Statistics for Public Policy Forum 6 November 2015 1 The changing UK population Neil Park Neil.Park@ons.gov.uk 2 Structure 1. 2. 3. 4. 5. The UK population in 2014 How did we get here? What will the population be like in the future? Some implications for policy Closing thoughts 3 Demographic challenges • Sustained and continuing population growth • Uneven population growth (geographical/age/ethnicity/over time) • The ageing population – increasing life expectancy combined with “baby boomers” leaving working age population • Life expectancy v healthy life expectancy • Migration leading to increased population diversity 4 The UK population in 2014 • Mid-year estimate was 64.6 million • An increase of 0.8% on 2013 and 2% on 2011, 9.3% on 2001 • Population aged 15 and under = 18.8% • Population aged 16 to 64 = 63.5% • Population aged 65+ = 17.6% • Dependency ratio (dependents/working age) = 614 per 1000 5 Population by age and sex: now and historical (UK) UK, 2014 2001 Population U16 = 20.0% Population aged 16 to 64 = 64.0% Population aged 65+ = 15.8% Dependency ratio (dependents/working age) = 623 per 1000 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 600 600 400 400 Females - 2001 200 0 Males - 2001 200 Males 400 Females 600 Thousands Source: Mid-year estimates, Office for National Statistics 6 Population by age and sex: now and historical (UK) • Cohort comparison • Estimates for 2001 “aged on” to 2014. • Shows mortality for older ages. • Net international migration for working ages • Births/migration for those under 12 UK, 2014 Age 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 600 600 400 400 Females - 2001 200 0 Males - 2001 200 Males 400 Females 600 Thousands Source: Mid-year estimates, Office for National Statistics 7 What’s been driving population growth? Thousands Thousands 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 -100 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 -100 Births Deaths Natural change Source: Office for National Statistics Immigration Emigration Source: Office for National Statistics Net-migration 8 Natural change/migration interdependence • International migrants are often young adults • Young adults are fertile • Net inflows lead to an increase in births, net outflows a decrease (potentially). Thousands 800 700 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 Uk born mother 2008 2009 2010 2011 2012 Non UK born mother 2013 2014 9 Ethnic composition of population by age, England and Wales, 2011 % of age group 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 to 4 5 to 9 10 to 15 to 20 to 25 to 30 to 35 to 40 to 45 to 50 to 55 to 60 to 65 to 70 to 75 to 80 to 14 19 24 29 34 39 44 49 54 59 64 69 74 79 84 White-British Mixed/multiple ethnic group Black/African/Caribbean/Black British White-Non British Asian/Asian British Other ethnic group 85 and over Source: 2011 Census, Office for National Statistics 10 Ethnic composition of population, England and Wales, 2001 % of age group 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 to 4 5 to 9 10 to 15 to 20 to 25 to 30 to 35 to 40 to 45 to 50 to 55 to 60 to 65 to 70 to 75 to 80 to 14 19 24 29 34 39 44 49 54 59 64 69 74 79 84 White-British Mixed/multiple ethnic group Black/African/Caribbean/Black British White-Non British Asian/Asian British Other ethnic group 85 and over Source: 2001 Census, Office for National Statistics 11 Distribution of ethnic groups across England and Wales, 2011 Millions 10 9 8 7 6 5 4 3 2 1 0 North East North West Yorkshire and The Humber East Midlands Other ethnic group Asian/Asian British White: Other (inc Irish) Source: 2011 Census, Office for National Statistics West Midlands East London South East South West Wales Black/African/Caribbean/Black British Mixed/multiple ethnic groups White: British 12 Population change at Local levels % Population change 2001-2014, local authorities in United Kingdom 50% 40% North East North West Yorkshire and The Humber 30% East Midlands West Midlands East of England 20% London South East South West Wales 10% Scotland Northern Ireland United Kingdom 0% -10% Source: Mid-year estimates, Office for National Statistics 13 How will the population change in the future? • Population projections • Take a base year (2014) • They are based on assumptions about future fertility, mortality and net migration derived from analysis of recent demographic trends. These assumptions are judged to be the best that could be made at the time they are adopted. • Alternative ‘variant’ projections also produced, high/low fertility, mortality, migration. 14 The population: now, in the past and in the future (UK) Millions 90 2039, 74.3m 80 70 2014, 64.6m 2001, 59.1m 60 1961, 52.8m 50 40 30 20 10 0 1961 1966 1971 1976 1981 1986 Variant range 1991 1996 2001 2006 Population estimates 2011 2016 2021 2026 Principle projection Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics 2031 2036 2039 15 Understanding “uncertainty” in population projections Thousands 1,200 1,000 800 600 400 200 0 0 5 10 15 20 25 Variant range, 2039 30 35 40 45 50 55 60 65 Age 2014 Population estimate 70 75 80 85 90 95 Principle projection 2039 Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics 100 105 110 115 120 125 Zero net migration 16 Population by age and sex, now and projection for 2039 Population 2014 Population 2039 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 600 400 200 Males 0 200 Females 400 600 Thousands 600 400 200 0 Males 200 Females 400 600 Thousands Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics 17 Projected population growth (%) for countries and regions of the UK 30% London 25% 20% 15% 10% North East 5% 0% English regions Change between 2012 and England Wales Scotland Northern Ireland 18 Source: Mid-year estimates and 2012 Sub-national Population Projections, Office for National Statistics UK Population to grow: short term falls in some age groups Percentage difference from 2014 160 137% 140 120 100 80 60 40 20 33% 4% 15% 9% 9% 9% 16% 18% 10% 7% 1% 0 -1% 6% 11% -3% -6% -9% -20 All 3&4 5 to 11 12 to 15 2020 16 to 17 18 to 21 Working age SPA 85+ 2039 Note: These figures take into account the change in State Pension Age under existing legislation . Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics 19 The ageing population • Population aged 65+ projected to increase by 58% by 2039 • Population aged 85+ projected to increase by 137% by 2039 • Population aged 16-64 to increase by 4.8% • Dependency ratio is increasing. • Increases in state pension age to mitigate this • Encouraging older people to remain in work • Consider the effect of international migration 20 Dependency ratio: change over time under different scenarios Dependencyratio (dependents/working age*1000) 800 700 1982: 659 2039: 666 2014: 614 2001: 623 600 2028: 598 500 400 300 200 100 0 1982 1986 1991 1996 2001 2006 2011 High/low mig 65+ Estimates Principle (67+) Policy (67 by 2028) 2016 2021 Principle (65+) 2026 2031 2036 2039 Principle (66+) Principle (68+) 21 Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics Life expectancy, increased in the past, projected to increase further Life expectancy at birth 100 90 80 2039,84m, 87f 2014, 79m, 83f 70 1980-2, 71m, 77f 60 50 40 30 20 10 0 1980-1982 1985-1987 1990-1992 1995-1997 Males 2000-2002 Females 2005-2007 2010-2012 Males (projected) 2017 2022 2027 2032 2037 Females (projected) 22 Source: Office for National Statistics Life expectancy and healthy life expectancy (at birth), 2009-11 HLE as proportion of LE (%) United Kingdom 66.1 16.3 80.2 Great Britain 66.2 16.2 80.3 England 66.4 16.3 80.3 Wales 65.3 16.7 79.6 Scotland 65.4 15.3 81.1 Northern Ireland 61.9 United Kingdom 64.2 14.2 81.9 Great Britain 64.4 14.1 82.1 England 64.7 14.0 82.2 Wales 63.2 Scotland 61.6 Northern Ireland 58.6 Females Males 0 19.9 75.7 14.6 81.2 14.6 80.8 18.8 10 20 30 40 50 Life expectancy in years Years in good health 60 75.7 70 80 90 Years not in good health 23 Source: Office for National Statistics Healthy life expectancy at a local level • Healthy life expectancy below SPA across most of the country for males, 2011-2013 Age 80 70 Upper tier Local authorities in North East 60 North West 50 Yorkshire and The Humber East Midlands West Midlands 40 East London 30 South East South West SPA (65) 20 10 24 0 Change in population, households and dwellings Annual change Thousands England, change over time, 2001-2037 500 450 400 350 300 250 population households 200 dwelling stock 150 100 50 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 0 Note: dashed lines are projections Source: Mid-year estimates and National Population Projections, Office for National Statistics; Household estimates and projections & Dwelling stock, Department for Communities and local government 25 Coherence between Population and dwelling stock change, 2001-2014 Change in population 25% (%) 20% 15% 10% 5% 0% -5% 0% -5% Change 2001-2008 5% 10% 15% 20% 25% Change in dwellings (%) Change 2009-2014 London 2009-2014 Linear (Pop growth=Dwelling growth) Source: Mid-year estimates, Office for National Statistics; Dwelling stock, Department for Communities and local government 26 Demographic challenges • Sustained and continuing population growth • Uneven population growth (geographical/age/ethnicity/over time) • The ageing population – increasing life expectancy combined with “baby boomers” leaving working age population • Life expectancy v healthy life expectancy • Migration leading to increased population diversity 27 Questions • Thank you 28 International migration: A closer look Paul Vickers Head of Population Outputs Office for National Statistics 6 November 2015 29 International migration time-series Source: ONS, Long-Term International Migration and International Passenger Survey 30 International migration time-series 31 Who is immigrating to the UK? For every 100 immigrants to the UK... 14 are British citizens 20 are ‘EU15’ citizens (e.g. France, Spain, Italy, Germany) 12 are ‘EU8’ citizens (e.g. Poland) 9 are Romanian or Bulgarian 44 are citizens from outside the EU International Passenger Survey, provisional estimates year ending March 2015 32 Immigration by citizenship Source: ONS, Long-Term International Migration 33 Main reason for immigration Per cent 100 90 80 70 60 Other 50 Accompany/Join 40 Formal study Work related 30 20 10 0 YE Jun 05 YE Mar 15p Total Source: ONS, Long-Term International Migration YE Jun 05 YE Mar 15p Non -EU YE Jun 05 YE Mar 15p EU 34 Political and public agenda • Reduce net migration to tens of thousands • Majority of EU citizens immigrate for work • Over half of non-EU citizens immigrate for study • Can only be controlled by restrictions for non-EU citizens • EU referendum • Depending on the outcome could allow more restrictions for migration 35 Impact of international migration 1 • Labour market • International students • Population growth e.g.: • Housing • Transport • Local areas are affected differently • Economic performance 36 Labour market: Definite job or looking for work by citizenship Source: ONS, International Passenger Survey 37 Labour market: Work-related immigration by previous occupation Professional & Managerial Per cent Manual & Clerical Other 100 90 80 70 60 50 40 30 20 10 0 EU Non-EU EU 2010 Source: ONS, International Passenger Survey Non-EU 2011 EU Non-EU 2012 EU Non-EU 2013 EU Non-EU 2014 38 Labour market: Skilled work visa applications by industry sector Source: Home Office, Immigration Statistics 39 Labour market: Workers in different industry groups by nationality Thousands The nationality of workers in employment in the UK by industry sector, 2007 and 2014 2007 2014 UK Nationals EU15 EU8 & EU2 Non-EU UK Nationals EU15 EU8 & EU2 Non-EU Agriculture 286 3 5 2 346 4 17 3 Energy & Water 451 6 5 14 497 7 14 19 Manufacturing 3,276 58 103 105 2,631 56 189 79 Construction Distribution, hotels & restaurants 2,415 35 55 49 1,999 32 112 50 4,974 93 107 271 4,976 145 270 266 Transport & communication 2,525 49 39 128 2,342 71 96 139 Banking & finance Public admin, education & health 3,924 111 48 214 4,553 171 128 217 7,745 137 38 328 8,439 202 109 329 Other services 1,445 30 24 61 1,583 44 45 70 27,041 523 425 1,171 27,365 732 980 1,172 Industry sector Total Source: Annual Population Survey 40 Labour market: Workers in different industry groups by nationality, 2014 UK Nationals1 Non-UK Nationals2 Agriculture, foresty and fisihng 346 24 Mining and quarrying 127 16 2,631 324 Electricity, gas, air cond supply 171 12 Water supply, sewerage, waste 198 13 Construction 1,999 194 Wholesale, retail, repair of vehicles 3,707 354 Transport & storage 1,299 170 Accommodation and food services 1,269 327 Information and communication 1,043 136 Financial and insurance activities 1,079 114 319 18 Prof, scientific, technical activities 1,942 199 Admin and support services 1.212 185 Public admin and defence 1,782 70 Education 2,971 207 Health and social work 3,685 362 Arts, entertainment and recreation 745 60 Other service activities 751 70 Households as employers 54 19 Extraterritorial organisations 33 10 27,365 2,883 Industry sector Manufacturing Real estate activities Source: Annual Population Survey Total 41 International students: Contribution to the UK economy • Latest HESA data shows 19% of students are non-UK nationals (non-EU 14% & EU 5%) • Flows of international students show: • 188,000 people immigrated to the UK for study in YE March 2015 • Of these 72% were non-EU citizens 42 International students: Immigration for study by institution Source: Home Office, Immigration Statistics 43 International students: UK Population, short term falls in some age groups Percentage difference from 2014 160 137% 140 120 100 80 60 40 20 33% 4% 15% 9% 9% 9% 16% 18% 10% 7% 1% 0 -1% 6% 11% -3% -6% -9% -20 All 3&4 5 to 11 12 to 15 2020 16 to 17 18 to 21 Working age SPA 85+ 2039 Note: These figures take into account the change in State Pension Age under existing legislation . Source: Mid-year estimates and 2014 National Population Projections, Office for National Statistics 44 Population growth: The effect of net migration, UK, 2039 45 Impact of international migration is regional 46 Economic performance: Impact on emigration Source: ONS, Long-Term International Migration 47 Impact of international migration 2 • Impact on services e.g.: • schools • health • benefits • Economic impact e.g.: • economic growth • tax receipts for public services • local and national 48 Challenges • Improving the evidence base to improve knowledge of impact: • Administrative data source • Migrant survey • Improve communication of latest statistics for policy makers 49 Discussion • Policy impacts of international migration • Understanding what policy makers questions are • Engaging with policy makers 50 Population statistics for the future Better Statistics, Better Decisions Sarah Crofts Making better use of existing data The future of populatio n statistics Improvin g data to ‘fill the gaps’ Better statistics Better decisions Where are we now? Analysis 53 What we want : Better decisions • Our strategy is to be more helpful to provide statistics and analysis to inform policy decisions • We meet regularly with analysts in government departments, but we could do more • There are gaps in understanding on the effects of population change on the economy, housing, demand for local services and social cohesion Examples of policy area questions Elderly – hospital / care needs Childcare Housing Jobs and employment Older Workers Schools Jobs for young people / university / apprenticeships Economic impact of migrants and international students What we want: Better statistics • More frequent, cheaper and improved statistics can provide better information for policy – means better decisions • Dependent upon Good understanding of requirements, including policy need Access to administrative data Developments in administrative data to ensure it is fit for statistical purposes Example - the contribution of migration to the changing population Lighter shade is net migration component of population change • Currently based on the International Passenger Survey – provides good national level estimates, but there are gaps: Local level migration analysis difficult Based on intentions to migrate Illegal migration (non-EU not leaving when visas expire) • Administrative data can help to fill these gaps Examples of administrative data to better understand migration • New HO exit check data – still under development • DWP and HMRC data can be used to identify economically active migrants. Can also identify economic benefits of migration. • Higher Education Statistics Agency data could provide more information on student migration • NHS data 58 How do we get there? • Ideally, data sources would be linked together • For example, New Zealand has launched its ‘Integrated Data Infrastructure’ (means bringing data sources together in one place) Health Families Education Migration Households Crime Welfare Statistics NZ Surveys Census since 1981 Tax Employment ‘Super File’ The journey • Getting access to data is not easy. Better access to data sources would mean more efficient, better statistics • Administrative systems not set up for statistical purposes, for example - Different definitions - Linking can be difficult - Timing issues And when we are there? • Frequent, high quality data will be available to support decision making in key policy areas, such as housing, education, migration and health • People come to ONS first for data and analysis on population statistics • Existing data sources are improved for statistical purposes • New data sources would be set up with statistical benefits in mind New outputs Better accessibility Making better use of existing data The future of populatio n statistics More analysis Improvin g data to ‘fill the gaps’ Better statistics Better decisions Understanding requirements Accessing new data Developing data sources Questions for the forum What are the big questions that ONS population statistics will need to answer? Now? In the near future? In the Longer term?