The flow of Polish and other economic migrants from eastern Europe has fallen by more than 40% as the recession in Britain bites, according to the latest immigration figures published today.

The Office for National Statistics said the number of work applications from the EU's former communist countries dropped to 29,000 in the last three months of 2008, down from 53,000 in the same period in 2007.

The immigration minister, Phil Woolas, said this was the lowest level of registrations since Poland and nine other European countries, including Malta and Cyprus, joined the EU in 2004. Research suggested that many of those that came have now gone home.

ONS figures published today show that the majority of workers from eastern Europe are young – 78% are aged 18 to 34 – and only 11% said they had brought dependants with them to work in Britain.

The home secretary, Jacqui Smith, announced at the weekend new measures to block tens of thousands of foreign workers from outside the EU coming to work in Britain.

But the new immigration figures show the government is failing to meet its targets on removing failed asylum seekers and other immigration offenders. Removals of those who were turned down for asylum for the last quarter of 2008 are down by 16% compared to the previous year, to 2,570. The number of other immigration offenders deported rose slightly over the same period, to 13,950.

Woolas highlighted the fact that 5,395 foreign prisoners were sent home in 2008, exceeding the UK Border Agency's 5,000 target. The resources devoted to this task were switched from pursuing failed asylum seekers. Although ministers claimed success, the ONS said the 5,395 figure should be treated only as provisional as it had not yet passed their quality tests.

The asylum figures for the last three months of 2008 show the first fall for five years in the number of new claims for refugee status – with a 2% drop to 6,735. The largest numbers came from Afghanistan, Zimbabwe and Eritrea. Last year, 30% of asylum applicants were granted refugee status or humanitarian protection. A further 25% of appeals also succeeded.

The UK Border Agency said it had passed a key milestone in concluding 60% of all new asylum claims within six months by the end of 2008.

The number of people from outside the EU granted the right to settle in Britain rose by 17% last year to 145,965. Just over 60,000 were the result of people moving to the UK for work, while 52,000 were as a result of family reunion cases. Only 3,860 refugees were granted the right to settle in Britain, down from 67,000 in 2005.