Immigration

IMMIGRATION

Background

Immigrants from other countries make up a large part of what London is today. In 1986, London's overseas-born population was 1.17 million, which was 17.6% of its total population. The majority of immigrants came from just six countries including Ireland, India, Kenya, Jamaica, Cyprus, and Bangladesh. By 2006, however, London's overseas-born population grew to 2.23 million, at 30.5% of its total population. This group, in addition to the previously mentioned six countries, now also includes countries such as Poland, South Africa, Pakistan, and the USA. Overall, these new immigrants are young and likely to have much more education and possess higher lever qualifications than the comparable London-born population. Those coming from richer countries tend to stay for shorter lengths of time while those from other countries are more likely to be permanent residents, exercising a long-term effect on the housing and labor markets. At this point in time, London's overseas-born population makes up 29% of London jobs.

Reasons for Migration 

Reasons why people move to London can be broken into three groups: highly-skilled workers, migrants, and asylum-seekers. Highly-skilled workers seek jobs in the financial and business services and come from rich countries such as the USA or Australia. This group makes up about 1/3 of the immigrants and these people tend to stay in London for several years for career reasons only. Migrants comprise about 1/2 of all immigrants and are typically from poorer countries.  This group of people stays for long periods of time, working in jobs below their qualification level where they further depress wage levels. The final group is asylum-seekers, who are from countries suffering economic and political breakdown, and may not initially be available for work. This group accounts for about 1/8 of all London immigrants.

Aside from these three different groups, immigrants find several other reasons to move to London. First of all, London promotes tolerance of different lifestyles and has a low crime rate. These factors make the city an attractive social and multi-cultural society.  London also has a low unemployment rate of approximately 5% and a high job turnover rate, which together creates many job opportunities.  These jobs also come with good hours, in addition to many benefits for workers.  London has the 4th largest stable economy and a strong currency with a 3% inflation rate. London is also known for having a great educational system, and the city offers an abundance of cultural and historical activities.  In addition, London provides world-class health care free to residents and has implemented an impressive welfare program for those in need.

Who qualifies as a migrant?

As for who counts as an actual migrant, the formal UK definition is "those who had been out of the country for more than a year, and now intend to stay for more than a year." This definition also includes visitors who later apply to extend their stay beyond a year; however it does not count illegal immigrants. It does not relate directly to the degree of involvement in local labor/housing markets, for example long-term students versus working visitors.

Policies/Laws

Depending on how you want to establish yourself in London, there are different policies on how to do that. If you want to come to the UK to visit, you must be able to show that:

• you only want to stay for six months
• you plan to leave at the end of your visit
• you have enough money to support yourself without working
• you do not intend to study
• you do not intend to participate in any business transactions where you charge members of the public for your services or goods
• you can meet the cost of return

If you want to come to the UK to work there are many ways you can do this, depending on what you intend to do. For example, you can come to the UK for business, entertainment, ministry, or even volunteer work. Each category has different eligibility requirements. One program that is designed to allow business people or other highly skilled people to come to the UK to look for work is called the Highly Skilled Migrant Program (HSMP). Anyone outside the UK can apply for entry through the HSMP, and unlike work permits you do not need a job offer or detailed business plan to apply. Your application will be reviewed based on your skills, experience, age, and past earnings. There is also an English requirement involved that must be passed.  The HSMP can also help you on your way to obtaining permanent residency, if that is what you choose to do.

If you are coming to the UK to study, you will need to have been accepted into a course of study before you come. The course should be at one of the following:

• a publicly funded institution of higher education with records of enrollment and attendance readily available
• a private institution
• an independent fee paying school

In addition to that, you are not allowed to take employment in the UK, you must not engage in business, and you must not be under the age of 18.

If you want to come live in London, you may need to obtain a visa before you come here.  The purpose of your visit, where you are from, and where you are currently living are all factors affecting whether or not you will need to obtain a visa. However, if you have a husband, wife, partner, proposed partner, parent(s) or relative who is a permanent resident, you can become a resident. Also, if you want to apply for permission to stay in the UK permanently, you will need to show that you have enough knowledge of language and life here.

For more information concerning policies about coming to the UK, you may click here.

Economic Effects

There are positive qualitative and quantitative effects on the London labor force and economy. Qualitatively, there is an increase in diversity, flexibility and more international experience and quantitatively, there is an increase in the labor supply thus enabling more employment growth. When migrants arrive they find work in most types of jobs. There is a tendency for migrants from richer countries to work in the financial and business services. Other types of work are found in the hospitality industry. Those from less developed countries tend to start with lower status jobs even though they are more qualified for other types of work. Over time, this differentiation disappears. Both employment rates and earnings among new migrants tend to be lower than Londoners suggesting that their potential is not being fully used at present by London employers

Illegal Immigration

There are an estimated 500,000 illegal immigrants living in Britain by sneaking their way into the country, overstaying their visitor's visas, or they have made asylum applications that have not yet been heard. Many of them work illegally which results in loses of up to £1 billion in uncollected income tax. The Home Office (the UK government department dealing with law, public order, public safety, immigration, fire, passports, prisons and the police among others) deports an estimated 25,000 individuals per year and currently do not have the resources to remove more. Strangers into Citizens is a new campaign that will grant two year work permits to illegal migrants who have been in Britain for 4 years or more. After this time period and with references from employers they will be granted "leave to remain" making them a regular citizen. The campaign is supported by Catholic, Protestant and Muslim leaders, the Mayor of London and other politicians. Other countries like Spain and Germany have carried out a similar naturalization program and have seen a boost to their economies.  On the other hand, some people may see naturalization programs with a negative viewpoint.  This is because they encourage/promote illegal immigration due to the easiness in the process to become a Londoner.  For example, if someone enters the country illegally, and makes it for 4 years without being caught, they can become a citizen without having to go through the strict legal process.
 

Competition

As more migrants look for employment in London the job pool grows larger allowing employers to be selective. Employers can hire a highly-skilled migrant worker for a lower salary than a Londoner with the same abilities. Competition arises between Londoners and migrants as each one continues to compete for the same position. There is also competition within the migrant population as they all have come to London with similar purposes.

Migration directly effects housing prices, access to social housing and homelessness. Higher income employed migrants live in London for a shorter period and affect housing prices more than lower income employed migrants who enter private renting. In the private rented sector, rent has remained fairly stable as demand increases suggesting that the supply has become more elastic.

The majority of migrants use fewer public services than native Londoners therefore they are less costly to the public than normally believed. There are new costs the government has to address because of migrants. Issues such as the cost of housing, translation services, health provisions, school and social security benefits have increased with immigration. The central government can only estimate how many migrants arrive each year so there is never enough grant money to support the local government, the NHS and other services. There are free language schools teaching English around London but classes are limited and at maximum capacity. Individuals are being turned away because there simply is not enough room. The wealthier migrants have the option to enroll and pay for English classes at prestigious language schools allowing them to have an edge over other migrant workers. 

For more information on the impact of immigration on the London economy please refer to The London School of Economics and Political Science website at http://www.lse.ac.uk/