Foreign professionals now account for 15 per cent of workforce
A week after government data revealed that immigration levels have grown by 38 per cent during 2013-14, research by Lloyds Bank has found the number of foreign professionals in the UK has doubled since 1997.
Those employed in the UK, but born outside of the country now comprise 15 per cent of the workforce – up from 7.3 per cent 17 years ago. Between 2004 and 2014 non-UK born individuals in employment increased by 2 million, from 2.6 million to 4.6 million.
However, the research argues these mostly senior or technical workers are net contributors, adding £210 billion to the UK economy – or 15 per cent of economic output – known as GVA (or gross value added).
Those working in the UK but born in Europe specifically contribute the greatest amount of GVA, producing £75 billion of value – worth 6 per cent of total UK GVA – although the most qualified people are those that come from America. Of the US expats now working in the UK, 57 per cent have a qualification of level 4 or higher.
By comparison, only 26 per cent of UK workers have a level 4 qualification or above.
Jamsheed Poncha, head of client services, UK Wealth at Lloyds Bank, said: “The research clearly demonstrates the strength of the UK economy and its ability to attract a highly qualified workforce from around the world.”
However, within this, there are worrying trends. The report, compiled jointly with the Centre for Economics and Business Research, finds two-fifths (41 per cent) of those working in the UK but born abroad are concentrated in London alone, with the South-East adding an extra 15 per cent on top of that.
It also found that foreign workers’ skill sets are greater than the skills of home-grown talent. For instance, almost one-third of American-born UK workers are in a professional occupation, but only 17 per cent of UK-born citizens are in a professional occupation. The report found only 40 per cent of UK workers are employed in one of the top three skills categories (managerial, professional and associate professional), while 75 per cent of American-born UK workers are in a managerial role.
The figures show public administration, health and education employ the greatest number of inward talent into England and Wales – accounting for 1.1 million, or 14.1 per cent of total employment in those sectors.
The sector with the largest proportion of their total talent comprising workers born outside the UK is the transport/communication sector, followed by finance/business services. However, it is the latter sector where ‘inpats’ contribute the largest proportion of GVA for their sector – 18 per cent of it (worth around £68 million).
Earlier this year the Home Office’s Migration Advisory Committee concluded those born outside of the UK were increasingly taking low-skilled roles too. Those not born in the UK hold 2.1 million of the total 13 million low-skilled jobs, with nearly half of these coming from the EU.