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Improving Access to Labour market Information for migrants and employers 190 1.2. Labour migration policy A predominantly demand-led system Labour migration policy in the United Kingdom operates in the context of a liberal market economy with a more flexible labour market and a relatively small welfare state compared with most EEA comparators. In essence the labour migration system is predominantly ‘demand-led’ (that is, a system in which employers select migrants to fill specific vacancies [based on evidence-based objective criteria set by government]), although in strict terms it should be considered as ‘hybrid’ (that is, it contains both demand-led and supply-led92 elements) (Devitt, 2012). The supply-led elements in the United Kingdom labour migration system are marginal, especially so after the latest review of the PBS, effective since April 2011 (see below). At the current time the United Kingdom Border Agency (UKBA), an executive agency of the Home Office, is responsible for the formulation and implementation of the United Kingdom’s migration policy. Aside from government, the most influential private actors in the labour migration system are employer associations and individual big employers (often multinational companies) (MNCs), who have both formal and informal stakeholder meetings with relevant government departments (including Home Office agencies and the Department for Business and Skills). These private sector actors play mostly a consultative and lobbying role. The major employers’ association, the Confederation of British Industry (CBI), is the government’s main source of information regarding the business point of view. Trade unions and voluntary and community organizations tend to play a less significant role in influencing labour migration policy. In summary, the United Kingdom regime aims to bring in foreign skills from outside of the European Economic Area (EEA), some of which are lacking in the United Kingdom labour market, in order to ensure economic growth and international competitiveness. In particular, the government wants to help employers experiencing skills shortages, while at the same time ensuring that the United Kingdom is an attractive location for foreign investors – and this means having a relatively open policy on skilled worker immigration. Historical overview Historically (see Salt et al., 2011), the Work Permit system was introduced after World War I to manage flows of third-country workers. Work permits were issued to employers on behalf of nominated foreign workers who were permitted to take up employment in the United Kingdom, to fill shortages in the labour market for a temporary period. In practice, for a sizeable minority of labour migrants the temporary work route of entry has been converted into a long-term stay (Achato et al., 2010). Dependants of work permit holders were also allowed to enter the labour market. 92 In a supply-led system migrants gain access to the labour market rather than a specific job. Migrants are selected on evidence-based objective criteria, mostly relating to human capital.
This demand-led scheme was supplemented subsequently by supply-led schemes. In 2002 the Highly Skilled Migrants Programme (HSMP) was introduced to allow individuals with exceptional skills and experience to come to the United Kingdom to find work or self-employment, with no prior offer of employment and/or link to a specific labour/skill shortage. Subsequently the Science and Engineering Graduates Scheme and International Graduate Scheme (both terminating in 2008) allowed certain third-country nationals who had graduated from United Kingdom higher or further education establishments to stay in the United Kingdom for a transitional period while moving towards skilled employment. The Seasonal Agricultural Workers Scheme (SAWS) was set up after World War II to facilitate the movement of young people from across Europe to work in agriculture, particularly in peak seasons. Participants were mainly students aged between 18 and 25. The SAWS remains in place, managed by nine approved operators on behalf of the UKBA which issues a fixed number of work cards to them each year. The operators recruit participants, allocate them to farms and ensure they receive the appropriate wages and conditions, including suitable accommodation. From 2007 the SAWS has been reserved for nationals from Bulgaria and Romania (having previously attracted participants from Eastern Europe and the former USSR (especially Ukraine). Hence since 2007 the SAWS has not been a legal migration channel for third-country migrants. Turning to other low-skilled demand-led initiatives, a Sectors Based Scheme (SBS) was introduced in 2003 to address labour shortages in lower skilled occupations, initially in food processing and hospitality. Permits were available to young people aged 18-30 years for up to 12 months, where there were shortages of resident workers in certain positions requiring qualifications no higher than standard school leaving qualifications. The scheme operated on a quota system of 10,000 per year initially but this was reduced as a result of the accession of new European Union (EU) Member States and the opening up to them of the United Kingdom labour market in 2004. From 2007 to 2008 the SBS was reserved for nationals of Bulgaria and Romania. After World War II a Working Holiday Makers Scheme (WHMS) was designed in its original form to allow young people from Commonwealth countries to come to the United Kingdom for up to two years. The scheme brought a temporary, flexible workforce and allowed them to experience life in the United Kingdom. Over time the scheme was amended and participants in the WHMS scheme were allowed to work for part of their holiday. Introduction of a Points Based System and imposition of limits on migration flows In 2008 a Points Based System (PBS) was introduced to manage inflows of thirdcountry economic and student migrants. The PBS simplified and consolidated previously separate migration routes into five tiers (Table 10.3). As the name implies, under the points-based system, migrants must pass a points assessment before they country studIes – UNITED KINGDOM 191
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