According to the Chartered Institute of Personnel and Development (CIPD), there has been a significant drop in the growth of migrant workers, both EU and non-EU, in the UK.
It is reported that employers are finding it challenging to fill vacant posts. The crunch is forcing them to offer higher pay packages.
As per official data, between April and June, 2017, the number of foreign workers in the UK fell by 58,000. This year too, the figure dropped by 40,000 workers (from outside the EU), during the same time. Surprisingly, two years back, the figure had increased by 263,000 during April-June.
This means, the UK is no more an attractive place in terms of jobs for those born outside the UK, especially workers from non-EU nations. This also implies that if the post-Brexit system is not simplified and made more feasible —especially for the jobs requiring lower skills— it will further put off citizens from outside the UK from using it.
With the labour market tightening further, recruitment challenges will only increase. And if vacancies are not filled soon, the existing workforce will have to take on more workload. This will also adversely affect business.
CIPD predicts that once migration restrictions are imposed on EU citizens in two years’ time, the situation will worsen further, especially for those with low skills.
Most employers feel that the Migration Advisory Committee’s suggestion to hire EU citizens for low-skilled jobs will not suffice to meet their workforce needs.
Also, one-third of employers who hire non-EU citizens feel that utilising the existing points-based system for non-EU citizens, for EU citizens from 2021 onwards, will involve too much administrative work.