UK skills gap: relax visa rules, says bosses

The record number of job vacancies in the UK is leading to mounting pressure from business leaders for a relaxation of post-Brexit immigration regulations to enable more foreign workers to enter the country.

David Sapsted

18 August 2021

The Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC) are at the forefront of calls for visa reform and for more skills to be added to the government's Shortage Occupation List, after official figures on Monday showed the number of advertised jobs last month exceeded one million for the first time.At the weekend, a survey of more than 700 business leaders, conducted by the Institute of Directors (IoD), showed that 81 per cent were in favour of loosening immigration requirements to varying degrees.Now a report on the professional recruitment market from the Association of Professional Staffing Companies (APSCo) has found that permanent and contract vacancies in the sector have recorded year-on-year increases of 43 per cent and 53 per cent, respectively.Ann Swain, chief executive of APSCo, said: "While the recruitment sector is certainly on an upward trajectory, there are challenges ahead not only relating to the pandemic, but also surrounding the widespread talent shortages that are beginning to impact many sectors as the economy opens up and firms ramp up hiring activity.“We wholeheartedly endorse the calls from the CBI that the government must review its post-Brexit immigration policy to avoid dire skills shortages and we continue to lobby government to provide a new entry route in the points-based immigration system to allow high value independent professionals to work in the UK on a project-by-project basis. We are also lobbying for the retention of digital right-to-work checks."

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Jennifer Beckwith, head of employment at the CBI, said that, with employment figures rising and jobless totals declining, the UK labour market was showing further signs of recovery after the damaging effects of the pandemic.“Yet," she added, "with vacancies at a record high, employers are concerned that staff shortages are stalling their ability to grow and support the country’s wider economic recovery.“Longer-term, business must continue to invest in the skills and automation that will underpin future growth. The government can also help by ensuring that the qualifications it funds include those in short supply and removing barriers hampering firms’ ability to recruit overseas workers.”The IoD survey of 739 company directors showed that 44 per cent were currently experiencing staff shortages in "a development which risks undermining the recovery and stoking emerging inflationary pressures".Among those companies facing shortages, almost two-thirds blamed the UK’s long-term skills gap, with 40 per cent saying they they were struggling because of a lack of potential workers from the EU.Joe Fitzsimons, senior policy adviser at the IoD, said: “Employers are keen to re-build following an incredibly turbulent 18 months for business. But the issue of labour shortages is proving disruptive across a huge range of sectors and at all levels. Ensuring that workers are available with the right skillset to perform effectively is a crucial pre-requisite for recovery."The long-term skills gap combined with both a reduced talent pool since leaving the EU, and the immediate impact of the ‘pingdemic’, are the primary pressure points. The resultant rising wage bill is the next bitter pill to swallow. It is understandable that directors are very concerned."Suren Thiru, head of economics at the BCC, said that while the relaxation of self-isolation rules would help ease the chronic shortage of staff, many firms faced a more deep-rooted squeeze on labour supply because of both Brexit and the Covid-19 pandemic.“Alongside rapid retraining opportunities, government should extend the Kickstart scheme into 2022 and expand it to enable older workers to gain new skills and experience. A more flexible immigration system is also needed to ensure that firms get access to the workers they need,” he said.