The Migration Advisory Committee (MAC) expects net migration to halve again to 200,000 in the next year due to a weakening job market.
MAC chairman Professor Brian Bell attributes the fall to a decline in non-EU workers and students, and anticipates a further drop in work visas.
ONS data indicates a decrease in available jobs and a rise in unemployment, suggesting firms are hesitant to recruit.
MAC says that changes in Labour’s immigration policies, including raising the skills threshold for work visas, will likely impact the hospitality and retail sectors, while a ban on care workers bringing family members into the country is reducing health and care worker visas.