Accredited official statistics

Work

Published 1 December 2016

Valid: 01 December 2016 to 22 February 2017

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

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1. Key facts

There were 93,843 Tier 2 skilled work visas granted in the year ending September 2016, 1% higher than the previous year (92,840), and 42,016 Tier 5 Youth mobility and temporary visas granted, down 3,397 (7%). Just 2,510 (3%) of the 96,523 decisions on skilled work visa applications were refused.

There were 2,342 (34%) fewer Tier 1 unsponsored work visas granted. This was largely due to 1,144 (67%) fewer grants in the Tier 1 Investor category, reflecting changes introduced to the category in November 2014 and fewer grants to dependants in routes now closed to new applicants (Tier 1 General -1,020; Tier 1 Post-study Work -18).

In the year ending June 2016, the Office for National Statistics (ONS) estimates there were 74,000 non-European Union (non-EU) long-term immigrants for work, a 10% increase of 7,000 compared with the previous 12 months. However, this increase was not statistically significant. The level and trend for non-EU long-term migrants and long-term work visas are similar over the longer term.

The largest change in sponsored visa applications for Tier 2 skilled work was in the Human Health and Social Work Activities sector, which increased by 47% to 1,587 in the year ending September 2016.

Indian nationals accounted for 53,808 (57%) of a total 93,843 skilled work visas granted, with USA nationals the next largest group of skilled workers granted a visa in the year ending September 2016 (9,557 or 10% of the total).

Skilled work-related grants of extensions rose by 1,904 (3%) to 61,421. Of the 64,489 decisions on extensions of stay for skilled work, just 5% (3,068) were refused. The total number of work-related grants of extensions continued to fall, by 5,136 (6%) to 76,919 in the year ending September 2016, mainly accounted for by 5,111 fewer Tier 1 General grants (closed to new entrants since December 2010). Grants to Domestic Workers in Private Households fell by 38% (-1,453) to 2,331, reflecting previous rule changes.

2. Work immigration: latest trends

	Year ending September 2015	Year ending September 2016	Change	Percentage change
Work-related visas issued	168,412	164,501	-3,911	-2%
of which:
High-value (Tier 1) visas	6,861	4,519	-2,342	-34%
Skilled (Tier 2) visas	92,840	93,843	+1,003	+1%
Youth mobility and temporary workers (Tier 5) visas	45,413	42,016	-3,397	-7%
Non-PBS/Other work visas	23,298	24,123	+825	+4%
	Year ending June 2015	Year ending June 2016	Change	Percentage change
Long-term immigration for work (1), excluding dependants	67,000	74,000	+7,000	+10%
Long-term (1 year or more) work-related visas, excluding dependants	74,376	79,803	+5,427	+7%

2.1 Table notes

Source: Home Office, Immigration Statistics July to September 2016, Visas table vi 04 q (Visas volume 1), International Passenger Survey (IPS), ONS 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 IPS.

3. Long-term trends in work-related immigration

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. 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 2 series show broadly similar trends with falls from 2006 followed by increases from the middle of 2013.

3.1 Long-term trends in work-related immigration

Chart notes

Source: Home Office, Immigration Statistics July to September 2016, Visas table vi 04_q (Visas volume 1), Admissions table ad 02 q and corresponding datasets; ONS, 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 7,000 in non-EU work-related immigration for the year ending June 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 which include dependents of holders of a work visa
• 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

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

4. Further analysis: skilled work (Tier 2)

4.1 Sponsored visa applications, by nationality and industry sector

There was a 1% increase in sponsored visa applications for skilled work to 56,551 in the year ending September 2016 (main applicants, Certificates of Sponsorship used). The largest change was in the Human Health and Social Work Activities sector, an increase of 1,587 (47%), which may in part reflect the addition of nurses to the Government’s shortage occupation list in November 2015.

There were 23,629 applications from the Information and Communication sector in the year ending September 2016, and this sector alone accounted for 42% of all skilled work-sponsored visa applications. Applications from this sector have decreased in the year ending September 2016 (by 431 or 2%) for the first time in 4 years.

Sponsored visa applications by industry sector, year ending September 2016

Chart notes

Source: Home Office, Immigration Statistics July to September 2016, Sponsorship tables.

Indian nationals accounted for over half (55% or 30,895) of the 56,551 applications.

Sponsored skilled work visa applications, by nationality, year ending September 2016

Chart notes

Source: Home Office, Immigration Statistics July to September 2016, Sponsorship tables.

5. Skilled work visas and extensions granted

In the year ending September 2016, almost all (97%) of the 96,523 decisions made on entry clearance applications for skilled work were grants (93,843). The rise in skilled (Tier 2) grants was accounted for by an increase of 1,427 (8%) Tier 2 General main applicants. This increase was partly offset by a decrease in Intra-company Transfers. However, these trends were reversed for dependents and the overall difference was therefore small.

5.1 Skilled work: latest trends in visa grants

	Year ending September 2015	Year ending September 2016	Change	Percentage change
Skilled (Tier 2) visas granted	92,840	93,843	+1,003	+1%
of which:
Main applicants	54,202	55,336	+1,134	+2%
of which
Tier 2 General	16,915	18,342	+1,427	+8%
Tier 2 Intra -company Transfers	2,175	2,133	-42	-2%
Tier 2 Intra-company Transfers Short Term	21,337	21,224	-113	-1%
Tier 2 Intra-company Transfers Long Term	13,194	13,199	-75	-1%
Tier 2 Ministers of Religion	423	344	-79	-19%
Tier 2 Sportsperson	115	122	+7	+6%
Work Permit Holders	43	52	+9	+21%
Dependants	38,638	38,507	-131	0%
of which
Tier 2 Dependant	15,260	14,420	-840	-6%
Tier 2 Intra-company Transfers Short Term	8,763	9,132	+369	+4%
Tier 2 Intra-company Transfers Long Term	14,594	14,940	+346	+2%
Work Permit Holders	21	15	-6	-29%

Table notes

Source: Home Office, Immigration Statistics July to September 2016, Visas table vi 04 q (Visas volume 1).

Similarly, in the year ending September 2016, almost all (95%) of the 64,489 decisions on extensions of stay for skilled work were grants (61,421). There was a small (+3%; +1,904) increase in extensions granted, which was accounted for by an increase of 1,980 in extensions for the Tier 2 General category (for both main applicants and their dependents combined).

Skilled work: latest trends in grants of extensions

	Year ending September 2015	Year ending September 2016	Change	Percentage change
Skilled (Tier 2) granted of extensions	59,517	61,421	+1,904	+3%
of which:
Main applicants	33,351	34,023	+672	+2%
of which
Tier 2 General	24,596	25,221	+625	+3%
Tier 2 Intra-company Transfers	8,269	8,237	-32	0%
Tier 2 Ministers of Religion	396	460	+64	+16%
Tier 2 Sportsperson	89	105	+16	+18%
Work Permit Holders	1	0	-1
Dependants	26,166	27,398	+1,232	+5%
of which
Tier 2 General	15,833	17,188	+1,355	+9%
Tier 2 Intra-company Transfers	9,797	9,585	-212	-2%
Tier 2 Ministers of Religion	457	539	+82	+18%
Tier 2 Sportsperson	71	82	+11	+15%
Work Permit Holders	8	4	-4	-50%

Table notes

Source: Home Office, Immigration Statistics July to September 2016, Extensions table ex 01 q.

Skilled work visas and extensions granted, year ending September 2016

Chart notes

Source: Home Office, Immigration Statistics July to September 2016, Visas table vi 01 q (Visas volume 1), Extensions table ex 01 q.

5.2 Extensions granted in Tier 2 by previous category

Looking at each individual’s 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 also 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.

Work-related extensions, 2011 to 2015 (main applicants)

Chart notes

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

6. Staying in the UK

In February 2016 the Home Office published its Migrant journey: sixth report, which shows how non-European Economic Area (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
• the largest proportion (41%) of skilled work visas in the 2009 cohort were issued to Indian nationals, of which 24% had received settlement after 5 years, while a further 8% still had valid leave to remain

Source: Home Office, Migrant journey: sixth report.

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

Estimates from the Labour Force Survey, UK Labour Market: November 2016, published by the ONS, show that the number of UK nationals in employment in July to September 2016 was 28.4 million, an increase of 213,000 (0.8%) compared with the same quarter in 2015. The employment rate for UK nationals in July to September 2016 was 74.9%, up 0.7 percentage points on the previous year. This is the highest rate recorded since the series began in 1997.

There were 3.5 million non-UK nationals in employment in July to September 2016, an increase of 241,000 (7.4%) compared with the same quarter in 2015. The employment rate for non-UK nationals was 72.8%, down 0.1 percentage points on the previous year.

There was an increase in EU nationals in employment (up 221,000 to 2.3 million), with increases in each of the EU14 (up 90,000 to 937,000), EU8 (up 74,000 to 1.1 million) and EU2 (up 55,000 to 258,000) 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 454,000. This increase was accounted for primarily by EU nationals (49%) and UK nationals (47%), with non-EU nationals responsible for the remaining 4%.

8. 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

9. 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).

9.1 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 migration 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.