The Chartered Institute of Personnel and Development (CIPD) says that restrictions on the movement of non-EU labour will leave employers struggling to find staff.
Political debate centres on a points-based system or absolute quota to restrict non-EU immigration. John Philpott, chief economist at the CIPD, remains doubtful that such a system can avoid damaging employers. Philpott argues, however, that if the plans go ahead then the government should legislate to allow employers the flexibility to breach the quota on payment of a migrant worker levy.
Commenting Philpott said: “CIPD research has shown that employers hiring migrant workers are doing so to tackle genuine labour shortages, and in only a few cases is the primary motivation a desire to reduce labour costs. A migrant worker levy would inject flexibility into what might otherwise prove an overly-rigid and economically-damaging quota system.
“It would ensure that employers hiring migrants beyond the quota were doing so to fill genuine labour shortages rather than to simply cut labour costs, provide additional revenue to help meet some of the social infrastructure costs of immigration, and increase public confidence that migration is being managed in a way that maximised the overall benefits.”
Latest projections from the Office for National Statistics forecast that Britain’s population – currently just over 60 million – will hit 71 million by 2031.
