Accredited official statistics

Work

Published 26 November 2015

Valid: 26 November 2015 to 24 February 2016

Data relate to the year ending September 2015 and all comparisons are with the year ending September 2014, unless indicated otherwise.

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1. Key facts

There were 168,447 work-related visas granted in the year ending September 2015, up 4% (+6,957) including both main applicants and dependants, largely due to increases in Tier 2 skilled work (+6,088) and in Tier 5 Youth mobility (+3,192, main applicants). These were partially offset by falls in Tier 5 Creative and Sporting visa grants (-1,312, main applicants) as well as fewer grants to dependants in routes now closed to new applicants (Tier 1 General -1,551; Tier 1 Post Study -670). Of the 180,523 decisions in the same period, 6% (11,260) were refused.

In the year ending June 2015, the ONS estimate there were 67,000 non-EU long-term immigrants for work, an increase of 22% (+12,000) 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 20% to 74,388 in the year ending June 2015. The level and trend from the two series are similar. There are nonetheless a number of reasons why the long-term immigration estimates and visas data may show different trends, including sampling variation and coverage; further details are given below.

There was an 8% increase in sponsored visa applications for skilled work to 56,131 in the year ending September 2015 (main applicants). Most of the increase was accounted for by for the four largest sectors: Information and Communication (23,890; +7%), Professional, Scientific and Technical Activities (10,711; +9%), Financial and Insurance Activities (6,832; +9%) and Human Health and Social Work Activities (3,332; +16%). The Information and Communication sector accounted for 43 percent of applications by skilled work sponsors.

Indians accounted for 57% of total skilled work visas granted (53,251 of 92,859), with USA nationals the next highest nationality (10,461 or 11%).

Work-related grants of extensions fell by 8% (-6,852) in the year ending September 2015 to 82,263. This fall was mainly accounted for by 2,286 fewer Tier 1 General grants (closed to new entrants since December 2010) as well as 4,364 fewer Tier 1 Entrepreneur category grants. This reflected tightened eligibility rules for individuals seeking to switch to the Tier 1 Entrepreneur category intended to clamp down on abuse. Of the 90,229 decisions on work-related grants of extension in the same period, 9% (7,966) were refused.

2. Work immigration: latest trends

	Year ending September 2014	Year ending September 2015	Change	Percentage change
Work-related visas granted	161,490	168,447	+6,957	+4%
of which:
High value (Tier 1) visas	9,554	6,872	-2,682	-28%
Skilled (Tier 2) visas	86,771	92,859	+6,088	+7%
Youth mobility and temporary workers (Tier 5) visas	42,698	45,460	+2,762	+6%
Non-PBS/Other work visas	22,467	23,256	+789	+4%
	Year ending June 2014	Year ending June 2015	Change	Percentage change
Long-term immigration for work (1),excluding dependants	55,000	67,000	+12,000	+22%
Long-term (1 year or more) work-related visas granted excluding dependants	61,797	74,388	+12,591	+20%

Table notes

Source: Home Office, Immigration Statistics July to September 2015 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.

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. There have been increases more recently (and 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. 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 (the difference having reduced from 47,000 in 2007 and 2008 to within 1,000 for the year ending December 2014). 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.

Long-term trends in work-related immigration

Chart notes

Source: Home Office, Immigration Statistics July to September 2015, Visas table vi 04 q (Visas volume 1), Admissions table ad 02 q and corresponding datasets; Office for National Statistics, 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:

• sampling variation in the IPS, (for example the increase of 12,000 in work-related immigration for the year ending June 2015 has an estimated confidence interval of +/-12,000)
• IPS data for work relate 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, and both short term and long-term migrants

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 an 8% increase in sponsored visa applications for skilled work (to 56,131 in the year ending September 2015, main applicants, Certificates of Sponsorship used). Most of the 3,917 increase was accounted for by the four largest sectors: Information and Communication (up 1,625; +7%), Professional, Scientific and Technical Activities (up 879; +9%), Financial and Insurance Activities (up 577; +9%) and Human Health and Social Work Activities (up 464; +16%). There were 23,890 applications from the Information and Communication sector in the year ending September 2015, and this sector alone accounted for 43 percent of all skilled work sponsored visa applications.

Sponsored visa applications by industry sector, year ending September 2015

Chart notes

Source: Home Office, Immigration Statistics July to September 2015, Sponsorship tables.

Indian nationals accounted for over half (55% or 31,093) of the 56,131 applications, as shown in the chart below.

Sponsored visa applications, by nationality, year ending September 2015

Chart notes

Source: Home Office, Immigration Statistics July to September 2015, Sponsorship tables.

4.2 Skilled work visas granted

In the year ending September 2015, almost all (97%) of the 95,610 decisions made on entry clearance applications for skilled work were grants (92,859). The majority of the 6,088 increase in Tier 2 grants was accounted for by Tier 2 General main applicants (up 2,832 or +20%), Long Term Intra Company Transfers (up 951 or +8%) and Tier 2 Dependants (other than ICT dependents, up 1,657 or +12%).

Skilled work: latest trends in visa grants

	Year ending September 2014	Year ending September 2015	Change	Percentage change
Skilled (Tier 2) visas granted	86,771	92,859	+6,088	+7%
of which:
Main applicants total	50,069	54,174	+4,105	+8%
Tier 2: General	14,051	16,883	+2,832	+20%
Tier 2: Intra Company Transfers	2,142	2,177	+35	+2%
Tier 2: Intra Company Transfers: Short Term	21,039	21,346	+307	+1%
Tier 2: Intra Company Transfers: Long Term	12,247	13,198	+951	+8%
Tier 2: Ministers of Religion	388	424	+36	+9%
Tier 2: Sportsperson	146	116	-30	-21%
Work Permit Holders	56	30	-26	-46%
Dependants total	36,702	38,685	+1,983	+5%
Tier 2: Dependant	13,607	15,264	+1,657	+12%
Tier 2: Intra Company Transfers Short Term	8,442	8,776	+334	+4%
Tier 2: Intra Company Transfers Long Term	14,601	14,628	+27	+0%
Work Permit Holders	52	17	-35	-67%

Table notes

Source: Home Office, Immigration Statistics July to September 2015, Visas table vi 04_q.

4.3 Skilled work extensions granted

Similarly, in the year ending September 2015, almost all (95%) of the 62,732 decisions on extensions of stay for skilled work were grants (59,574). There was a slight (2%; 1,238) fall in extensions granted reflecting 2,594 fewer Tier 2 General main applicant grants, as well as an increase of 880 in extensions granted for Intra Company Transfers dependants.

Skilled work: latest trends in grants of extensions

	Year ending September 2014	Year ending September 2015	Change	Percentage change
Skilled (Tier 2) granted of extensions	60,812	59,574	-1,238	-2%
of which:
Main applicants total	35,775	33,376	-2,399	-7%
Tier 2: General	27,203	24,609	-2,594	-10%
Tier 2: Intra-Company Transfers	8,009	8,281	+272	+3%
Tier 2: Ministers of Religion	462	396	-66	-14%
Tier 2: Sportsperson	100	89	-11	-11%
Work Permit Holders	1	1	0	0%
Dependants total	25,037	26,198	+1,161	+5%
Tier 2: General	15,413	15,849	+436	+3%
Tier 2: Intra-Company Transfers	8,933	9,813	+880	+10%
Tier 2: Ministers of Religion	571	457	-114	-20%
Tier 2: Sportsperson	104	71	-33	-32%

Table notes

Source: Home Office, Immigration Statistics July to September 2015, Extensions table ex 01_q, International Passenger Survey, Office for National Statistics, Migration Statistics Quarterly Report.

4.4 Extensions granted in Tier 2 by previous category

Looking at individuals’ previous category in the latest available statistics for 2014, there were 35,266 extensions granted for skilled work. Of these, it is estimated that 23,379 were grants to individuals previously in Tier 2 (i.e. skilled work), 5,639 were grants to former students, and 5,374 were grants to individuals previously in the Tier 1: Post-Study category (now closed to new entrants).

5. Staying in the UK

In February 2015 the Home Office published its ‘Migrant Journey: Fifth Report’, which shows how non-EEA migrants change their immigration status or achieve settlement in the UK. Key results included:

• 20% (18,359) of those issued skilled work visas (with a potential path to settlement) in the 2008 cohort had been granted settlement 5 years later and a further 8% (6,912) still had valid leave to remain
• Indian nationals were issued the largest proportion (39%) of skilled work visas in the 2008 cohort and, of these skilled Indian nationals, 19% had received settlement after 5 years, while a further 7% still had valid leave to remain

Source: Home Office, Migrant Journey Fifth Report.

6. Further analysis: Unsponsored work visas and extensions: Tier 1 (high value)

The 2010 report ‘Points-based system Tier 1: an operational assessment’ indicated that only small minorities of those in the Tier 1 Post Study and Tier 1 General categories at that time were found to be in skilled work. Tier 1 General route was closed to new “out of country” entry clearance visa applicants from 23 December 2010 and to those applying inside the UK to switch from most categories from 6 April 2011. The Tier 1 Post-study route was closed to new applicants from 6 April 2012. More recently (July 2014) the rules for the Tier 1 Entrepreneur category have also been tightened for extensions in order to reduce the non-compliance in that route (see Changes to the immigration rules will clamp down on visa abuse). As a consequence, the total level of Tier 1 visas granted has continued to fall (down 2,682 to 6,872 in the year ending September 2015).

In the year ending September 2015, there were 9,282 decisions on visas for Tier 1 work including dependants, of which 74% were grants (6,872). This included 4,844 decisions for Tier 1 Entrepreneur, with a grant rate of 65% (3,135). Similarly, in the year ending September 2015, there were 16,530 decisions on extensions of stay for Tier 1 of which 74% were grants (12,268).

There was also a 58% decrease in grants in the Tier 1 Entrepreneur category (from 7,560 to 3,196) for which the grant rate fell from 58% to 47%. This reflected tightening of eligibility for individuals seeking to switch to Tier 1 Entrepreneur. For further information see ‘Statement of changes in Immigration Rules’.

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

Estimates from the Labour Force Survey, ‘Labour Market Statistics, November 2015’, published by the ONS, show that the number of UK nationals in employment in July to September 2015 was 28.1 million, up 122,000 (+0.4%) compared with the same quarter in 2014. The employment rate for UK nationals in July to September 2015 was 74.2%, up 0.6 percentage points on the previous year, and the highest recorded in this series since it began in 1997.

There were 3.2 million non-UK nationals in employment in July to September 2015, up 326,000 (+11%) compared with the same quarter in 2014. Employment rates for non-UK nationals was 72.8%, up 2.4 percentage points on the previous year and again the highest recorded in this series. The increase was almost entirely accounted for by higher employment of EU nationals (up 324,000 to 2.0 million). There were increases in each of the EU14 (up 155,000 to 838,000), EU8 (up 135,000 to 975,000) and EU2 (up 34,000 to 201,000) groups.

The number of non-EU nationals in employment remained at 1.2 million (with a slight increase of 2,000).

The total growth in employment over the last year was 430,000; around a quarter (+122,000) of this growth can be accounted for by UK nationals and three quarters (+326,000) by non-UK nationals. The latter increase was almost entirely accounted for by the rise in EU nationals in employment (+324,000).

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 and ex 02 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, 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 International Passenger Survey (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).

9.3 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.

9.4 Tier 2 General limit, MAC reviews of Tier 2

There is a limit on the number of CoS, called Restricted CoS (RCoS), that will be issued each year of 20,700 for most Tier 2 (General) main applicants applying from outside of the UK. There are 2,550 RCoS available in April and 1,650 in each of the following months. Until recent months, the route has been undersubscribed and therefore the limit not reached. The monthly allocation was oversubscribed for the first time in June 2015. Table 2.2 of the MAC’s recent, ‘Review of Tier 2: analysis of salary thresholds’, outlines how applications are prioritised when the monthly limit is reached.

Employers must apply for a restricted Certificate of Sponsorship if they want to recruit a migrant under the Tier 2 (General) limit. The limit applies to all those who will be applying from overseas and will be paid less than £155,300 a year, and those currently in the UK as a Tier 4 dependant. Places in the limit are allocated using a points based process. Points are awarded for shortage occupations, PhD-level occupations, and salary.

If the Home Office allocates a restricted CoS to a sponsor, this does not mean that Home Office has approved the application to bring that worker to the UK. All Tier 2 migrants must still apply for entry clearance, which will be granted if they can show they hold a valid CoS, will earn an appropriate salary, maintenance and appropriate level of English, and do not fall under the general grounds for refusal.

Data relating to the monthly allocation of Restricted CoS is published at: ‘Allocations of restricted certificates of sponsorship’.

Results from the Migration Advisory Committee’s review of salary thresholds were published at ‘Review of Tier 2: analysis of salary thresholds’.

On 15 October 2015, the Home Secretary wrote to the Chair of the MAC to commission them to examine if there is a national shortage of nurses or specific nursing job titles. The MAC on 3 November 2015 issued a call for evidence. Details are at ‘Call for evidence review: shortage occupation list - nurses’.

9.5 Tier 1 (Graduate Entrepreneur) and Tier 1 (Exceptional Talent) limits

In recent years, Tier 1 of the Points Based System (PBS) has introduced categories of Tier 1 Exceptional talent - and Tier 1 Graduate Entrepreneur.

Tier 1 Exceptional Talent, introduced in August 2011, is for applicants already internationally recognised at the highest level in their particular field. Applicants must hold an endorsement from one of five recognised bodies: Royal Society, British Academy, Royal Academy of Engineering, Arts Council England, and, since April 2014, Tech City UK. The annual limit for the Exceptional Talent category is 1,000 visas per year, with 500 places released in April and another 500 in October. There were 112 decisions and 108 grants of Tier 1 Exceptional Talent entry clearance visas (main applicants) in the year ending September 2015, representing 11% of the annual limit

Tier 1 Graduate Entrepreneur, introduced in April 2012, is for graduates identified as having developed genuine and credible business ideas and entrepreneurial skills to go on to establish one or more businesses in the UK. Applicants must hold an endorsement from either a UK Higher Education Institution (HEI) or, since 2013, UK Trade and Investment (UKTI). The annual limit of 2,000 visas per year is shared between UKTI (100 places) and HEIs (1,900 places), and is released in two stages: April and September There were 151 decisions and 143 grants of Tier 1 Graduate Entrepreneur entry clearance visas in the year ending September 2015, representing 7% of the annual limit.

9.6 Review of Tier 1 Entrepreneur

Results from the Migration Advisory Committee’s review of whether the Tier 1 (Entrepreneur) route is appropriate to deliver significant economic benefits for the UK were published in October 2015 at ‘Migration Advisory Committee (MAC) review: Tier 1 Entrepreneur and Graduate Entrepreneur routes’.