The volume and economic contribution of skilled migrants is set to reach record heights according to new research from global recruitment consultancy, Harvey Nash. The research predicts skilled migrant workers will contribute over £77 billion to the UK economy by 2012. They will support 650,000 jobs through their spending on goods and services.
The Future Flows report compiled for Harvey Nash by the Centre for Economics and Business Research (CEBR) predicts the number of highly skilled migrants is set to rise to 812,000 in 2012 representing an increase of 14% over the next four years. Skilled migrants already account for 2.5% of the country's total workforce and contribute over £36 billion worth of output. This is set to increase to 2.8% and over £49 billion respectively by 2012.
The research reveals highly skilled migrants hold and support over a million UK jobs, a figure which is set to hit 1.5 million in four years' time. But as well as filling and making jobs, highly skilled migrants' spending supported £8.4 billion of the UK's gross value added (GVA) in 2007 and this is set to rise to £13 billion in 2012. [Gross value added (GVA) is the difference between output and intermediate consumption for any given sector/industry. That is the difference between the value of goods and services produced and the cost of raw materials and other inputs which are used up in production. (Definition taken from National Statistics website, March 2008).]
Launching the report, Harvey Nash chief executive, Albert Ellis, commented: "Skills are critical to the UK economy, but critically lacking in our current workforce. Far from undermining the UK labour market, migration is vital to future economic stability, helping to fill in the gaps created by older and under-skilled workforces and make an important economic contribution. Businesses need to embrace skilled migration, recruit from wider social groups, as well as offer flexible and rewarding working practices for home-grown talent, in order to safeguard their long term and global competitiveness."
A number of core industries are set to benefit from the influx of skilled migrants. The IT, telecommunications and transport sector will require an extra 19,000 skilled migrants by 2012 as demand rises for e-commerce and software specialists – their contribution is expected to add £16.2 billion to the sector. Skilled migrant output is also expected to grow by 44% in the utilities sector between now and 2012 and continued demand for trained nurses will keep the majority (over 30%) of skilled migrants working in the education, health and government services sectors. Foreign workers will contribute £17.2 billion to the latter by 2012.
The majority of these highly skilled migrants come from the European Union, including new accession states such as Romania and Bulgaria. Other significant flows come from Asia and Africa. London is and will continue to be the biggest beneficiary of the skilled migrant workforce. In 2012, approximately 365,000 skilled migrants will live in the capital, with a further 100,000 working in the South East and 49,000 in the East of England.
