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Britain Cuts Skilled Work Permits by 20% as Unemployment Rises

By Kitty Donaldson

Nov. 11 (Bloomberg) -- Prime Minister Gordon Brown's government said it will cut by 20 percent the number of visas it issues for skilled workers to enter Britain as unemployment gains the most since the end of the last recession.

The Home Office said it will issue 800,000 work permits under a section of its new Australian-style visa system that begins on Nov. 27 for skilled workers. That's down from 1 million spots open under the old system being phased out to clamp down on migrant flows.

Brown's Labour government is under pressure to crack down on immigration after record inflows since 2004. Today's decision comes on the eve of a report likely to show the number of people receiving unemployment benefits probably rose 40,000 last month, the most since 1992.

``Had the points-system been in place last year, there would have been 12 percent fewer people coming to work through the equivalent route,'' said Immigration Minister Phil Woolas.

The government also said it was trimming the list of jobs that Britain doesn't have enough skilled workers to fill. Workers outside the European Union must show either that they have skills to perform those jobs or that they have sponsorship from an employer who can show a British resident can't be found.

Mangers of big construction projects, civil engineers, physicists, geologists, meteorologists, chemical engineers, doctors and dentists are among the groups where labor is short, according to the government's list.

Migrant Flow

The U.K. is trying to reduce the inflow of immigrants after the arrival of more than 500,000 annually for the past five years. The record numbers since the Labour government took office 11 years ago have put a strain on schools, police and hospitals.

Today's changes are part of the biggest revamp of immigration rules in Britain since the 1950s, when the nation opened its doors to attract low-skilled workers needed to fuel the post-World War II economy.

Britain also needs biological scientists, therapists, high school teachers of math and science, quantity surveyors, nurses, skilled ballet dancers, skilled sheep shearers, jockeys and social workers.

Employers seeking to hire a migrant worker who is not on the government's list of shortage occupations must meet the so- called resident labor market test. They must show that no suitably qualified settled worker can fill the job by advertising the vacancy before it is filled.

Rules Reworked

The U.K. is replacing a labyrinth of 80 separate categories under which immigrants could apply for a visa with a five-tier, points-based system. It gives credit for education and previous wages, not for accomplishment in life or potential.

Tier 1, which opened in February, is aimed at doctors, academics, computer experts and bankers. Today's list refers to Tier 2 workers, covering employees with job offers and temporary workers. Tier 4 for students begins in March 2009 and Tier 3, for low skilled workers, possibly after that. Tier 5, for temporary workers, begins later this year.

Responding to concerns about a shortages of specialist cooks, the U.K. said today it will allow in chefs from outside the EU, provided they earn more than 8.10 pounds ($12.61) per hour. Care assistants from outside the EEA must earn more than 8.80 pounds per hour to qualify for a visa.

Last Updated: November 11, 2008 11:57 EST

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