Payrolled employments by nationality
Yiqiao Chen, August 2025
This briefing shows the number and share of payrolled employments held by UK, EU and Rest of World nationals living in London from July 2014 to December 2024, based on the HM Revenue and Customs Pay As You Earn (PAYE) and Migrant Worker Scan data.
Payrolled employment is a measure of jobs registered on PAYE, whether full-time or part-time. In this analysis, “employments” refers to the total number of payrolled employments held by London residents, not individual workers.
Nationality is based on the status recorded by individuals when they first registered for a National Insurance number as adults.
The three main nationality groups in this analysis are:
UK: the four countries of the United Kingdom: England, Wales, Scotland and Northern Ireland
EU: the 27 European Union member states
Rest of World (RoW): all other countries (excluding the UK and EU member states)
Please note: These figures are not directly comparable with total jobs numbers estimated from other sources. Commuters into London and self-employed jobs are not included in this analysis. For more on definitions, see the data note below.
Data note
HM Revenue and Customs (HMRC) has published statistics on payrolled employments in the UK by region, industry and nationality with data on the period from July 2014 to December 2024. This article explores some of the key trends for London.
Payrolled employment counts are a measure of payrolled employee jobs. A single employee may have multiple employments. Values for employee jobs are calculated based on the proportion of each month in which the employment was being worked.
Please note, the payrolled employment counts used in this article cannot be:
directly compared with payrolled employee numbers – payrolled employees can have multiple payrolled employments, so employment counts follow the same trend as employee counts, but will be higher.
directly compared with total jobs numbers – these statistics only include employments from the PAYE system, they do not include employments from non-payrolled sources such as self-employment.
used as a count of monthly or annual migration to the UK or London, or to show the number of non-UK nationals who are currently living in the UK or London.
Nationality breakdowns are determined using HMRC’s Migrant Worker Scan. Nationality is defined as that reported by individuals when they register for a National Insurance number through the adult National Insurance number registration process. This process records one nationality per individual at the point of registration. Subsequent naturalisation (to UK citizenship), other changes in nationality and multiple nationalities are not recorded.
The data has not been seasonally adjusted.
Key points
Non-UK nationals accounted for 42% of payrolled employments in London in December 2024, up from 35% in December 2014.
In December 2024, 707,000 employments in London were held by EU nationals, down from a peak of 846,000 in 2019.
Employments held by RoW nationals have grown sharply since 2021, reaching 1.3 million at the end of 2024.
The balance between EU and RoW national employments shifted further in 2024. The number of employments held by EU nationals declined by 34,000 (5%) while RoW employments increased by 77,000 (6%).
Migrant workers in London make up a greater share of employments in Hospitality, Administrative and Support Services industries and Health and Social Work compared to other industries. Some employers in these industries have reported labour shortages.
Note: policy changes
This release refers to key dates relating to EU exit and the coronavirus (COVID-19) pandemic. These dates are:
23 June 2016: the UK held a referendum and 52% of those who voted chose to leave the EU.
31 January 2020: the UK left the EU and entered a transition period.
23 March 2020: the first COVID-19 lockdown was announced and the Coronavirus Job Retention Scheme was introduced.
31 December 2020: the transition period ended and the UK left the EU single market and customs union. Free movement between the EU and the UK ended.
1 January 2021: the UK introduced a new points-based immigration system.
1 February 2022: ‘Care workers and home carers’ were eligible for Health and Care Worker visa.
January to May 2024: the UK’s revision of the points-based immigration system came into force. Amongst the main changes: a ban on care workers bringing dependents on their visas; an increase in the salary threshold for job offers to non-UK nationals (from £26,200 to £38,700); a rise in the minimum income requirement for family visas (from £18,600 to £29,000); and the replacement of the Shortage Occupation List with the Immigration Salary List.
12 May 2025: the Immigration White Paper to reshape immigration system was published. Changes included the closure of the care visa route, new restrictions on the Skilled Worker visa, a shortened Graduate visa, and the abolition of the Immigration Salary List.
Overview
Migrant workers – people who were non-UK nationals when they first registering for a national insurance number – continue to play a key role in London’s labour market. The composition of non-UK workers has been evolving, particularly during key periods.
In December 2024, there were 4.7 million payrolled employments in London, comprising:
58% or 2.7 million UK nationals, a fall of 35,000 from December 2023.
15% or 708,000 EU nationals, a decrease of 34,000 from December 2023. EU national employments peaked at 846,000 in November 2019, with declines following the COVID-19 outbreak and the end of free movement between the UK nd EU.
27% or 1.3 million RoW nationals, up 77,000 from December 2023. The number of RoW nationals has risen rapidly since 2021, following the introduction of the UK’s new points-based immigration system.
Non-UK employments over time
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live. Vertical lines indicate key
events: the Brexit vote (June 2016), start of lockdowns (March 2020),
end of free movement (January 2021), and the immigration system reforms
(January 2024)
Payrolled employments by regions
London stands out for its high share of payrolled employments held by non-UK nationals, though other UK regions have also seen increases over time.
The share of payrolled employments held by non-UK nationals (42%) living in London in December 2024 was more than double the overall share for the UK (20%).
Across the UK as a whole (including London), 7% of employments were held by EU nationals and 12% were held by RoW nationals in December 2024.
The region after London with the highest share of non-UK workers was the South East, at 20%.
Migrant workers are more important to London’ economy than to the rest of the UK, but their role has also grown in other regions over time.
During 2024, the percentage increase in the number of employments held by RoW nationals was higher for the UK overall (+11%) than in London (+6%), whereas the decline in employments held by EU nationals was greater in London (-5%) than across the UK as a whole (-3%).
London’s share of total UK payrolled employments held by non-UK nationals has been falling steadily over the past decade, from 39% in July 2014 to 32% in December 2024.
Changes in 2024
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live.
Payrolled employments by industry
Non-UK nationals are more strongly represented in some industries than others. In December 2024, non-UK nationals accounted for three in five hospitality employments held by London residents, compared to less than one in five in public administration.
The industries with the largest shares of EU employments in London are Construction (27% of all employments), Hospitality (24%), and Manufacturing (20%).
RoW employments are most common in Hospitality (39%), Health and Social Work (37%) and Administration (34%).
Most industries saw a decline in employments held by EU nationals and a rise in employments held by RoW workers during 2024.
However, despite this change, the annual growth rate for employments held by RoW nationals slowed across all industries (except for Public Administration and Defence) compared to the rapid growth seen from 2021 to 2023.
Changes in 2024
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live.
Key industry spotlight
This section focuses on four industries where employers have
reported skill shortages in recent years. These industries vary in the
types of occupations they offer, the skills they require, and their
reliance on non-UK labour.
- Health and Social Work:
The total number of employments rose from around 423,000 in 2014 to 602,000 at the end of 2024. The rising trend has been accelerating since early 2020, driven by an increase in RoW workers following the relaxation of visa rules for the sector. Employments held by RoW nationals rose from 28% of the sector total in December 2019 to 37% in December 2024.
- Education:
Total payrolled employments increased from approximately 382,000 in 2014 to 425,000 in December 2024. Growth over the decade has been relatively modest and largely driven by UK nationals. The shortage of education staff may be more related to difficulties in attracting British workers than to a lack of migrant workers, as this sector heavily relies on UK nationals.
- Construction:
Total payrolled employments increased from around 112,000 in 2014 to 153,000 by the end of 2024. Growth was stronger before 2020 but has remained relatively flat since. This sector relies heavily on EU nationals, whose number of employments declined from a peak of 30% in April 2021 to around 27% in December 2024.
- Hospitality:
The total number of employments rose from around 358,000 in 2014 to 440,000 in December 2024, after hitting a low of 302,000 in early 2021. Lockdowns and the end of free movement led to big job losses, particularly among EU workers, who accounted for 41% of total employments in early 2020 but only 24% in December 2024. A sharp rise in RoW employments from 25% in early 2021 to 39% by the end of 2024 has more than offset the loss of EU employments.
Note: relevant policy change in detail
In Health and Social Work, Construction, and Education, shortages led to the inclusion of certain roles on the UK Government’s Shortage Occupation List between 2020 and 2023. As such, they benefited from looser visa requirements to recruit non-UK workers for these employments, compared to the general rules.
The Hospitality sector, although not included on the 2020 shortage list, was significantly impacted by the COVID-19 lockdowns, with employers struggling to attract workers.
Since 2024, the UK’s immigration policy has undergone substantial reform aimed at reducing net migration. In April 2024, the new Immigration Salary List replaced the Shortage Occupation List, removing the ability for employers to pay migrant workers less than their UK counterparts in shortage roles. Additional restrictions were also introduced to limit the recruitment of overseas care workers and to ban dependents of care workers. In 2024, the number of visas granted to people moving to the UK fell sharply, mainly due to significant fewer Health and Care Work visas.
In May 2025, a new White Paper on the immigration system outlined further changes to work visas. These include the closure of the care visa route, new restrictions on the Skilled Worker visa, a shortened Graduate visa, and the abolition of the Immigration Salary List. The changes are expected to have impacts on the numbers of migrant workers, particularly the Health and Social Work and Hospitality.
Education
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live. Vertical lines indicate key
events: the Brexit vote (June 2016), start of lockdowns (March 2020),
end of free movement (January 2021), and the immigration system reforms
(January 2024)
Construction
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live. Vertical lines indicate key
events: the Brexit vote (June 2016), start of lockdowns (March 2020),
end of free movement (January 2021), and the immigration system reforms
(January 2024). The nationality mixes are consistent with findings from
GLA Economics’ analysis of London’s priority sectors (see here).
Hospitality
Source: HM Revenue and Customs – Pay As You Earn Real Time Information
(non-seasonally adjusted) and Migrant Worker Scan.
Note:
Estimates are based on where employees live. Vertical lines indicate key
events: the Brexit vote (June 2016), start of lockdowns (March 2020),
end of free movement (January 2021), and the immigration system reforms
(January 2024). The nationality mixes are consistent with findings from
GLA Economics’ analysis of London’s priority sectors (see here).
Implications
Migrant workers have long contributed more to London’s economy than in other parts of the UK. The capital’s diverse and dynamic labour market has attracted a significant number of non-UK workers, both from the EU and from the rest of the world.
Evolving immigration policies have significantly influenced the number of non-UK workers in London. The end of free movement for EU nationals and the introduction of a points-based immigration system have led to a substantial decline in payrolled employments held by EU workers. In contrast, between 2021 and 2023, the immigration system became less restrictive for RoW nationals, which enabled a sharp increase in employments. Although RoW workers have offset the loss of EU workers in many industries, industries like Construction remain heavily reliant on EU nationals, making it vulnerable to labour shortages.
Since 2024, as immigration rules have tightened for lower-income migrant workers (particularly for social care workers) and the labour market has eased, the annual growth rate of employments held by RoW nationals living in London has begun to slow across all industries, with sharper declines in Health and Social Work and Hospitality.
Looking ahead, further changes to immigration policy outlined in the new White Paper are expected to reduce inflows across most worker categories, except for “high talent” migrants. These measures increase the risk of labour shortages in industries heavily reliant on migrant workers. According to the Migration Observatory, the care sector is likely to be most affected, with the new rules making it increasingly difficult for employers to fill vacancies. Other occupations, including food preparation roles in the hospitality industry and similarly middle-skilled jobs, may also face growing recruitment challenges.