Migrant Labour in the East of England Region

1 Migrant Labour in the East of England Region Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnerships (LEPs) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant 1 workers have been employed. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2011 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multinational employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the East of England Region The East of England region is home to a population of 5,831,800 people of which approximately 3,714,400 are working age. Of those that are working age, there is an 80.4% economic activity rate across the region, 3.4% higher than is seen across the UK. Also, the unemployment rate is 6.6%, below the UK average of 8.2%. Just under two-thirds (65.8%) of the population of the East of England region are qualified at NVQ2 and above, 48.2% are qualified at NVQ3 and above, and 28.5% qualified at NVQ4 and above. The proportion of the population possessing qualifications at NVQ3 and above is 1.4% below the UK average. 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

2 The region has a business base of approximately 399,060 companies. The East of England region is known for its strengths in many sectors. Norfolk, Cambridgeshire and Suffolk are known for strong developments in agriculture, demonstrated by the fact that Norfolk is the UK's biggest producer of potatoes. The economy in the East of England benefits from strong transport connections and a growing housing market. Its strong business sectors, for example, tourism, high-value engineering, leisure and hospitality set the East apart from other English regions. of 53,842 migrants of all ages entering the area every year. As can be seen by Chart 1, only 47.1% of the 53,842 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. Chart 1: Estimated Composition of Migrants Entering East of England Region (% of all migrants) Section 4 Migrant Worker Volumes Between November 2008 and February 2012, approximately 14,347 Non-EEA migrant workers were employed in the East of England region. This represents an annual average of 4,304 migrants and equates to approximately 0.14% of the economically active population in the area. Between April 2010 and March 2011, approximately 16,080 A8 EU migrant workers were employed in the East of England region. As a percentage of the workforce, these A8 EU migrant workers represent approximately 0.52% of the economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 0.66% of the economically active population in the region. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do not capture data on all migrants entering the area from other EU nations not covered by the Worker Registration Scheme requirement or those arriving as asylum seekers who are then given leave to remain or UK nationals returning home after a period overseas. Data constructed by the Office of National Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source an estimated 215,368 migrants of all ages entered the East of England region between mid-2006 and mid-2010. This equates to an annual average 2 Standard Occupational Classification Workers Students Returning migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority 2006-2010, Office of National Statistics. However, within the East of England region there are vast differences amongst many Local Authorities as to the composition of migrants entering them. A strong trend across the East of England is that if the composition of migrant workers is higher, than the composition of migrant students is lower (and vice versa). For example, the district of Fenland has the largest composition of migrant workers in the East of England with th 75.8%, but the 5 lowest composition of student migrants with 1.9%. In contrast, the district of Mid Bedfordshire has the lowest composition of migrant workers with 14.6%, but the highest composition of migrant students with 65.3%. Section 5 Occupational Patterns Across the East of England region, Non-EEA migrant workers have been employed in over 180 different 2 SOC code areas since November 2008. A8 EU migrant workers have, in comparison been employed in just over 200 different SOC code areas.

3 Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Occupations No. of Migrants Rank A8 EU Occupations No. of Migrants 1 IT, Software Professionals 2157 1 Process Operative (Other 7553 Factory Worker) 2 Nurses 1230 2 Warehouse Operative 1721 3 Animal Care Occupations 1177 3 Farm Worker/Farm Hand 1165 n.e.c. (not elsewhere classified) 4 Medical Practitioners e.g. 969 4 Cleaner, Domestic Staff 840 Doctors & Surgeons 5 Musicians 821 5 Packer 711 6 Researchers n.e.c. (not 677 6 Kitchen & Catering 490 elsewhere classified) Assistants 7 Care Assistants/Home Carers 640 7 Care Assistants & 298 Home Carers 8 Researchers, Scientific 625 8 Sales & Retail 291 Assistants 9 Youth & Community Workers 599 9 Labourer, Building 265 10 Chefs/Cooks 376 10 Waiter/Waitress 221 11 Actors, Entertainers 354 11 Crop Harvester 214 12 Teacher, Secondary Education 337 12 Maid/Room Attendant 144 (Hotel) 13 Clergy 251 13 Carpenter/Joiner 142 14 Managers, Information & 188 14 Food Processing 132 Communication Technology Operative (Meat) 15 Managers, Marketing & Sales 183 15 Chef, Other 123 Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa. 74% for Non-EEA and 89% for A8 EU migrants). Table 1 provides details of the top 15 occupations filled by both Non-EEA and A8 migrant workers. as Nurses, 8% in Animal Care Occupations n.e.c., 7% as Medical Practitioners, and 6% as Musicians. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. IT, Software Professionals is the largest single occupations group of Non-EEA migrant workers recruited in the East of England region, employing 15% of all Non-EEA migrant workers. A further 9% of all Non-EEA migrant workers are employed

4 Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers The data presented in Table 1 clearly shows the significant difference in the occupational make-up of migrants from Non-EEA nations and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nations are concentrated in occupations towards the lower half of the occupational spectrum requiring only low or intermediate level skills. Section 6 Sectoral Patterns IT, Software Professional Nurses Animal Care Occupations n.e.c. (not elsewhere classified) Medical Practitioners e.g. Doctors and Surgeons Musicians Other Process Operative (Other Factory Worker) is the occupation most commonly filled by A8 EU migrants with almost half (47%) of A8 EU migrant workers undertaking these roles between April 2010 to March 2011. A considerable number of migrants also took roles as Warehouse Operatives (11%), Farm Worker/Farm Hands (7%), Cleaners/Domestic Staff (5%), and Packers (4%). 25.4% of A8 EU migrant workers were employed in other roles, as shown in Chart 3 below. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from Residential Care to Creative Arts, and from Agriculture to Leisure Services. However, as with occupations, a much smaller list of industries account for the vast majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 83% (circa 12,000 employees) of all Non-EEA migrants employed in the East of England region between November 2008 and February 2012. The 10 most common industries employing A8 EU nationals accounted for almost 100% (circa 16,000 employees) of all A8 workers employed in the East of England region during the one year period under analysis (April 2010-March 2011). Process Operative (Other Factory Workers) Warehouse Operative Farm Worker/Farm Hand Cleaner/Domestic staff Packer Other

5 Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Human Health Activities 17% 1 Administration, Business 67% & Managerial Services 2 Computer Programming, 17% 2 Agriculture Activities 10% Consultancy & Related Activities 3 Sports Activities & 13% 3 Hospitality & Catering 7% Amusement and Recreation Activities 4 Education 13% 4 Manufacturing 3% 5 Creative, Arts & 6% 5 Retail & Related 3% Entertainment Activities Services 6 Other Personal Service 6% 6 SBS Sectors 3% Activities 7 Residential Care Activities 5% 7 Health & Medical 3% Services 8 Food & Beverage Service 3% 8 Education & Cultural 1% Activities Activities 9 Scientific Research & 3% 9 Transport 1% Development 10 Other Professional, Scientific 3% 10 Entertainment & Leisure 1% & Technical Activities Services Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA The data suggests that the largest employing industry of Non-EEA migrant workers was the Human Health Activities sector. The Human Health Activities is an industry that covers functions including hospital activities, general medical practice, specialist medical practice and dental medical practice. The Computer Programming, Consultancy and Related Activities sector accounts for 17% of all Non-EEA migrant workers (circa 2,400 workers), followed by Sports Activities and Amusement and Recreation Activities with 13% (circa 1,900 workers). The Computer Programming, Consultancy and Related Activities sector refers to a range of work including computer game development, computer consultancy activities and computer facilities management activities. The Sports Activities and Amusement and Recreation Activities Sector covers a range of specific functions including operation of sports facilities and racehorse activities. The data suggests that the largest employing industry of A8 EU migrant workers in the East of England region is Administrations, Business and Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that, in a number of cases, these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. The Agriculture Activities sector accounted for a

6 significant number of migrant workers with 10% of all A8 EU workers operating in that sector. Hospitality and Catering was also an important sector with around 7% of workers employed within it. Section 7 Geographic Patterns Using the postcodes from all companies employing Non-EEA migrant workers and the resident Local Authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the East of England region. As can be seen from Map 1, all local authorities in the region have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers were identified as: Cambridge (2451), Dacorum (1678), Forest Heath (1379), St. Albans (958), Basildon (533) and Watford (531). Those districts with the lowest levels of Non-EEA migration during the period November 2008 March 2012 were Thurrock (4), Maldon (7), Fenland (18), Epping Forest (22) and East Cambridgeshire (41). Map 1: Number of Non-EEA migrant workers by Local Authority in the East of England region Source: Certificates of Sponsorship, United Kingdom Border Agency

7 Map 2 shows the distribution of A8 EU migrant workers and reveals that all local authorities in the region have witnessed some degree on inward migration. Those with the greatest number of A8 EU migrant workers were identified as: Peterborough (2075), Luton (1687), King's Lynn & West Norfolk (1372), Fenland (1031), and Norwich (670). The districts with the fewest numbers of A8 EU migrant workers in the East of England region were identified as: Rochford (11), Maldon (32), Castle Point (33), Broadland (46), and Brentwood (49). Map 2: Distribution of A8 EU migrant workers by Local Authority in the East of England region Data presented in this section demonstrates a significant divergence in the geographic distribution between the two groups of migrant rd workers. For example, Fenland is the 3 biggest rd user of A8 EU migrant workers, but only the 3 smallest user of Non-EEA migrants. In contrast, Dacorum is the second biggest user of Non-EEA nd migrant workers, however, it is only the 32 biggest user of A8 EU migrants. Source: Worker Registration Scheme, United Kingdom Border Agency

8 Section 8 Overall Local Reliance Using DWP data on the number of unemployment claimants looking for work in different occupations, it is possible to asses the capacity of the local economy to absorb the impact of reduced number of migrant workers in the future. Table 3 compares the number of migrant workers in each occupation to the number of unemployed people in the East of England region looking for work in that occupation. Table 3 demonstrates that two of the occupations currently employing large numbers of Non-EEA migrants have high numbers of indigenous workers looking to move into the roles (Care Assistants/Home Carers; and Chefs/Cooks). All other top ten occupations suffer from a significant under-supply of indigenous workers. The data, therefore, suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced supply on Non-EEA migrants in the future. Table 3 also demonstrates that 8 occupations currently employing high volumes of A8 EU migrants have high numbers of indigenous workers looking to move into these roles, for example, Warehouse Operative; Packer; and Cleaner/Domestic Staff. This indicates that the local economy could adjust relatively easily to a reduced supply of future A8 EU migrant workers. However, there is no guarantee that the unemployed looking to move into these roles have either the skills or work experience to be a success in these roles, and many may require support to achieve them. Table 3 Comparison of migrant roles and occupations sought by UK nationals Non-EEA Top 10 Ratio of A8 EU Top 10 Ratio of Occupations unemployed Occupations unemployed to migrants to migrants IT, Software Professionals 14.8% Process Operative (Other 4.6% Factory Worker) Nurses 8.9% Warehouse Operative 568.0% Animal Care Occupations 56.9% Farm Worker/Farm Hand 28.8% n.e.c. (not elsewhere classified) Medical Practitioners 1.5% Cleaner/Domestic Staff 457.4% Musicians 8.5% Packer 298.9% Researchers n.e.c. (not 8.1% Kitchen/Catering Assistants 540.3% elsewhere classified) Care Assistants/Home Carers 468.0% Care Assistants & Home Carers 1006.7% Researchers, Scientific 8.8% Sales & Retail Assistants 8228.5% Youth & Community Workers 54.3% Labourer, Building 1000.0% Chefs/Cooks 258.0% Waiter/Waitress 352.9% Under supply of local labour compared to migrant labour supply Balance of local labour supply and migrant labour supply Over supply of local labour compared to migrant labour supply Sources: Worker Registration Scheme, UKBA, & JSA Claimants, Sought Occupations. DWP February 2012.

9 In the following two roles, the number of unemployed indigenous workers looking to move into roles falls substantially below the number of migrant workers currently recruited. This data, therefore, suggests the area may find it difficult to fill any void generated by any reduced labour supply in the A8 EU migrant labour: Process Operative (Other Factory Worker) Farm Worker/Farm Hand As can be seen, this apparent under-supply of indigenous workers looks likely to particularly affect the Agriculture and Manufacturing sectors in the East of England region. Section 9 Causes of Hard-to-Fill Vacancies Using data from the National Employer Skills Survey, it is possible to identify the causes of hard-to-fill vacancies amongst occupations what have historically been filled by migrant workers. By understanding the causes of hard-to-fill vacancies amongst indigenous workers, it may be possible for local partners to better direct resources and effort towards resolving these issues going forward. The data provides a useful insight into what employers believe to be the main causes of recruitment difficulties amongst occupations which have benefitted from significant numbers of Non-EEA migrant workers. It is clear that skills and experience deficiencies amongst the indigenous workforce are present in many cases. Tackling these skills gaps would, therefore, be essential if the area had to cope with fewer Non- EEA migrants in the future. Table 4 Ranked causes of hard-to-fill vacancies by occupations of Non-EEA migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 IT, Software Professionals Low number of applicants with the required skills Lack of work experience the company demands 2 Nurses Low number of applicants with the required skills Not enough people interested in doing this type of job 3 Animal Care Occupations Low number of applicants with the required skills n.e.c. (not elsewhere classified) Low number of applicants generally 4 Medical Practitioners Not enough people interested in doing this type of job Low number of applicants with the required skills 5 Musicians Low number of applicants with required attitude/motivation 6 Researchers n.e.c. (not Not enough people interested in doing this type of job elsewhere classified) Lack of work experience the company demands 7 Care Assistants/Home Carers Low number of applicants with the required skills Job entails shift work/unsocial hours 8 Researchers, Scientific Not enough people interested in doing this type of job Lack of work experience the company demands 9 Youth & Community Workers Low number of applicants with the required skills Job entail shift work/unsociable hours 10 Chefs/Cooks Lack of work experience the company requires Job entails shift work/unsocial hours Sources: National Employer Skills Survey 2007, Learning and Skills Council

10 Table 5 below provides data from the National Employer Skills Survey regarding the causes of hard-to-fill vacancies in relation to the top 10 occupations filled by A8 EU migrants. Table 5 demonstrates that reasons other than skills, qualifications and work experience account for the majority of hard-to-fill vacancies filled by A8 EU nationals. A lack of interest in available roles is often cited as a common reason for hardto-fill vacancies. Table 5 Ranked causes of hard-to-fill vacancies by occupations of A8 EU migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Process Operative (Other Not enough people interested in doing this type of Factory Worker) work/job Lack of qualifications the company demands 2 Warehouse Operative Low number of applicants with the required attitude/motivation Not enough people interested in doing this type of work/job 3 Farm Worker/Farm Hand Poor career progression/lack of progress Not enough people interested in doing this type of work/job 4 Cleaner, Domestic Staff Low number of applicants with the required skills Low number of applicants generally 5 Packer Low number of applicants generally 6 Kitchen & Catering Job entails shift work/unsocial hours Assistants Low number of applicants with the required attitude/motivation 7 Care Assistants/Home Carers Low number of applicants with the required skills Job entails shift work/unsociable hours 8 Sales & Retail Assistants Low number of applicants with the required skills Lack of work experience the company demands 9 Labourer, Building Not enough people interested in doing this type of job Lack of work experience the company demands 10 Waiter/Waitress Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation Sources: National Employer Skills Survey 2007, Learning and Skills Council Tackling these non-skills related causes will clearly be important if UK nationals are going to be persuaded to move into these roles if A8 migrant numbers fall in the future. 3 Joint Academic Coding System

11 Section 10 Local Training Infrastructure This section provides a top-level overview of the range of learning provision available in the East of England region relevant to the key occupations filled by both Non-EEA and A8 EU migrant workers. FE data related to FE college provision in the academic year 2010/11 and is based on approximation between Sector Subject Areas and those occupations identified as having the most migrant workers currently employed. Data on the HE provision relates to HE providers operating within the East of England region and is based on an approximation between occupations and 3 JACs codes. Table 6 shows that in relation to the top 10 roles currently filled by Non-EEA migrants, there appears to be adequate HE provision in 9 of the 10 areas. Only in relation to the HE provision relevant to Chefs/Cooks is there no apparent relevant provision. At FE level there appears to be only limited provision at Level 3 for those interested in working in Animal Care, Medical, Youth and Community and Chef/Cook roles. Table 6 also provides data on the volume of provision relevant to the 10 roles most commonly filled by A8 EU nationals. The table shows that in almost all areas there is some local FE provision although it is limited in volume. At Level 2, only 5 out of 10 roles appear to have adequate level of local provision. Table 6 4 Local FE & HE provision by broad occupation Top 10 Non-EEA Level 2 Level 3 HE Top 10 A8 EU Migrant Level 2 Level 3 Migrant Occupations Occupations IT, Software Professionals L Y Y Process Operative (Other L L Nurses Y Y Y Warehouse Operative L N Animal Care Occupations L L Y Farm Worker/Farm Hand L L n.e.c. (not elsewhere classified) Medical Practitioners N L Y Cleaner/Domestic Staff Y L Musicians L Y Y Packer L N Researchers n.e.c. (not N/A N/A Y Kitchen/Catering Y L elsewhere classified) Assistants Care Assistants/Home Y Y Y Care Assistants & Home Y Y Carers Carers Researchers, Scientific L Y Y Sales & Retail L L Assistants Youth & Community L L Y Labourer, Building Y Y Workers Chefs/Cooks Y L N Waiter/Waitress Y L Y = Adequate provision N= No provision L = Limited provision Sources: National Employer Skills Survey 2007, Learning and Skills Council 4Level 2 = GCSE equivalent, Level 3 = A-level equivalent, HE = Any degree level programme

12 Section 11 Issues for Consideration While small as a percentage of the total labour force, this report has demonstrated that migrant workers appear to be supporting the labour market at both ends of the skills spectrum, filling vacancies where there are genuine skills gaps amongst indigenous workers, as well as semiskilled and unskilled vacancies which UK workers appear to have little interest in applying for. Both Non-EEA and A8 EU migrant workers have played important parts in a number of sectors in the East of England economy, including: Health Activities, Computer Programming, Manufacturing, Distribution, Agriculture, Sporting Activities and Education. Some important local companies have become used to being able to draw in international workers to bolster the domestic workforce and they may well face particular challenges if this source of labour is reduced or eliminated. While all Local Authority areas in the East of England region have seen some inward migration over recent years this has not been evenly distributed and some local areas, such as Cambridge, Dacorum and Forest Heath, may face particular shortages as the number of Non- EEA migrant workers reduces. Any future reduction in A8 EU migrants would appear to affect Peterborough, Luton and King's Lynn & West Norfolk worst of all. The government's decision to only consider highly skilled migrant workers with degree level qualifications in the future is likely to cause particular issues for those employers which have historically recruited Non-EEA migrant workers as Chefs/cooks and Care Assistants. While there appears to be significant numbers of indigenous workers looking to work in these roles, there is evidence of both skills and non-skills barriers which have prevented these occupations being filled in the past. Non-skills related reasons such as a lack of interest and shift working appear to explain why many employers which now use significant numbers of A8 EU migrants have historically been unable to fill roles from the indigenous population. Tackling these non-skills barriers would seem a clear priority for the future. This is particularly important for those employing Process Operatives and Warehouse Operatives who, collectively, currently employ around 9,300 A8 EU migrants in these roles. It appears from the top-line analysis of learning provision that there may be a need to increase the number of training places in certain key areas such as: intermediate provision relevant to process manufacturing, agricultural trades and hospitality and catering roles. Many of the issues faced by the East of England region in terms of key occupations and industries affected by the likely reduction in Non-EEA migrant workers are either the same or similar to those faced by neighbouring areas. It may therefore make sense for partners to discuss these issues with neighbours to see whether there are opportunities for collaborative action.

13 Appendix 1: Indicative Migration Estimates (mid 2006 to mid 2010) Local Authority estimates in England and Wales by broad stream LA Name Workers Students Returning Asylum Others Total migrants (UK born) Seekers Mid Bedfordshire 897 4,025 781 2 453 6,160 Colchester 2,583 5,952 1,086 22 1,383 11,026 Cambridge 5,918 9,879 1,842 23 2,752 20,413 Norwich 3,237 4,733 869 379 1,667 10,887 Rochford 220 22 288 4 82 616 Welwyn Hatfield 3,290 3,990 548 33 1,054 8,914 Mid Suffolk 407 21 497 0 157 1,082 Castle Point 223 36 235 6 90 588 Three Rivers 642 129 503 14 308 1,597 Broadland 494 44 473 8 192 1,210 Luton UA 9,903 9,778 631 597 2,931 23,840 South Norfolk 581 60 535 0 220 1,397 Maldon 323 15 346 0 91 774 South Bedfordshire 763 203 564 18 271 1,819 Chelmsford 1,775 914 942 10 562 4,202 Brentwood 646 44 531 1 300 1,523 North Hertfordshire 948 143 725 35 371 2,222 Dacorum 1,518 627 663 46 611 3,465 St. Albans 1,770 272 1,221 12 766 4,040 Waveney 683 107 468 0 292 1,551 Epping Forest 1,082 244 632 46 442 2,445 Babergh 606 20 503 1 180 1,310 South Cambridgeshire 2,295 705 1,212 18 681 4,911 Tendring 939 139 615 12 231 1,936 Basildon 1,467 204 719 36 558 2,984 Uttlesford 875 32 575 0 296 1,778 East Hertfordshire 1,826 305 850 5 673 3,659 Bedford 3,980 1,793 831 100 1,255 7,961 Suffolk Coastal 1,298 51 759 2 393 2,503 Hertsmere 1,622 253 559 30 652 3,114 Braintree 1,239 113 602 5 400 2,358 St. Edmundsbury 1,115 49 524 0 434 2,121 Forest Heath 1,318 54 608 6 405 2,392 Stevenage 1,028 218 260 38 298 1,842 Southend-on-Sea UA 2,899 349 745 136 922 5,050 Broxbourne 982 104 274 19 323 1,702 Huntingdonshire 2,564 116 964 36 707 4,387 Watford 2,878 357 379 71 1,048 4,734 North Norfolk 1,089 31 450 1 187 1,757 Breckland 2,397 117 628 0 693 3,835 Great Yarmouth 1,722 145 288 8 527 2,691 Harlow 1,638 136 290 34 437 2,535 Peterborough UA 10,195 954 842 622 2,797 15,411 Thurrock UA 3,269 274 445 142 786 4,915 Ipswich 4,547 228 404 214 1,250 6,643 King's Lynn and West Norfolk 3,094 38 491 10 743 4,375 East Cambridgeshire 3,179 105 525 1 430 4,240 Fenland 3,374 85 307 4 680 4,453 Source: Office of National Statistics

14 Appendix 2: Indicative Migration Estimates (mid 2006 to mid 2010) percentages Percentage composition of Local Authority estimates by broad stream (and relative importance with other local authorities) LA Name Workers Students Returning Asylum Others migrants (UK born) Seekers Mid Bedfordshire 15% 65% 13% 0% 7% Colchester 23% 54% 10% 0% 13% Cambridge 29% 48% 9% 0% 13% Norwich 30% 43% 8% 3% 15% Rochford 36% 4% 47% 1% 13% Welwyn Hatfield 37% 45% 6% 0% 12% Mid Suffolk 38% 2% 46% 0% 15% Castle Point 38% 6% 40% 1% 15% Three Rivers 40% 8% 31% 1% 19% Broadland 41% 4% 39% 1% 16% Luton UA 42% 41% 3% 3% 12% South Norfolk 42% 4% 38% 0% 16% Maldon 42% 2% 45% 0% 12% South Bedfordshire 42% 11% 31% 1% 15% Chelmsford 42% 22% 22% 0% 13% Brentwood 42% 3% 35% 0% 20% North Hertfordshire 43% 6% 33% 2% 17% Dacorum 44% 18% 19% 1% 18% St. Albans 44% 7% 30% 0% 19% Waveney 44% 7% 30% 0% 19% Epping Forest 44% 10% 26% 2% 18% Babergh 46% 2% 38% 0% 14% South Cambridgeshire 47% 14% 25% 0% 14% Tendring 49% 7% 32% 1% 12% Basildon 49% 7% 24% 1% 19% Uttlesford 49% 2% 32% 0% 17% East Hertfordshire 50% 8% 23% 0% 18% Bedford 50% 23% 10% 1% 16% Suffolk Coastal 52% 2% 30% 0% 16% Hertsmere 52% 8% 18% 1% 21% Braintree 53% 5% 26% 0% 17% St. Edmundsbury 53% 2% 25% 0% 20% Forest Heath 55% 2% 25% 0% 17% Stevenage 56% 12% 14% 2% 16% Southend-on-Sea UA 57% 7% 15% 3% 18% Broxbourne 58% 6% 16% 1% 19% Huntingdonshire 58% 3% 22% 1% 16% Watford 61% 8% 8% 2% 22% North Norfolk 62% 2% 26% 0% 11% Breckland 63% 3% 16% 0% 18% Great Yarmouth 64% 5% 11% 0% 20% Harlow 65% 5% 11% 1% 17% Peterborough UA 66% 6% 5% 4% 18% Thurrock UA 67% 6% 9% 3% 16% Ipswich 68% 3% 6% 3% 19% King's Lynn and West Norfolk 71% 1% 11% 0% 17% East Cambridgeshire 75% 2% 12% 0% 10% Fenland 76% 2% 7% 0% 15% Source: Office of National Statistics

15 Migrant Labour in the Greater Cambridge and Greater Peterborough Local Enterprise Partnership Area Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnership (LEP) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant workers have been employed 1. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2011 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multinational employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the Greater Cambridge and Greater Peterborough LEP Area The Greater Cambridge and Greater Peterborough LEP area is home to a resident population of around 1.3m people of which approximately 860,400 are of working age. Amongst those of working age, there is an 80.2% economic activity rate across the area, which is 4.1% higher than that seen across the UK. The unemployment rate in the area is 8-6.9%, which is 1% below the national average of 7.9%. 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

16 Just over two-thirds of the population are qualified to NVQ2 and above; 50.3% qualified to NVQ3 and above; and 32.2% qualified to NVQ4 and above. The proportion of the population possessing qualifications at NVQ3 and above is just slightly lower than the national average. The area has a business base of approximately 60,000 companies and its main economic strengths reside in ICT, creative industries, biomedical, low carbon and environmental goods, high value engineering and manufacturing sectors. The area's growth has been constrained due to under-investment in transport and broadband infrastructure, as well as skills disparities and shortages. Section 4 Migrant Worker Volumes Between November 2008 and February 2012 approximately 5,365 Non-EEA migrant workers were employed in the Greater Cambridge & Greater Peterborough LEP area. This represents an annual average of 1,610 migrants and equates to approximately 0.23% of the total economically active population. Registration Scheme requirements or those arriving as asylum seekers who are then given leave to remain or UK nationals returning home after a period overseas. Data constructed by the Office of National Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source an estimated 67,500 migrants of all ages entered the Greater Cambridge and Greater Peterborough area between mid-2006 and mid-2010. This equates to an annual average of 16,900 migrants of all ages entering the area every year. As can be seen in Chart 1 only approximately half of the 16,900 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. Chart 1: Estimated Composition of Migrants Entering the Greater Cambridge and Greater Peterborough LEP Area (% of all migrants) Between April 2010 and March 2011, a total of 7,200 A8 EU migrant workers were employed in companies based across the Greater Cambridge & Greater Peterborough LEP area. As a percentage of the workforce, these A8 EU migrant workers represent approximately 1.04% of the total economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 1.27% of the economically active population. In comparison with other LEPs in the 2 Greater East region, Greater Cambridge & Greater Peterborough has the highest economic activity rate of Non-EEA and A8 EU migrants. Across the East of England region as a whole, Non-EEA and A8 EU migrant workers represent 0.66% of the economically active population. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do not capture data on all migrants entering the area from other EU nations not covered by the Worker 2 Greater East region refers to those local authorities included in LEP areas with some presence in the East of England statistical region. Workers Students Returning Migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority 2006-2010, Office of National Statistics. However, some Local Authorities within the Greater Cambridge and Greater Peterborough LEP have significant differences in their migrant composition than is shown in Chart 1. The districts that have a much higher than average proportion of migrant workers are Fenland (75.8%

17 workers), East Cambridgeshire (75.0% workers), King's Lynn & West Norfolk (70.7% workers) and Peterborough (66.2% workers). These districts saw much lower levels of other categories of migrants, especially returning migrants. However, levels of migrant students in all but two districts in the Greater Cambridge and Greater Peterborough LEP area are below 10%. Cambridge is composed of 48.4% students and South Cambridgeshire is 14.4% students. Therefore, the 18.1% student migrant composition of the entire LEP area is heavily influenced by Cambridge Local Authority's student population. The remaining 10 Local Authorities have an average student composition of only 3.4%. To balance out its high proportion of students, Cambridge has the lowest proportion of migrant workers in the LEP area (29.0%). Section 5 Occupational Patterns Across the Greater Cambridge & Greater Peterborough LEP area, Non-EEA migrant workers have been employed in approximately 140 different SOC code areas since November 2008. A8 EU migrant workers have, in comparison, been employed in just under 70 3 different SOC code areas. While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa 79% for Non-EEA migrants and 92% for A8 EU migrants). Table 1 provides details of the top 15 occupations filled by both Non-EEA and A8 migrant workers. 3 Standard Occupational Classification 2000

18 Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Top 15 No. of Rank A8 EU Top 15 Occupations Migrants Occupations No. of Migrants 1 Animal Care Occupations n.e.c. 1173 1 Process Operative (Other 4044 (not elsewhere classified) Factory Worker) 2 IT, Software Professionals 734 2 Farm Worker/Farm Hand 894 3 Researchers n.e.c. 582 3 Warehouse Operative 392 (not elsewhere classified) 4 Researchers, Scientific 389 4 Cleaner/Domestic Staff 299 5 Nurses 245 5 Packer 225 6 Medical Practitioners 228 6 Kitchen & Catering 150 Assistants 7 Agricultural Fishing Trades 167 7 Labourer, Building 142 n.e.c. (not elsewhere classified) 8 Care Assistants & Home 127 8 Carpenter/Joiner 93 Carers 9 Chefs/Cooks 121 9 Food Processing 80 Operative (Meat) 10 Musicians 94 10 Waiter/Waitress 71 11 Technicians, Engineering 83 11 Maid/Room Attendant 66 (Hotel) 12 Managers, Information & 82 12 Sales & Retail 62 Communication Technology Assistants 13 Teacher, Secondary Education 78 13 Chef, Head 41 14 Clergy 70 14 Agricultural Machinery 40 Operator 15 Teacher/Lecturer in Higher 66 15 Crop Harvester 40 Education Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA

19 Animal Care Occupations n.e.c. is the largest single occupational group of Non-EEA migrant workers recruited in the area, employing 22% of all Non-EEA migrants. A further 14% of all Non- EEA migrant workers are employed as IT Software Professionals, 11% as Researchers n.e.c., 7% as Researcher, scientific and 5% as Nurses. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers Process Operative (Other Factory Workers) Farm Workers/Farm Hand Warehouse Operative Cleaner/Domestic Staff Packer Other Animal Care Occupations n.e.c. (not elsewhere classified) IT, Software Professionals Researchers n.e.c. (not elsewhere classified) Researchers, Scientific Nurses Others Process Operative (Other Factory) is the occupation most commonly filled by A8 EU migrants, with over half (56%) of migrant workers undertaking these roles between April 2010 to March 2011. A considerable number of migrants also took roles as Farm Worker/Farm Hand (12%), Warehouse Operative roles (5%) and Cleaner/Domestic Staff roles (4%). Only 19% of A8 EU migrant workers are employed in other roles, as shown in Chart 3 to the right. The data presented in Table 1 clearly shows the significant difference in the occupational make-up of migrants from Non-EEA nations and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nations are concentrated in occupations towards the lower half of the occupational spectrum requiring only low or intermediate level skills. Section 6 Sectoral Patterns Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from civil engineering to publishing and from food and drink manufacturing to IT services. However, as with occupations, a much smaller list of industries accounts for the vast majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 85% (circa 4,541 employees) of all Non-EEA migrants employed in the Greater Cambridge and Greater Peterborough LEP area between November 2008 and February 2012. The 10 most common industries employing A8 EU nationals, however, account for almost all A8 workers employed in the LEP area during the one year period under analysis (April 2010-March 2011).

20 Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Sports Activities, 25% 1 Administration, Business 70% Amusement & Recreation & Managerial Services Activities 2 Education 19% 2 Agriculture Activities 15% 3 Computer Programming, 14% 3 Hospitality & Catering 5% Consultancy & Related Activities 4 Human Health Activities 7% 4 Manufacturing 3% 5 Scientific Research & 5% 5 SBS Sectors 2% Development 6 Other Professional, Scientific 3% 6 Retail & Related Services 2% & Technical Activities 7 Human Health & Social 3% 7 Education & Cultural 1% Work Activities Activities 8 Other Service Activities 3% 8 Health & Medical Services 1% 9 Food & Beverage Service 3% 9 Transport 1% Activities 10 Crop & Animal Production, 3% 10 Entertainment & Leisure 1% Hunting & Related Service Services Activities Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA The data suggests that the largest employing industry of Non-EEA migrant workers is the Sports Activities and Amusement and Recreation Activities sector. This covers a range of specific functions including operation of sports facilities and racehorse activities. The Education industry accounts for 19% of all Non-EEA migrant workers (circa 1,012 workers), followed by the Computer Programming, Consultancy and Related Activities industry with 14% of all Non-EEA migrant workers (circa 774 workers). The Education industry refers to all levels of learning from primary education through to university level teaching. Other forms of education, such as driving instruction and sports education are also covered by this industry code. The Computer Programming, Consultancy and Related Activities Industry refers to range of services including software development, leisure and entertainment programming and computer facilities management. The data suggests that the largest employing industry of A8 EU migrant workers in the Greater Cambridge and Greater Peterborough LEP area is Administration, Business and Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that in a number of cases these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. The Agricultural Activities sector accounts for a significant number of migrant workers with 15% of all A8 EU workers operating in that sector. Hospitality and Catering was also an important sector with 5% of workers employed within it.

21 Section 7 Geographic Patterns Using the postcodes from all companies employing Non-EEA migrant workers and the resident local authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the Greater Cambridge & Greater Peterborough LEP area. As can be seen from Map 1, all local authorities have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers are identified as: Cambridge (2451), Forest Heath (1379), Huntingdonshire (290), Peterborough (277) and South Cambridgeshire (274). Fenland and East Cambridgeshire have witnessed the lowest levels of Non-EEA migration with both authorities gaining less than 50 Non-EEA migrants during the period November 2008 March 2012. Map 1: Number of Non-EEA migrant workers by local authority in the Greater Cambridge & Peterborough LEP area Source: Certificates of Sponsorship, United Kingdom Border Agency

22 Map 2 presents the distribution of A8 EU migrant workers and shows that all local authorities in the area have witnessed some degree of inward migration. Those with the greatest number of A8 EU migrant workers are identified as: Peterborough (2075), King's Lynn & West Norfolk (1372), Fenland (1031), and Huntingdonshire (586). The districts with the fewest number of A8 migrant workers are North Hertfordshire (55) and Uttlesford (83). Map 2: Distribution of A8 EU migrant workers by local authority in the Greater Cambridge & Greater Peterborough LEP area Data presented in this section demonstrates a significant divergence in the geographic distribution between the two groups of migrant workers. Both Fenland and King's Lynn & West Norfolk, for example, appear to have seen very few Non-EEA migrants but are amongst the highest users of A8 EU nationals in the LEP area. Forest Heath, in contrast, has witnessed the second highest level of employment of Non-EEA migrants but has seen much lower levels of migration from A8 EU nationals. Source: Worker Registration Scheme, United Kingdom Border Agency

23 Sections 8 Overall Local Reliance Using DWP data on the number of unemployment claimants looking for work in different occupations, it is possible to assess the capacity of the local economy to absorb the impact of reduced numbers of migrant workers in the future. Table 3 compares the number of migrant workers in each occupation to the number of unemployed people in the Greater Cambridge and Greater Peterborough LEP area looking for work in that occupation. Table 3 demonstrates that only one occupation currently employing large numbers of Non-EEA migrants has a high number of indigenous workers looking to move into the role (Care Assistants and Home Carers). All other top ten occupations suffer from an under-supply of indigenous workers. The data, therefore, suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced supply of Non-EEA migrants in the future. Table 3 Comparison of migrant roles and occupations sought by UK nationals Non-EEA Top 10 Ratio of A8 EU Top 10 Ratio of Occupations unemployed Occupations unemployed to migrants to migrants Animal Care Occupations n.e.c. 16.6% Process Operative (Other 2.6% (not elsewhere classified) Factory Worker) IT, Software Professionals 12.3% Farm Worker/Farm Hand 10.6% Researchers n.e.c. 2.6% Warehouse Operative 487.9% (not elsewhere classified) Researchers, Scientific 3.9% Cleaner/Domestic Staff 182.3% Nurses 6.1% Packer 253.9% Medical Practitioners 0.0% Kitchen And Catering Assistants 364.5% Agricultural Fishing Trades 9.0% Labourer, Building 376.8% n.e.c. (not elsewhere classified) Care Assistants & Home 468.5% Carpenter/Joiner 225.8% Carers Chefs/Cooks 12.4% Food Processing Operative (Meat) 408.8% Musicians 16.0% Waiter/Waitress 219.9% Under supply of local labour compared to migrant labour supply Balance of local labour supply and migrant labour supply Over supply of local labour compared to migrant labour supply Sources: Worker Registration Scheme, UKBA, & JSA Claimants, Sought Occupations. DWP February 2012.

24 Table 3 also demonstrates that eight occupations currently employing high volumes of A8 EU migrants have high numbers of indigenous workers looking to move into these roles, for example, Warehouse Operative; Cleaner, domestic staff; and Packer. This indicates that the local economy could adjust relatively easily to a reduced supply of future A8 EU migrant workers. However, there is no guarantee that the unemployed looking to move into these roles have either the skills or work experience to be a success in these roles, and many may require support to achieve them. In the following two roles, the number of unemployed indigenous workers looking to move into roles falls substantially below the number of migrant workers currently recruited. This data therefore suggests the area may find it difficult to fill any void generated by any reduced labour supply in A8 EU migrant labour: Process operative (other factory worker) Farm worker/farm hand As can be seen, this apparent under-supply of indigenous workers looks likely to particularly affect the Agriculture and Manufacturing sectors, a trend that was also seen across most LEP areas within the East of England region. Section 9 Causes of Hard-to-Fill Vacancies Using data from the National Employer Skills Survey, it is possible to identify the causes of hard-to-fill vacancies amongst occupations which have historically been filled by migrant workers. By understanding the causes of hard-to-fill vacancies amongst indigenous workers, it may be possible for local partners to better direct resources and effort towards resolving these issues going forward. Table 4 Ranked causes of hard-to-fill vacancies by occupations of Non-EEA migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Animal Care Occupations N.E.C. Low number of applicants with the required skills Low number of applicants generally 2 IT, Software Professionals Low number of applicants with the required skills Lack of work experience the company demands 3 Researchers N.E.C. Not enough people interested in doing this type of job Lack of work experience the company demands 4 Researchers, Scientific Not enough people interested in doing this type of job Lack of work experience the company demands 5 Nurses Low number of applicants with the required skills Not enough people interested in doing this type of job 6 Medical Practitioners Not enough people interested in doing this type of job Low number of applicants with the required skills 7 Agricultural Fishing Trades N.E.C. Low number of applicants generally Not enough people interested in doing this type of job 8 Care Assistants & Home Carers Low number of applicants with the required skills Job entails shift work/unsocial hours 9 Chefs/Cooks Lack of work experience the company requires Job entails shift work/unsocial hours 10 Musicians Low number of applicants with required attitude/motivation Sources: National Employer Skills Survey 2007, Learning and Skills Council

25 The data provides a useful insight into what employers believe to be the main causes of recruitment difficulties amongst occupations which have benefitted from significant numbers of Non-EEA migrant workers. It is clear that skills and experience deficiencies amongst the indigenous workforce are present in many cases. Tackling these skills gaps would therefore be essential if the area had to cope with fewer Non- EEA migrants in the future. Table 5 below provides data from the National Employer Skills Survey regarding the causes of hard-to-fill vacancies in relation to the top 10 occupations filled by A8 EU migrants. Table 5 demonstrates that reasons other than skills, qualifications and work experience account for the majority of hard-to-fill vacancies filled by A8 EU nationals. A lack of interest in available roles or the poor attitude of applicants is often cited as the most common reason for hard-to-fill vacancies, Tackling these Non-skills related causes will clearly be important if UK nationals are going to be persuaded to move into these roles if A8 EU migrant numbers fall in the future. Table 5 Ranked causes of hard-to-fill vacancies by occupations of A8 EU migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Process Operative (Other Not enough people interested in doing this type of Factory Worker) work/job Lack of qualifications the company demands 2 Farm Worker/Farm Hand Poor career progression/lack of progress Not enough people interested in doing this type of work/job 3 Warehouse Operative Low number of applicants with the required attitude/motivation Not enough people interested in doing this type of work/job 4 Cleaner/Domestic Staff Low number of applicants with the required skills Low number of applicants generally 5 Packer Low number of applicants generally 6 Kitchen/Catering Assistants Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation 7 Labourer, Building Not enough people interested in doing this type of job Lack of work experience the company demands 8 Carpenter/Joiner Low number if applicants with the required skills Lack of work experience the company demands 9 Food Processing Not enough people interested in doing this type of job Operative (Meat) Lack of qualifications the company demands 10 Waiter/Waitress Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation Sources: National Employer Skills Survey 2007, Learning and Skills Council

26 Section 10 Local Training Infrastructure This section provides a top-level overview of the range of learning provision available in the Greater Cambridge & Greater Peterborough LEP area relevant to the key occupations filled by both Non-EEA and A8 EU migrant workers. FE data relates to FE college provision in the academic year 2010/11 and is based on approximations between Sector Subject Areas and those occupations identified as having the most migrant workers currently employed. Data on HE provision relates to HE providers operating within the Greater Cambridge and Greater Peterborough LEP area and is based on an 4 approximation between occupations and JACs codes. Table 6 shows that in relation to the top 10 roles currently filled by Non-EEA migrants, there appears to be adequate HE provision in 7 of the 10 areas. Only in relation to HE provision relevant to Chefs/Cooks is there no apparent relevant provision. While there is some provision it is limited in relation to Animal Care and Agricultural Fishing trades at HE level. At FE level there appears to be only limited provision at Level 3 for those interested in working in Animal Care, Medical and Chef/cook roles. Table 6 also provides data on the volume of provision relevant to the 10 roles most commonly filled by A8 EU nationals. The table shows that in almost all areas there is some local FE provision although it is limited in volume. At level 2, only 3 out of 10 roles appear to have adequate levels of local provision. Table 6 5 Local FE & HE provision by broad occupation Top 10 Non-EEA Level 2 Level 3 HE Top 10 A8 EU Migrant Level 2 Level 3 Migrant Occupations Occupations Animal Care Occupations L L L Process Operative L L N.E.C. (Other Factory Worker) IT, Software Professionals L Y Y Farm Worker/Farm Hand L L Researchers n.e.c. N/A N/A Y Warehouse Operative L N (not elsewhere classified) Researchers, Scientific L Y Y Cleaner/Domestic Staff Y L Nurses Y Y Y Packer L N Medical Practitioners N/A L Y Kitchen/Catering Assistants Y L Agricultural Fishing Trades L L L Labourer, Building L L n.e.c. (not elsewhere classified) Care Assistants/Home Y Y Y Carpenter/Joiner L L Carers Chefs/Cooks Y L N Food Processing L L Operative (Meat) Musicians L Y L Waiter/Waitress Y L Y = Adequate provision N= No provision L = Limited provision Sources: 2010/11 F05, Individualised Learner Record, Learning & Skills Council & 2010/11 HE Enrolments, Higher Education Statistics Agency 4 Joint Academic Coding System 5 Level 2 = GCSE equivalent, Level 3 = A-level equivalent, HE = Any degree level programme

27 Section 11 Issues for Consideration While small as a percentage of the total labour force, this report has demonstrated that migrant workers appear to be supporting the labour market at both ends of the skills spectrum, filling vacancies where there are genuine skills gaps amongst indigenous workers, as well as semiskilled and unskilled vacancies which UK workers appear to have little interest in applying for. Both Non-EEA and A8 EU migrant workers have played important parts in a number of sectors in the local economy, including: Sporting Activities, Education, Computing, Agriculture, Hospitality and Manufacturing. Some important local companies have become used to being able to draw in international workers to bolster the domestic workforce and they may well face particular challenges if this source of labour is reduced or eliminated. While all local authority areas have seen some inward migration over recent years this has not been evenly distributed and some local areas, such as Cambridge and Forest Heath, may face particular shortages as the number of Non-EEA migrant workers reduces. Any future reduction in A8 EU migrants would appear to affect Peterborough, Fenland and King's Lynn & West Norfolk worst of all. The government's decision to only consider highly skilled migrant workers with degree level qualifications in the future is likely to cause particular issues for those employers which have historically recruited Non-EEA migrant workers as Chefs/cooks and Care Assistants. While there appears to be significant numbers of indigenous workers looking to work in these roles, there is evidence of both skills and non-skills barriers which have prevented these occupations being filled in the past. Non-skills related reasons such as a lack of interest and shift working appear to explain why many employers which now use significant numbers of A8 EU migrants have historically been unable to fill roles from the indigenous population. Tackling these non-skills barriers would seem a clear priority for the future. This is particularly important for those employing Process Operatives who currently employ over 4,000 A8 EU migrants in these roles. It appears from the top-line analysis of learning provision that there may be a need to increase the number of training places in certain key areas such as: intermediate provision relevant to process manufacturing, agricultural trades and hospitality and catering roles. Many of the issues faced by the Greater Cambridge and Greater Peterborough LEP area in terms of key occupations and industries affected by the likely reduction in Non-EEA migrant workers are either the same or similar to those faced by neighbouring areas. It may therefore make sense for partners to discuss these issues with neighbours to see whether there are opportunities for collaborative action.

28 Appendix 1: Indicative Migration Estimates (mid 2006 to mid 2010) Local Authority estimates in England and Wales by broad stream LA Name Workers Students Returning Asylum Others Total migrants (UK born) Seekers Cambridge 5,918 9,879 1,842 23 2,752 20,413 South Cambridgeshire 2,295 705 1,212 18 681 4,911 Rutland UA 222 60 406 0 125 814 North Hertfordshire 948 143 725 35 371 2,222 Peterborough UA 10,195 954 842 622 2,797 15,411 Huntingdonshire 2,564 116 964 36 707 4,387 East Cambridgeshire 3,179 105 525 1 430 4,240 St. Edmundsbury 1,115 49 524 0 434 2,121 Forest Heath 1,318 54 608 6 405 2,392 Fenland 3,374 85 307 4 680 4,453 Uttlesford 875 32 575 0 296 1,778 King's Lynn and West Norfolk 3,094 38 491 10 743 4,375 Source: Office of National Statistics Appendix 2: Indicative Migration Estimates (mid 2006 to mid 2010) percentages Percentage composition of Local Authority estimates by broad stream (and relative importance with other local authorities) LA Name Workers Students Returning Asylum Others migrants (UK born) Seekers Cambridge 29% 48% 9% 0% 13% South Cambridgeshire 47% 14% 25% 0% 14% Rutland UA 27% 7% 50% 0% 15% North Hertfordshire 43% 6% 33% 2% 17% Peterborough UA 66% 6% 5% 4% 18% Huntingdonshire 58% 3% 22% 1% 16% East Cambridgeshire 75% 2% 12% 0% 10% St. Edmundsbury 53% 2% 25% 0% 20% Forest Heath 55% 2% 25% 0% 17% Fenland 76% 2% 7% 0% 15% Uttlesford 49% 2% 32% 0% 17% King's Lynn and West Norfolk 71% 1% 11% 0% 17% Source: Office of National Statistics

29 Migrant Labour in the Hertfordshire Local Enterprise Partnership Area Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnership (LEP) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant 1 workers have been employed. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2011 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multinational employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the Hertfordshire LEP Area The Hertfordshire LEP area is home to a population of around 1.1m people of which approximately 714,900 are of working age. Amongst those that are working age, there is a 79.3% economic activity rate across the area, which is 3.1% higher than is seen across the UK. The unemployment rate is 6.4%, encouragingly lower than the 7.7% average for England. Just under three-quarters (71%) of the Hertfordshire population is qualified to NVQ2 and 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

30 above, with 55.1% qualified to NVQ3 and above. 36.2% are qualified to NVQ4 and above. The proportion of the population possessing qualifications at NVQ3 and above is slightly higher than the national average. The area has a business base of approximately 47, 400 companies, making up 23.4% of the East England economy and 2% of the economy of the UK as a whole. Its main economic strengths reside in rural businesses especially from smaller companies. However, development and growth is constrained because small rural companies are often seen as a lesser priority to larger, urban businesses; and urban-rural public transport is under funded despite its potential. Due to the strength of Hertfordshire's rural area, tourism, leisure and voluntary/community sectors are seen as those with the most potential for economic growth. The Hertfordshire Recession Task Force was set up in December 2008. It put forward the Recession Pledge to provide framework for local activities aimed at providing support and lessening the impact of the recession. It works with the Hertfordshire Forward, a countywide local strategic partnership which brings together all the key agencies in the county to improve the quality of life and wellbeing of Hertfordshire residents. Section 4 Migrant Worker Volumes Between November 2008 and February 2012 approximately 4,467 Non-EEA migrant workers were employed in the Hertfordshire LEP area. This represents an annual average of 1,340. As a percentage of the workforce, Non-EEA migrant workers represent approximately 0.23% of the total economically active population in the area. Between April 2010 and March 2011, a total of 1,725 A8 EU migrants were employed in companies based across the Hertfordshire LEP area. As a percentage of the workforce, the A8 EU migrant workers represent approximately 0.3% of the total economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 0.53% of the economically active population. In comparison with other LEPs in the 2 Greater East region, Hertfordshire has the second lowest economic activity rate of Non-EEA and A8 EU migrants. Across the East of England region as a whole, Non-EEA and A8 EU migrant workers represent 0.66% of the economically active population. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do not capture data on all migrants entering the area from other EU nations not covered by the Worker Registration Scheme requirements or those arriving as asylum seekers who are then given leave to remain or UK nationals returning home after a period overseas. Data constructed by the Office of National Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source, an estimated 35,300 migrants of all ages entered the Hertfordshire LEP area between mid-2006 and mid-2010. This equates to an annual average of 8,800 migrants of all ages entering the area every year. As can be seen in Chart 1 only approximately half of the 8,800 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. 2 Greater East region refers to those local authorities included in LEP areas with some presence in the East of England statistical region.

31 Chart 1: Estimated Composition of Migrants Entering the Hertfordshire LEP Area lower levels of other categories of migrants, especially retuning migrants, in comparison to the LEP area as a whole. The 18.1% student migrant composition of the Hertfordshire LEP area is heavily bulked up by Welwyn Hatfield (44.8% students), Dacorum (18.1% students) and Stevenage (11.8% students). The average student composition of the remaining seven Local Authorities is only 7.3%. The three districts with a high share of student migrants typically saw lower proportions of workers and returning migrants to compensate. Section 5 Occupational Patterns Workers Students Returning Migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority Office of National Statistics. However, some Local Authorities within the Hertfordshire LEP area have significant differences in their migrant composition than is shown in Chart 1. The districts that have a much higher than average proportion of migrant workers are Watford (60.8% workers), Broxbourne (57.7% workers) and Stevenage (55.8% workers). These districts typically saw Across the Hertfordshire LEP area, Non-EEA migrant workers have been employed in 3 approximately 140 different SOC code areas since November 2008. A8 EU migrant workers have, in comparison, been employed in just under 70 different SOC code areas. While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa 77% for Non-EEA migrants and 81% for A8 migrants). Table 1 provides details of the top 15 occupations filled by Non- EEA and A8 migrant workers. 3 Standard Occupational Classification

32 Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Occupations No. of Migrants Rank A8 EU Occupations No. of Migrants 1 IT/Software Professionals 1324 1 Warehouse Operative 376 2 Youth & Community Workers 551 2 Process Operative 267 (Other Factory Worker) 3 Medical Practitioners e.g. 278 3 Cleaner/Domestic Staff 223 Doctors & Surgeons 4 Actors/Entertainers 277 4 Sales & Retail 121 Assistants 5 Nurses 134 5 Kitchen & Catering 92 Assistants 6 Chefs/Cooks 124 6 Waiter/Waitress 59 7 Clergy 118 7 Packer 41 8 Managers, Information & 96 8 Bar Staff 34 Communication Technology 9 Researchers, Scientific 95 9 Maid/Room Attendant 33 (Hotel) 10 IT Strategy & Planning 86 10 Chef, Head 30 Professionals 11 Managers, Marketing & 79 11 Driver, Delivery Van 30 Sales 12 Managers, Customer Care 78 12 Farm Worker/Farm Hand 28 13 Care Assistants & Home 77 13 Carpenter/Joiner 26 Carers 14 Musicians 64 14 Care Assistants/Home 21 Carers 15 Teacher, Secondary Education 54 15 Labourer, Building 14 Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA

33 IT/Software Professionals is the largest single occupational group of Non-EEA migrant workers recruited in the area, employing 30% of all employed Non-EEA migrant workers in the Hertfordshire LEP area. A further 12% of all migrant workers are employed as Youth and Community Workers and 6% as Medical Practitioners. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers Warehouse Operative Process Operative (Other Factory Worker) Cleaner/Domestic Staff Sales and Retail Assistants Kitchen and Catering Assistants Other IT/Software Professional Youth and Community Workers Medical Practitioners e.g. Doctors and Surgeons Actors/Entertainers Nurses Other Warehouse Operative was the occupation most commonly filled by A8 EU migrants, with 22% of migrant workers undertaking these roles between April 2010 and March 2011. A8 migrants also took Process Operative (other factory worker) roles (15%); Cleaner, domestic staff roles (13%); and Sales and Retail Assistants roles (7%). 38% of A8 EU migrant workers are employed in other roles, as shown in Chart 3 to the right. The data presented in Table 1 clearly shows that significant difference in the occupational make-up of migrants from Non-EEA nations and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nations are concentrated in occupations towards the lower half of the occupational spectrum requiring on low intermediate level skills. Section 6 Sectoral Patterns Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from civil engineering to publishing and from food and drink manufacturing to IT services. However, as with occupations, a much smaller list of industries accounts for the vast majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 86% (circa 3,900 employees) of all Non-EEA migrants employed in the Hertfordshire LEP area between November 2008 and February 2012. The 10 most common A8 migrant worker industries accounts for almost all 1,700 employees of all A8 migrant workers employed in the LEP area between April 2010 and March 2011.

34 Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Computer Programming, 35% 1 Administration, Business 47% Consultancy & Related Activities & Managerial Services 2 Other Personal Service 16% 2 Hospitality & Catering 16% Activities 3 Human Health Activities 12% 3 Retail & Related Services 10% 4 Creative, Arts & 8% 4 Manufacturing 6% Entertainment Activities 5 Education 5% 5 Agriculture Activities 5% 6 Accommodation 3% 6 Health & Medical Services 5% 7 Food & Beverage 2% 7 Transport 4% Service Activities 8 Sports Activities, Amusement 2% 8 SBS Sectors 3% & Recreation Activities 9 Other Professional, Scientific 2% 9 Construction & Land 3% & Technical Activities Services 10 Information Service Activities 2% 10 Entertainment & Leisure 2% Services Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA The data suggests that the largest employing industry of Non-EEA migrant workers is the Computer Programming, Consultancy and Related Activities. This refers to range of services including software development, leisure and entertainment programming and computer facilities management. The Human Health Activities industry accounts for 12% of all Non-EEA migrants (circa 500 workers), followed by Creative, Arts and Entertainment Activities with 8% of all Non-EEA migrant workers (circa 350 workers). Human Health Activities is an industry that covers functions including hospital activities, general medical practice, specialist medical practice and dental medical practice. The Creative, Arts and Entertainment Activities industry refers to a range of activities including performing arts, artistic creation and operation of arts facilities. The data suggests that the largest employing industry of A8 migrant workers in the Hertfordshire LEP area is Administration, Business & Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that in a number of cases these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. The Hospitality & Catering industry accounts for 16% of all A8 EU workers operating in the Hertfordshire LEP area. Retail & Related Services was also an important sector with around 10% of workers employed within it.

35 Section 7 Geographic Patterns Using the postcodes from all companies employing Non-EEA migrant workers and the resident Local Authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the Hertfordshire LEP area. As can be seen from Map 1, all Local Authorities have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers are identified as: Dacorum (1678), St Albans (958), Watford (531), Hertsmere (489) and Broxbourne (448). The Three Rivers district and the North Hertfordshire district have witnessed the lowest level of Non- EEA migration with both authorities gaining 114 Non-EEA migrants during the period November 2008 March 2012. Map1: Number of Non-EEA migrant workers by Local Authority in the Hertfordshire LEP area Source: Certificates of Sponsorship, United Kingdom Border Agency

36 Map 2 presents the distribution of A8 EU migrant workers and reveals that all Local Authorities in the area have witnessed some degree of inward migration. Those with the greatest number of A8 migrant workers are identified as Welwyn Hatfield (390), St Albans (277) Broxbourne (247) and Watford (215). The districts with the fewest number of A8 EU migrant workers are North Hertfordshire (55) and Three Rivers (74). Map 2: Number of A8 migrant workers by Local Authority in the Hertfordshire LEP area Data presented in this section demonstrates a significant divergence in the demographic distribution between the two groups of migrant workers. For example, Dacorum appears to have seen few A8 EU migrants but is amongst the highest users of Non-EEA nationals in the Hertfordshire LEP area. In contrast, both North Hertfordshire and Three Rivers have witnessed very low levels of Non- EEA and A8 worker migration altogether. Source: Worker Registration Scheme, United Kingdom Border Agency

37 Section 8 Overall Local Reliance Using DWP data on the number of unemployment claimants looking for work in different occupations, it is possible to assess the capacity of the local economy to absorb the impact of reduced numbers of migrant workers in the future. Table 3 compares the number of migrant workers in each occupation to the number of unemployed people in the Hertfordshire LEP area looking for work in that occupation. Table 3 demonstrates that only 1 occupation currently employing Non-EEA migrants has a high number of indigenous workers looking to move into the role (Chefs/cooks). Managers, Information and Communication Technology is the only Non-EEA occupation that data suggests has a slight under-supply of local labour. All other top ten occupations suffer from a significant under- supply of indigenous workers. The data, therefore, suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced labour supply of Non-EEA migrants in the future. Table 3 also demonstrates that 9 occupations currently employing A8 migrants also have high numbers of indigenous workers looking to move into these roles, for example, Warehouse Operative; Cleaner/domestic staff; and Sales and Retail Assistants. This indicates that the local economy may be able to adjust relatively easily to a reduced supply of future migrant workers. However, there is no guarantee that the unemployed looking to move into these roles have either the skills or work experience to be a success in these roles, and many may require support to achieve them. Table 3 Comparison of migrant roles and occupations sought by UK nationals Non-EEA Top 10 Ratio of A8 EU Top 10 Ratio of Occupations unemployed Occupations unemployed to migrants to migrants IT/Software Professionals 6.4% Warehouse Operative 434.8% Youth & Community Workers 9.1% Process Operative 3.8% (Other Factory Worker) Medical Practitioners 1.8% Cleaner/Domestic Staff 201.8% Actors/Entertainers 12.6% Sales & Retail Assistants 2597.5% Nurses 3.7% Kitchen & Catering Assistants 491.8% Chefs/Cooks 108.9% Waiter/Waitress 162.4% Clergy 0.0% Packer 475.6% Managers, Information & 88.5% Bar Staff 897.1% Communication Technology Researchers, Scientific 15.8% Maid/Room Attendant (Hotel) 1138.5% IT Strategy & Planning 52.3% Chef, Head 450.0% Professionals Under supply of local labour compared to migrant labour supply Balance of local labour supply and migrant labour supply Over supply of local labour compared to migrant labour supply Sources: Worker Registration Scheme, UKBA, & JSA Claimants, Sought Occupations. DWP February 2012.

38 The role of Process Operative (Factory Worker) is the only A8 occupation where the number of unemployed indigenous workers looking to move into roles falls substantially below the number of migrant workers currently recruited. This data, therefore, suggests the area may find it difficult to fill any void generated by a reduced labour supply in migrant labour. Section 9 Causes of Hard-to-Fill Vacancies Using data from the National Employer Skills Survey, it is possible to identify the causes of hard-to-fill vacancies amongst occupations which have historically been filled by migrant workers. By understanding the causes of hard-to-fill vacancies amongst indigenous workers, it may be possible for local partners to better direct resources and effort towards resolving these issues going forward. The data provides a useful insight into what employers believe to be the main causes of recruitment difficulties amongst occupations which have benefitted from significant numbers of Non-EEA migrant workers. It is clear that skills and experience deficiencies amongst the indigenous workforce are present in many cases. Tackling these skills gaps would therefore be essential if the area had to cope with fewer Non- EEA migrants in the future. Table 5 below provides data from the National Employer Skills Survey regarding the causes of hard-to-fill vacancies in relation to the top 10 occupations filled by A8 EU migrants. Table 4 Ranked causes of hard-to-fill vacancies by occupations of Non-EEA migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 IT/Software Professionals Low number of applicants with the required skills Lack of work experience the company demands 2 Youth & Community Workers Low number of applicants with the required skills Job entail shift work/unsociable hours 3 Medical Practitioners Low number of applicants with the required skills Lack of work experience the company demands 4 Actors/Entertainers Not enough people interested in doing this type of job Low number of applicants with the required skills 5 Nurses Low number of applicants with the required skills Not enough people interested in doing this type of job 6 Chefs/Cooks Lack of work experience the company requires Job entails shift work/unsocial hours 7 Clergy Lack of qualifications the company demands Low number of applicants with the required skills 8 Managers, Information & Lack of work experience the company demands Low Communication Technology number of applicants with the required skills 9 Researchers, Scientific Not enough people interested in doing this type of job Lack of work experience the company demands 10 IT Strategy & Planning Low number of applicants with the required skills Professionals Lack of work experience the company demands Sources: National Employer Skills Survey 2007, Learning and Skills Council

39 Table 5 Ranked causes of hard-to-fill vacancies by occupations of A8 EU migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Warehouse Operative Low number of applicants with the required attitude/motivation Not enough people interested in doing this type of work/job 2 Process Operative (Other Not enough people interested in doing this type of Factory Worker) work/job 3 Cleaner/Domestic Staff Lack of qualifications the company demands Low number of applicants with the required skills Low number of applicants generally 4 5 Sales & Retail Assistants Kitchen & Catering Assistants Low number of applicants with the required skills Lack of work experience the company demands Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation 6 Waiter/Waitress Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation 7 Packer Low number of applicants generally 8 Bar Staff Job entails shift work/unsociable hours Low number of applicants with the required attitude, motivation or personality 9 Maid/Room Attendant (Hotel) Not enough people interested in doing this type of work/job 10 Chef, Head Low number of applicants with the required skills Low number of applicants with the required skills Not enough people interested in doing this type of job Sources: National Employer Skills Survey 2007, Learning and Skills Council Table 5 demonstrates that reasons other than skills, qualifications and work experience account for the majority of hard-to-fill vacancies filled by A8 EU nationals. A lack of interest in available roles or the poor attitude of applicants is often cited as the most common reason for hard-to-fill vacancies. Tackling these non-skills related causes will clearly be important if UK nationals are going to be persuaded to move into these roles if A8 EU migrant numbers fall in the future. Section 10 Local Training Infrastructure This section provides a top-level overview of the range of learning provision available in the Hertfordshire LEP area relevant to the key occupations filled by both Non-EEA and A8 EU migrant workers. FE data related to FE college provision in the academic year 2010/11 and is based on approximations between Sector Subject Areas and those occupations identified as having the most migrant workers currently employed. Data on HE provision relates to HE providers operating within the Hertfordshire LEP area and is based on an approximation between occupations 4 and JACs codes. 4 Joint Academic Classification System

40 Table 6 5 Local FE & HE provision by broad occupation Top 10 Non-EEA Level 2 Level 3 HE Top 10 A8 EU Migrant Level 2 Level 3 Migrant Occupations Occupations IT, Software Professionals L L Y Warehouse Operative L N Youth & Community N L L Process Operative (Other L L Workers Factory Worker) Medical Practitioners N N Y Cleaner/Domestic Staff Y L Actors, Entertainers L L Y Sales & Retail Assistants L L Nurses Y L Y Kitchen & Catering Y L Assistants Chefs/Cooks L L N Waiter/Waitress Y L Clergy N L N Packer L N Managers, Information & L Y Y Bar Staff Y L Communication Technology Researchers, Scientific L L L Maid/Room Attendant Y L (Hotel) IT Strategy & Planning L L Y Chef, Head Y L Professionals Y = Adequate provision N= No provision L = Limited provision Sources: 2010/11 F05, Individualised Learner Record, Learning & Skills Council & 2010/11 HE Enrolments, Higher Education Statistics Agency Table 6 shows that in relation to the top 10 roles currently filled by Non-EEA migrants, there appears to be adequate HE provision in 6 of the 10 areas. Only in relation to HE provision relevant to Chefs/Cooks and Clergy is there no apparent relevant provision. While there is some provision it is limited in relation to Youth and Community Workers and Researchers, Scientific. At FE level there appears to be only adequate provision at Level 3 for those interested in Managers, Information and Communication Technology roles. Table 6 also provides data on the volume of provision relevant to the10 roles most commonly filled by A8 EU nationals. The table shows that in almost all areas there is some local FE provision although some is limited in volume. At level 2, 6 out of 10 roles appear to have adequate levels of local provision. 5 Level 2 = GCSE equivalent, Level 3 = A-level equivalent, HE = Any degree level programme Section 11 Issues for Consideration While small as a percentage of the total labour force, this report has demonstrated that migrant workers appear to be supporting the labour market at both ends of the skills spectrum, filling vacancies where there are genuine skills gaps amongst indigenous workers, as well as semiskilled and unskilled vacancies which UK workers appear to have little interest in applying for. Both Non-EEA and A8 EU migrant workers have played important parts in a number of sectors in the local economy, including: Computer Programming, Personal Services, Manufacturing, Health Activities and Creative Arts. Some important local companies have become used to being able to draw in international workers to bolster the domestic workforce and they may well face particular challenges if this source of labour is reduced or eliminated.

41 While all Local Authority areas have seen some inward migration over recent years this has not been evenly distributed and some local areas, such as Dacorum, St Albans and Watford, may face particular shortages as the number of Non- EEA migrant workers reduces. Any future reduction in A8 EU migrants would appear to affect Welwyn Hatfield, St Albans and Broxbourne worst of all. The government's decision to only consider highly skilled migrant workers with degree level qualifications in the future is likely to cause particular issues for those employers which have historically recruited Non-EEA migrant workers as Chefs/cooks and Care Assistants. While there appears to be significant numbers of indigenous workers looking to work in these roles, there is evidence of both skills and non-skills barriers which have prevented these occupations being filled in the past. Non-skills related reasons such as a lack of interest and shift working appear to explain why many employers which now use significant numbers of A8 EU migrants have historically been unable to fill roles from the indigenous population. Tackling these non-skills barriers would seem a clear priority for the future. This is particularly important for those employing Warehouse Operatives who currently employ 376 A8 EU migrants in these roles. It appears from the top-line analysis of learning provision that there may be a need to increase the number of training places in certain key areas such as: intermediate provision relevant to process manufacturing and hospitality and catering roles. Many of the issues faced by the Hertfordshire LEP area in terms of key occupations and industries affected by the likely reduction in Non- EEA migrant workers are either the same or similar to those faced by neighbouring areas. It may therefore make sense for partners to discuss these issues with neighbours to see whether there are opportunities for collaborative action. Appendix 1: Indicative Migration Estimates (mid 2006 to mid 2010) Local Authority estimates in England and Wales by broad stream LA Name Workers Students Returning Asylum Others Total migrants (UK born) Seekers Welwyn Hatfield 3,290 3,990 548 33 1,054 8,914 Three Rivers 642 129 503 14 308 1,597 North Hertfordshire 948 143 725 35 371 2,222 Dacorum 1,518 627 663 46 611 3,465 St. Albans 1,770 272 1,221 12 766 4,040 East Hertfordshire 1,826 305 850 5 673 3,659 Hertsmere 1,622 253 559 30 652 3,114 Stevenage 1,028 218 260 38 298 1,842 Broxbourne 982 104 274 19 323 1,702 Watford 2,878 357 379 71 1,048 4,734 Source: Office of National Statistics

42 Appendix 2: Indicative Migration Estimates (mid 2006 to mid 2010) percentages Percentage composition of Local Authority estimates by broad stream (and relative importance with other local authorities) LA Name Workers Students Returning Asylum Others migrants (UK born) Seekers Welwyn Hatfield 37% 45% 6% 0% 12% Three Rivers 40% 8% 31% 1% 19% North Hertfordshire 43% 6% 33% 2% 17% Dacorum 44% 18% 19% 1% 18% St. Albans 44% 7% 30% 0% 19% East Hertfordshire 50% 8% 23% 0% 18% Hertsmere 52% 8% 18% 1% 21% Stevenage 56% 12% 14% 2% 16% Broxbourne 58% 6% 16% 1% 19% Watford 61% 8% 8% 2% 22% Source: Office of National Statistics

43 Migrant Labour in the New Anglia Local Enterprise Partnership Area Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnership (LEP) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant 1 workers have been employed. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2012 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multi-national employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the New Anglia LEP area The New Anglia LEP area is home to a population of around 1.6m people of which approximately 977,900 are of working age. Amongst those of working age, there is a 78.9% economic activity rate, which is 2.7% higher than is seen across the UK. The unemployment rate in the area is 6.6%, which is 1.3% below the national average of 7.9%. Almost two-thirds (64.6%) of the population of the New Anglia LEP area are qualified to NVQ2 and above, 47.3% of the population are qualified to 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

44 NVQ3 and above, and 26.6% of the population of the area are qualified to NVQ4 and above. The proportion of the population possessing qualifications at NVQ3 and above is slightly lower than the national average. The New Anglia LEP area has a business base of approximately 60,000 companies and is said to contribute 26.4 billion to the UK economy. Nationally recognised strengths of the New Anglia economy are the energy, agriculture and tourism sectors. Tourism alone generates 4 billion each year for the LEP area and is the focus of the Visit East Anglia scheme a private sector led tourism body that hopes to develop this already strong sector. A Norfolk and Suffolk Rural Economy Board has also been established to look at the potential for jobs growth in the food, drink and agriculture sector. Norfolk is home to a number of famous and nationally important agricultural companies such as the Bernard Matthews Farms. Section 4 Migrant Worker Volumes Between November 2008 and February 2012, approximately 3,639 Non-EEA migrant workers were employed in the New Anglia LEP area. This represents an annual average of 1092 migrants and equates to approximately 0.14% of the economically active population in the area. not capture data on all migrants entering the area from other EU nations not covered by the Worker Registration Scheme requirement or those arriving as asylum seekers (who are then given leave to remain) or UK nationals returning home after a period overseas. Data constructed by the Office of National Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source an estimated 43,754 migrants of all ages entered the New Anglia area between mid-2006 and mid- 2010. This equates to an average of 10,939 migrants of all ages entering the area every year. As can be seen in Chart 1 only approximately half of the 10,939 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. Chart 1: Estimated Composition of Migrants Entering the New Anglia LEP Area (% of all migrants) Between April 2010 and March 2011, approximately 4,755 A8 EU migrant workers were employed in companies based across the New Anglia LEP area. As a percentage of the workforce, these A8 EU migrant workers represent approximately 0.6% of the total economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 0.74% of the economically active population. In comparison with other LEPs in the 2 greater East region, New Anglia has the third highest economic activity rate of Non-EEA and A8 EU migrants. Across the East of England region as a whole, Non-EEA and A8 EU migrant workers represent 0.66% of the economically active population. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do 2 Greater East region refers to those local authorities included in LEP areas with some presence in the East of England statistical region. Workers Students Returning migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority 2006-2010, Office of National Statistics. However, some Local Authorities within the New Anglia LEP area have significant differences in their migrant composition than is shown in Chart 1. Districts that have a much higher than average proportion of migrant workers are King's Lynn &

45 West Norfolk (70.7% workers), Ipswich (68.4% workers), Great Yarmouth (64.0% workers), Breckland (62.5% workers) and North Norfolk (62.0% workers). These districts typically saw much lower levels of other categories of migrants, especially returning migrants. The 13.0% student composition of the New Anglia LEP area totals 5,698 migrants (over the periods mid 2006 mid 2010). 83.1% (4,733) of these students reside in the Norwich District composing 43.5% of the Norwich migrant population. All other Districts in the New Anglia LEP area are composed of less than 7% students. The average student composition of the remaining 13 Districts in the New Anglia LEP area is only 3.0%. To balance out its high proportion of students, Norwich has the lowest proportion of migrant workers in the New Anglia LEP area (29.7%). Section 5 Occupational Patterns Across the New Anglia LEP area, Non-EEA migrant workers have been employed in approximately 115 different SOC code areas since November 2008. A8 EU migrant workers have, in comparison, been employed in just over 3 70 different SOC code areas. While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa 85% for Non-EEA and almost 100% A8 migrants). Table 1 provides details of the top 15 occupations filled by both Non-EEA and A8 migrant workers. 3Standard Occupational Classification

46 Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Occupations No. of Migrants Rank A8 EU Occupations No. of Migrants 1 Animal Care Occupations 1175 1 Process Operative (Other 3047 n.e.c. (not elsewhere classified). Factory Worker) 2 Musicians 613 2 Farm Worker/Farm Hand 607 3 Medical Practitioners 339 3 Warehouse Operative 243 4 Care Assistants & Home 174 4 Cleaner/Domestic Staff 240 Carers 5 Agricultural & Fishing Trades 127 5 Crop Harvester 161 n.e.c. (not elsewhere classified) 6 Nurses 122 6 Kitchen & Catering 126 Assistants 7 Researchers, Scientific 121 7 Packer 90 8 Chefs/Cooks 117 8 Food Processing 69 Operative (Meat) 9 Teacher, Secondary Education 80 9 Care Assistants & 61 Home Carers 10 Actors/entertainers 47 10 Chef/Other 45 11 Energy Plant Operatives 46 11 Waiter, Waitress 44 12 Teacher/Lecturer in Higher 37 12 Labourer, Building 42 Education 13 Engineers, mechanical 35 13 Agricultural Machinery 34 Operator 14 Metal Working Production & 35 14 Fruit Picker (Farming) 34 Maintenance Fitters 15 Researchers n.e.c. 34 15 Food Processing 33 (not elsewhere classified) Operative (Fruit/Veg) Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA

47 Animal Care Occupations n.e.c. is the largest single occupational group of Non-EEA migrant workers recruited in the area, employing 32% of all Non-EEA migrant workers in the LEP area. A further 17% of all Non-EEA migrant workers are employed as Musicians, 9% as Medical Practitioners, 5% as Care Assistants/Home Carers and 3% in Agricultural and Fishing Trades n.e.c. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers Animal Care Occupations n.e.c. (not elsewhere classified). Musicians Medical Practitioners Care Assistants and Home Carers Agricultural and Fishing Trades n.e.c. (not elsewhere classified). Other Process Operative (Other Factory Worker) is the occupation most commonly filled by A8 EU migrants, with over half (64%) of migrant workers undertaking these roles between April 2010 to March 2011. A considerable number of migrants also took roles as Farm Worker/Farm Hand (13%), Warehouse Operatives (5%) and Cleaner/Domestic Staff (5%). Only 10% of A8 EU migrant workers were employed in other roles, as shown in Chart 3 to the right. Process Operative (Other Factory Worker) Farm Worker/Farm Hand Warehouse Operative Cleaner/Domestic Staff Crop Harvester Other The data presented in Table 1 clearly shows the significant difference in the occupational make-up of migrants from Non-EEA nations and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nations are concentrated in occupations towards the lower half of the occupational spectrum requiring only low or intermediate level skills. Section 6 Sectoral Patterns Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from civil engineering to publishing and from food and drink manufacturing to IT services. However, as with occupations, a much smaller list of industries accounts for the vast majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 91% (circa 3,309 employees) of all Non-EEA migrants employed in the East Anglia LEP area between November 2008 and February 2012. The 10 most common industries employing A8 EU nationals accounted for almost all 4,755 employees of all A8 workers employed in the LEP area during the one year period under analysis (April 2010 March 2011).

48 Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Sports Activities & 47% 1 Administration, Business 68% Amusement & Recreation & Managerial Services Activities 2 Human Health Activities 12% 2 Agriculture Activities 17% 3 Education 8% 3 Hospitality & Catering 5% 4 Creative, Arts & 8% 4 SBS Sectors 3% Entertainment Activities 5 Residential Care Activities 5% 5 Manufacturing 2% 6 Food & Beverage Service 3% 6 Health & Medical Services 2% Activities 7 Other Professional, Scientific 2% 7 Entertainment & Leisure 1% & Technical Activities Services 8 Crop & Animal Production, 2% 8 Retail & Related Services 1% Hunting & Related Service Activities 9 Scientific Research & 2% 9 Education & Cultural 1% Development Activities 10 Human Health & Social 2% 10 Transport 1% Work Activities Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA The data suggests that the largest employing industry of Non-EEA migrant workers is the Sports Activities and Amusement and Recreation Activities sector. This covers a range of specific functions including the operation of sports facilities and horse racing activities. The Human Health Activities sector accounts for 12% of all Non-EEA migrant workers (circa 434 workers), followed by the Education industry with 8% of all Non-EEA migrant workers (circa 283 workers). Human Health Activities refers to a range of nursing work located in hospitals or nursing homes. The Education industry refers to all levels of learning from primary education through to university level teaching. Other forms of education, such as driving instruction and sports education are also covered by this industry code. The data suggests that the largest employing industry of A8 EU migrant workers in the LEP area is Administration, Business and Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that, in a number of cases, these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. The Agricultural Activities sector accounted for a significant number of migrant workers with 17% of all A8 EU workers operating in that sector. Hospitality and Catering was also an important sector with around 5% of workers employed within it.

49 Section 7 Geographic Patterns Using the postcodes from all companies employing Non-EEA migrant workers and the resident local authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the New Anglia LEP area. As can be seen from Map 1, all Local Authorities have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers are identified as: Forest Heath (1379), Mid Suffolk (480), Norwich (389), South Norfolk (275) and Suffolk Coastal (185). Babergh has witnessed the lowest levels of Non-EEA migration with 46 Non-EEA migrants during the period November 2008 March 2012. This was followed by Waveney (52), Breckland (77), King's Lynn & West Norfolk (86) and Ipswich (98). Map 1: Number of Non-EEA migrant workers by local authority in the New Anglia LEP area Source: Certificates of Sponsorship, United Kingdom Border Agency

50 Map 2 displays the distribution of A8 EU migrant workers and reveals that all Local Authorities in the area have witnessed some degree on inward migration. Those with the greatest number of A8 EU migrant workers are identified as: King's Lynn & West Norfolk (1372), Norwich (670), Ipswich (581), Breckland (555) and St. Edmundsbury (356). The districts with the fewest number of A8 EU migrant workers are Broadland (46), South Norfolk (54), Babergh (83), Great Yarmouth (105) and Waveney (107). Map 2: Distribution of A8 EU migrant workers by local authority in the New Anglia LEP area Source: Worker Registration Scheme, United Kingdom Border Agency

51 Data presented in this section demonstrates a significant divergence in the geographic distribution between the two groups of migrant workers. King's Lynn & West Norfolk, for example, appears to have seen few Non-EEA migrants but is the highest user of A8 EU migrant workers. Forest Heath, in contrast, has witnessed very low A8 EU migration but is the highest user of Non- EEA migrant workers in the LEP area. Section 8 Overall Local Reliance Using DWP data on the number of unemployment claimants looking for work in different occupations, it is possible to asses the capacity of the local economy to absorb the impact of a reduced number of migrant workers in the future. Table 3 compares the number of migrant workers in each occupation to the number of unemployed people in the New Anglia LEP area looking for work in that occupation. Table 3 demonstrates that only 2 occupations currently employing large numbers of Non-EEA migrants have high numbers of indigenous workers looking to move into the roles (Care Assistants/Home Carers; and Chefs/Cooks). All other top ten occupations suffer from an undersupply of indigenous workers. The data, therefore, suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced supply of Non-EEA migrants in the future. Table 3 also demonstrates that 7 occupations currently employing high volumes of A8 EU migrants have high numbers of indigenous workers looking to move into these roles, for example, Warehouse Operative; Cleaner/Domestic Staff; and Kitchen and Catering Assistants. This indicates that the local economy could adjust relatively easily to a reduced supply of future A8 EU migrant workers. However, there is no guarantee that the unemployed looking to Table 3 Comparison of migrant roles and occupations sought by UK nationals Non-EEA Top 10 Ratio of A8 EU Top 10 Ratio of Occupations unemployed Occupations unemployed to migrants to migrants Animal Care Occupations n.e.c. 23.4% Process Operative (Other Factory 7.2% (not elsewhere classified). Worker) Musicians 3.3% Farm Worker/Farm Hand 32.1% Medical Practitioners 0.0% Warehouse Operative 880.7% Care Assistants/Home Carers 563.2% Cleaner/Domestic Staff 533.3% Agricultural & Fishing Trades 31.5% Crop Harvester 21.7% n.e.c. (not elsewhere classified) Nurses 20.5% Kitchen & Catering Assistants 754.0% Researchers, Scientific 16.5% Packer 561.1% Chefs/Cooks 294.9% Food Processing Operative (Meat) 529.0% Teacher, Secondary Education 56.3% Care Assistants/Home Carers 1606.6% Actors, entertainers 53.2% Chef, Other 775.3% Under supply of local labour compared to migrant labour supply Balance of local labour supply and migrant labour supply Over supply of local labour compared to migrant labour supply Sources: Worker Registration Scheme, UKBA, & JSA Claimants, Sought Occupations. DWP February 2012.

52 move into these roles have either the skills or work experience to be a success in these roles, and many may require support to achieve them. In the following three roles, the number of unemployed indigenous workers looking to move into roles falls substantially below the number of migrant workers currently recruited. This data, therefore, suggests the area may find it difficult to fill any void generated by a reduced labour supply in the A8 EU migrant labour: Process Operative (Other Factory Worker) Farm Worker/Farm Hand Crop Harvester affect the Agriculture and Manufacturing sectors, a trend that was also seen across most LEP areas within the East of England region. Section 9 Causes of Hard-to-Fill Vacancies Using data from the National Employer Skills Survey, it is possible to identify the causes of hard-to-fill vacancies amongst occupations that have historically been filled by migrant workers. By understanding the causes of hard-to-fill vacancies amongst indigenous workers, it may be possible for local partners to better direct resources and effort towards resolving these issues going forward. As can be seen, this apparent under-supply of indigenous workers looks likely to particularly Table 4 Ranked causes of hard-to-fill vacancies by occupations of Non-EEA migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Animal Care Occupations n.e.c. Low number of applicants with the required (not elsewhere classified) Low number of applicants generally 2 Musicians Low number of applicants with required attitude/motivation skills 3 Medical Practitioners Not enough people interested in doing this type of job 4 Care Assistants & Home Carers Low number of applicants with the required skills Low number of applicants with the required skills Job entails shift work/unsocial hours 5 Agricultural & Fishing Trades Low number of applicants generally n.e.c. (not elsewhere classified) Not enough people interested in doing this type of job 6 Nurses Low number of applicants with the required skills Not enough people interested in doing this type of job 7 Researchers, Scientific Not enough people interested in doing this type of job 8 Chefs/Cooks Lack of work experience the company demands Lack of work experience the company demands Job entails shift work/unsocial hours 9 10 Teacher, Secondary Education Actors, entertainers Low number of applicants with the required skills Lack of qualifications the company demands Not enough people interested in doing this type of job Low number of applicants with the required skills Sources: National Employer Skills Survey 2007, Learning and Skills Council

53 Table 5 below provides data from the National Employer Skills Survey regarding the causes of hard-to-fill vacancies in relation to the top 10 occupations filled by A8 EU migrants. Table 5 demonstrates that reasons other than skills, qualifications and work experience account for the majority of hard-to-fill vacancies filled by A8 EU nationals. A lack of interest in available roles is often cited as a common reason for hardto-fill vacancies. Tackling these non-skills related causes will clearly be important if UK nationals are going to be persuaded to move into these roles if A8 migrant numbers fall in the future. Section 10 Local Training Infrastructure This section provides a top-level overview of the range of learning provision available in the New Anglia LEP area relevant to the key occupations filled by both Non- EEA and A8 EU migrant workers. FE data related to FE college provision in the academic year 2010/11 and is based on approximation between Sector Subject Areas and those occupations identified as having the most migrant workers currently employed. Data on the HE provision relates to HE providers operating within the New Anglia LEP area and is based on an 4 approximation between occupations and JACs codes. Table 5 Ranked causes of hard-to-fill vacancies by occupations of A8 EU migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Process Operative (Other Not enough people interested in doing this type of Factory Worker) work/job Lack of qualifications the company demands 2 Farm Worker/Farm Hand Poor career progression/lack of progress Not enough people interested in doing this type of work/job 3 Warehouse Operative Low number of applicants with the required attitude/motivation Not enough people interested in doing this type of work/job 4 Cleaner/Domestic Staff Low number of applicants with the required skills Low number of applicants generally 5 Crop Harvester Poor career progression/lack of progress Not enough people interested in doing this type of work/job 6 Kitchen & Catering Assistants Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation 7 Packer Low number of applicants generally 8 Food Processing Operative (Meat) Not enough people interested in doing this type of job Lack of qualifications the company demands 9 Care Assistants/Home Carers Low number of applicants with the required skills Job entails shift work/unsociable hours 10 Chef, Other Low number of applicants with the required skills Not enough people interested in doing this type of job Sources: National Employer Skills Survey 2007, Learning and Skills Council 4 Joint Academic Coding System

54 Table 6 5 Local FE & HE provision by broad occupation Top 10 Non-EEA Level 2 Level 3 HE Top 10 A8 EU Migrant Level 2 Level 3 Migrant Occupations Occupations Animal Care Occupations n.e.c. L Y L Process Operative L L (not elsewhere classified) (Other Factory Worker) Musicians L Y L Farm Worker/Farm Hand L L Medical Practitioners N/A L Y Warehouse Operative L N Care Assistants/Home Y Y Y Cleaner/Domestic Staff Y L Carers Agricultural & Fishing L L L Crop Harvester L L Trades n.e.c. (not elsewhere classified) Nurses Y Y Y Kitchen & Catering Y L Assistants Researchers, Scientific L Y L Packer L N Chef/ Cooks Y L N Food Processing Y Y Operative (Meat) Teacher, Secondary L L L Care Assistants/Home Y Y Education Carers Actors, entertainers L Y L Chef, Other Y L Y = Adequate provision N= No provision L = Limited provision Sources: 2010/11 F05, Individualised Learner Record, Learning & Skills Council & 2010/11 HE Enrolments, Higher Education Statistics Agency Table 6 shows that in relation to the top 10 roles currently filled by Non-EEA migrants, there appears to be adequate HE provision in 3 of the 10 areas. Only in relation to HE provision relevant to Chefs/Cooks is there no apparent relevant provision. While there is some limited provision in relation to Animal Care, Musician, Agricultural/Fishing, Researcher, Secondary Teacher and Actor trades at HE level. At FE level there appears to be only limited provision at level 3 for those interested in working in Animal Care, Music, Agricultural/Fishing, Research, Teaching and Acting roles. Table 6 also provides data on the volume of provision relevant to the 10 roles most commonly filled by A8 EU nationals. The table shows that in almost all areas there is some local FE provision although it is limited in volume. At level 2, only 5 5 Level 2 = GCSE equivalent, Level 3 = A-level equivalent, HE = Any degree level programme out of 10 roles appear to have adequate levels of local provision. Section 11 Issues for Consideration While small as a percentage of the total labour force, this report has demonstrated that migrant workers appear to be supporting the labour market at both ends of the skills spectrum, filling vacancies where there are genuine skills gaps amongst indigenous workers, as well as semiskilled and unskilled vacancies which UK workers appear to have little interest in applying for. Both Non-EEA and A8 EU migrant workers have played important parts in a number of sectors in the local economy, including: Sporting Activities, Health, Manufacturing, Education, Agriculture and Creative Arts.

55 Some important local companies have become used to being able to draw in international workers to bolster the domestic workforce and they may well face particular challenges if this source of labour is reduced or eliminated. While all local authority areas have seen some inward migration over recent years this has not been evenly distributed and some local areas, such as Forest Heath and Mid Suffolk, may face particular shortages as the number of Non-EEA migrant workers reduces. Any future reduction in A8 EU migrants would appear to affect King's Lynn & West Norfolk, Norwich and Ipswich worst of all. Eight of the top 10 occupations employing non- EEA migrants appear to suffer from low levels of unemployed UK nationals looking for work within these roles. The data suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced supply of Non-EEA migrants in the future. The government's decision to only consider highly skilled migrant workers with degree level qualifications in the future is likely to cause particular issues for those employers which have historically recruited Non-EEA migrant workers as Chefs/cooks and Care Assistants. While there appears to be significant numbers of indigenous workers looking to work in these roles, there is evidence of both skills and non-skills barriers which have prevented these occupations being filled in the past. Non-skills related reasons such as a lack of interest and shift working appear to explain why many employers which now use significant numbers of A8 EU migrants have historically been unable to fill roles from the indigenous population. Tackling these non-skills barriers would seem a clear priority for the future. This is particularly important for those employing Process Operatives who currently employ over 3,000 A8 EU migrants in these roles. It appears from the top-line analysis of learning provision that there may be a need to increase the number of training places in certain key areas such as: intermediate provision relevant to process manufacturing, agricultural trades and hospitality and catering roles. Many of the issues faced by the New Anglia LEP area in terms of key occupations and industries affected by the likely reduction in Non-EEA migrant workers are either the same or similar to those faced by neighbouring areas. It may therefore make sense for partners to discuss these issues with neighbours to see whether there are opportunities for collaborative action.

56 Appendix 1: Indicative Migration Estimates (mid 2006 to mid 2010) Local Authority estimates in England and Wales by broad stream LA Name Workers Students Returning Asylum Others Total migrants (UK born) Seekers Norwich 3,237 4,733 869 379 1,667 10,887 Waveney 683 107 468 0 292 1,551 Great Yarmouth 1,722 145 288 8 527 2,691 South Norfolk 581 60 535 0 220 1,397 Broadland 494 44 473 8 192 1,210 Ipswich 4,547 228 404 214 1,250 6,643 Breckland 2,397 117 628 0 693 3,835 St. Edmundsbury 1,115 49 524 0 434 2,121 Forest Heath 1,318 54 608 6 405 2,392 Suffolk Coastal 1,298 51 759 2 393 2,503 Mid Suffolk 407 21 497 0 157 1,082 North Norfolk 1,089 31 450 1 187 1,757 Babergh 606 20 503 1 180 1,310 King's Lynn & West Norfolk 3,094 38 491 10 743 4,375 Source: Office of National Statistics Appendix 2: Indicative Migration Estimates (mid 2006 to mid 2010) percentages Percentage composition of Local Authority estimates by broad stream (and relative importance with other local authorities) LA Name Workers Students Returning Asylum Others migrants (UK born) Seekers Norwich 30% 43% 8% 3% 15% Waveney 44% 7% 30% 0% 19% Great Yarmouth 64% 5% 11% 0% 20% South Norfolk 42% 4% 38% 0% 16% Broadland 41% 4% 39% 1% 16% Ipswich 68% 3% 6% 3% 19% Breckland 63% 3% 16% 0% 18% St. Edmundsbury 53% 2% 25% 0% 20% Forest Heath 55% 2% 25% 0% 17% Suffolk Coastal 52% 2% 30% 0% 16% Mid Suffolk 38% 2% 46% 0% 15% North Norfolk 62% 2% 26% 0% 11% Babergh 46% 2% 38% 0% 14% King's Lynn & West Norfolk 71% 1% 11% 0% 17% Source: Office of National Statistics

57 Migrant Labour in the South East Local Enterprise Partnership Area Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnership (LEP) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant 1 workers have been employed. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2011 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multinational employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the South East LEP Area The South East LEP area is home to a population of around 3.9m people of which approximately 2.5m people are of working age. Of those that are of working age, there is a 78.0% economic activity rate across the area, 1.9% higher than the national average. Also, the unemployment rate is 7.6%, which is 0.3% below the national average. Almost two-thirds (65.6%) of the population of the South East LEP area are qualified up to NVQ2 and above, 46.0% of the population are qualified 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

58 to NVQ3 and above, and 26.2% of the population of the area are qualified to NVQ4 and above. On average, the LEP area is less qualified than the UK population. As shown by, the proportion of people in the South East LEP area qualified to NVQ4 and above is 5.1% lower than the national average. The LEP area has a business base of approximately 156,000 companies, and an annual GVA equivalent to 6% of England GVA. The South East LEP area benefits from strong economic resilience in manufacturing, environmental technologies, agriculture, tourism and creative industry sectors. The rural economies of East Sussex, Essex and Kent are the largest compared to other LEPs in the UK and are worth over 10 billion a year. The South East LEP economic strategy expects the regeneration of the Thames Gateway to be completed in the near future. This will be a beacon for smaller and more deprived areas to make significant progress towards becoming thriving communities. As a national priority, the Thames Gateway will be a key provider of economic growth. Other areas of strategic growth include investment in coastal communities and the rural economy. Section 4 Migrant Worker Volumes Between November 2008 and February 2012, approximately 5,317 Non-EEA migrant workers were employed in the South East LEP area. This represents an annual average of 1,596 migrants and equates to approximately 0.08% of the economically active population in the area. active population. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do not capture data on all migrants entering the area from other EU nations not covered by the Worker Registration Scheme requirement or those arriving as asylum seekers who are then given leave to remain or UK nationals returning home after a period overseas. Data constructed by the Office of National Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source an estimated 111,790 migrants of all ages entered the South East LEP area between mid-2006 and mid-2010. This equates to an annual average of 27,948 migrants of all ages entering the area every year. As can be seen by Chart 1, only 44.6% of the 27,948 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. Chart 1: Estimated Composition of Migrants Entering the South East LEP Area (% of all migrants) Between April 2010 and March 2011, approximately 6,503 A8 EU migrant workers were employed in the South East LEP area. As a percentage of the workforce, these A8 EU migrant workers represent approximately 0.33% of the economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 0.41% of the economically active population. In comparison with other LEPs in the 2 greater East region, The South East has the lowest economic activity rate of Non-EEA and A8 EU migrants. Across the East of England region as a whole, Non-EEA and A8 EU migrant workers represent 0.66% of the economically 2 Greater East region refers to those local authorities included in LEP areas with some presence in the east of England statistical region. Workers Students Returning migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority 2006-2010, Office of National Statistics.

59 However, some Local Authorities within the South East LEP area have significant differences in their migrant composition than is show in Chart 1. The districts that have a much higher than average proportion of migrant workers are Swale (68.9% workers), Thurrock (66.5% workers), Harlow (64.6% workers) and Southend-on-Sea (57.4% workers). This means that these districts have a much lower proportion of students, retuning migrants and asylum seekers in comparison to the South East LEP area as a whole. The 21.0% student migrant composition of the South East LEP is not representative of many districts in the LEP area. The Local Authorities with the highest proportions of students are Canterbury (60.2% students), Colchester (54.0% students), Medway (22.0% students), Chelmsford (21.8% students), Dartford (21.5% students) and Maidstone (21.1% students). The remaining 26 Districts in the South East LEP area have an 8.0% average proportion of migrant students. Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Occupations No. of Migrants Rank A8 EU Occupations No. of Migrants 1 Nurses 787 1 Process Operative 1648 (Other Factory Worker) 2 Care assistants & home carers 584 2 Warehouse Operative 952 3 Musicians 582 3 Packer 811 4 Medical practitioners e.g. 387 4 Farm Worker/Farm Hand 499 doctors & surgeons 5 Teacher, secondary education 258 5 Cleaner, Domestic Staff 378 6 Chefs, cooks 253 6 Crop Harvester 304 7 IT, software professionals 210 7 Care Assistants/Home 223 Carers 8 Clergy 178 8 Kitchen & Catering 212 Assistants 9 Artists 128 9 Fruit Picker (Farming) 199 10 Social workers 125 10 Waiter/Waitress 136 11 Teacher/lecturer in higher 97 11 Sales & Retail Assistants 116 education 12 Sports players 78 12 Food Processing 111 Operative (Fruit / Veg) 13 Managers, residential & day 65 13 Maid/Room Attendant 92 care managers (Hotel) 14 Managers, marketing & sales 55 14 Labourer, Building 90 15 Directors/chief executives of 54 15 Launderer/Dry Cleaner 77 major organisations /Presser Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA

60 Section 5 Occupational Patterns Across the South East LEP area, Non-EEA migrant workers have been employed in almost 3 150 different SOC code areas since November 2008. A8 EU migrant workers have, in comparison been employed in just over 120 different SOC code areas. While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa 72% for Non-EEA and 90% for A8 EU migrants). Table 1 provides details of the top 15 occupations filled by both Non-EEA and A8 migrant workers. migrants with just over a quarter (25%) of migrant workers undertaking these roles between April 2010 to March 2011. A considerable number of migrants also took roles as Warehouse Operatives (15%), Packers (13%), Farm Workers/Farm Hands (8%), and Cleaners/Domestic Staff (6%). 34% of A8 EU migrant workers were employed in other roles, as shown in Chart 3 below. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Nurses are the largest single occupational group of Non-EEA migrant workers recruited in the area, employing 15% of all Non-EEA migrant workers in the LEP area. A further 11% of all Non-EEA migrant workers are employed as Care Assistants/Home Carers, 11% as Musicians, 7% as Medical Practitioners, and 5% as Teachers. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers Process Operative (Other Factory Worker) Warehouse Operative Packers Farm Worker/Farm Hand Cleaner/Domestic Staff Other The data presented in Table 1 clearly shows the significant difference in the occupational make-up of migrants from Non-EEA nationals and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nations are concentrated in occupations towards the lower half of the occupational spectrum requiring only low or intermediate level skills. Section 6 Sectoral Patterns Nurses Care Assistants and Home Carers Musicians Medical Practitioners e.g. Doctors and Surgeons Teachers, Secondary Education Other Process Operative (Other Factory Worker) is the occupation most commonly filled by A8 EU 3 Standard Occupational Classification Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from Health Care to Construction, and from Agriculture to Leisure Services. However, as with occupations, a much smaller list of industries account for the vast

61 majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 82% (circa 4,380 employees) of all Non-EEA migrants employed in the LEP area between November 2008 and February 2012. The 10 most common industries employing A8 EU nationals accounted for almost all the 6,503 employees of all A8 workers employed in the South East LEP area during the one year period under analysis (April 2010 March 2011). The data suggests that the largest employing industry of Non-EEA migrant workers is the Human Health and Social Work Activities sector. This covers a range of work from Hospital Activities, to Medical Nursing to Dental Practice. The Human Health Activities sector accounts for 25% of all Non-EEA migrant workers (circa 1,300 workers), followed by the Creative, arts and entertainment activities sector with 14% of All Non-EEA migrant workers (circa 760 workers). The data suggests that the largest employing industry of A8 EU migrant workers in the South East LEP area is Administrations, Business and Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that, in a number of cases, these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Human health activities 25% 1 Administration, Business 54% & Managerial Services 2 Creative, arts & 14% 2 Agriculture Activities 18% entertainment activities 3 Education 13% 3 Hospitality & Catering 10% 4 Residential care activities 11% 4 Health & Medical Services 5% 5 Food & beverage service 5% 5 Manufacturing 5% activities 6 Human Health & Social Work 4% 6 Retail & Related Services 3% Activities 7 Sports activities, amusement 3% 7 SBS Sectors 3% & recreation activities 8 Manufacture of motor vehicles, 3% 8 Construction & Land 1% trailers & semi-trailers Services 9 Financial service activities, 3% 9 Education & Cultural Activities 1% except insurance & pension Activities funding 10 Activities of membership 2% 10 Entertainment & Leisure 1% organisations Services Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA

62 The Agricultural Activities sector accounts for a significant number of migrant workers with 18% of all A8 EU workers operating in that sector. Hospitality & Catering is also an important sector with around 10% of workers employed within it. Section 7 Geographic Patterns Using the postcodes from all companies employing Non-EEA migrant workers and the resident local authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the South East LEP area. As can be seen from Map 1, all local authorities have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers are identified as: Basildon (533), Shepway (471), Colchester (405) and Canterbury (401). Thurrock witnessed the lowest levels of Non-EEA migration with just 4 Non-EEA migrants during the period November 2008 March 2012. This was followed by Maldon (7), Epping Forest (22), Swale (23) and Thanet (43). Map 1: Number of Non-EEA migrant workers by local authority in the South East LEP area Source: Certificates of Sponsorship, United Kingdom Border Agency

63 Map 2 presents the distribution of A8 EU migrant workers and reveals that all local authorities in the area have witnessed some degree on inward migration. Those with the greatest number of A8 EU migrant workers are identified as: Swale (678), Maidstone (671), Canterbury (621), and Medway (561). The districts with the fewest numbers of A8 EU migrant workers are Rochford (11), Maldon (32), Castle Point (33), Brentwood (49) and Rother (52). Data presented in this section demonstrates a significant divergence in the geographic distribution between the two groups of migrant workers. Swale, for example, appears to have seen few Non-EEA migrant workers but is the highest user of A8 EU migrant workers. Section 8 Overall Local Reliance Using DWP data on the number of unemployment claimants looking for work in different occupations, it is possible to asses the capacity of the local economy to absorb the impact of reduced number of migrant workers in the future. Table 3 compares the number of migrant workers in each occupation to the number of unemployed people in the South East LEP area looking for work in that occupation. Map 2: Distribution of A8 EU migrant workers by local authority in the South East LEP area Source: Worker Registration Scheme, United Kingdom Border Agency

64 Table 3 Comparison of migrant roles and occupations sought by UK nationals Non-EEA Top 10 Ratio of A8 EU Top 10 Ratio of Occupations unemployed Occupations unemployed to migrants to migrants Nurses 8.3% Process Operative (Other 3.3% Factory Worker) Care Assistants/Home Carers 345.0% Warehouse Operative 698.9% Musicians 6.9% Packer 168.4% Medical Practitioners 2.6% Farm Worker/Farm Hand 37.1% Teacher, Secondary Education 40.7% Cleaner/Domestic Staff 740.4% Chefs/Cooks 247.0% Crop Harvester 16.5% IT, Software Professionals 73.8% Care Assistants/Home Carers 943.8% Clergy 2.8% Kitchen & Catering Assistants 827.4% Artists 43.0% Fruit Picker (Farming) 25.1% Social Workers 56.0% Waiter/Waitress 444.9% Under supply of local labour compared to migrant labour supply Balance of local labour supply and migrant labour supply Over supply of local labour compared to migrant labour supply Sources: Worker Registration Scheme, UKBA, & JSA Claimants, Sought Occupations. DWP February 2012. Table 3 demonstrates that only three occupations currently employing large numbers of Non-EEA migrants have high numbers of indigenous workers looking to move into the roles (Care Assistants/Home Carers; Chefs/Cooks; and Youth and Community Workers). All other top 10 occupations suffer from an under-supply of indigenous workers. The data, therefore, suggests that companies looking to recruit individuals in these occupations may find it difficult to fill any void generated by a reduced supply on Non-EEA migrants in the future. Table 3 also demonstrates that 6 occupations currently employing high volumes of A8 EU migrants have high numbers of indigenous workers looking to move into these roles, for example, Warehouse Operative; Packer; and Cleaner/Domestic Staff. This indicates that the local economy could adjust relatively easily to a reduced supply of future A8 EU migrant workers. However, there is no guarantee that the unemployed looking to move into these roles have either the skills or work experience to be a success in these roles, and many may require support to achieve them. In the following 4 roles, the number the number of unemployed indigenous workers looking to move into roles falls substantially below the number of migrant workers currently recruited. This data, therefore, suggests the area may find it difficult to fill any void generated by any reduced labour supply in the A8 EU migrant labour: Process Operative (Other Factory Worker) Farm Worker/Farm Hand Crop Harvester Fruit Picker As can be seen, this apparent under-supply of indigenous workers looks likely to particularly affect the Agriculture and Manufacturing sectors, a trend that was also seen across most LEP areas within the East of England region.

65 Section 9 Causes of Hard-to-Fill Vacancies Using data from the National Employer Skills Survey, it is possible to identify the causes of hard-to-fill vacancies amongst occupations what have historically been filled by migrant workers. By understanding the causes of hard-to-fill vacancies amongst indigenous workers, it may be possible for local partners to better direct resources and effort towards resolving these issues going forward. The data provides a useful insight into what employers believe to be the main causes of recruitment difficulties amongst occupations which have benefitted from significant numbers of Non-EEA migrant workers. It is clear that skills and experience deficiencies amongst the indigenous workforce are present in many cases. Tackling these skills gaps would, therefore, be essential if the area had to cope with fewer Non- EEA migrants in the future. Table 4 Ranked causes of hard-to-fill vacancies by occupations of Non-EEA migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Nurses Low number of applicants with the required skills Not enough people interested in doing this type of job 2 Care Assistants/Home Carers Low number of applicants with the required skills Job entails shift work/unsocial hours 3 Musicians Low number of applicants with requiredattitude/motivation 4 Medical Practitioners Not enough people interested in doing this type of job Low number of applicants with the required skills 5 Teacher, Secondary Education Low number of applicants with the required skills Lack of qualifications the company demands 6 Chefs/Cooks Lack of work experience the company demands Job entails shift work/unsocial hours 7 IT, Software Professionals Low number of applicants with the required skills Lack of work experience the company demands 8 Clergy Lack of qualifications the company demands Low number of applicants with the required skills 9 Artists Not enough people interested in doing this type of job Low number of applicants with the required skills 10 Social Workers Low number of applicants with the required skills Job entail shift work/unsociable hours Sources: National Employer Skills Survey 2007, Learning and Skills Council

66 Table 5 below provides data from the National Employer Skills Survey regarding the causes of hard-to-fill vacancies in relation to the top 10 occupations filled by A8 EU migrants. Table 5 demonstrates that reasons other than skills, qualifications and work experience account for the majority of hard-to-fill vacancies filled by A8 EU nationals. A lack of interest in available roles is often cited as a common reason for hardto-fill vacancies. Tackling these non-skills related causes will clearly be important if UK nationals are going to be persuaded to move into these roles if A8 migrant numbers fall in the future. Section 10 Local Training Infrastructure This section provides a top-level overview of the range of learning provision available in the South East LEP area relevant to the key occupations filled by both Non-EEA and A8 EU migrant workers. FE data related to FE college provision in the academic year 2010/11 and is based on approximation between Sector Subject Areas and those occupations identified as having the most migrant workers currently employed. Data on the HE provision relates to HE providers operating within the South East LEP area and is based on an approximation between occupations and 4 JACs codes. Table 5 Ranked causes of hard-to-fill vacancies by occupations of A8 EU migrants Rank Occupation Causes of Hard-to-Fill Vacancies 1 Process Operative (Other Not enough people interested in doing this type of Factory Worker) work/job Lack of qualifications the company demands 2 Warehouse Operative Low number of applicants with the required attitude/motivation Not enough people interested in doing this type of work/job 3 Packer Low number of applicants generally 4 Farm Worker/Farm Hand Poor career progression/lack of progress Not enough people interested in doing this type of work/job 5 Cleaner/Domestic Staff Low number of applicants with the required skills Low number of applicants generally 6 Crop Harvester Poor career progression/lack of progress Not enough people interested in doing this type of work/job 7 Care Assistants/Home Carers Low number of applicants with the required skills Job entails shift work/unsociable hours 8 Kitchen And Catering Assistants Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation 9 Fruit Picker (Farming) Poor career progression/lack of progress Not enough people interested in doing this type of work/job 10 Waiter/Waitress Job entails shift work/unsocial hours Low number of applicants with the required attitude/motivation Sources: National Employer Skills Survey 2007, Learning and Skills Council 4 Joint Academic Coding System

67 Table 6 5 Local FE & HE provision by broad occupation Top 10 Non-EEA Level 2 Level 3 HE Top 10 A8 EU Migrant Level 2 Level 3 Migrant Occupations Occupations Nurses Y Y Y Process Operative L L (Other Factory Worker) Care Assistants/Home Y Y Y Warehouse Operative N L Carers Musicians L L L Packer N L Medical Practitioners N N L Farm Worker/Farm Hand L L Teacher, Secondary L L L Cleaner/Domestic Staff Y L Education Chefs/Cooks Y Y N Crop Harvester L L IT, Software Professionals L Y Y Care Assistants & Home Y Y Carers Clergy N L L Kitchen/Catering Assistants Y L Artists L Y Y Fruit Picker (Farming) L L Youth & Community L L Y Waiter/Waitress Y L Workers Y = Adequate provision N= No provision L = Limited provision Sources: 2010/11 F05, Individualised Learner Record, Learning & Skills Council & 2010/11 HE Enrolments, Higher Education Statistics Agency Table 6 shows that in relation to the top 10 roles currently filled by Non-EEA migrants, there appears to be adequate HE provision in 5 of the 10 areas. Only in relation to the HE provision relevant to Chefs/Cooks is there no apparent relevant provision. While there is some limited provision in relation to Musicians, Medical Practitioners, Secondary Teachers and Clergy trades at HE level. At FE level there appears to be only limited provision relevant at Level 3 for those interested in Music, Secondary Teaching, Clergy and Youth & Community Worker roles. Table 6 also provides data on the volume of provision relevant to the 10 roles most commonly filled by A8 EU nationals. The table shows that in almost all areas there is some local FE provision although it is limited in volume. At level 2, only 4 out of 10 roles appear to have adequate level of local provision. Section 11 Issues for Consideration While small as a percentage of the total labour force, this report has demonstrated that migrant workers appear to be supporting the labour market at both ends of the skills spectrum, filling vacancies where there are genuine skills gaps amongst indigenous workers, as well as semiskilled and unskilled vacancies which UK workers appear to have little interest in applying for. Both Non-EEA and A8 EU migrant workers have played important parts in a number of sectors in the local economy, including: Health and Social Work Activities, Manufacturing, Agriculture, Food Services, Education and Retail. Some important local companies have become used to being able to draw in international workers to bolster the domestic workforce and they may well face particular challenges if this source of labour is reduced or eliminated. 5 Level 2 = GCSE equivalent, Level 3 = A-level equivalent, HE = Any degree level programme

68 While all local authority areas have seen some inward migration over recent years this has not been evenly distributed and some local areas, such as Basildon, may face particular shortages as the number of Non-EEA migrant workers reduces. Any future reduction in A8 EU migrants would appear to affect Swale, Maidstone, Canterbury and Medway worst of all. The government's decision to only consider highly skilled migrant workers with degree level qualifications in the future is likely to cause particular issues for those employers which have historically recruited Non-EEA migrant workers as Chefs/cooks and Care Assistants. While there appears to be significant numbers of indigenous workers looking to work in these roles, there is evidence of both skills and non-skills barriers which have prevented these occupations being filled in the past. Non-skills related reasons such as a lack of interest and shift working appear to explain why many employers which now use significant numbers of A8 EU migrants have historically been unable to fill roles from the indigenous population. Tackling these Non-skills barriers would seem a clear priority for the future. This is particularly important for those employing Process Operatives who currently employ over 1,600 A8 EU migrants in these roles. It appears from the top-line analysis of learning provision that there may be a need to increase the number of training places in certain key areas such as: intermediate provision relevant to process manufacturing, agricultural trades and hospitality and catering roles. Many of the issues faced by the South East LEP area in terms of key occupations and industries affected by the likely reduction in Non-EEA migrant workers are either the same or similar to those faced by neighbouring areas. It may therefore make sense for partners to discuss these issues with neighbours to see whether there are opportunities for collaborative action.

69 Appendix 1: Indicative Migration Estimates (mid 2006 to mid 2010) Local Authority estimates in England and Wales by broad stream LA Name Workers Students Returning Asylum Others Total migrants (UK born) Seekers Uttlesford 875 32 575 0 296 1,778 Maldon 323 15 346 0 91 774 Brentwood 646 44 531 1 300 1,523 Rochford 220 22 288 4 82 616 Shepway 1,370 114 591 17 579 2,671 Braintree 1,239 113 602 5 400 2,358 Rother 442 74 571 5 391 1,483 Hastings 988 109 333 297 408 2,135 Harlow 1,638 136 290 34 437 2,535 Thurrock UA 3,269 274 445 142 786 4,915 Castle Point 223 36 235 6 90 588 Basildon 1,467 204 719 36 558 2,984 Southend-on-Sea UA 2,899 349 745 136 922 5,050 Tendring 939 139 615 12 231 1,936 Lewes 772 149 619 3 291 1,834 Swale 2,319 304 371 20 350 3,364 Tonbridge and Malling 1,231 243 763 0 375 2,611 Wealden 843 249 926 8 558 2,584 Epping Forest 1,082 244 632 46 442 2,445 Tunbridge Wells 1,759 414 960 10 643 3,786 Thanet 2,004 428 503 45 724 3,703 Dover 1,337 349 588 38 541 2,852 Gravesham 2,073 471 336 81 739 3,701 Ashford 1,544 480 655 93 638 3,410 Sevenoaks 963 408 756 1 445 2,572 Eastbourne 1,468 571 605 73 637 3,354 Maidstone 2,988 1,167 652 22 701 5,531 Dartford 1,233 543 247 97 409 2,529 Chelmsford 1,775 914 942 10 562 4,202 Medway UA 5,175 2,094 908 14 1,343 9,533 Colchester 2,583 5,952 1,086 22 1,383 11,026 Canterbury 2,150 6,868 915 21 1,453 11,407 Source: Office of National Statistics

70 Appendix 2: Indicative Migration Estimates (mid 2006 to mid 2010) percentages Percentage composition of Local Authority estimates by broad stream (and relative importance with other local authorities) LA Name Workers Students Returning Asylum Others migrants (UK born) Seekers Uttlesford 49% 2% 32% 0% 17% Maldon 42% 2% 45% 0% 12% Brentwood 42% 3% 35% 0% 20% Rochford 36% 4% 47% 1% 13% Shepway 51% 4% 22% 1% 22% Braintree 53% 5% 26% 0% 17% Rother 30% 5% 39% 0% 26% Hastings 46% 5% 16% 14% 19% Harlow 65% 5% 11% 1% 17% Thurrock UA 67% 6% 9% 3% 16% Castle Point 38% 6% 40% 1% 15% Basildon 49% 7% 24% 1% 19% Southend-on-Sea UA 57% 7% 15% 3% 18% Tendring 49% 7% 32% 1% 12% Lewes 42% 8% 34% 0% 16% Swale 69% 9% 11% 1% 10% Tonbridge and Malling 47% 9% 29% 0% 14% Wealden 33% 10% 36% 0% 22% Epping Forest 44% 10% 26% 2% 18% Tunbridge Wells 46% 11% 25% 0% 17% Thanet 54% 12% 14% 1% 20% Dover 47% 12% 21% 1% 19% Gravesham 56% 13% 9% 2% 20% Ashford 45% 14% 19% 3% 19% Sevenoaks 37% 16% 29% 0% 17% Eastbourne 44% 17% 18% 2% 19% Maidstone 54% 21% 12% 0% 13% Dartford 49% 21% 10% 4% 16% Chelmsford 42% 22% 22% 0% 13% Medway UA 54% 22% 10% 0% 14% Colchester 23% 54% 10% 0% 13% Canterbury 19% 60% 8% 0% 13% Source: Office of National Statistics

71 Migrant Labour in the South East Midlands Local Enterprise Partnership Area Section 1 Purpose and Uses Commissioned by the East of England Strategic Migration Partnership in February 2012, this report aims to assist colleges, universities, the local enterprise partnership (LEP) and others to: Understand the scale and types of both EU and Non-European Economic Area (EEA) migrants securing employment in the locality; Identify industries and occupations likely to be most affected by forthcoming changes in immigration policy; Assess the adequacy of existing local learning provision and shape the future curriculum offers in order to meet the needs of an economy with less access to foreign workers from outside the EEA in the future. The data on economic migrants used in this report is primarily drawn from two sources: Data on Non-EEA migrants entering the UK under Certificates of Sponsorship during a 40 month period between November 2008 and February 2012 has been provided by the United Kingdom Border Agency. This data provides details of Certificates of Sponsorship used by companies when recruiting Non-EEA migrant workers. The data provides an insight into both the industries and occupations using migrant labour. Data on migrants from the so-called A8 Accession States of the European Union which joined the EU in 2004. This data provides details of A8 nationals granted permits to work in the UK under the Worker Registration Scheme operated by the United Kingdom Border Agency. The data also provides details of industries and occupations in which migrant 1 workers have been employed. It should be noted that the majority of the occupation and industry/sector estimates provided in this report relate to a one year period and therefore reflect the flow of new migrant workers into the area. The stock of migrant workers in the area will be significantly larger than these estimates as they will reflect an accumulation of migrants over time. Section 2 Policy Context The Coalition Agreement committed the government to introducing an annual limit on the number of Non-EU economic migrants admitted into the UK. The immigration cap for Non-EEA workers for the year from April 2011 is 21,700 - about 6,300 lower than in 2009. Of those, 20,700 are tier two skilled migrants entering graduate occupations with a job offer and sponsorship. The other 1,000 are people allowed in under a new "exceptional talent" route such as scientists, academics and artists. The former tier one general route - open to highly skilled migrants without a job offer will be closed. However, these limits do not apply to a category of workers who come to the UK in an "intra-company transfer" with their multinational employer. The Coalition also asked the Migration Advisory Committee to undertake a full review of jobs and occupations skilled to Level 4 (degree level) and above to inform the Tier 2 shortage occupational list, where there would be a justification to fill roles using labour from outside the European Economic Area. This work was completed in February 2012. Together these changes in policy will, unless appropriate action is taken, have a significant impact upon areas and industries which have become reliant on Non-EEA migrant labour to bridge key labour and skills shortages. Section 3 Economic Summary of the South East Midlands LEP Area The area is home to a population of 1,697,400 people of which approximately 1,108,400 are of working age. Of those that are working age, there is a 79.9% economic activity rate across the area, 3.8% higher than is seen country-wide. Also, the unemployment rate is 6.4%, below the national average of 7.1%. Just over two-thirds (68%) of the population of the South East Midlands LEP area are qualified at NVQ2 and above, 50.8% are qualified at NVQ3 and above, and 29.6% qualified at NVQ4 and 1 The Worker Registration Scheme was a temporary measure used between 2004 and April 2011 to monitor incoming workers from eight new member states of the European Union (the so called A8 countries ). The A8 countries that joined the European Union in 2004 were: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

72 above. The proportion of the population possessing qualifications at NVQ3 and above is on a par with the national average. The South East Midlands LEP area has a business base of approximately 75,660 companies and accounts for 3.7% of the national economy. Strengths of the area include its strong transport connections, growing housing market and strong business sectors, for example, tourism, leisure and hospitality. Areas in need of support include advanced technology and precision engineering, food production, and health and well-being. Section 4 Migrant Worker Volumes Between November 2008 and February 2012, approximately 11,975 Non-EEA migrant workers were employed in the South East Midlands LEP area. This represents an annual average of 3,593 migrants and equates to approximately 0.4% of the economically active population in the area. Statistics using administrative sources, such as registrations for National Insurance Numbers, higher education student enrolments and registrations at GP surgeries provides perhaps the most comprehensive estimate of the total inward migration to the area. Using this source an estimated 90,653 migrants of all ages entered the South East Midlands LEP area between mid-2006 and mid-2010. This equates to an annual average of 22,663 migrants of all ages entering the area every year. As can be seen by Chart 1, only 43.9% of the 22,663 estimated annual migrants come to work in the area, with large proportions also studying or returning to the UK from periods abroad. Chart 1: Estimated Composition of Migrants Entering the South East Midlands LEP Area (% of all migrants) Between April 2010 and March 2011, approximately 6,535 A8 EU migrant workers were employed in the South East Midlands LEP area. As a percentage of the workforce, these A8 EU migrant workers represent approximately 0.72% of the economically active population in the area. Therefore, Non-EEA and A8 EU migrant workers represent 1.12% of the economically active population. In comparison with other LEPs in the 2 greater East region, South East Midlands has the second highest economic activity rate of Non-EEA and A8 EU migrants. Across the East of England region as a whole, Non-EEA and A8 EU migrant workers represent 0.66% of the economically active population. Whilst the two data sources used to estimate Non-EEA and A8 EU migrant volumes provide a useful picture of inward migration into the area, they can only provide a partial insight as they do not capture data on all migrants entering the area from other EU nations not covered by the Worker Registration Scheme requirement or those arriving as asylum seekers who are then given leave to remain or UK nationals returning home after a period overseas. Data constructed by the Office of National 2 Greater East region refers to those local authorities included in LEP areas with some presence in the East of England statistical region. Workers Students Returning migrants (UK born) Asylum Seekers Others Source: Immigration Estimates to Local Authority 2006-2010, Office of National Statistics. However, some Local Authorities within the South East Midlands LEP area have significant differences in their migrant composition than is show in Chart 1. The districts that have a much higher than average proportion of migrant workers are Milton Keynes (58.3% workers), Corby (58.1% workers), Northampton (56.8% workers), Cherwell (53.4% workers) and Bedford (50.0% workers). This means that these districts have a much lower proportion of students, retuning migrants and asylum seekers in comparison to the LEP area as a whole.

73 The 24.5% student migrant composition of the South East Midlands LEP is not representative of many districts in the LEP area. The Local Authorities with the highest proportions of students are Central Bedfordshire (53.0% students), Aylesbury Vale (51.9% students), and Luton (41.0% students). The remaining 9 Districts in the LEP area have a below average proportion of migrant students in their migrant composition. Section 5 Occupational Patterns Across the South East Midlands LEP area, Non- EEA migrant workers have been employed in 3 almost 140 different SOC code areas since November 2008. A8 EU migrant workers have, in comparison been employed in just over 80 different SOC code areas. While migrants have been employed in a wide range of occupations, a much smaller number of occupations account for the vast majority of all migrant roles (circa 87% for Non-EEA and 87% for A8 EU migrants). Table 1 provides details of the top 15 occupations filled by both Non-EEA and A8 migrant workers. Table 1 Most popular occupations currently filled by Non-EEA and A8 EU migrants Rank Non-EEA Occupations No. of Migrants Rank A8 EU Occupations No. of Migrants 1 IT, software professionals 6447 1 Process Operative 2354 (Other Factory Worker) 2 Technicians, IT user support 835 2 Warehouse Operative 2230 3 Nurses 493 3 Packer 383 4 Managers, information & 409 4 Cleaner/Domestic Staff 118 communication technology 5 Care assistants & home carers 404 5 Kitchen & Catering 116 Assistants 6 IT strategy & planning 393 6 Sales & Retail Assistants 111 professionals 7 Technicians, IT operations 254 7 Food Processing 88 Operative (Fruit/Veg) 8 Consultants, actuaries, 215 8 Food Processing 49 economists, statisticians Operative (Meat) 9 Medical practitioners e.g. 165 9 Waiter/Waitress 49 doctors & surgeons 10 Actors, entertainers 160 10 Fruit Picker (Farming) 47 11 Managers, marketing & sales 155 11 Maid / Room Attendant 41 (Hotel) 12 Chefs, cooks 139 12 Carpenter/Joiner 30 13 Teacher, secondary education 112 13 Doctor (Hospital) 30 14 Managers, customer care 94 14 Care Assistants/Home 28 Carers 15 Housekeepers & related 94 15 Chef, Other 24 occupations Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA 3 Standard Occupational Classification

74 IT, Software Professionals is the largest single occupational group of Non-EEA migrant workers recruited in the area, employing 54% of all Non- EEA migrant workers in the South East Midlands LEP area. A further 7% of all Non-EEA migrant workers are employed as Technicians, IT User Support, 4% as Nurses, 3% as Managers, Information And Communication Technology and 3% as Care assistants/home carers. Chart 2 below demonstrates the proportion of Non-EEA migrants in the top 5 most popular occupations. Chart 3: Top 5 Occupations Currently Filled by A8 EU Migrant Workers Chart 2: Top 5 Occupations Currently Filled by Non-EEA Migrant Workers Process Operative (Other Factory Worker) Warehouse Operative Packers Cleaner/Domestic Staff Kitchen & Catering Assistants Other IT, Software Professionals Technicians, IT User Support Nurses Managers, Information and Communication Technology Care Assistants and Home Carers Other Process Operative (Other Factory Worker) is the occupation most commonly filled by A8 EU migrants with just over a third (36%) of migrant workers undertaking these roles between April 2010 to March 2011. A considerable number of migrants also took roles as Warehouse Operatives (34%), Packers (6%), Cleaners/Domestic Staff (2%) and Kitchen and Catering Assistants (2%). Only 20% of A8 EU migrant workers were employed in other roles, as shown in Chart 3 to the right. The data presented in Table 1 clearly shows the significant difference in the occupational make-up of migrants from Non-EEA nations and those from A8 EU countries. Non-EEA tend to be employed in higher order occupations requiring high levels of skills and qualifications. A8 EU nationals are concentrated in occupations towards the lower half of the occupational spectrum requiring only low or intermediate level skills. Section 6 Sectoral Patterns Migrant workers have been employed by companies working in a very wide range of industries operating in the area, from Residential Care to Creative Arts, and from Agriculture to Leisure Services. However, as with occupations, a much smaller list of industries account for the vast majority of both Non-EEA and A8 EU migrant workers. The 10 most common Non-EEA migrant worker industries account for 93% (circa 11,174 employees) of all Non-EEA migrants employed in the South East Midlands LEP area between November 2008 and February 2012. The 10 most common industries employing A8 EU nationals accounted for 94% (circa 6,125 employees) of all A8 workers employed in the LEP area during the one year period under analysis (April 2010 - March 2011).

75 Table 2 The top 10 industries using Non-EEA and A8 EU migrants Rank Non-EEA % of Rank A8 EU % of Industries Migrants Industries Migrants 1 Computer programming, 46% 1 Administration, Business 81% consultancy & related activities & Managerial Services 2 Activities of head offices; 27% 2 Hospitality & Catering 4% management consultancy activities 3 Residential care activities 6% 3 Manufacturing 3% 4 Human health activities 4% 4 Retail & Related Services 3% 5 Education 3% 5 Health & Medical Services 1% 6 Sports activities, amusement 2% 6 SBS Sectors 1% & recreation activities 7 Creative, arts & entertainment 2% 7 Transport 1% activities 8 Food & beverage service 2% 8 Education & Cultural <1% activities Activities 9 Civil engineering 1% 9 Entertainment & Leisure <1% Services 10 Other professional, scientific 1% 10 Agriculture Activities <1% & technical activities Sources: Worker Registration Scheme, DWP and Certificates of Sponsorship, UKBA The data suggests that the largest employing industry of Non-EEA migrant workers is the Computer Programming, Consultancy and Related Activities sector. This refers to a range of work including computer game production, computer consultancy activities and computer facilities management activities. The Activities of Head Offices; Management Consultancy Activities sector accounts for 27% of all Non-EEA migrant workers (circa 3,000 workers), followed by Residential Care Activities with 6% (circa 700 workers). 'Activities of Head Offices' refers to financial management, public relations, communications and business occupations. 'Residential Care Activities' refers to nursing care for a wide range of patients, including those who are disabled, mentally ill, substance abusers, and elderly. industry of A8 EU migrant workers in the South East Midlands LEP area is Administrations, Business and Managerial Services. However, it should be noted that high volumes of migrant workers choose to use the services of recruitment agencies when finding work and it is likely that, in a number of cases, these recruitment companies have wrongly been identified as the direct employers of migrant workers using them rather than the actual industry in which the migrant worker is working. The Hospitality and Catering sector accounted for a significant number of migrant workers with 4.1% of all A8 EU workers operating in that sector. Manufacturing was also an important sector with around 2.8% of workers employed within it. Section 7 Geographic Patterns The data suggests that the largest employing Using the postcodes from all companies

76 employing Non-EEA migrant workers and the resident Local Authority of A8 EU migrant workers, it has been possible to map the distribution of both groups across the South East Midlands LEP area. As can be seen from Map 1, all Local Authorities have witnessed some degree of inward Non-EEA migration. Those with the greatest number of Non-EEA migrant workers were identified as: Milton Keynes (8,033), Dacorum (1678), Cherwell (997), South Northamptonshire (559), and Luton (495). Aylesbury Vale and Corby had witnessed the lowest levels of Non-EEA migration with both authorities gaining just 4 migrant Non-EEA workers during the period November 2008 March 2012. Map 1: Number of Non-EEA migrant workers by Local Authority in the South East Midlands LEP area Source: Certificates of Sponsorship, United Kingdom Border Agency

77 Map 2 presents the distribution of A8 EU migrant workers and reveals that all Local Authorities in the area have witnessed some degree on inward migration. Those with the greatest number of A8 EU migrant workers were identified as: Northampton (1,897), Luton (1,687), Milton Keynes (753), Bedford (509) and Corby (387). The districts with the fewest numbers of A8 EU migrant workers were South Northamptonshire (45), Central Bedfordshire (49), Dacorum (139), Alyesbury Vale (178) and Cherwell (215). Map 2: Distribution of A8 EU migrant workers by Local Authority in the South East Midlands LEP area Data presented in this section demonstrates a significant divergence in the geographic distribution between the two groups of migrant workers. For example, Milton Keynes employs a large 8,033 Non-EEA migrant workers, yet only 753 A8 EU migrants. The reason for this is the majority of Non-EEA migrants in the Milton Keynes Local Authority are employed in the Computer Programming, Consultancy and Related Activities sector and related occupations (see table 2). This sector also heavily employs Non-EEA migrants in Dacorum. Source: Worker Registration Scheme, United Kingdom Border Agency