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That graph doesn't include the Nationality and Settlement case numbers that soared at the same time that Asylum cases dropped.
That was the time when Blair said he was going to "crack down" on asylum numbers. He and the immigration authorities simply changed the case types to something less headliney and still let them in.
I was working with an American guy in Dusseldorf, he was working in Brussels, but they cancelled his work visa.
He had an expert visa of some kind. Then they did a follow up on him and said he was not paid enough to be an expert
Settlements soared because it was normally taking 4 years on work permit to qualify - there is no link to cuts on asylum cases, Home Office just had focus on it because that's what papers demanded at the time.