Foreign workers and the UK labour market

When asked to describe the UK in one word, respondents both working in the UK and outside of the UK used the words diversity and opportunity to describe the nature of the country. This is reflected in the level of attractiveness of the UK to those based abroad, with the UK being the most attractive country to work (followed by the US and Australia). Given the right opportunity, 83% of skilled EU citizens and 94% of skilled non-EU nationals would move to the UK, given the right opportunity. For less skilled workers this dropped to 79% amongst EU nationals and 93% for non-EU nationals.

The appeal of the UK is also noted with those based in the UK highlighting that job opportunities (51%) were what initially attracted them to the country. This is followed by cultural diversity (34%) and the possibility of a good lifestyle (30%). Those based in the UK were then asked about their perceived strengths of the country, of which job opportunities remained at the top of the list, again followed by cultural diversity. However, 28% noted that one of the main strengths of the UK is that it is globally connected; something which didn't appear as an initially attractive feature. How this level of global connectedness will fare post-Brexit is yet to be seen.

Following the July 2016 EU referendum, there is a notable shift in attitude to the UK's perceived level of attractiveness. Of highly-skilled workers based in the UK, 65% of EU nationals and 49% of those not from the EU find the UK less attractive. However, this drops to 32% and 15%, respectively, for those based outside of the UK. For less skilled workers in the UK, 42% of those from the EU and 25% from beyond the EU found the UK less attractive, while this drops to 25% and 14%, respectively, for those outside of the UK. Understandably, the figure is higher amongst EU citizens who would have been able to freely move to and from the UK, and will likely be subject to more complex entry procedures once the Brexit process is completed. It is notable that those currently based abroad are less put off by Brexit, with non-EU nationals displaying the lowest change in attitude.

This view that the UK is less attractive following the referendum is further cemented by the number of foreign workers considering leaving the UK. While, on the less skilled end of the spectrum, 27% of EU nationals and the same percentage of non-EU nationals are considering leaving within the next five years, the number jumps significantly higher for highly skilled workers. Of these, 47% of EU nationals and 38% non-EU are considering leaving in the next five years. Though many may already have had plans to leave, the notable jump in figures for highly skilled workers can't be ignored. Given that 28% of UK jobs are high-skill and 28% of British nationals are filling these positions, it is up for debate whether the potentials gaps will be able to be filled by local talent.

Looking at the markets that would likely be most affected were a significant number of foreign workers choose to leave (or, in the case of EU citizens, perhaps be obliged to leave, depending on the outcome of negotiations), there are some that would be affected more than others. The area with the most foreign workers is categorised in the survey as human health and social work activities, with 400,000 (while UK nationals comprise 3,720,000 of the market). This is also the sector with the most non-EU nationals, though it constitutes only 5.1% of the labour market. The sector with the highest percentage of non-EU nationals is information and communication, where they form 7.3% (90,000) of the market. For EU nationals, its accommodation and food services, at 14% (230,000) of the labour market. As has been reported in the UK press, there are concerns about the NHS post-Brexit, where there are a number of foreign workers form part of the workforce.