Businesses have reacted angrily to government plans to make it harder for employers to hire foreign workers by raising wage thresholds for skilled workers and tackling low wages in some sectors.
The measures include raising the income limit for skilled workers by a third to £38,700 and banning employers in areas with skills shortages from paying 20 per cent less than the normal rate.
The changes announced yesterday as part of efforts to reduce net legal migration have been condemned by industry groups as sending the “wrong message” about the UK as a place to do business.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, called it “grossly disproportionate”.
“The government talks about a desire for growth and increased productivity. Successful modern economies are international, but these changes will send the wrong message to the world.
“They are completely disproportionate given that immigration for private sector jobs is such a small proportion of total immigration.
“From leading universities to globally competitive companies, attracting people to work and study in the UK is an advantage for growth and prosperity.”
Mr Carberry said businesses would pay the price even if the Government was “freed from the new threshold”.
“One rule for business and another for the public sector in health and care will not fit well with a rule in industry,” he said, adding: “Although many of the jobs we have shortages in are related to the availability of “.” is experiencing a significant shortage of skilled workers.
“The news also highlights the government’s failure to address the skills system, despite half a decade of business feedback about the failed apprenticeship levy and insufficient funding for further education.”
Alexandra Hall-Chen, senior policy adviser at the Institute of Directors, said the plans would raise concerns among companies already struggling to recruit the workers they need and fuel inflation.
“We know that skills and labor shortages continue to be one of the biggest challenges facing businesses in the UK. “Persistent tightness in the UK labor market is fueling inflation and is the main reason why interest rates remain high,” she said.
“Without measures to increase domestic labor supply, policies aimed at limiting the ability of companies to hire foreign workers risk worsening inflation and slowing economic growth.”
The Confederation of British Industry (CBI) said that “inflation-reducing increases in minimum wage requirements and levies will not address the bottlenecks that are currently holding back investment and business growth.”
Matthew Percival, director of the future of work at the Confederation of British Industry, said: “Businesses support the government’s aim to focus on productivity growth as the long-term answer to labor shortages.”
“However, inflation-reducing increases in minimum wage requirements and fees will not remove the bottlenecks that are currently slowing investment and business growth.
“Business strongly supports the Occupational Shortage List, and if used correctly, it remains an important tool for filling critical gaps in the labor market.” reduce the wages of British workers.
“An honest conversation on immigration will focus on how visa rules best support economic transformation and sustainable growth, beyond short-term solutions.”
Source: I News
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