Did a million migrants leave the UK during the pandemic? Or was it many fewer?
🛫🚄⛴️
A thread…🧵
You’ve probably read the widely reported estimate from @jdportes and @StrongerInNos for @ESCoEorg in January that as many as 1.3 million people might have left the UK last year ...2/
So estimates have been scraped, instead, from the ONS’s Labour Force Survey (LFS) – a really big national survey of 40,000 households.
And LFS data has pointed to a massive drop in the non-UK born population since 2019 - around 894,000 (around 10%)....6/ ons.gov.uk/surveys/inform…
Because the ONS didn’t change their estimate of the overall UK population they had to pencil in a huge increase in their estimate of the *UK-born* population to make the numbers add up.
So they tried holding the UK-born population constant instead – a much more plausible scenario – and this gave the result of an even bigger drop in the non-UK born population of 1.3 million.
Hence the headlines about more than a million migrants leaving...8/
So there has been an exodus on that scale?
Not so fast, because the way the LFS has been collected has changed during the pandemic for safety reasons.
It used to be done face-to-face with householders, now it’s done researchers by phone...9/
The response rate has gone right down, from 40% before the pandemic to just 26% at the end of last year…10/
And the share of renters in the households being surveyed has also declined, down from 32% before the pandemic to 21%…11/
The @MigObs suspects, for various reasons, that those changes mean the number of migrants being reached might have fallen relative to previously and therefore have artificially skewed the LFS estimates of the size of non-UK population downwards...12/
The ONS also today released some analysis of HMRC payroll data which suggests a much smaller fall in the number of non-UK employees than implied by the LFS’s estimates...13/ ons.gov.uk/employmentandl…
So has the exodus been relatively small?
Again, not so fast, because payroll data only covers *employees* and many non-UK workers are in the informal/self-employed sector.
And it’s not *proven* that the LFS *has* artificially depressed the size of the non-UK population...14/
The bottom line?
There has almost certainly been some emigration of the non-UK born population.
But, unfortunately, we really can’t say with any confidence - at least as of yet - whether it’s a drop of a quarter of a million or a million and a quarter!...15/
UK unemployment rate edges down to 5% in three months to January according to ONS
Imagine a year ago if you'd told someone the economy would contract by 10% in 2020 but the official jobless rate would only rise by 1 percentage point - shows the power of furlough
...Though bear in mind that gravity has not kicked in yet in some respects in these figures.
The ONS survey suggests around 300,000 people are not furloughed & not being paid but still *say* they are employed - and are therefore counted as such by the ONS...
Are they *really* still employed?
Or would it be more realistic to assume that many of them (and most are in hospitality) are actually *unemployed*?...
Last week, alongside the January trade figures, the @ONS said:
“Despite the slow start for trade in January 2021, data from [its fortnightly Business Insights and Conditions Survey] suggests that importing and exporting began to increase towards the end of January.”...
A bit frustratingly it didn't show precisely which bits of survey data it was referring to in the release.
I've had time to dig around in the spreadsheets and contacted the survey compilers and the answer is...ons.gov.uk/economy/econom…
...That the share of UK firms reporting that they are exporting "as normal" has risen from 40.4% in January to 48.4% in February.
Meanwhile, the share of firms reporting that they have not been able to export at all has fallen from 20.2% to 11.2% 👇...
Bank of England Governor Andrew Bailey asked about implications of recent increase in Gilt yields on @BBCRadio4
Says: “Consistent with change in economic outlook”
i.e expectations of higher growth, rather than expectations of damaging inflation shock...
Bailey adds:
“Some rise in interest rates which is a reflection of stronger growth in the economy would make the overall debt situation in the long run more sustainable”.
Context: Gilt yields *are* up sharply this year - but note only up to pre-pandemic levels
Suggests normalisation, rather than market inflation panic...
Why *did* UK exports to the EU fall by 40% in January?
📈🚚
A thread..
Explanations from the government
-Covid lockdowns depressing export demand
-Stockpiling by firms ahead of end of Brexit transition
-“Adjustment” to new post-Brexit trade arrangements
...2/
Let’s take each in turn.
Covid lockdowns hitting demand?
Problems: demand for UK goods from *outside* the EU held up...2/
Is Test and Trace really the most wasteful public spending programme ever?
A thread…🧵
The @CommonsPAC report on the value for money and effectiveness of the £37bn Test and Trace programme is pretty damning.
& former top Treasury civil servant @nickmacpherson2 says it “wins the prize for the most wasteful and inept public spending programme of all time”...2/
But is this verdict justified?
Or have there, in fact, been more egregious squanderings of taxpayers’ money in the past?