Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 1500 words

Introduction to Microeconomics - Essay Example This replaces Highly Skilled Migrant Programme (HSMP) that was in force earlier. Tier II: Under this, skilled workers get entry in the UK, who have a ready job offer. This essentially replaces Work Permit rules granted to workers in UK. Tier III: This fulfills the need of lower skilled requirement of workers to meet temporary shortages in the labour market. This has now been tilted in favour of EU migrants only. Tier IV: This specifies the needs of students who want to study in UK and get enriched with skill and knowledge. Tier V: This is a general category as per the agreement with other countries to allow youth mobility and purely as a temporary work permit. Skilled migration has played a pivotal role to keep economy of UK buoyant and competitive. Doctors, engineers, scientists, MBAs, fall under the category of highly skilled individuals who were encouraged to immigrate and remain in UK since 2002. The problem arose because government imposed a cap which affects migration in this c ategory. From April 2011, the Government has decided to impose a permanent restriction on skilled immigration replacing Tier 1 (General) category with a new 'exceptional talent' visa. Currently the Government has stopped accepting new applications from the people outside of the UK. (Highly Skilled†¦) There have been serious concerns on levels of immigration after the worldwide economic downturn in 2008. The UK imposed no cap on immigration from the previous Eastern Bloc Countries that joined the EU in 2004. There has been a significant growth in Eastern European migration at the expense of non EU migration. Total immigration between the year 2004 and 2010 can be observed in below mentioned illustration. Surprisingly, it was highest in the year 2005. The year 2009 and 2010 do not show any drastic increase in immigration population so as to make any serious concern and any unemployment issue for locals cannot be seen having any linkages to any increase in immigrant population. To tal long-term international migration estimates, UK, 2000–2010 Source: ONS, Long-Term International Migration Statistical Bulletin–Migration Statistics, Page 5 In fact, non EU migrants have got the biggest hit owing to Government efforts to quell public concerns over immigration. Because of the EU Law, government is not in a position to restrict immigration from EU Countries and what UK needs is the migration of highly skilled workers from non EU countries. The UK Government has declared a permanent ceiling of 21,700 on skilled immigration to be applicable in April 2011. Further, investors, entrepreneurs, and 'exceptionally talented' individuals will get entry under Tier 1 and Tier 2 will be restricted to graduate level occupations. Entrepreneurs and investors will have no restriction whatsoever that can come to the UK with certain net worth. It will be pertinent to note that in 2009, UK issued 50,000 visas to non-EU citizens under Tier 1 category. Present cap of 21,70 0 visas in the highly skilled category is a substantial cut if seen from the perspective of visas issued in the year 2009. Shortage of Skilled Workers It will be interesting to see what business leaders say about the shortage of skilled workers. Ignacio Galan, the owner of Scottish Power Ltd has shown apprehension that UK’s plan to improve power-generation and to embark on renewable energy projects will be seriously hampered by the shortage of engineers.