Net migration in the year ending September 2017 hit a similar level to early 2014 with 244,000 more people coming to the UK than leaving.
This is down 29,000 on the net migration figure for the year to September 2016.
EU net migration has fallen over the last year, as fewer EU citizens are coming to the UK and the number leaving the UK increased, according to the Office for National Statistics (ONS). However, there are still more EU citizens coming to the UK than leaving.
In January it was revealed the number of European workers in the City had hit its highest level on record, with ONS showing nearly a fifth (18 per cent) of the City's workers came from the European Economic Area (EEA) in 2016.
Meanwhile, non-EU net migration increased over the last year. The UK granted asylum, alternative forms of protection or resettlement to almost 15,000 individuals last year, 40 per cent of who were under 18 years of age.
What the ONS said
"Looking at the underlying numbers we can see that EU net migration has fallen as fewer EU citizens are arriving, especially those coming to look for work in the UK, and the number leaving has risen. It has now returned to the level seen in 2012," said Nicola White, ONS Head of International Migration Statistics.
"The figures also show that non-EU net migration is now larger than EU net migration, mainly due to the large decrease in EU net migration over the last year. However, migration of both non-EU and EU citizens are still adding to the UK population.
"Brexit could well be a factor in people's decision to move to or from the UK, but people’s decision to migrate is complicated and can be influenced by lots of different reasons."
Shrinking talent pool
Tej Parikh, senior economist at the Institute of Directors, said: "The decline in long-term migration will compound businesses’ concerns over their access to labour at a time when the labour market is particularly strained.
"Today’s data show that annual net migration to September 2017 fell by 29,000 to 244,000 compared with the year before. Some of this has been driven by a decline in the number of EU citizens coming in search of work, as well as a pick-up in the number of people from the bloc leaving the UK. With vacancies at an all-time high and unemployment at a historic low, companies are scrambling for shrinking pool of talent."
Parikh said a potential skills shortage would "bite SMEs the hardest, who lack the capacity to navigate the bureaucratic visa process in order to attract the workers they need".
"The government must help businesses retain access to the human resources they need through migration and skills reform. The Home Office must also do more to streamline its visa application processes, while the apprenticeship system needs to be made more flexible to give businesses access to the people they require today," he added.
"With Cabinet ministers meeting at Chequers today to discuss the UK’s future relationship with the EU, they must also make sure one of their immediate priorities is to reassure EU citizens about their status, to halt the outflow of skills."
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