term (1 year or more) work-related visas granted to main applicants also rose, by 14% to 81,934 in the year ending March 2016, reflecting an increase in skilled work visas in the ‘Short-term Intra-company Transfer (ICT)’ category that were for exactly 365 or 366 days. The level and trend for non-EU long-term migrants and long-term work visas are similar over the longer term. There are nonetheless a number of reasons why the long-term immigration estimates and visas data may show different trends in the shorter term, including sampling variation and coverage; further details are given below.

There was a 2% increase in sponsored visa applications for skilled work (Tier 2) to 56,914 in the year ending June 2016 (main applicants). There were increases in all of the 4 largest sectors: Information and Communication (23,670; +1%), Professional, Scientific and Technical Activities (10,845; +1%), Financial and Insurance Activities (6,826; +2%) and Human Health and Social Work Activities (4,414; +32%). The Information and Communication sector accounted for 42 percent of applications by skilled work sponsors.

Indian nationals accounted for 57% of total skilled work visas granted (53,548 of 93,935), with USA nationals the next largest group of skilled workers granted a visa in the year ending June 2016 (10,019 or 11%).

Skilled work-related grants of extensions rose 3% (+1,652) to 61,997. Of the 65,539 decisions on extensions of stay for skilled work, 5% were refused (3,542). The overall total of work-related grants of extensions fell by 7% (-5,609; -78,265) in the year ending June 2016, mainly accounted for by falls in other categories; 5,961 fewer Tier 1 General grants (closed to new entrants since December 2010) as well as 1,354 fewer Tier 1 Entrepreneur grants (reflecting tightened eligibility rules for individuals seeking to switch to the Tier 1 Entrepreneur category, with the intention of clamping down on abuse). Grants to Domestic Workers in Private Households fell by 32% (-1,130) to 2,442, reflecting previous rule changes.

Year ending June 2015 Year ending June 2016 Change Percentage change
Work-related visas issued 168,505 166,544 -1,961 -1%
of which:        
High value (Tier 1) visas 7,917 4,535 -3,382 -43%
Skilled (Tier 2) visas 92,567 93,935 +1,368 +1%
Youth Mobility and temporary workers (Tier 5) visas 44,629 43,356 -1,273 -3%
Non-PBS/Other work visas 23,392 24,718 +1,326 +6%
Year ending March 2015 Year ending March 2016 Change Percentage change
Long-term immigration for work (1) excluding dependants 65,000 71,000 +6,000 (Confidence interval +/- 14,000) +9%
Long-term (1 year or more) work-related visas excluding dependants 72,131 81,934 +9,803 +14%

Table notes

Source: Home Office, Immigration Statistics April to June 2016, Visas table vi 04_q, International Passenger Survey, Office for National Statistics, Migration Statistics Quarterly Report.
(1) Immigration for work data are estimates of the number of non-EU nationals intending to change their residence to the UK for at least 12 months based on the International Passenger Survey.

There was a long-term reduction in work-related visas granted, admissions and non-EU immigration from 2006 to 2012. Since 2013, increases have been seen in all groups, with some fluctuations. There have been falls in extensions related to the previous closure of the Tier 1 General and Tier 1 Post Study categories to new applicants; see below).

The chart below shows that work-related visas and admissions have been moving in line with each other over the long-term. International Passenger Survey (IPS) estimates of non-EU work immigration are substantially lower as these include only those migrants who state they intend to remain in the UK for a year or more. However, the two series show broadly similar trends with falls from 2006 followed by increases from the middle of 2013. Data on just long-term work visas (1 year or more) for main applicants are much closer to the IPS series, and have become even closer more recently. This may in part reflect changes made as part of the introduction of the Points-Based System in 2008, such as the introduction of the short-term intra-company transfer route.

The chart shows the trends for work of visas granted, admissions and IPS estimates of non-EU immigration, between 2005 and the latest data published. The data are sourced from Tables vi 04 q, ad 02 q and corresponding datasets.

Chart notes

Source: Home Office, Immigration Statistics April to June 2016, Visas table vi 04 q (Visas volume 1), Admissions table ad 02 q and corresponding datasets; Office for National Statistics, Population and migration.

There are a range of potential reasons why IPS figures differ from figures for work visas granted or passenger arrivals, and hence why the trends in the different series do not always correspond, including:

  • IPS estimates only include those people arriving with an intention to remain for 12 months or more, whereas visa data will include any visa length
  • sampling variation in the IPS (for example the increase of 6,000 in work-related immigration for the year ending March 2016 has an estimated confidence interval of +/-14,000)
  • IPS data for work relating to individuals whose main reason for migration was work related so (unlike visas data) are likely to exclude their dependants; IPS data are more comparable with visa totals for main applicants than with total visas data
  • differences between intentions and visa length
  • individuals may migrate for multiple different reasons
  • timing differences between when visas are granted and when an individual actually travels
  • visa and admissions data include dependants

Further comparisons of the data are described in the user guide.

4. Further analysis: skilled work (Tier 2)

There was a 2% increase in sponsored visa applications for skilled work (to 56,914 in the year ending June 2016, main applicants, Certificates of Sponsorship used). Most of the 1,250 increase was accounted for by the four largest sectors: Information and Communication (up 147; +1%), Professional, Scientific and Technical Activities (up 93; +1%), Financial and Insurance Activities (up 126; +2%) and Human Health and Social Work Activities (up 1,061; +32%). There were also notable increases in Education (up 179; +7%) and Other Service Activities (up 103; +8%).The rise in Human Health and Social Work Activities may in part reflect the recommendation for nurses to remain on the Government’s shortage occupation list made by the Migration Advisory Committee in March 2016 after they were added on an interim basis in November 2015.

There were 23,670 applications from the Information and Communication sector in the year ending June 2016, and this sector alone accounted for 42 percent of all skilled work sponsored visa applications. Applications from this sector have increased in each of the last four years (up 41% since 2011).

The chart shows the sponsored visa applications by industry sector for the year ending June 2016. The data are sourced from the sponsorship tables. The top 5 sectors accounted for the large majority (85%) of sponsored skilled visa applications.

Chart notes

Source: Home Office, Immigration Statistics April to June 2016 Sponsorship tables.

Indian nationals accounted for over half (54% or 30,963) of the 56,914 applications.

The chart shows the sponsored visa applications by nationality for the year ending June 2016. The data are sourced from the sponsorship tables.

Chart notes

Source: Home Office, Immigration Statistics April to June 2016 Sponsorship tables.

5. Skilled work visas granted

In the year ending June 2016, almost all (97%) of the 96,514 decisions made on entry clearance applications for skilled work were grants (93,935). The increase in skilled (Tier 2) grants was accounted for by a rise in Tier 2 General main applicants (up 1,626; +10%) and the Short-term ICT category (up 734; +2%). This increase was partly offset by a decrease in the Long-term ICT category (down 580; -2%).

Year ending June 2015 Year ending June 2016 Change Percentage change
Skilled (Tier 2) visas granted 92,567 93,935 +1,368 +1%
of which:        
(Main applicants) 53,648 55,558 +1,910 +4%
of which        
Tier 2 General 16,583 18,209 +1,626 +10%
Tier 2 Intra Company Transfers 2,205 2,125 -80 -4%
Tier 2 Intra Company Transfers Short Term 21,099 21,605 +506 +2%
Tier 2 Intra Company Transfers Long Term 13,158 13,076 -82 -1%
Tier 2 Ministers of Religion 433 365 -68 -16%
Tier 2 Sportsperson 134 116 -18 -13%
Work Permit Holders 36 62 +26 +72%
         
(Dependants) 38,919 38,377 -542 -1%
of which        
Tier 2 Dependant 15,023 14,744 -279 -2%
Tier 2 Intra Company Transfers Short Term 8,871 9,099 +228 +3%
Tier 2 Intra Company Transfers Long Term 15,009 14,511 -498 -3%
Work Permit Holders 16 23 +7 +44%

Table notes

Source: Home Office, Immigration Statistics April to June 2016 Visas table vi 04 q.

6. Skilled work extensions granted

Similarly, in the year ending June 2016, almost all (95%) of the 65,539 decisions on extensions of stay for skilled work were grants (61,997). There was a small (+3%; +1,652) increase in extensions granted, which was accounted for by an increase of 1,790 in extensions for the ICT category.

Year ending June 2015 Year ending June 2016 Change Percentage change
Skilled (Tier 2) granted of extensions 60,345 61,997 +1,652 +3%
of which:        
(Main applicants) 34,030 34,231 +201 +1%
of which        
Tier 2 General 25,557 24,986 -571 -2%
Tier 2 Intra-Company Transfers 7,938 8,718 +780 +10%
Tier 2 Ministers of Religion 439 432 -7 -2%
Tier 2 Sportsperson 95 95 0 0%
Work Permit Holders 1 0 -1  
(Dependants) 26,315 27,766 +1,451 +6%
of which
Tier 2 General 16,479 16,920 +441 +3%
Tier 2 Intra-Company Transfers 9,256 10,266 +1,010 +11%
Tier 2 Ministers of Religion 480 510 +30 +6%
Tier 2 Sportsperson 92 67 -25 -27%
Work Permit Holders 8 3 -5 -63%

Table notes

Source: Home Office, Immigration Statistics April to June 2016 Extensions table ex 01 q.

6.1 Extensions granted in Tier 2 by previous category

Looking at individuals’ previous category in the latest available statistics for 2015, there were 33,184 extensions granted for skilled work.

Of these, it is estimated that 26,185 were grants to individuals previously in Tier 2 (i.e. skilled work), 6,004 were grants to former students, and 331 were grants to individuals previously in the Tier 1 - Post-Study category (now closed to new entrants).

As the chart below indicates, total work-related grants of extensions have fallen from 96,798 in 2011 to 46,254 in 2015, mainly driven by falls in the Tier 1 Post Study and Tier 1 General categories (from 65,897 in 2011 to just 2,024 in 2015, reflecting the closure of these routes to all but dependants of previous applicants in April 2012 and December 2010 respectively). This decrease was partly offset by increases in Tier 2 skilled work extensions granted for those whose previous category was Work between 2011 and 2013, which more than doubled from 16,301 to 33,163. This number has since fallen to 26,822 in 2015. There have also been increases for former students, from 1,730 in 2011 to 6,004 in 2014.

Trends were partly influenced by the introduction of Tier 2 in November 2008, with visas up to 3 years replacing a previous skilled work route that had visas up to 5 years requiring no extension before any application for settlement.

The chart shows the trends in extensions of stay for work, including skilled work by previous category. The chart is based on data in Table expc 01 and expc 01 w.

Chart notes

Source: Home Office, Immigration Statistics April to June 2016, Extensions tables expc 01 and expc 01 w.

7. Staying in the UK

In February 2016 the Home Office published its Migrant journey: sixth report, which shows how non-EEA migrants change their immigration status or achieve settlement in the UK.

The main points were:

  • 25% (20,437) of those issued skilled work visas (with a potential path to settlement) in the 2009 cohort had been granted settlement 5 years later and a further 10% (7,906) still had valid leave to remain

  • Indian nationals were issued the largest proportion (41%) of skilled work visas in the 2009 cohort and, of these skilled Indian nationals, 24% had received settlement after 5 years, while a further 8% still had valid leave to remain.

Source: Home Office, Migrant journey: sixth report.

8. UK nationals and non-UK nationals: Employment levels

Estimates from the Labour Force Survey, UK Labour Market: August 2016, published by the ONS, show that the number of UK nationals in employment in April to June 2016 was 28.2 million, up 373,000 (+ 1.3%) compared with the same quarter in 2015. The employment rate for UK nationals in April to June 2016 was 74.6%, up 1.1 percentage points on the previous year. This is equal to the peak rate recorded in the fourth quarter of 2015, and the highest second quarter rate recorded since the series began in 1997 (although these figures will be affected by some seasonality).

There were 3.4 million non-UK nationals in employment in April to June 2016, up 242,000 (+7.5%) compared with the same quarter in 2015. The employment rate for non-UK nationals was 72.3%, up 0.5 percentage points on the previous year, but lower than the record high rate of 72.8% seen in the third quarter of 2015 (again, these figures will be affected by some seasonality).

This change was driven by an increase in EU nationals in employment (up 238,000 to 2.2 million). There were increases in each of the EU14 (up 97,000 to 944,000), EU8 (up 44,000 to 1.0 million) and EU2 (up 87,000 to 266,000) groups. The number of non-EU nationals in employment remained at a similar level of 1.2 million.

The total growth in employment over the last year was 614,000. This increase was accounted for primarily by UK nationals (60.7%) and EU nationals (38.7%), with non-EU nationals responsible for the remaining 0.6%.

9. Data tables

Data on immigration for work, sourced from Home Office administrative systems, can be found in the following tables:

Visas vol. 1: tables vi 01 q, vi 04 and vi 04 q
vi 01 q Entry clearance visa applications and resolution by category
vi 04 Entry clearance visas granted by category
vi 04 q Entry clearance visas granted by category

Visas vol. 2: table vi 06 q w
vi 06 q w Entry clearance visas granted by category and country of nationality: Work

Sponsorship: tables cs 01 q to cs 06 q
Admissions: tables ad 02 to ad 03 and ad 03 w
Extensions: tables ex 01 to ex 02, ex 02 w and expc 01 w
Settlement: tables se 01 to se 03
European Economic Area: tables ee 01, ee 01 q and ee 02

10. Background information

This section includes figures on work-related visas granted, passenger arrivals and extensions granted for non-EEA nationals. It also includes figures on long-term immigration to work (i.e. those intending to stay for at least 12 months for work) for non-EU nationals.

Data include dependants as well as main applicants unless stated otherwise. Provisional estimates of long term immigration for work from the ONS IPS relate to those whose main reason for migration is to work and so are likely to exclude dependants (who would be more likely to say their main reason was to ‘accompany or join’ rather than to work).

10.1 Reason for migration and the labour market

IPS statistics and visa statistics represent flows of people, only a proportion of whom will remain for longer periods. A recent Home Office research report, ‘The reason for migration and labour market characteristics of UK residents born abroad’ (September 2014), uses ONS data from the Labour Force Survey to provide estimates of the number of residents born abroad by the reason for original migration.

A key finding of this was that the distribution of original purposes given for migrating by people resident in the UK who were born abroad is different from that produced when looking at the migration flows reported in the IPS. For example, the proportion of people who come for family purposes or as a dependant takes greater significance, because of the higher likelihood of people who come for relationship reasons to stay longer. Similarly, although many foreign students are temporary, the analysis confirmed findings in other studies that a number of foreign students do stay on as residents.