Net migration rose by 21% over the last year, with 239,000 more people arriving in the UK than those leaving, the Office for National Statistics has revealed.
In 2009, the total for net migration had stood at 198,000.
The government has pledged to reduce net migration to the "tens of thousands" by 2015.
ONS estimates put long-term immigration in 2010 at 575,000, up slightly from 567,000 the year before. But the long-term emigration figure saw a sizeable drop from 371,000 two years ago to 336,000 - the lowest level for six years.
But Neil Carberry, CBI director for employment policy, said: "Numbers entering the UK on a work permit have fallen significantly, so this rise in net migration highlights that work permits are only a small part of the picture. The Government must look to other parts of the system if it wants to meet its goal. "Further restrictions on work permits would seriously affect the ability of firms to bring key staff to the UK, which in turn would deter new investment and jobs."
