The CIPD reported recently that firms in the UK are facing shortage of labor as number of migrants faces a ‘reversal’. This can be seen as both EU and non-EU migrant workers losing interest in UK as a workplace. More than 1,000 employers were questioned and it was found that they were finding it more and more difficult to fill vacancies. This is leading to an increase in pay rates by employers.
Even though short-term employment outlook is strong, skills and labor shortages are increasing. Between April and June in 2017 and 2018, number of workers in UK who aren’t UK-born fell by 58,000 and 40,000 respectively. This is in comparison to a growth of 263,000 for the same time frame between 2016 and 2017. Gerwyn Davies of the CIPD institute said that non-EU workers are especially finding UK as an unattractive place for settlement even during a time of low unemployment and strong employment growth.
This heightens difficulties in recruiting for some employers. This also means that if lower-skilled jobs are not made fairer, simpler and more affordable, the post-Brexit UK will see an accelerated decrease in number of non-EU workers. Existing staff members could be burdened with greater workloads and firms could lose businesses as a result to this. With introduction of migration restrictions from 2021, the situation is expected to worsen and become more constrained.
The primary concern right now is that recent proposals made by the Migration Advisory Committee for filling vacancies of lower-skilled workers will not be enough to attract more labor and satisfy the recruitment needs. The present points-based system used for non-UK immigrants is all set to be adopted for UK citizens too from 2021. One-third of employers who use this system for recruiting non-EU workers however said that the administrative burden of it is too much.