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MigrationandRural

Economies:AssessingandaddressingrisksEconomicsofMigrationWorkingPaper6

byLauraChappell,MariaLatorre,JillRutterandJaideepShah

June2009

ippr2009

InstituteforPublicPolicyResearchChallengingideas Changingpolicy

WWW.IPPR.ORG

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Aboutippr...............................................................................................................................3

Abouttheauthors ..................................................................................................................3

Acknowledgements ................................................................................................................3

Listofabbreviationsandglossary ..........................................................................................4

Foreword.................................................................................................................................5

Executivesummary.................................................................................................................6

1.Introduction........................................................................................................................9

2.Patternsofmigrationtoruralareas .................................................................................12

3.Migrantsexperiencesoflifeandworkinruralareas.......................................................19

4.Migrantsimpactsonruraleconomies ............................................................................22

5.Futuretrendsandimplicationsforruraleconomies.........................................................37

6.Conclusionsandrecommendations..................................................................................45

References ............................................................................................................................59

Contents

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TheInstituteforPublicPolicyResearch(ippr)istheUKsleadingprogressivethinktank,producing

cutting-edgeresearchandinnovativepolicyideasforajust,democraticandsustainableworld.

Since1988,wehavebeenattheforefrontofprogressivedebateandpolicymakingintheUK.Throughourindependentresearchandanalysiswedefinenewagendasforchangeandprovidepractical

solutionstochallengesacrossthefullrangeofpublicpolicyissues.

WithofficesinbothLondonandNewcastle,weensureouroutlookisasbroad-basedaspossible,

whileourinternationalandmigrationteamsandclimatechangeprogrammeextendourpartnerships

andinfluencebeyondtheUK,givingusatrulyworld-classreputationforhighqualityresearch.

ippr,30-32SouthamptonStreet,LondonWC2E7RA.Tel:+44(0)2074706100E:info@ippr.org

www.ippr.org.RegisteredCharityNo.800065

ThispaperwasfirstpublishedinJune2009.ippr2009

Aboutippr

Acknowledgements

TheauthorsareverygratefulforthethoughtfulcommentsprovidedbyChrisKolekandAnitaGambie

fromtheCommissionforRuralCommunities.AtipprMichaelJohnsonprovidedimportantbackground

research,SarahMulleywasanexcellenteditorandprovidedimportantsteerstotheresearchand

GeorginaKyriacouperformedthefinaleditandproduction.Thepaperwouldalsonothavebeenpossiblewithoutthegenerosityofthepeoplewhogaveuptheirtimetobeinterviewedandtakepart

infocusgroups.Wethankthemverysincerely.Finally,wearegratefultotheEconomicsofMigration

projectssteeringcommitteewho,asever,providedimportantinsights.

Abouttheauthors

LauraChappellisaResearchFellowatippr.WhileatipprLaurahasauthoredandeditedanumber

ofpublicationsontheeconomicsofmigrationtotheUKandmigrationanddevelopment,bothfor

ipprandfororganisationssuchastheOECDandUNDP.PreviouslyLauraworkedasanODIfellowat

thePacificIslandsForumSecretariatinFijiandfortheLiberalDemocratPolicyandResearchUniton

Treasuryissues.LauraholdsanMScwithDistinctioninDevelopmentEconomicsfromtheSchoolof

OrientalandAfricanStudies,andaBAinPhilosophy,PoliticsandEconomicsfromtheUniversityof

Oxford.

MariaLatorreisaResearcheratippr.Shespecialisesinquantitativeanalysisofsocialpolicyandhas

contributedempiricalanalysistoseveralrecentipprprojects.BeforejoiningipprMariaworkedwiththe

Colombiangovernmentandresearchcentresfocusedontheeconomicdevelopmentofdeveloping

countries,particularlyinLatinAmerica.

JillRutter isaSeniorResearchFellowatipprandleadstheMigration,Equalities,andCitizenship

teamsresearchonmigrantintegrationintheUK.Shehaspublishedextensivelyonallaspectsof

migrationintheUKandabroadwithwellover70books,chapters,andpapersontheissue.Priorto

joiningippr,JilllecturedatLondonMetropolitanUniversityandwasapolicyadviserattheRefugee

Council.

JaideepShah wasaResearchAssistantatippr.JaideephasanundergraduatedegreefromtheLondonSchoolofEconomicsandapostgraduatedegreefromOxfordUniversity,andpreviously

workedasaresearchassistantattheCentreoftheStudyforAfricanEconomies,OxfordUniversity.

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ThisworkingpaperformspartofipprsEconomicsofMigrationproject.Theprojectaimsto

shapethinkingaroundhowweconceptualisetheeconomicimpactsofmigration,provide

newevidenceabouttheextentandnatureofthoseimpactsintheUK,andprovidenewinsightsastohowpolicymightbestaddressmigrationtomaximiseeconomicbenefit.We

hopethattheprojectwillcontributetoabetter-informedpublicdebateandamoreprepared

policycommunity,betterabletoevaluatemigrationseconomiccontributions,andmanage

themtothebenefitofall.

Thisworkingpaperexaminestheroleofmigrationinruraleconomies.Thissubjectis

importantfortwomainreasons.First,migrationisoftenthoughtofasanurban

phenomenonandindeed,formostoftheUnitedKingdomsrecenthistorymigrantshave

beenconcentratedinurbanareas.However,morerecentmigrantsfromCentralandEastern

Europehavemovedmuchmorewidelyacrossthecountryatrendillustratedbythefact

thattheEastofEngland(aregionwithasignificantruraleconomy)hasreceivedmoremigrantsfromnewEuropeanUnionmemberstatesthanLondonsinceMay2004.To

understandthesenewpatternsofmigrationweneednewanalysis.Wecannotsimplyassume

theeffectswillbethesameasthosearisingfromprevious,morepredominantlyurban,

migration.

Second,theUKsruraleconomiesareavitalpartofournationaleconomy.Indeed,

promotingruraleconomicsuccessandtacklingruraldisadvantagehasbeenmadea

governmentpriority,promotedbytheCommissionforRuralCommunities.However,whileit

isbecomingincreasinglyclearthatmigrationisaffectingruraleconomies,detailsoftheinter-

relationshiparemuchlessclear.

Anumberofquestionsarise.Whatrolesdomigrantsplayinruraleconomies?Whatcontributionsdotheymake?Whatproblemsmightariseasaresultofmigration?Andwhat

risksmighttherebeifmigrationpatternsweretochange?

Withmigrationtoruralareasincreasing,itisvitalthatthesequestionsareaddressedto

ensurerural,andthereforenational,economicsuccess.

Thispapercannotanddoesnotaimtoprovideafullpictureofallthewaysinwhich

migrationisaffectingtheUKsruraleconomies.However,webelieveitmakesanimportant

contributionbyreviewingandanalysingmigration-relatedriskstoruraleconomies,aswellas

policiesthatcouldminimisethoserisks.Assuch,itshouldoffernewinsightstohelp

understandandmanagemigrationtoruralareasinordertomaximisebenefitsforall.

WearegratefultothefundersoftheEconomicsofMigrationproject:BusinessforNew

Europe,theCommissionforRuralCommunities,theTradesUnionCongressandtheUK

BorderAgency(HomeOffice).

Theviewsexpressedherearethoseoftheauthorsanddonotnecessarilyrepresentthoseof

theprojectfunders.

SarahMulley TimFinch

ProjectCoordinator HeadofMigration,EqualitiesandCitizenshipTeam

Foreword:TheEconomicsofMigrationproject

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ippr|MigrationandRuralEconomies:Assessingandaddressingrisks5

A8 TheeightCentralandEasternEuropeancountriesthatjoinedtheEuropean

UnioninMay2004(Poland,CzechRepublic,Estonia,Hungary,Latvia,

Lithuania,SlovakiaandSlovenia)

A2 BulgariaandRomania,whichjoinedtheEuropeanUnioninJanuary2007

CRC CommissionforRuralCommunities

DCLG DepartmentforCommunitiesandLocalGovernment

DEFRA DepartmentforEnvironment,FoodandRuralAffairs

EEA EuropeanEconomicArea

GLA GangmastersLicencingAuthority

IDeA ImprovementandDevelopmentAgency

LFS LabourForceSurvey

NINO NationalInsuranceNumber

ONS OfficeforNationalStatistics

SAWS SeasonalAgriculturalWorkersScheme

SBS SectorBasedScheme

TUC TradesUnionCongress

WRS WorkerRegistrationScheme

Glossaryandlistofabbreviations

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MigrationtoandfromtheUKhaschangeddistinctivelyoverthelastdecade,withincreased

immigrationandemigration.Migratorymovementshavealsobecomemorediverse.Migrants

havebeencomingfrommoreplacesthaneverbefore,andarefoundacrossasimilarlydiversevarietyoflocationsandsectorswithintheUK.Importantly,thisincludesmore

migrationtoruralareas,particularlysincetheexpansionoftheEuropeanUnionin2004.

Theexpansionofmigrationtoruralareashashadarangeofimpactsonruraleconomies.

Migrantshavemadesignificanteconomiccontributions:fillingvacanciesandskillsgapsand

promotingjobcreationandproductivity.Migrantshavebeenparticularlyimportantin

supportingsomekeysectorsincludingagriculture,foodprocessingandhospitality.

Futuretrends

ThecurrentglobalrecessionappearstohavethepotentialtoradicallyreshapeboththeUKs

economicstructureandperformance,andpatternsofmigration.Althoughmostofthe

researchforthispaperwascarriedoutbeforetheimpactsofthecurrentrecessionhadbeen

widelyfelt,wehavebeenabletoconsiderthelikelyimpactsofrecessiononmigrationand

ruraleconomiesaspartofourfuturesanalysis,aswellasconsideringlonger-termtrendsand

risks.

Ourworksuggeststhatintheshortterm(thenextonetotwoyearsso,duringthecurrent

recession)suppliesofmigrantlabourtoruralareaslooklikelytofall.However,demandfor

thislabourisalsoexpectedtodropduringtherecessionsoanyshortagesarenotlikelytobe

chronic(thoughtherewillbesectoralandgeographicvariationswithinthispicture).Further,

becausemigrationrespondstoeconomicconditionsitcanhelpbusinessesexpandduring

periodsofgrowth,butitprovidesflexibilityduringadownturn.

Inthemediumterm(nexttwotofiveyears)astheUKandruraleconomiesrecover,demand

formigrantlabourisexpectedtoriseinruralareas,whileatthesamethereisariskthat

migrantlabouravailabilitywillfall.Thisdisjunctionseemslikelyfortworeasons.First,

migrationisnotonlydrivenbyeconomicfactors.Otherfactorsthatareimportantto

migrants,suchastheavailabilityofaffordablehousing,couldmakeruralareaslessattractive.

Second,immigrationpoliciesthatarenotflexibleenoughtorespondtotheneedsofthe

economy,includingruralareas,maypreventmigrantlaboursupplyfrommeetingdemand.If

migrantsaretocontinuetomaketheimportantcontributiontoruraleconomiesthatwe

haveidentified,policiesmustbepursuedtoreducethelikelihoodofthiskindofmismatch.

RecommendationsOurkeyrecommendationsforpolicymeasuresthatcouldhelpruraleconomiesmaximisethe

benefitsofmigrationareasfollows:

Continuetofacilitatethemovementofagriculturalworkers

Migrantworkersarecrucialtosomepartsoftheagriculturalsector.TheUKsnewmanaged

migrationsystemmustincorporatearouteforthosemigrantstocontinuetocometoworkin

theUK.WerecommendthistaketheformofanewversionoftheSeasonalAgricultural

WorkersScheme(SAWS),whichshouldbeincorporatedunderTier3ofthepoints-based

system,andopenedtonon-EUmigrants.

Theagriculturalsectorhassufferedfromlabourshortages,particularlyforseasonalwork,forsomeyears.ThereappearstoberelativelylittlescopeforincreasingthenumbersofUK-(and

evenEU-)bornworkerscomingintothesector.Thepotentialforraisingpayandimproving

conditionstomaketheworkmoreattractiveisalsolimited.Bringinginmigrantworkersfrom

Executivesummary

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outsidetheEUonatemporarybasistoundertakethesetaskshasworkedwellinthepast

andweseenojustificationforabolishingtheschemewithoutreplacingitwithanalternative

entryrouteforlow-skilledlabourforthesector.Itislikelythatcertainpartsofthe

agriculturalsector(inparticularintensivehorticulture)wouldbeveryhardhitwerethis

labournotavailableinthefuture,anduncertaintyaboutthisislimitingthesuccessofthesectorevennow.

Makeamoreconcertedefforttodevelopaffordableandhighqualityhousinginruralareas

Theavailabilityofaffordableruralhousing,bothforlocalpeopleandformigrantworkers,is

criticaltoensuringasustainablesupplyofworkersforruraleconomies.Therelativelyhigh

costofaccommodationwashighlightedasakeyfactorthatmightdrivemigrantworkersout

ofruralareas.Thisisaparticularissueforseasonal,temporaryandlow-paidmigrants.

Government,housingassociations,employersandtheNationalHousingFederationshould

worktogethertodevelopmoreaffordableandbetterqualityhousing(andinparticular

rentedhousing)forpeople,includingmigrantworkers,inruralareas,andimproveprovision

fortransientmigrantworkers.

Reviewtheroleofrecruitmentagencies

Whilemigrantworkersaregenerallyhappytoworkthroughanagencyinordertoenterthe

labourmarket,inthelongertermtheywantdirectemployment,andtheyhighlightthisasa

keypriorityintheirdecisionsaroundwheretoliveandwork.

WerecommendthattheGovernmenttakeacloselookattherolethatrecruitmentagencies

playthroughahigh-level,comprehensivereviewthatexaminesboththecostsandbenefitsthatareassociatedwiththisapproach.Theeffectsonmigrantworkeravailabilityinrural

areas(andassociatedrisks)shouldbeanimportantpartoftheremitofthisreview.

ExtendtheremitoftheGangmastersLicensingAuthority(GLA)tocoverallsectorscharacterisedbyvulnerableemployment

Adifferentsetofrisksariseinrelationtothesmallgroupofagenciesthatareoperating

outsidethelaw.PartlyinresponsetothetragedyoftheChinesecockle-pickersin

MorecambeBay,theGovernmentsetuptheGangmastersLicensingAuthority(GLA)butat

presenttheGLAonlyregulateslabourprovidersinagriculture,forestry,horticulture,shellfishgatheringandfoodprocessingandpackaging.Werecommendthatitsremitbeextendedto

coverallsectorscharacterisedbyvulnerableemploymentasinvestigatedandsetoutby

theTradesUnionCongressCommissiononVulnerableEmployment.

Aswellassafeguardingtherightsofmigrantworkers,andprotectinglegitimateagencies

fromunfaircompetitionbasedonexploitation,thiswouldalsoreducetherisksfacingrural

economiesbyimprovingthesupplyandlong-termsustainabilityofmigrantlabour.Bringing

moresectorsundertheremitoftheGLAalsoreducestheriskthatruraleconomieswillcome

todependonlabourprovidedbyagenciesorgangmasterswhobreakthelaw.

Ensuremigrationissuesareontheagendaathigh-profileruralevents

Thereismuchtobegainedfromfurtherthoughtandexaminationoftheseissues.The

impactsofmigrationonruraleconomiesandtherisksassociatedwithchangingmigrant

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workeravailabilityshouldbeontheagendaathigh-profileeventssuchastheongoingrural

summitsonunlockingthepotentialofruraleconomies.

EmbedmigrationconsiderationsinongoingplanningandpolicymakingprocessesWerecommendthatlocalandregionalgovernmentsensurethatissuesaroundmigration,risk

andruraleconomicperformanceareincorporatedintoLocalAuthorityEconomicAssessments

andIntegratedRegionalStrategies.Inmanycasesthiswillneedtobeprecededbyan

assessmentoftheextenttowhichrisksassociatedwithmigrantworkeravailabilityarean

issuefortheperformanceofparticularrural(andindeedurban)economiesandsectors.

Doingsowouldhelptodevelopthethinkingpresentedhere,generatemorenuanced

analysesatlocalandsectorallevels,andensurethatspecificandappropriateregionaland

localstrategiesandresponsescanbedeveloped.

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MigrationischangingthefaceoftheUK.WhilehistoricallytheUKhasoftenbeenacountry

ofnetemigration,inrecentyearsastrongeconomyandtheexpansionoftheEuropean

Unionhasledtoasubstantialriseinthenumbersofmigrantscomingheretolive,whetherpermanentlyortemporarily(Chappelletal2008).

Anincreaseinthenumbersofmigrantsarrivingisnottheonlychangethatistakingplace,

however.Migrantsarearrivingfromawiderrangeofcountries,andsettlinginagreater

diversityofplacesacrosstheUKthantheywerebefore(Kyambi2005)inparticular,the

numberssettlingandworkinginruralareashaveincreasedsubstantiallyinrecentyears.

Ruraleconomiesareanimportantpartofthenationaleconomyalready,andunlockingtheir

potentialfurtherbyensuringthattheycanmaximisethebenefitsofmigrationwouldbe

positiveforpeopleinbothurbanandruralcommunities.

ResearchaimsThispaperexaminestheimplicationsofincreasingmigrationtoruralareas,lookingin

particularattheeconomicsofthisphenomenon.Weexploretherolesmigrantsareplaying,

theeconomicimpactsofmigrationonexistingpopulationsandbusinesses,andwhatfuture

migratorytrendsmightbe.Inparticular,weconsiderwhetherrecentmigrationtoruralBritain

hasledtoanyrisksforruraleconomies;andifso,howtheseriskscanbemanaged.

Thepaperaddressesthefollowingfourresearchquestions:

WhatisthescaleandnatureofmigrationtoruralareasoftheUK?

Whateconomicimpactsismigrationcurrentlyhavingonruraleconomies?

Howismigrationtoruralareaslikelytochangeinthefutureandwhatbenefitsandrisksmightthisbring?

Whatmeasuresareneededtorespondtolikelyfuturetrends,toensurethebestpossibleoutcomes?

Whatdefinesruraleconomies,andwhydotheymeritspecificanalysis?

Since2004,ruralareasinEnglandandWaleshavebeenofficiallydefinedaccordingtoa

classificationbasedonpopulationdensity(CommissionforRuralCommunities2007b).

Sparsepopulationisadefiningfeatureofruralareas,andalsohassignificantimplicationsfor

ruraleconomies.Itisalsoimportanttonotethatruraleconomiesarehighlyvariedwe

shouldthinkofruraleconomiesnottheruraleconomy.

Ruraleconomiesareoftenbasedondifferentsectorsandindustriesthanurbaneconomies.

Butalthoughruraleconomieshavesomeparticularfeatures,manyofthechallengesthey

facearesharedwithBritainsurbaneconomies.

Ruraleconomiesalsofaceparticularchallengesthatspringdirectlyfromtheirrural

characteristics,andtheyhavespecificneedsthatrequireconsiderationbypolicymakers.

Sparsepopulationcanmeanthatemployersfacealessflexiblelabourforce,particularlyif

travelcostsarehighthiscanmeanthatvacanciesarehardtofill,andmayinhibit

enterpriseandinnovation.Problemswithaccesstopublicservicesincludingeducationand

traininghaveimplicationsfortheskillsandqualificationsoftheruralworkforce,andcanlead

toskillsgaps.Andfirmsmaysufferdirectlyfromlimitedaccesstoinfrastructure,whichmay

influencetheirchoiceofproductionmodels.

Itisimportanttoconsiderruraleconomiesaspartofanystudyoftheeconomicsof

migrationintheUK.Inrecentyearsmigrationhasincreasedmorerapidlyinruralareasthan

1.Introduction

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inurbanareasthischangeisworthyofstudy,andhasbroughtwithitparticularbenefits

andchallengesinruralareas.Also,theparticularcharacteristicsandchallengesofrural

economiesmeanthattheimpactsofmigrationaredifferentfromurbanareas.

Methodology

Thispaperusesamixedmethodologyofquantitativeandqualitativetools,including:

Literaturereview

Analysisofnationalpopulationandeconomicdatasets

SurveyofPolishmigrantslivinginruralareas

Twofocusgroupinterviewswithruralmigrants

Keyinformantinterviewswithemployers,industryspokespersonsandpolicymakers.

Datasets

TomapthescaleandnatureofruralmigrationweuseddatafromtheCensus,theLabour

ForceSurvey(LFS),theWorkersRegistrationScheme(WRS)datasetandtheNational

InsuranceNumber(NINO)dataset.Theserepresentthebestquantitativedatacurrently

availableonruralmigrants,butthereareanumberofinherentproblemswiththisdata,an

issueweexaminelaterinthisreport.Importantly,theLFSdoesnotincludesomegroupsof

people,includingthoselivinginbusinessaddressessuchasfarmsandhotelsandnon-private

communalaccommodation.

Survey

WecommissionedtheCentreforResearchonNationalism,EthnicityandMulticulturalism,

basedattheUniversityofSurreyandRoehamptonUniversity,toundertakeasurveyof500

Polishmigrants,ofwhom300werelivinginruralareas.Thesurveycollecteddataabout:

Householdcompositionandotherdemographicdata

Educationalandemploymentprofiles

ReasonsformigrationtotheUKandintentionsforreturnandremigration

ContactwithpublicservicesintheUK.

ThesurveywasconductedinPolish.Afteraninitialpilot,300face-to-faceinterviewswere

conductedatfivedifferentrurallocationsinEngland(anadditional200interviewswere

conductedinurbanlocationstoactasacomparison),startinginMay2008.Interviewees

wererecruitedinlocationsfrequentedbyPolishmigrantworkers:workplaces,Polish

groceries,barsandRomanCatholicchurches.Theselectionofintervieweeswaspurposiveanddesignedtoreflectthe60:40maletofemalegenderbalanceofPolishmigrantintheUK

thatisindicatedinWRSdata(Pollardetal2008).

Focusgroupsandkeyinformants

TwofocusgroupinterviewswerecarriedoutinOctobertoNovember2008withmigrants

workingintheagricultureandfoodprocessingsectorandthehospitalitysector(bothof

whichareimportanttoruraleconomies).Theintervieweescomprisedabalanceofmenand

womenanddifferentcountriesoforigin,includingPortugal,Poland,Latvia,Lithuania,Brazil

andIraq.TheagriculturefocusgroupwasconductedinEnglish,andtwointerpreters(Polish

andPortuguesespeaking)wereusedforthehospitalitysectorfocusgroup.

Althoughmostoftheresearchforthispaperwascarriedoutbeforetheimpactsofthe

currentrecessionhadbeenwidelyfelt,wehavebeenabletoconsiderthelikelyimpactsof

recessiononmigrationandruraleconomiesaspartofourfuturesanalysis(seeSection5).

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ThefocusoftheresearchisontheUKasawhole,asmostofthedataisavailableataUK-

widelevel.However,someofthepolicyrecommendationsarespecifictoEngland,asa

numberofkeyactorsinthisarea(suchastheCommissionforRuralCommunities[CRC])

havemandatesthatcoverEnglandonly.Wedidnotcomeacrossanysignificantreasonsfor

thinkingtrendsinScotland,WalesandNorthernIrelandweresubstantiallydifferenttothoseaffectingEngland.However,thereareobviouslygeographicaldifferencesbetweendifferent

areas,whichwetrytoaddressbyprovidingsectorallyandgeographicallyspecificanalysis

whererelevant.

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ChangingmigrationtoandfromtheUK

MigrationintheUKishighlycomplex,withalongandvariedhistory.WhiletheUKhas

recentlyexperiencedhighlevelsofnetimmigration,untilthe1980stheUKwasoftenacountryofnetemigration,andinbothperiodssubstantialnumbersofpeoplehavemovedin

bothdirectionsacrossourborders.TheseoverallmigrationtrendsareshowninFigure1.

Inthelastdecadeorso,migrationhasincreasedinscalesignificantlyrightacrosstheworld

(InternationalOrganisationforMigration2008).Thishasresultedinanincreaseinboth

immigrationtoandemigrationfromBritain,withtherecentriseinimmigrationtakingplace

againstthebackdropof(untilrecently)astrongUKeconomy.TheexpansionoftheEU,with

12newmemberstatessince2004,hasalsoplayedapart.Withsomerestrictions,theUK

openeditsbordersandlabourmarketstocitizensofthesecountries.

Aswellasincreasingthenumbersofmigrants,thisglobalmarketforlabour,andtheUKs

placeattheheartofit,hasledtoanincreasingdiversityofmigrantsbothintermsofthe

countriestheycomefromandthelocationstheymoveto(Kyambi2005).Migrationnow

affectsthewholeoftheUKinawaythatithasnotbefore.

Changingmigrationpatternsinruralareas

ThesechangingtrendsinUK-widemigrationhavehadimportantimplicationsforruralareas.

Inparticular,thenumbersofmigrantslivingandworkinginruralareashavebeenrising,in

somecasesquitedramatically.ThisisnottosaythatruralBritainhadnotexperienced

migrationbeforethelastdecadeinternationalmigrantshavealwayshadapresenceinthe

Britishcountryside,withsomelongsettledforeign-borncommunitiesinruralareasbutin

manycasestheyhavenotbeenveryvisible.Duringthelast10years,however,theUKhas

seensubstantiallyincreasedinternationalmigrationtoruralareas.

Table1showstheforeign-bornpopulationsofruralandurbanlocalauthorities.Whileruralareasstillhavealowerforeign-bornpopulationsharethanotherpartsoftheUK,itisnot

muchlower.WhilethemosturbanisedareasoftheUK(majorurban)havesignificantly

2.Patternsofmigrationtoruralareas

-500

-400

-300

-200

-100

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600

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

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1987

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1989

1990

1991

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1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Inflow Outflow Balance

Thousa

nds

Figure1.Total

migrationtoand

fromtheUK,

19752007

Source:International

PassengerSurvey,

OfficeforNational

StatisticsThous

ands

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highernumbersofforeign-bornresidents,thedifferencebetweentheothertwourban

categoriesandtheruralcategoriesisnotsubstantial.

Table1alsoshowstheproportionsofmigrantsfromnewEUmemberstatesineachtypeofarea,providingsomeideaofhowthetrendhasbeenchangingsince2004,whenthecitizens

ofthesecountriesgainedfreeaccesstoUKlabourmarkets.Whatisstrikingishowsimilar

theproportionsofnewEUmigrantsareacrosseachtypeofarea.Largeurbanareasactually

havethelowestproportionsofnewEUmigrants,withgreaterproportionsineachkindof

ruralarea.Table1demonstratesthatnewEUmigrantsarejustasmuchafeatureofrurallife

andruraleconomiesastheyareofurbanones.

Figure2showsgraphicallythat,althoughmanymigrantsareconcentratedinurbanareas,

manyrurallocalauthoritiesalsohaveasignificantpercentageofforeign-bornresidents.

Table1.Foreign-bornpopulationsbyrural/urbanlocalauthorityclassification

DEFRARural/urbanlocal Foreign-bornpopulationas%of NewEUmemberstatemigrantsas%

authorityclassification totalpopulation,2006 oftotalpopulation,2007

Majorurban 18.2 1.1

Largeurban 6.9 0.6

Otherurban 8.1 1.0

Significantrural 5.9 0.8

Rural50 4.3 0.7

Rural80 4.2 0.9

Thecategoriesarelistedinorder,fromthemostdenselypopulated(majorurban)totheleast(rural80)

Sources:ipprcalculations,ONSmid-yearpopulationestimatesbylocalauthority2006andPollardetal (2008)

Percentageof

foreign-bornby

localauthority,2006

Figure2:Place

ofresidenceof

Englands

foreign-born

population,by

localauthority

Source:ONSmid-

yearpopulation

estimatesandippr

calculations

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Figure3showsthesettlementpatternsofmigrantsfromtheEUsnewmemberstatesby

localauthoritydistrict.ThisshowstheconcentrationsofnewEUmigrantsacrosstheUK,

notablyinsomeruralareas,andhighlightsthedifferentgeographicalspreadofthisgroupof

(mostlyrecent)migrants.Areaswhereintensivehorticultureandfoodprocessingarelocated

theEastofScotland,HerefordshireandtheFenshavehighpopulationsofmigrantsfrom

theEUsnewmemberstates.Thisgivesasenseoftheimpactsthatthesemigrantsmaybe

havingonparticularsectorsatopicwereturntoinSection4.

Countriesoforigin

AswellasbeingincreasinglyspreadacrosstheUK,theUKsforeign-bornpopulationisalso

increasinglydiverseintermsoftheirnationalorigin(Sriskandarajahetal2007).Table2

presentsdataonthesizeandgrowthofthe10largestforeign-borngroupsresidentinthe

UKin2007.

Table3showsthesameinformationforthe10largestmigrantgroupsintheUKsruralareas.

Figure3.

Population

estimatesof

migrantsfrom

theEUsnewmembersstates,

bylocal

authority

district,2007

Source:Pollardetal

2008

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Wecanseefromthesetablesthatverysimilarcountriesarerepresentedamongmigrantsin

theUKasawholeandthoselivinginruralareas.TheincreaseinPolishmigrantslivingin

ruralareas,however,hasbeenmuchmoresubstantialthaninurbanareas,andasaresultPolesnowconstitutealargerproportionofmigrantsinruralareasthanacrosstheUKasa

whole.

Inordertogiveafullersenseofruralmigrantsregionsoforiginbeyondthetop10

countries,whichrepresentonlyabouthalfofallmigrantsresidinginruralBritain,Table4

showstheregionsoforiginofallmigrantsinruralareas.Thisshowsthatbysomesubstantial

marginthelargestgroupofmigrantsinruralareascomesfromthethe15countriesthat

weremembersoftheEUbeforethe2004expansion(theEU15),butthefastestgrowing

groupismigrantsfromthenewEUmemberstates.

Routesofentryofruralmigrants

Table2.The10largestgroupsofforeign-bornresidentsintheUK,bycountryofbirth,2007

Rank* Country %oftheUKstotal %growthincountry-of-birth

foreign-bornpopulation groupin10years**

1 India 9.8% 46%

2 Ireland 6.8% -23%

3 Poland 6.3% 575%

4 Pakistan 6.1% 77%

5 Germany 4.2% 7%

6 SouthAfrica 3.1% 119%

7 Bangladesh 3.1% 26%

8 UnitedStates 3.0% 39%

9 ChinaandHongKong 2.7% 123%

10 Jamaica 2.7% 25%

Source:LabourForceSurveyandipprcalculations

*Usingdatafromallquarters,2007.**BetweenQ41997andQ42007

Table3.The10largestgroupsofforeign-bornresidentsinUKruralareas,bycountryofbirth,2007

Rank* Country %ofruralareastotal %growthincountry-of-birth

foreign-bornpopulation groupin10years**

1 Ireland 8.5% -14.8%

2 India 8.3% 48.5%

3 Poland 8.1% 983.1%

4 Pakistan 5.4% 39.6%

5 SouthAfrica 4.9% 48.1%

6 Germany 3.8% 16.3%

7 UnitedStates 3.5% 83.0%

8 Australia 3.0% 24.1%

9 Zimbabwe 2.8% 278.1%

10 Philippines 2.8% 508.1%

Source:LabourForceSurveyandipprcalculations

*Usingdatafromallquarters,2007;**BetweenQ41997andQ42007

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Itisimportanttoalsoanalysethetermsofentryofmigrantsthegroundsunderwhichthey

arepermittedtoentertheUKandthereforetheroutetheytake.Residencystatuscanaffect

apersonsaspirationsandentitlements(forexample,asylumseekersarenotentitledto

work),andthereforetheirimpactsonthelocaleconomy.Migrantsresidencystatusalso

affectstheirabilitytoaccessbenefits,housingandotherpublicservices.

TherearesevenmainroutesofentryintotheUK,whichareoutlinedbelowwithestimatesof

theextenttowhichmigrantsinruralareasfallundereachgroup.Notethatwecannottell

definitivelyhowmanyofeachtypeliveinruralareasbecausethemaindatasourcesthat

collectdataontermsofentrydonotcollectplaceofresidence,andviceversaforthosethat

collectdataonplaceofresidence.

1.AsEUandEEAmigrants

CitizensofthemajorityofcountriesintheEuropeanEconomicArea(EEA)1 andSwitzerland

arepermittedtoliveandworkintheUKfreely.TheexceptionarethosefromtheEUsnew

memberstates,mostofwhomfacesomerestriction:nationalsfrommostofthecountries

thatjoinedtheEUinMay20042 havetoenrolontheWorkersRegistrationScheme(WRS),

unlesstheyareregisteredasself-employed.NationalsofRomaniaandBulgaria,bothof

whichjoinedtheEUinJanuary2007,havemorerestrictedrights3.Migrantswhoentervia

theirstatusasbeingfromtheEEAorSwitzerlandarethelargestmigrantgroupintheUK,

andarealsothelargestmigrantgroupinruralareas.

2.Viathepoints-basedsystem

Table4:TheUKsruralmigrantsbyregionofbirth,2007

Rank* Worldregion %ofruralareastotal %growthinregionofbirthgroup

foreign-bornpopulation in10years**

1 EU15 27% -3%

2 Indiansub-continent 16% 57%

3 Sub-SaharanAfrica 15% 66%

4 OtherAsia 12% 109%

5 NewEUmemberstates 10% 370%

6 America 8% 20%

7 OtherEurope 5% 129%

=8 AustraliaandthePacific 4% 23%

=8 MiddleEast 4% 130%

Source:LabourForceSurveyandipprcalculations

*Usingdatafromallquarters,2007;**betweenQ41997andQ42007

1.TheEEAconsistsoftheEUstates,Iceland,LiechtensteinandNorway

2.TheCzechRepublic,Estonia,Hungary,Latvia,Lithuania,Poland,SlovakiaandSlovenia

3.RomaniansandBulgarianscanworklegallyintheUKiftheyareself-employedorareontheSeasonal

AgriculturalWorkersSchemeortheSector-BasedScheme,whichhavebeenexclusivelyreservedfor

RomanianandBulgariannationalssinceJanuary2008.TheycanalsoworkintheUKiftheyhaveawork

permitorareastudent(theselattertworoutesareopentonationalsofothercountriesoutsidetheEUaswellandarediscussedingreaterdetaillaterinthissection).AllBulgarianandRomaniannationalswho

haveworkedlegallyintheUKfor12months,however,gainEuropeanEconomicArea(EEA)Worker

StatusandhavefullaccesstotheUKlabourmarket.

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EntrytotheUKviathepoints-basedsystemisforlabour-relatedmigrationfromoutsidethe

EU.Thissystemisbasedaroundfivetiers:

TierOneforhighly-skilledmigrants.Thisgroupcancomeastheywish,withoutrequiringapriorjoboffer.Theyareseenashavingimportantskills(andsometimes

financialresources)thatwillboostproductivityandtheUKeconomy.

TierTwoforskilledworkerswithajoboffer.ThisgroupareexpectedtofillgapsintheUKlabourmarket.

TierThreelow-skilledtemporaryworkers.TheGovernmenthasannouncedthatitdoesnotintendtoopenupthistierinthenearfuture,onthegroundsthatthereare

nounskilledgapsthatcannotbefilledwithUKandEEAnationals.

TierFourstudents.

TierFiveyouthmobilityandotherschemeswheretheaimofworkingintheUKisnotprimarilyeconomic(forexample,workingholiday-makers).

Thenumberofentrantsviathepoints-basedsystemissubstantial.In2007,some82,300peoplewithworkpermitsandotherworkvisaholders(theprecursorstothepoints-based

system)cametotheUKfromoutsidetheEU,withmajorcountriesoforiginincludingthe

US,Canada,SouthAfrica,IndiaandPakistan(HomeOffice2008c).Mostwererelatively

highlyskilled,giventhattheGovernmenthaskeptTier3(whichmanagestemporary

migrationintolowerskilledjobs)closed.

Skilledmigrantswhohavecometoruralareasviathepoints-basedsystemhavejobsina

widevarietyofareasincludingtheNHS,thesocialcaresectorandspecialistsectorssuchas

engineeringinCumbria(Rutterforthcoming).Newmigrantsareparticularlybeingsoughtin

anumberofrolesimportanttoruraleconomies,includingveterinaries,engineers,chefsand

sheepshearers(HomeOffice2008d).

3.Asylumseekersandrefugees

ThisgroupincludesthosemovingtotheUKinsearchofrefugefrompersecution.23,430

asylumapplicationswerelodgedintheUKin2007.Ofthoseasylumseekerswhoreceived

aninitialdecisionontheirasylumapplicationsin2007,16percentweregrantedrefugee

status,withanother11percentgrantedhumanitarianprotectionordiscretionaryleaveto

remainintheUK,meaningthatsome73percentwererefused(HomeOffice2008b).While

someofthoserefusedasylumleavetheUKorareremoved,manyremainandmakeupa

significantcomponentoftheUKsirregularmigrantpopulation.Since2002,themain

countriesoforiginofasylum-seekershaveincludedtheDemocraticRepublicofCongo,

Eritrea,Somalia,Zimbabwe,TurkeyandAfghanistan.

Priorto1997mostasylumseekerswerehousedinLondon.Sincethen,however,increasing

proportionshavebeendispersedtoaccommodationelsewhereintheUK.Onthewholethis

hasnotbeenmovementtoruralareas,asthefocushasbeenonclusterareas,wherebynew

arrivalsaresenttoplacesthatalreadyhaveasignificantpopulationofasylum-seekers.

However,ipprhasencounteredrefugeeswhohadsuccessfullysettledinruralareas,for

example,KosovarsinruralCumbria(RutterandLatorreforthcoming).

4.Familyreunion

Some42,200spouses,fianc(e)sandcivilpartnerswereadmittedtotheUKin2007(HomeOffice2008c),tolivewithfamilymembers.ThetopcountriesoforiginincludePakistan,

India,Bangladesh,USandThailand.Thesemigrantssettlewiththeirfamiliesindifferent

partsoftheUK.However,thereislikelytobeatendencytowardsurbansettlement,given

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thatmanymarriagesaretomembersoftheUKsexistingethnicminoritygroups,whohave

tendedtosettlepredominantlyinurbanareas.

5.Overseasstudents

HomeOfficestatisticssuggestthatin2007some358,000overseasstudentsenteredtheUK

fromoutsidetheEU(HomeOffice2008c)tostudyinuniversities,privateEnglishlanguage

collegesandfurthereducationcolleges.Theyarepotentiallyimportanttoruraleconomies

becauseoverseasstudentsadmittedforcoursesthatlastmorethansixmonthsgenerally

havetherighttoworkforupto20hoursperweekduringtermtime,andfulltimeduring

vacations;theirdependentsmayalsowork.In2007themaincountriesoforiginofoverseas

studentswereChina,Russia,JapanandtheUnitedStates.

Overseasstudentnumbershaveincreasedslowlyoverthelast10years,ashavethenumbers

ofoverseasstudentswhohavesettledintheenvironsofruraluniversitycampuses.Although

theproportionofoverseasstudentsvariesfromuniversitytouniversity,thereappeartobe

sufficientnumbersofforeignstudentsinruralareastobeaffectingthecompositionofthose

areas.Forexample,theoverseas-bornpopulationoflocalauthoritieswithuniversity

campusesandclassifiedassignificantruralbyDEFRAwas7.3percentin2006,andfor

thosewithoutcampusesitwas5percent.

6.Irregularmigrants

Relativelylittleisknownaboutirregularmigrants,butwedoknowthatthisgroupcomprises

mostlyvisaandasylumover-stayers,aswellassmallernumbersofclandestineentrants

peoplewhocrosstheUKborderillegally(InstituteforPublicPolicyResearch2006).

ResearchcommissionedbytheHomeOfficeestimatedtheirregularmigrantpopulationas

being310,000530,000personsin2001(Pinkertonetal2004),andrecentworkfromtheLondonSchoolofEconomicssuggeststhattheremightnowbearound725,000(Gordonet

al2009).Inotherresearchipprencounteredanumberofirregularmigrantswhowere

workinginruralareas,mostlyasagriculturalworkersbutsometimesinfoodprocessingor

othermanufacturingindustries(RutterandLatorreforthcoming).However,theirregular

migrantswemetwerenotlivinginruralareas.Theybasedthemselvesinatownorcity,but

weretransportedtoruralareasforwork,oftenbylabourproviders4.

7.ReturningBritishnationals

ThelastgroupofmigrantscomingtotheUKisreturningBritishnationals(Sriskandarajah

andDrew2006),someofwhommovetoruralareas.Forexample,asubstantialproportionofGerman-bornpeopleinbothruralandurbanareasarelikelytobechildrenofBritish

militarypersonnel,whothoughborninGermanyhavebeenBritishcitizensfrombirth.

4.Thisisnottosaythattherearenotirregularmigrantslivinginruralareas,simplythatwedidnot

comeacrosstheminthecourseofourqualitativeresearch.Itmaybethatthiswassimplychance,orthat

theseworkersareparticularlymarginalisedandunlikelytobepickedupinresearch.

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Reasonsformigrationtoruralareas

Employmentopportunitiesandgreaterearningspotentialwerethekeypullfactorsthathad

broughtalmostallofthoseweinterviewedtotheUK.

Icametogetabetterlifeandworkconditions.InPortugalweworkveryhard

butdontearnthesamemoney.(Hospitalitysectorworker)

Migrationhasoftenbeenseenasanurbanissue,butsomemigrantsweinterviewedhad

moveddirectlytoruralareasonarrivalintheUKorafterafewdays.Lessoften,ruralareas

wereplacesofonwardmigrationafteraperiodofresidenceelsewhereintheUK.Some

migrantsfromPolandforexampleweremakingspecificdecisionstoliveinthecountryside.

Figure4showsthatsome19percentmovedtothecountrysidetobenearfriendsand

familyand6percentbecausetheyspecificallywantedtoliveinaruralarea.

Therewerealsopullfactorsthatwerespecifictoparticularplaces.Akeensailorfrom

PortugalmadethedecisiontomovetotheIsleofWighttocontinuehishobby.Formigrants

livingintheEastofEngland,theproximityofStanstedandLutonwasamajorattractionas

cheapflightsfromtheseairportsenabledthemtomakefrequentvisitshome.

Lifeinruralareas

Almostallmigrantsweinterviewedweregenerallyhappywithwheretheywereliving,with

thoseinruralareashighlightinganumberofaspectsofrurallifeasbeingattractive,suchas

thenaturalbeauty,andpeaceandquiet.Moregenerally,ourinterviewswithPoleswholived

acrosstheUKandwhohadnowreturnedtoPolandrevealedthattheysawtheirexperiences

intheUKasbeingbetteroratleastasgoodastheyexpected.Just18percentsaidthey

felttheirexperiencesintheUKhadbeenworsethanexpected,with70percentof

respondentssayingthattheirexperienceshadbeenbetterorasgoodasexpected.

Ourintervieweeshadverydiverseexperiencesoftheirinitialhousing.ThosewhohadfamilyorfriendsintheUKtendedtostaywiththem,untiltheycouldsecuremorepermanent

accommodation,eitherthroughemploymentorviawordofmouth.Veryfewmigrants

3.Migrantsexperiencesoflifeandworkinruralareas

0%

5%

10%

15%

20%

25%

Recruited by employment agency

to work in rural area

Wanted to join friends and family Found work in rural area Wanted to l ive in country side

Figure4:Reasonsgivenby300

Polishmigrants

formigrationtoa

ruralarea,2008

Source:ipprpolling

data

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receivedanyadviceabouttheirhousingentitlementsorabouthowtosearchfor

accommodation.Thereisaraftofhousinglegislationdesignedtoprotecttenantsbut

reducedstaffinglevels,budgetcutsandskillsshortagesamongenvironmentalhealthofficers

andstaffresponsibleforregulationoftheprivaterentalsectorimpactontheabilityto

enforceminimumstandardsinrelationtorentalaccommodation(CookandRoney2008).

Ourresearchhighlightedmanyinstancesofpoorhousingconditions.Someofthe

accommodationmigrantsliveinisnotproperlycoveredbyhousinglegislationandmigrants

arenotalwaysawareoftheirrightsinthisarea.Transientworkers(thosewhoremaininthe

UKforlessthanayear)andmigrantsworkinginseasonaljobsareparticularlyvulnerable

groups.Short-termhousingprovisionisoftenlimited,orofpoorquality.Transientmigrants

oftenalsoknowlittleabouttheirrights,andmayhavepoorEnglish,leavingthemexposed

toagreaterchanceofpoortreatment,includinginrelationtohousing.

Housingconditionsarepoorparticularlyamongmigrantslivinginaccommodationtiedto

employmentmanytransientorseasonalworkersliveinsuchaccommodation.The

legislativeprotectionoftenantswholiveinformsofaccommodationotherthanahouseiscomplex.Thereissomelegislationtoprotecttenantsinmobilehomeparksbutmanytenants

havelittleprotectionfromeviction,ortheenforcementofminimumstandardsofdecency.

Thoselivingonunprotectedsites,comprisingprivatelandorsitesregisteredforholiday

homeuse,havemuchlessprotection,andifapersonlivesinaccommodationthatisnot

classifiedasadwellingtheyalsohaveverylittleprotection.

Nooneweinterviewedwhowasemployedinagriculture,manufacturingorinthehospitality

sectorownedtheirhomes.Unlesstheyhadfamilies,thesemigrantswerehousedintied

accommodationorintheprivaterentalsector.

ThatfarmandhospitalitysectorworkersweresimplytoopoortobuyhousingintheUKmay

makeitmorelikelythattheywillreturnhome,asmanydidownpropertyintheirhome

countries.Weseethelimitedavailabilityofaffordablehousingasakeyfactorthatlimits

workeravailability(includingmigrantworkers)inruralareas.

Experiencesofworkinruralareas

SomemigrantworkersfoundworkbeforecomingtotheUK,throughanoverseasagencyor

throughexistingcontacts.Othersfoundworkafterarrival.

Manyworkersintheagriculture,foodprocessingandhospitalitysectorsfoundtheirfirstjob

throughanagencyalabourproviderwhoinsomecasesalsoprovidedhousing.Allthose

weinterviewedwhohadbeenemployedbyagenciesexpressedstrongopinionsaboutthe

waytheyworked.Dissatisfactionwithworkconditionstookmanyforms,butwasparticularlyassociatedwiththeseagencies.

Someunskilledmigrantswereworkingwithahighproportionofothermigrants.Thislimited

theirinteractionwithlocalBritish-bornpeopleandmeanttheywerenotintegratedinto

broadersociety.Thatsaid,migrantssocialinteractionswithhostcommunitieswerevery

varied:somemigrantsformedfriendshipsoutsidetheircommunitiesandothersdidnot.

Therewasalsoastrongperceptionthatinruralareasitwasgettinghardertofindwork

(althoughnotagriculturalwork).Agencyworkerswerefindingthismostdifficult.

Therearetoomanypeoplelookingforworknow.Wegettwodaysaweek,

one,twodaysaweek,anotherone,twodaysaweek,anotherone.Forpeople

topaytherenttheyneedsomething[more],itisnogoodjusttwodaysa

week.(Brazilianmigrant,foodprocessingsector)

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Beingunabletofinddirectpermanentemploymentisanimportantreasongivenbymigrant

workersformovingonfromanareaorjob.Whileemploymentagenciesareanaccepted

usefulpartoftheeconomyruralandurbantheyalsopresentsomeimportantproblems.

Migrantworkersthemselvesfindtheprecariousnatureofemploymentofferedunattractive,

andwhiletheyarehappytoworkthroughagenciesforashortperiodonenteringtheUKmostprioritisemovingoutofagencyworkandintodirect,permanentemployment.

Agenciesareunpopularnotonlyfortheformsofworktheyoffer(workatshortnotice,with

fewassociatedrightsandnoguaranteeofrepeatedemployment),butalsoforthelarge

differentialbetweentheamounttheagencyispaidtoprovidethemandthewagethey

themselvesreceive,whichmanymigrantworkersperceivetobeveryunfair.

Idliketoworkdirectlyforacompany.Theagencychargesaretoohigh.

(Portuguesehotelworker,Peterborough)

Someagenciesalsositontheveryedgeoflegalbehaviour,forexampledockingwagesfor

servicesprovidedbytheagency,suchasaccommodation,whichmightnotbewanted

and/orissub-standard.Asonestakeholderemphasised:

Ifourclientscangetintoworkasanemployeetheyremuchbetteroff.The

mainissueistodowithagenciesandgangmastersIknowrecruitment

agenciesarentbreakingthelaw,buttheyreusingittoexploitmigrants

situations.Stakeholder,migrantassociation

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Hereweexaminethekeyimpactsofmigrantworkersonruraleconomies.Theimpactsare

manyandvaried;welookatwages,employment,skillsshortages,jobcreation,productivity

andspecificsectoralimpacts.Someoftheseissuesareprominentnationalissuesforexample,theeffectsofmigrationonwagesandemployment,andmanyruralcommunities

arenow,forthefirsttime,feelingthattheseissuesarerelevanttothem.Wealsofocuson

theintersectionbetweenmigrationandthekeychallengesfacingruraleconomies

identifiedbytheCommissionforRuralCommunitiesaswages,lowskillsandthelossof

youngpeopletourbanareas(CommissionforRuralCommunities2008a).

Sectorsemployingmigrantsinruralareas

Anumberofsectorsinruraleconomiesemploymigrantworkerstoasignificantextent.

Figure5belowshowstheproportionofworkerswhowerebornoutsidetheUKovertimein

eachindustrysectorinruralareasexcludingagriculture,whichispoorlysampledinthe

LabourForceSurvey. 5

Numbersofforeign-bornworkershavebeenrisingandtheyarefoundacrossruralindustries,

Infact,foreign-bornworkershaveplayedanimportantroleinmanyruralindustriesforsome

timetheymadeupmorethan4percentofallindustrysectorsworkforcesinruralareas

since2000,withtheexceptionofconstruction.6

Theproportionofforeign-bornworkersrosesignificantlyin2004,particularlyin

manufacturing,hospitalityandtransportandcommunicationsallsectorswheremigrants

nowaccountforatleast7percentofthetotalworkforce.Thisislikelytobearesultinlarge

partofimmigrationfromthenewEUmemberstates.

4.Migrantsimpactsonruraleconomies

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2000 2001 2002 2003 2004 2005 2006 2007

Foreignbornas%o

flabourforceinsector

Manufacturing Construction Distribution, hotels and restaurants

Transport & communication Banking, finance & insurance Public admin, education and health

Other

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2000 2001 2002 2003 2004 2005 2006 2007

Foreignbornas%o

flabourforceinsector

Manufacturing Construction Distribution, hotels and restaurants

Transport & communication Banking, finance & insurance Public admin, education and health

Other

Figure5.The

percentageof

workerswhoare

foreignbornin

eachindustry

sectorinrural

areas,20002007

Source:LabourForce

Surveyandippr

calculations

5.ThepoorcoverageofagriculturewithintheLabourForceSurveymeansthatitisarelativelyunder-studiedsector,whichisonereasonthatweincludedspecificsectoralanalysisofagricultureinthispaper

(seebelow).

6.ForeignworkersinconstructionareheavilyconcentratedinLondon(seeChappelletal 2008).

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Migrationandwages

Perhapsthemostfrequentlyvoicedfearinrelationtomigrationandtheeconomyruraland

urbanisthatmigrantsaretakingBritonsjobsandpushingdownwages.However,despite

thefrequencywithwhichtheseconcernsareexpressedinthemedia,thebestavailable

evidencesuggeststhat,atanationallevel,migrationdoesneitherofthesethings.

Turningfirsttothequestionofwages,thebestandmostrecentresearchonmigrations

wageimpactsintheUKsuggeststhatmigrationhasclosetonoimpactonwages,evenafter

therapidincreaseofimmigrationsince2004(Dustmannetal2005,ReedandLatorre

2009).7

Thisnationalpictureisimportanttodiscussbecauseitisnotwidelyknowntobethecase,

eitherbythepublicorbypolicymakers,andprovidesimportantcontext.However,itdoes

notdefinitivelyanswerthequestionastowhethermigrationhasnegativewageimpactsin

ruralareas,orforparticulargroups.Wagesareaveryimportantissueforruralareasthe

CommissionforRuralCommunities(2008a)identifieslowwagesasapushfactor

encouragingyoungBritishworkerstoleaveruralareas.Butitisnotpossibletoundertake

conclusiveeconometricanalysisexaminingtheimpactofmigrationonruralareasalone

becauseofthelackofdata.

Wecan,however,lookatsomeindicativedata.Figure6belowplotstheaveragerealwages

(thatis,adjustedforinflation)beingearnedbyBritish-bornresidentsinruralareas8.Itshows

ageneraltrendofrisingwagesovertimesince2001.Figure5alsoshowstheproportionof

foreign-bornpeopleofworkingageinthepopulation,whichagain,risesfairlysteadilyover

time.Itdoesnotappearthattherisingproportionofmigrantswithinruralworkforcesis

drivingdownwages.

Itdoes,however,remainpossiblethatmigrationhashadwageimpactsinsomeruralareasorsectorsmoredataandresearchintolocallabourmarketimpactsisneeded.

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007

Averagegrosshourlypay(2007=100)

0

0.02

0.04

0.06

0.08

Foreignbornofworkingageas%o

fpopulationofworkingage

UK born average hourly pay % foreign born of working age

Figure6.UK-

bornaverage

grosshourlypay

vs.percentageof

foreignbornin

theworkforcein

ruralareas,

20012007

Source:LabourForce

Surveyandippr

calculations

7.Atleastintheshorttomediumterm.Wedealwiththelongerrunsituationinfollowingsub-sections.

8.Notethatthismaynotbeanentirelyaccuratereflectionofruralwagesbecausesomeruralresidents

willworkinurbanareas.Thisdatais,however,thebestavailable.

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Migrationandunemployment

ThebestandmostrecentresearchonmigrationsemploymentimpactsintheUKsaysthat

migrationhasnotresultedinincreasedunemployment(Gilpinetal2006,ReedandLatorre

2009).Thismaysoundcounterintuitivehowcouldnewpeoplearriveintoanareaandnot

takejobsfromtheexistingworkforce?Oneexplanationisthat,intheshortrun,migrantsfillgapsinthelabourforcethatcannotbefilledfromtheUK-bornpopulation(thisissupported

bythefactthatmigrantstendtoworkinsectorswithhighvacancyrates).Anotheristhat

migrantsalsoincreasedemandintheeconomyandthuscausetheeconomytoexpand,

creatingnewjobs.

Sohowmightruraleconomiesvaryfromthisnationalpicture,ifatall?Thereisevidencethat

vacanciesinruraleconomiescanbeevenhardertofillthaninurbanareas(Commissionfor

RuralCommunities2008b),andthatthisisthecasebothforhighly-skilledandlow-skilled

workers.Thissuggeststhatmigrantworkersmaybemorelikelytotakeuphard-to-fill

vacancies,andthereforeevenlesslikelytocreateunemploymentinruralareasthaninthe

widereconomy.Thisviewwassupportedbyourstakeholderinterviews:

Inlotsofruralareasthereisnolocalworkforcetodrawon...InruralWales

they[businesses]couldntfunctionwithoutmigrantworkers;similarlyinthe

South-West.Stakeholder,hospitality

Figure7supportsthisconclusionitshowstheproportionofmigrantsofworkingagein

ruralpopulationsovertime,setagainstunemployment.Itshowsthatunemploymentinrural

areashasremainedsteadyovertheperiodconcerned(whichdoesnotcoverthecurrent

recession),whiletheproportionofworkingagepeoplebornoutsidetheUKhasrisen

steadily.Inotherwords,migrationdoesnotappeartohaveledtoariseinunemploymentin

ruralareas.Instead,wheretheyareemployedtheyseemtobefillingvacancies(andmigrants

aremorelikelytobeemployedthantheaverageBritish-bornperson)(Cooleyetal2005).Theymayalsobemakingacontributionsuchthattheyareexpandingtheruraleconomyand

thusthetotalnumberofjobswillincrease(discussedfurtherlaterinthissection).

0%

20%

40%

60%

80%

2001 2002 2003 2004 2005 2006 2007

UKbornemployedas%o

fpopulat

ionofwokringage

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

Foreignbornofworkingageas%o

fpopulationofworkingage

UK born employment rate % foreign born of working age

Figure7.UK-

bornemployment

ratevs.

percentageof

foreign-bornin

theworkforcein

ruralareas,

20012007

Source:LabourForce

Surveyandippr

calculations

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Thisemploymentpictureislikelytochangesignificantlyduringthecurrentrecession,with

unemploymentexpectedtoriseacrosstheUK,includinginruralareas.Thenumberofhard-

to-fillvacanciesinruralareasislikelytodeclineduringtherecession,butsotooisthesupply

ofmigrants(seebelow).Infact,ruraleconomies,whichtendtohavelessflexiblelabour

markets,mayfindthattherecessionhaslessimpactontheirvacancyratesthaninurbanareas,andtheymayseedemandformigrantworkersremaininghigherthanelsewhereinthe

UK.

Migrationandskillshortages

Thesparsenessofpopulationsinruralareascanexacerbatetheshortagesofskillsthatmight

befeltanywayinsomesectors.Ruralemployersareconcernedaboutthegreaterdifficulties

theyfaceinrecruitingthantheirurbancounterparts,particularlyofskilledmanagersand

professionals(CommissionforRuralCommunities2008a).Inthemediumtolongtermthere

needtobemeasurestoensurethereiseducationandtrainingforpeopleinruralareasbut

migrationalsohasaroletoplay,particularlyintheshorttomediumterm.

Therearesignificantdifferencesinthelevelofqualificationsbetweenforeign-bornandUK-

bornworkersinruralareas.9 Figure8showsthatmorethan50percentofUK-bornpeoplein

ruralareasleftfull-timeeducationatage16orbefore,whereasthiswasthecaseforless

than30percentofforeign-bornworkers.

ShortagesofskilledlocalworkerscausedbyhighlyeducatedUK-bornworkersmovingfrom

thecountrysidetomoreurbanareasappeartoafflictallsectorsinruraleconomies(Figure

9).Insomesectorssuchashospitalityandmanufacturingmorethan60percentoftheUK-

bornworkforcelefteducationatage16orunder.Financialservicesandpublic

administration,educationandhealthboastthehighestproportionofhighly-educatedUK-

bornworkersinruralareas.

0%

10%

20%

30%

40%

50%

60%

Rural foreign born Rural UK born

Populationbyagewhenleftfulltimeeducationas%o

ftotal

16 or under

17-21

Over 21

Still in education

Figure8.Ageat

whichleftfull-

timeeducation,

foreign-bornand

UK-bornrural

residents,2007Source:LabourForce

Surveyandippr

calculations

9.Thevariableusedinthisanalysistoestimateworkerslevelofqualificationsisagewhenleftfull-timeeducation,sinceforeignqualificationsareunder-representedintheLabourForceSurvey.Althoughthis

estimateprovidesonlyapartialpictureofworkersskills,itisagoodapproximationtocomparethelevel

ofqualificationsbetweenforeign-bornandUK-bornworkers.

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Incontrast,foreign-bornworkersacrossallsectorsinruralareasaremuchmorelikelytobe

highlyeducated(Figure10).Theshareofworkerswholefteducationaged16orunderis

significantlylowerthanfortheUK-bornpopulation,representinglessthan30percentin

mostsectors.

MigrantscomingtoworkintheUKareoftenunderemployed,performingjobsthatrequire

skillsbelowtheirlevelofqualifications(Dustmannetal2007).Inparticular,asubstantial

proportionofthosethathavebeenintheUKforonlyashortperiodoftimearelikelytobe

doinglow-skilledwork.Overtime,however,migrantstendtomoveintojobsthatbettersuit

theireducationalbackgroundandskills.Therefore,thisinjectionofhighly-skilledworkers

62%

43%39%

61% 63%

33%

41% 46%

31%30%

5%

16% 15%9% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distribution, hotels and

restaurants

Public admin, education

and health

Banking, finance and

insurance

Manufacturing Other

Foreignbornbyagegroupas%o

fforeignbornin

industrysector

16 or under 17-21 Over 21

Figure9.Ageof

UK-bornworkers

inruralareas

whenleftfull-

timeeducation,byindustry

sector,2007

Source:LabourForce

Surveyandippr

calculations

30%

19% 17%

28%

37%

51%

47% 53%

46%

44%

19%

34%30%

26%19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distribution, hotels and

restaurants

Public admin, education

and health

Banking, finance and

insurance

Manufacturing Other

Foreignbornby

agegroupas%o

fforeignborninindustrysector

16 or under 17-21 Over 21

Figure10.Ageof

foreign-born

workersinrural

areaswhenleft

full-time

education,by

industrysector,

2007

Source:LabourForce

Surveyandippr

calculations

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intoruraleconomieshasstrongerlikelihoodofmeetingsomeskillsshortagesifworkers

remaininthemediumtolongterm.

Migrationandjobcreation

Aswellasbeingworkers,migrantsareconsumersthosewholiveinruralareascanincreasedemandinruraleconomies,whichcanincreasethemarketforlocalfirms.Whenbusinesses

succeedandexpandtheyfurtherincreasedemandwithintheeconomy.Thismeansthateven

businessesandindustriesthatdonotemploymigrantsthemselvescanbenefitfrom

migration,leadingtojobcreationthroughoutruraleconomiesinthelongerterm.

Anumberofstakeholdersinourresearchstronglyemphasisedthispointaboutjobcreation:

Migrantsarecriticalnotjusttothoseindustriesthatemploythem,butalsoto

inter-linkedindustries.Stakeholder,ruralbusiness

Thisisnottheonlywayinwhichmigrantsappeartosupportruralbusinessesandjob

creation.Anumberofstudieshavestressedthatmigrantscanbemoreentrepreneurialthan

non-migrants(Nathan2008)andentrepreneurialismisavitalfactorincreatingthrivingbusinesses,economiesandjobopportunities.Onemeasureofentrepreneurialismisself-

employment.Figure11showstheproportionsofself-employedforeign-bornandUK-born

Onaverage,peoplelivinginruralareasaremorelikelytobeself-employedthanthosein

urbanareas.ComparingthosebornabroadwiththosebornintheUKsuggeststhatthe

foreign-bornaremorelikelytobeself-employedinsomesectorsinruralareassuchas

distribution,hotelsandrestaurantsandbanking,financeandinsurance,whereastheUK-

bornaremorelikelytobeself-employedinotherssuchasmanufacturing.Migrantsinrural

areasaremorelikelytobeself-employedthantheaveragepersonintheUK,thoughnot

moresothantheaveragepersoninruralareas.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Rural UK Born Rural Foreign Born Urban UK Born Urban Foreign Born

Self-employedas%o

fworkforceinsector

Construction Other

Banking, finance and insurance Distribution, hotels and restaurants

Manufacturing Public admin, education and health

Figure11.Self-

employed,

foreign-bornand

UK-born,in

urbanandrural

areas,2007

Source:LabourForce

Surveyandippr

calculations

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Table5showsthepercentagesofmigrantswhoareself-employed,breakingdownthedata

bytheirlengthofstay.Thedatashowsthatmigrantsaremuchmorelikelytobeself-

employediftheyarrivedintheUKrecently.

Thereareanumberofexplanationsforthis.Someoftheself-employmentmaybeafunction

ofvisarestrictionsRomaniansandBulgarians,forexample,arenotusuallypermittedaccess

totheUKlabourmarketasworkers,thoughtheyareabletoworkasself-employedpeople.Theseself-employedpeoplemaynotbeanymoreentrepreneurialthantheaverageworker.

Insomesectorssuchasconstructionandthemediaself-employmenthasbecomeanormal

wayofworkingandagain,inthesecasesself-employmentisprobablynotsignificantly

linkedtoentrepreneurialism(Chappelletal2008).

However,someofthereasonsforwhichnewmigrantsaremorelikelytobeself-employed

thanotherworkersmaysuggesthigherlevelsofentrepreneurialism.Forexample,some

migrantscomefromcultureswhereself-employmentandbusinesscreationarecommon,

bringingtheseculturalattitudesandwaysofworkingwiththem,whichmaycreatenewjobs

intheUK.Somemigrantsmaybeforcedintoself-employmentiftheyareexcludedfrom

employment,butmaynonethelesssubsequentlydrivejobcreationinthelocalarea.

Migrationandproductivity

WehavealreadyseenthatmigrantstoruralareasareoftenmoreskilledthanUK-born

workersinruralareas.Wewouldexpectthistoincreasetheproductivityofruraleconomies.

Similarly,migrantentrepreneursmayincreaseproductivity.Butmigrationmayalsohave

widerproductivityeffectsviachangesintechnologyorbusinesspractices.

Theavailabilityof(cheap)migrantlabourmightstopfirmsfrominnovatingtechnologically

andinvestingincapitalinordertodelivertheirproducts.Economictheorysuggeststhatto

produceagivengood,firmshaveachoiceusinglabourorcapital(crudely,peopleor

machines)asinputs.Ifthereareshortagesoflabour,businesseswillneedtoconsiderother

methodsofproduction,meaningthattheyeitherinvestincapital,iftherighttechnologiesalreadyexist,orinresearchandinvestmenttodeveloptherequiredtechnology.Ithasbeen

suggestedthatbyprovidingsuppliesoflabour,migrationmightpreventtechnological

innovation.Thiscouldleadtoalowskillequilibriumwherelow-skilled,low-paidjobspersist

intheeconomyforlongerthantheymightotherwisehavedone.Thereissomeevidence

thatthismayoccurintheUK,includinginruralareas(Nathan2008).

However,otherresearchsuggeststhateconomictheoryprobablyoverstatestheextentto

whichtechnologycanreplacepeople(Rowthorne1999).Moreover,intheshorttermat

least,manybusinessesdonotfaceastraighttrade-offbetweenlabourandtechnology.In

caseswherethescopetoincreaseproductivitythroughmorecapital-intensivemethodsis

limited,orwherenewtechnologiesneedtobedeveloped,orwhereUKbusinessesfacecompetitionfromoverseas,thenthechoicemaynotbebetweenlabourandnewtechnology:

itmaybebetweenlabourandbankruptcyeitherforsomefirmsortheentiresectororsub-

Table5.Self-employedforeign-born,bylengthofstayintheUK,2007Lengthofstay %migrantsintheUKforthatperiodwhoareself-employed

Lessthan5years 19%

510years 12%

Morethan10years 3%

Source:LabourForceSurveyandipprcalculations

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sectoroftheeconomy.Thismaybethecaseforsomeruralsectors,particularlyagriculture,

anindustrywhereinplacesthepotentialformechanisationhasbeenexhausted,andstrong

competitionfromothercountriesputsdownwardpressureonprices.

Secondly,migrantsareoftenthoughttobeparticularlyproductiveworkers.Thisisforsimilar

reasonsasfortheirentrepreneurialismeitherbecausetheyarecomingfromaculture

wherethereisastrongfocusonhardworkandproductivity;orbecausetheactofmigrating,

beingwillingtocrossbordersandenternewculturesinsearchofopportunity,shows

inherentdriveandambitioninitself.Thereissomestrongevidenceforthehighproductivity

ofmigrantworkersintheUK(Denchetal2006,Eaglesham2007,Chappelletal2008).The

productivityofmigrantworkersalsocamethroughclearlyinourdiscussionswithemployers

andbusinessgroups:

Theclassicmarkerofamigrantworkeristhattheywanttoimprove

themselvesinsomeway.Stakeholder,hospitality

Migrantsareefficient,hardworkersandresponsible.Stakeholder,agriculture

Themigrantworkeronmystaffisnowthebestpaidmemberofthe

workforce,becausehesinvaluable.Itsadifferentworkethic.Stakeholder,

agriculture

Sectoralimpactsofmigrationinruralareas

Havinganalysedtherelationshipbetweenmigrationandunemployment,wages,jobcreation

andproductivity,wenowturntoexaminethreekeyruraleconomicsectorsascasestudies

agriculture,foodprocessingandhospitality.Thisenablesustobuildamoredetailedpicture

ofhowmigrationinteractswithasector,bringingtolifetherolethatmigrantsplay.

Thesesectorshavebeenchosenfortwomainreasons.First,eachhasseentheproportionof

migrantsintheirworkforcerisesignificantly,andthusmigrationplaysanimportantroleintheeconomicprospectsofthesesectors.BetweenMay2004andSeptember2006more

than75percentofnewEUmigrantsarrivinginruralareasregisteredtoworkinthese

sectors33percentinmanufacturing(whichincludesfoodprocessing),25percentin

agricultureandfishing,and20percentindistribution,hotelsandretail.Thisisparticularly

strikingasbetweenthemthesectorsonlyaccountfor36percentofruraloutput

(CommissionforRuralCommunities2007a).10

Second,eachofthesesectorsisimportanttoruraleconomies,althoughtheyaccountfor

onlyaroundathirdofruraloutput.Hospitalityisamajoremployerinruralareaswhichhas

grownstronglyandsteadilyinrecentyears,andhasbeenidentifiedasasectorwithstrong

futuregrowthpotential(People1st2006c).Agricultureandmanufacturing,conversely,areindustriesthathavehistoricallymadelargecontributionstotheUKeconomy,particularlyin

ruralareas,butwhichhavebeenstrugglingtomaintaintheirpositioninrecentyears.This

declineisofconcerntothewiderruralandnationaleconomy.Theadvantagesofretaining

strongbusinessesandindustriesintheUKnearthebaseoftheproductionchainhave

increasinglybeenemphasisedoverthepastyearassomeserviceindustries,suchasfinance,

havestruggled.Someoftherecentgainsmadebythesesectorshavearguablybeen

facilitatedbytheavailabilityofmigrantlabour.

10.Thedatareferstothesectorsthatmigrantssaytheywillbeworkinginwhentheyregister.AftersometimeintheUKtheymaymovetoothersectors;evidencesuggestsmanymigrantsdothis.

Thereforethesestatisticsonlyaccuratelyrepresentthesectoralallocationofmigrantswhentheyinitially

entertheUK.

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ThesesectorsalsocontributetoUKfoodsecurity,anissuethatisrisingupthepolicyagenda

(forexamplewiththerecentestablishmentoftheCouncilofFoodPolicyAdvisers,whichwill

lookatUKfoodsecurity)(DepartmentforEnvironmentFoodandRuralAffairs2008).In

addition,agriculturehasaspecialroleinitsstewardshipoftheland.Further,foodprocessing

hasbeenidentifiedasapotentialgrowthsectorforruralareas,buckingthegeneralmanufacturingtrend.Forexample,ithasbeenidentifiedasaprioritygrowthsectorbythe

NorthWestDevelopmentAgency(2007).Nonetheless,itisimportantnottooverstatethe

importanceofagriculturein2004itonlyemployedapproximately6percentoftherural

workforce(DepartmentforEnvironment,FoodandRuralAffairs2004).

Casestudy1:Agriculture

Alldatainthissection,unlessspecified,comefromDEFRAsAnnualAgriculturalStatisticsfor

EnglandandWales,2008,whicharedrawnfromtheannualJuneAgriculturalCensus.

Sectoroverview

Employmentinagriculturehasbeenfallingforsometime.Agriculture(includinghorticulture)employed480,000peopleintheUKin2007,a31percentdecreaseon1984.Thefallin

agriculturalemploymentoverthepast70yearshasbeenfairlyconstantyear-on-year.From

theSecondWorldWaruntil1970,mostsectorsofagricultureenjoyedaboom,but

employmentstilldeclinedasproductivityincreasedsignificantly.Since1970,however,

agriculturehasexperiencedfallingcommodityprices,verytightprofitmargins,andasa

consequencefallingfarmincomes.Theincreasedpowerofthesupermarketsand

agribusinessastheprimepurchasersofagriculturalproducehasproducedmostofthis

squeezeonprofits(forexample,Tesconowcontrols27percentofthefoodretailmarketin

theUK[Lawrence2008]),aswellassupermarketswillingnesstosourceproductsfrom

overseas.

Inordertomaintaintheirviability,farmershaverespondedinthreemainways,through:

Intensificationusingtechnicalandnon-technicalinnovationtoincreaseyields,speedupagriculturalproduction,orreducerisk.MostfocusedinEastAnglia,theEast

MidlandsandtheFens.

Diversificationandvalorisationwithinagriculturalproductiongrowingnewcropssuchastriticale(acrossbetweenwheatandrye),byconvertingtoorganicproduction

orspecialistanimalbreeds.Thesenewinitiativesareoftenlabourintensive,creating

potentialdemandsformigrantlabour.

Farmincomediversificationoutsideagriculturalproduction,includingmovementinto

farmholidaysandtherentaloffarmbuildingsasoffices.

Thehistoricaluseofmigrantlabourinagriculture

Thereisalonghistoryofusingforeignmigrantsasagriculturalworkers,datingbackmany

centuries(Winder2004).ProtestantrefugeesfromFranceandtheSpanishNetherlands

drainedandfirstcultivatedtheFens.DuringtheFirstWorldWar,Belgianrefugeessettledin

PeterboroughanditsenvironsinCambridgeshire,manyofthemfindingagriculturalwork.

AftertheSecondWorldWar,Polishex-servicemenwhosettledintheUKwerebilletedto

workasagriculturallabourersatatimeofacutelabourshortage.

Agriculturehasreliedonseasonallabourformanycenturies.Differentcropsrequiredifferent

amountsoflabourinputatdifferenttimesoftheyear,asdodifferenttypesofanimalproduction.Horticulturalproduction,includingpacking,isaparticularlylabourintensive

sector,characterisedbypeaksandtroughsinlabourdemand.Strawberryproductionunder

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glass,forexample,requiresthreetimesasmuchlabourinAugustandSeptemberasitdoes

inFebruary.

Scottetal(2008)distinguishbetweentheprimaryagriculturallabourmarket,comprising

permanentemployees,andthesecondaryagriculturallabourmarketwhichcomprises

seasonalworkers.Thisseasonallabourhas,andcontinuestobe,providedbyfamilymembers

andothersinruralcommunities(thelongschoolholidayswerescheduledtocoincidewith

theharvest).Gypsiesandothertravellershavealsobeenasourceofseasonallabourand

thereisalonghistoryofusingtheurbanworkingclassasseasonallabourinsomepartsof

theUK.Forexample,hoppickinginKentwasundertakenbyLondonersuntilwellafterthe

SecondWorldWar.Untilthelate1990s,unemployedUK-bornworkersalsosometimes

workedonfarmsduringtimesofpeaklabourdemand.Forexample,workersmovedfrom

NottinghamandHulltoworkonholdingsintheFens,stayingincaravansforpartofthe

weekthentravellinghome.However,todaythisseasonallabourneedisincreasinglymetby

theemploymentofmigrantworkers.

Migrantsinagriculturetoday

Since1997,thesizeoftheUK-bornagriculturallabourforcehasdecreasedatthesametime

asincreasedagrarianintensificationandincomediversification,whichhasinsomecases

increasedthedemandforlabour.Peoplewillingtoundertakeunskilledlabourinruralareas

aresimplynotavailableinthequantitythatisrequiredbyagriculture.Moreover,agricultural

wagesarelowincomparisonwithotherunskilledwork,despitetheworkbeinghardand

therebeingfewercareerprospectsthaninotherjobs.

Inparticular,therehasbeenanincreaseddemandforsecondary,seasonalagriculturallabour

(Scottetal2008).Asaresult,employershavelookedtointernationalmigrantstofillthe

gaps,andmigrantworkersnowplayasignificantroleintheprimaryagriculturallabour

marketandtheseasonallabourmarket.

LabourForceSurveyestimates(whichcaptureonlythoseemployedintheprimary

agriculturallabourmarket,andexcludethoselivinginaccommodationtiedtoemployment)

suggestthattherewere25,200foreign-bornworkersemployedintheagriculturaland

fisherysectorinthefirstquarterof2007,comparedwith11,500inQ21998.Itisvery

difficulttoestimatethenumbersofseasonalmigrantworkersinthesector,butweknow

howmanyhavecometotheUKthroughtheSeasonalAgriculturalWorkersScheme:7,310

workersenteredtheUKin2007throughSAWS,downfrom20,700whentheschemewasat

itspeakin2003.Manymoreworkersareemployedseasonallyinthesector,buttheyarenot

capturedinthesedatasets.

LearningmoreaboutthemigrantsinvolvedisnoteasyasthesmallsamplesizeoftheLabour

ForceSurveypreventsadetailedanalysis.However,other,qualitativeresearchprovidessome

insights.Migrantsareoccasionallyemployedinthedairysectorbutaremorelikelytowork

withpigsandpoultry(teamsworktogethertoemptyandcleansheds)andtheothercrops

sector(softfruits,vegetables,flowersandbulbs)wheretheircontributionisessential

duringtheharvestingseason.

ResearchsuggeststhatmostmigrantagriculturalworkersintheUKcomefromwithinthe

EU,mostlyfromthenewmemberstates,particularlyPolandandRomania,withmany

RomaniansadmittedthroughSAWS.Thisispartlyareflectionofimmigrationrules.SAWS,

forexample,hasbeenreservedsolelyforBulgarianandRomaniannationalssinceJanuary2008(whereasin2007therewasaquotaof40percentofplacesfornon-EUnationals).

One2007studyfoundthat58percentofhorticulturalworkerswerenationalsoftheA8

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accessioncountries,19percentwereRomaniansandBulgariansadmittedthroughSAWS,19

percentwerenationalsofothercountriesadmittedthroughSAWSand2percentwere

nationalsofothercountriesarrivingbyotherroutes(NationalFarmersUnion2008).Inother

sub-sectorsandpartsoftheUK,however,therearesignificantgroupsofmigrantsfrom

countriesoutsidetheEU.

BringingthisinformationtogetherwithresearchonwhymigrantscometoworkinBritish

agriculture,wecangroupmigrantagriculturalworkersintoanumberofcategories:

A8andA2migrantsforwhomagriculturalworkisafirstjobonarrivalintheUKbeforemovingtobetterpaidwork:ipprpollingdataandotherresearchsuggeststhat

abouthalfofA8workersleaveagriculturalworkwithinthreemonthsofarrivalinthe

UK.Thosewholeavearealmostalwaysbettereducatedthantheaverageandcite

poorpayandlowstatusoftheworkasthemainreasonsformovingon.

A8migrantswhoremainforaperiodoftimeintheUK,savemoney,thenreturntotheircountryoforigin:Seasonalagriculturalworkisoftenanattractiveoptionfor

thosewhomigratetotheUKforjustashortperiodoftime(perhapsonmorethanoneoccasion).

A8workerswhoremaininagriculture:Thisgroupisrelativelysmall.Theygenerallyappeartobelesswell-educated,speaklessfluentEnglish,bedependenton

compatriotsfortranslationandhavefewercareeroptionsintheUKortheircountries

oforiginthanworkersintheothercategorieshere.Insomecasestheyareprogressing

tomoreresponsibleworkwithinthesector.

SAWSmigrants:Before2008,whenSAWSwasopentoawiderrangeofnationalgroups,SAWSattractedstudentsfromcountriessuchasUkraine.Today,SAWSworkers

appeartobeolderandlesseducated.HighproportionsareRoma,astheseasonal

natureoftheworkisoftencompatiblewiththelifestylesofsomeRomawhowantto

spendtimewithfamilyinRomania.

Pre-2004EUmigrants:vastmajorityfromPortugal:PooremploymentprospectsinPortugalamongthisgroup,manyofwhomhavefewqualifications,havebrought

themtotheUK(deAbreuandLambert2003).

EUandoverseasstudentswiththerighttoworkintheUK:Asmallgroup,thoughnumbersmaybegrowing.

Irregularmigrants:Althoughitisdifficulttoestimatenumbersofirregularmigrants,in2000theycomprisedasignificantpartofthehorticulturallabourforceinpartsofthe

UK.TheircountriesoforiginincludedChina,Brazil,Iraq,Afghanistan,India,Pakistan

andBangladesh(RogalyandTaylor2004).Employerssanctionsandtheworkofthe

GangmastersLicensingAuthorityappeartohavedecreasedthenumbersofirregular

migrantsemployedonfarms,buttheyarestillpresent.

Long-settledforeign-bornpopulationsfromSouthAsiawholiveinurbanareas:Thisgrouptendstobebussedoutofcitiesbygangmasterstoworkinhorticultureand

fieldvegetableproductionandpacking.Forexample,therearesignificantpopulations

ofBritishPakistanisworkinginthehorticulturesectorinHerefordshireand

Worcestershire(LanzandGullen2006).Thisgroupoftenpossessesfewqualifications.

Limitedjobprospectsinurbanareas,plusagrowingnumberofSouthAsian

gangmasters,haveledtoanincreaseinseasonalworkersfromthisgroup.

FuturetrendsAgriculturewillplayanimportantroleinthefutureofruraleconomies,evenifitremainsa

relativelysmallemployer.Increasedemphasisonfoodsecurityandlandstewardshipwill

reinforcethiseconomicrole.Itseemslikelythatagriculturewillcontinuetoexperiencelabour

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shortages,particularlyforlow-skilledandseasonalwork.Althoughtechnologicalinnovation,

capitalinvestmentandchangedworkingpracticesmayreducethedemandforlabourto

someextentinthefuture,manylow-skilledandseasonaljobswillremain.Somewillbefilled

byUK-bornworkers,particularlyduringthecurrentrecession,buttheirlocationandnature

arelikelytorenderthemhardtofillinthemediumtolongterm.Migrantworkerswillthereforehaveanimportantandongoingroleinthesector.

Casestudy2:Foodprocessing

Sectoroverview

Foodprocessingisadiversesector,includingsmall-scaleartisanbusinesses,medium-sized

enterprisesaswellaslargetransnationalcompaniesthatmakemanyproducts.TheFoodand

DrinkFederation(2007)suggeststhat411,000peoplewereemployedinthefood

processingsectorin2007.Thisisalmostcertainlyanunderestimate,undercountingthose

employedinartisanbusinessesandfoodprocessingoperationswithintheretailsector.Itis

likelythatabout15percentofthetotalUKworkforceisdirectlyemployedinfood

processing.Additionally,manythousandsofjobsinagricultureandretailingdependonthe

foodprocessingsector,whichpurchases75percentoftheUKsagriculturaloutput.

Thetotalturnoverinthefoodprocessingsectorwasestimatedtobe74millionin2007.

ThesectoristhelargestcomponentoftheUKsmanufacturingindustryandcontributes

14.2percentofthemanufacturingsectorsGrossValueAdded(FoodandDrinkFederation

2007).InsomepartsoftheUKNorthernIreland,EasternScotland,theEastMidlandsand

theFens,includingmanyruralareasthefoodprocessingsectorisparticularlyimportantto

localeconomies.

Althoughmostfoodprocessingbusinessesaremediumsized,employing100to250people,

therehasalsobeenagrowthinthenumberofverylargeenterprises(FoodandDrink

Federation2007).Andtherehasbeenaconsolidationofbusinessesaslargetransnational

corporationshaveboughtupfactoriesandbrands.

Migrantsinruralfoodprocessing

Althoughthetotalturnoverofthefoodprocessingsectorhasgrownoverthelast10years,

thesizeofitsworkforcehasdecreased,asaconsequenceofgreaterautomation.Atthe

sametime,analysisoftheLabourForceSurveyshowsthattherehasbeenasteadygrowthin

thenumbersofmigrantworkersemployedinthefoodprocessingsector,particularlysince

2004andthearrivalofmigrantsfromtheEUsnewmemberstates.Thefoodprocessing

sectorischaracterisedbytightprofitmarginsforproducersandlowwagesforemployees.In

economicboomtimes,thefoodprocessingsectorhasnotbeenseenasanattractivecareer

optionbyUK-bornworkers,althoughthismaychangeduringrecession.

Despiteagriculturalintensification,thefoodprocessingsectorhasseasonalpeaksindemand

forlabour.Thesepeaksarecausedbyagriculturalproductionpatternsaswellasseasonal

consumptionpatterns.Newinnovationssuchasjust-in-timeproductionwherefoodisnot

producedtostock,rathertomeettheexactamountdemandedbyacustomer,requireavery

flexibleworkforce.Ifdemandishighinoneareaofthebusiness,additionaltemporary

workersmayberequired.Temporarywork,sometimesonzero-hourscontracts(underwhich

theemployerdoesnotguaranteetoprovideworkandpaysonlyforworkactuallydone),has

provedunattractivetomanyBritishworkers,somuchofthislabourhasbeenprovidedby

migrants.Manyofthetemporaryworkersforjust-in-timeprocessesgettheworkthrough

labourproviders,oftengangmasters,someofwhomarethemselvesmigrants(Geddes2008).

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Migrantsarenotemployedinequalnumbersacrossthesector.Theyaremostlikelytobe

employedinfoodpacking,forexampletheinitialprocessingandpackingofsalad

vegetables,aswellastheproductionlineprocessingoffoods(seeTable6belowandGeddes

2008).Theserolesaremorelikelythanotherstobelocatedinruralareas.

Scottetal(2008)distinguishbetweentheprimaryagriculturallabourmarketofpermanent

employees,andthesecondarylabourmarketofseasonalandtemporaryworkers.Thissame

divisionoccursinfoodprocessing.Qualitativeresearchsuggeststhatmigrantworkersare

morelikelytobeemployedinthesecondarylabourforce,withmanyoftheseseasonaland

temporaryworkersprovidedbygangmasters(Geddes2008,Rutterforthcoming).Again,this

secondarylabourforceismorelikelytobearuralone.

Futuretrends

Intheshortterm,theproportionofmigrantworkersemployedinthefoodprocessingsector

maydecrease.(Thereisalreadyevidenceofthishappeningindatagatheredfromthe

WorkersRegistrationSchemeformigrantsfromthenewmemberstatesoftheEU.)During

therecession,unemployedUK-bornworkerswillfillvacanciesinlargernumbers

employmentinthefoodprocessingsectorisperceivedasmoreattractivethaninagriculture.

Demandforprocessedfoodislikelytoholdupbetterthanforotherproductsduring

recession,asitisoftencheaperthanfreshfood,andwhilesomefirmsmaybeaffectedby

therecession,itisunlikelythattherewillbelarge-scalejoblosses.Additionally,thecreditcrunchmayhaltgreaterautomationinfoodprocessing,asthatiscapitalintensive.

Casestudy3:Hospitality

Sectoroverview

TheUKshospitalityindustrybroadlyfallsintothreemaincategoriesofbusiness:restaurants,

bars/clubsandpubs,andhotels/motels(People1st2006c).TheUKshospitalitysectorisa

significantemployer,currentlyemployingapproximately2millionpeople,around7percent

ofthetotallabourforcein2005(LowPayCommission2006).Itisalsogrowingfast.In2007

distribution,hotelsandrestaurants(ofwhichhospitalityisapart)grewby5.1percent,

secondfastestafterpublicadministration,educationandhealth.Lookingahead,the

sectorsexpansionseemslikelytosloworreverseduringtherecession,butinthemediumto

longtermweexpectthesectortobeofgrowingimportancetoruraleconomies.

Table6:Migrantworkersinfoodprocessing,20062007(meanquarterlypercentage)

UK-born EU15plus EUaccession Bulgariaand Non-EEA

Norway,Iceland, states Romania

Switzerland, of2004

Liechtenstein

Butchers,meatcutters 91.4 1.8 2.2 0.6 4.0

Bakers,flour, 84.2 4.0 2.2 0.3 9.3

confectioners

Fishmongers,poultrydressers 82.8 0 5.1 3.0 9.1

Food,drinkandtobaccoprocess 72.4 2.3 10.0 2.1 13.2

operatives

Packers,bottlers, 60.3 3.0 16.6 4.0 16.1

cannersandfillers

Source:LabourForceSurveyascitedinGeddes(2008)

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Keycharacteristicsofthesectorsworkforceinclude:

Youth:Athirdoftheworkersinthesectorareundertheageof25,withagreaterproportionofstudentsthanothersectors.

Afemaleworkforce:Around60percentofthesectorsworkforceisfemale.

Parttime:Agreaterproportionofparttimeworkersthanothersectors.

Dominatedbysmalltomediumsizedfirms:threequartersofbusinessesemployfewerthan10workers.

Lowpay:17.2percentofthesectorsworkforceareworkinginminimum-wagepayingjobs,whichisthethirdhighestproportionafterhairdressing(22.2percent)and

security(19.3percent)(LowPayCommission2008).Thereisalsoconcernthatsome

hospitalityworkersarenotbeingpaidtheminimumwageenoughtotri