HMRC have released a report, 'UK payrolled employments by nationality, region, industry, age and sex, from July 2014 to December 2023' which showed the total of payrolled jobs in the UK increased by 1%, from 31.7 million to 32.0 million over the past year.
The report uses HMRC PAYE information, Real-Time Information (RTI) data and HMRC’s Migrant Worker Scan (MWS). This analysis excludes non-payrolled sources such as Self-employment.
It's important to note that HMRC admits the definition of nationality may be confusing. The system only records a single nationality at the point of receiving a National Insurance number and is not updated if an individual subsequently changes nationality or citizenship.
Some non-UK nationals in these statistics will have been granted settled status or naturalised as British citizens. Therefore, the non-UK national figures presented in this release will be higher than the true counts. This will have a greater impact on non-EU national counts, as a higher proportion of non-EU nationals gain British citizenship each year (non-EU nationals represented 77% of total citizenship grants in the year ending September 2023).
The report uses the term 'employments' which loosely translates to jobs or workers.
The headline figures between December 2022 and December 2023 for total payrolled 'employments' in the UK show:
- UK nationals decreased by 145,600 (1%).
- EU nationals decreased by 78,100 (3%).
- Non-EU nationals increased by 580,400 (20%).
Payrolled employment of EU nationals:
- Decreased in all regions; the largest decrease was in London, of 30,400 (4%).
- Decreased in most sectors; the largest decrease was in administrative and support services, of 31,400 (8%).
- Decreased in each of the under-35 age groups and increased in each of the 35 and over age groups; the largest change was a decrease of 73,500 (10%) in the 25 to 34 age group.
Payrolled employment of non-EU nationals:
- Increased in all regions; the largest increase was in London, of 122,700 (12%).
- Increased in all sectors; the largest increase was in health and social work, of 200,000 (31%).
- Increased in all age groups; the largest increase was in the 25 to 34 age group, of 255,400 (32%).
Change in payrolled workers by nationality and region between December 2022 and December 2023
Jobs by nationality and industrial sector
Health and social work sector
In December 2023, health and social work was the largest sector in the UK, with 4.7 million jobs. This accounted for 15% of total payrolled workers in the UK.
Compared to total payrolled employment counts, the proportion of employment in health and social work held by non-UK nationals was higher in every region. The South East had the largest difference, with 28% of workers in health and social work held by non-UK nationals, compared to 19% of total employment.
Between December 2022 and December 2023, jobs in health and social work increased by 213,300 (5%) with jobs of UK nationals stable in all regions.
Employment of non-EU nationals increased in all regions. London had the largest absolute increase, of 30,700 (18%). The North East had the largest proportional increase, of 7,200 (48%).
Manufacturing sector decreases
In December 2023, there were 2.4 million (7%) payrolled workers in manufacturing. Of these, 82% were of UK nationals, 12% were of EU nationals and 6% were non-EU nationals. Overall the number of jobs in manufacturing decreased by 27,600 (1%).
In December 2023, the North West had the highest number of jobs manufacturing, at 297,400. Of these, 14% were of non-UK nationals.
London had the highest proportion of non-UK national workers, comprising 21% EU and 24% non-EU national jobs. There were more employments of EU nationals than non-EU nationals in every sector outside of London.
Employment of UK and EU nationals decreased in all regions, while employment of non-EU nationals increased in every region.
To see the full figures by region, age group and sector see the full report.
Useful guides on this topic
RTI: Real-Time Information for PAYE
What is RTI: Real-Time Information (RTI) reporting for PAYE? How does it work?
HMRC-recognised payroll software
HMRC have updated their list of free and paid-for recognised payroll software used to report PAYE online. HMRC emphasise that they do not recommend one product or service over another and they are not responsible for any problems you have with the software you’ve bought.
Payrolling of benefits
The value of certain taxable Benefits In Kind can be included in taxable pay when calculating the PAYE deducted from payments of wages and salaries to employees.
External links
HMRC Official Statistics: UK payrolled employments by nationality, region, industry, age and sex, from July 2014 to December 2023
