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Mark Franks Head of secretariat Migration Advisory Committee 6 th November 2008

Skill and occupation needs in the UK Skilled, Shortage, Sensible: the recommended shortage occupation lists. Mark Franks Head of secretariat Migration Advisory Committee 6 th November 2008. What Is The Migration Advisory Committee (MAC)?.

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Mark Franks Head of secretariat Migration Advisory Committee 6 th November 2008

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  1. Skill and occupation needs in the UKSkilled, Shortage, Sensible:the recommended shortage occupation lists Mark Franks Head of secretariat Migration Advisory Committee 6th November 2008

  2. What Is The Migration Advisory Committee (MAC)? An advisory non-departmental public body (NDPB) that will provide independent evidence-based advice to Government on occupations where shortages exist which can sensibly be filled by migration The advice will feed into the Points Based System Members: Chair (Professor David Metcalf CBE); four other leading economists; a rep from UK Commission for Employment and Skills; UK Border Agency Supported by a secretariat of approx 12

  3. MAC workplan/remit • Produce shortage occupation lists for skilled employment (Tier 2) • One list for Scotland • One list for United Kingdom • Published report on methods of investigation on February 29th • Report contained call for evidence • Published recommended shortage occupation lists on September 9th • Advice is published and independent, but ultimately Ministers decide

  4. The Points Based System

  5. Tier 2 of the Points Based System • Basics • sponsor • certificate of sponsorship (old WP) • job title skilled to NQF 3+ (i.e. NVQ 3+) • pay to be ‘reasonable’ – is no undercutting • prior entry clearance • Routes: need 70+ points i mandatory competence in English (level A1) 10pts maintenance requirement 10pts ii routes shortage occupation 50pts RLMT (30) + pay/qualifications (≥20) 50pts ICT (30) + pay/qualifications (≥20) 50pts

  6. Bottom-up evidence • call for evidence; • visits to every country and region of UK; • evidence from SSCs and Sector Advisory Panels; • Stakeholder Panel and Forum; • independent research into key sectors.

  7. Skilled • Context • workforce skills are key government priority Leitch Review (2006)  UK Commission for Employment and Skills • MAC task: which occupations/job titles are skilled? • Tier 2 of PBS requires job title to be NQF 3+ (i.e. NVQ 3+) • Indicators of skill • skill level defined in SOC hierarchy • formal qualifications • earnings • on-the-job training or experience • innate ability First 3 from top-down evidence, last 2 from bottom-up evidence • Result • 192 out of 353 occupations defined as skilled

  8. Shortage Twelve indicators (all by 4-digit SOC) i Employer based (3) • e.g. skill shortage vacancies / employment (%) ii Price-based indicators (3) • e.g. change in median hourly pay (%) iii Volume-based indicators (4) • e.g. change in hours worked for ft workers (%) iv Administrative data (2) • e.g. stock of vacancies / claimant count by sought occupation

  9. Sensible Consider with reference to Govt objectives (raise productivity; improve skills; controlled, fair migration that…contributes to economic growth; maximise employment opportunity for all etc) • Alternatives to employing immigrants • Skills acquisition • Productivity, innovation and international competitiveness • Wider economic and labour market effects

  10. Results Examples of occupations and job titles included i complete 4-digit skilled occupations • e.g. civil engineers (2121); ship and hovercraft officers (3513); quantity surveyors (2433) • pass 5/6 out of 12 shortage indicators • good bottom up evidence ii subset of 4-digit skilled occupation • e.g. maths and science teachers (2314) and specialist nurses (3211) • secondary teachers and nurses: pass low number of shortage indicators so no national shortage • but strong evidence for maths and science teachers and operating theatre nurses

  11. Results iii skilled segment of other 4-digit SOC occupations e.g. skilled chefs • chefs, cooks (5434) does not meet our definition of skill, but there is a skilled segment • good bottom up evidence e.g. pay, production technology, EU recruits • how to define ‘skilled’: 70th percentile of pay distribution

  12. What next? • Bulgarian and Romanian access to UK labour market? • Shortage list update: • healthcare occupations, inc midwives • moulders, core makers, die casters • photographers and audio-visual equipment operators • musicians • welding trades • dispensing opticians • hairdressing and beauty salon managers and proprietors • metal machining setters and setter-operators • computer engineers, installation and maintenance • steel erectors • mac@homeoffice.gsi.gov.uk • www.ukba.homeoffice.gov.uk/mac

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