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Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions and British emigration from the UK

Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

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Page 1: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Migration and the economic crisis: response of Brits at home and abroad Sheffield University23rd September 2013

The relationship between economic conditions and British

emigration from the UK

Page 2: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Home Office Research report, Emigration from the UK,published in 2012, sets outs key aspects of the scale and nature of long term emigration from the UK over the last 20 years.

This presentation sets out the key findings from the research focusing on the relationship between economic conditions, in the UK and receiving countries, and British emigration from the UK.

www.gov.uk/government/publications/emigration-from-the-uk

Overview

Page 3: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Outline

Net migration and levels of emigration

Why do British citizens leave the UK

Where do British citizens go

UK Economic conditions

The Emigration decision

Unemployment rates

GDP growth

Exchange rates

Differential impacts

Page 4: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Emigration increased in the last decade, falling since 2009

Net migration: all nationalities

Page 5: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

British emigration fell to a low of 128,000 in 2010

Net migration: British citizens

Page 6: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Around half of all British citizens leaving the UK do so for work related reasons

Page 7: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

‘Professional and managerial’ is the largest previous occupation group for British emigrants

Page 8: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Australia is the top British emigration destination

Page 9: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

UK in period of limited economic growth

The UK experienced a sustained recession between spring 2008 and Summer 2009, and economic growth has been limited since then.

There are a number of variables that may indicate an ‘economic crisis’, including:

- Rising unemployment- Negative GDP growth- Low/Weak exchange rates

Home Office research explored whether British emigration from the UK is influenced by these 3 variables. The slides that follow attempt to explore these relationships. It should be seen as descriptive analysis only (as data quality did not permit full statistical analysis).

Page 10: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Economic conditions affect the decision to emigrate in different ways.

Emigration Decision

Capacity Incentive

Economic conditions

Page 11: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

UK unemployment inversely associated with British emigration

19751977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072009

2011

100

120

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200

220

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12.0

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Unemployment rates (ONS) Emigration (British Citizens)

Em

igra

tion

('0

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Un

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ate

(%

)

Page 12: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Spain and UK unemployment inversely associated with British emigration to the EU15

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10

20

30

40

50

60

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80

-

5.0

10.0

15.0

20.0

25.0

British emigration to EU15 Spain unemployment UK unemployment

Germany unemployment France unemployment

Em

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tion

(0

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Un

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ate

%

Page 13: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

UK unemployment inversely related to British emigration to Australia

20002001

20022003

20042005

20062007

20082009

2010

0

10

20

30

40

50

60

-

1.0

2.0

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5.0

6.0

7.0

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British emigration to Australia Australia unemployment UK unemployment

Em

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tion

(0

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yme

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ate

(%

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Page 14: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

US and UK unemployment not related to British Emigration to the US

20002001

20022003

20042005

20062007

20082009

2010

0

2

4

6

8

10

12

14

16

18

20

-

2.0

4.0

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8.0

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Brit Emigration to USA US Unemployment UK unemployment

Em

igra

tion

(0

00

s)

Un

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plo

yme

nt r

ate

(%

)

Page 15: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80

-6.0

-4.0

-2.0

-

2.0

4.0

6.0

British emigration to EU15 Spain growth UK growth

France growth

Em

igra

tio

n (

00

0s

)

GD

P g

row

th r

ate

%

GDP growth related to British Emigration to EU15

Page 16: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

20002001

20022003

20042005

20062007

20082009

2010

0

10

20

30

40

50

60

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Brit Emigration to AUS GDP growth AUS GDP growth UK

Em

igra

tio

n (

00

0s

)

GD

P g

row

th r

ate

(%

)

GDP growth not related to British Emigration to Australia

Page 17: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

GDP growth and British Emigration to the US

20002001

20022003

20042005

20062007

20082009

2010

0

2

4

6

8

10

12

14

16

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-6.0

-4.0

-2.0

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British emigration to US GDP growth US GDP growth UK

Em

igra

tio

n (

00

0s

)

GD

P g

row

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ate

(%

)

Page 18: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Relative exchange rates associated with British emigration from the UK.

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q42000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

75

95

115

135

155

175

195

215

1

1.2

1.4

1.6

1.8

2

2.2

2.4

2.6

2.8

3

British Emigration GBP/EUR GBP/USD GBP/AUS

Em

igra

tion

(0

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Exc

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ng

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ate

Page 19: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

This presentations sets out the findings relating to British Citizens, however different nationalities are likely to be influenced by economic conditions in different ways:

EU15 return emigration: inverse relationship UK/EURO exchange rate in recent years.

EU8 emigration from UK: strong relationship UK/EU8 unemployment and GDP/Zloty exchange rate

Non-EU emigration from the UK: flows not as responsive to short run changes in economic conditions.

Different economic conditions will effect different groups of migrants in different ways

Page 20: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Economic conditions will influence different groups of emigrants in different ways

Flows of those leaving the UK for work related reasons may be expected to fall during an economic downturn due to the impact on capacity to emigrate. Additionally if unemployment levels in destination countries high, incentive may also be reduced.

The incentive for Students to emigrate may increase during an economic downturn, whilst capacity may be limited.

Those retiring abroad, may lack capacity during an economic downturn. Relative exchange rates may also negatively impact upon the value of savings and therefore reduce incentive

Those emigrating to accompany/join family members, are less likely to be driven by national economic conditions.

Page 21: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

Economic conditions will influence different groups of emigrants in different ways

Page 22: Migration and the economic crisis: response of Brits at home and abroad Sheffield University 23 rd September 2013 The relationship between economic conditions

– Unemployment rates:• UK unemployment appears to be associated with emigration levels

for British citizens, particularly to Spain and other EU15 countries. – GDP growth

• The general strength of the receiving economies might be of limited importance and other drivers such as family networks or migration policy may have a stronger influence on emigration, at least within the EU.

• For outflows of British nationals to Australia and the US there appears to be no clear relationship between GDP growth and emigration

– Exchange rates • Data from 2000 to 2010 suggest that sustained falls in British

emigration since 2007 have been mirrored by the depreciation of the pound against the Australian dollar, the Euro and the US dollar.

• Difficult to explore further due to IPS sample sizes.

Key points