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Business fears over immigration cap

Tuesday 29th June 2010

Recruitment chiefs and business leaders have expressed concerns about the necessity of the Government's proposed immigration cap.

The Recruitment and Employment Confederation warned that a cap on migrants from outside the European Economic Area (EEA) would lead to greater skills shortages with the impact on sectors where in-demand skills were already difficult to find locally becoming even deeper.

REC Chief Executive Kevin Green said: "There were huge skills shortages before the recession and if the private sector is to grow rapidly out of recession, it will need skilled workers to do so. An artificial cap on immigration will affect business growth and delivery of core services such as social care.

"Therefore, we need train up our young people to fill these gaps, but this will take time. We ask that the Government seriously considers the impact of preventing skilled workers coming into the country if the positions they are being recruited for cannot be filled locally."

Suzanne Letting, Chair of REC Hospitality, said: "The hospitality sector has always been affected by serious skills shortages. More often than not, we struggle to find key skilled workers for our sector, such as chefs. To fill those vacancies, an artificial cap on immigration would only make things more difficult and put the already fragile recovery of the UK hospitality sector at risk."

Meanwhile, British Chambers of Commerce Director General David Frost said: "Understandably, there is considerable interest around the future of migration in the UK. As the government begins to draw up its own plans, we will ensure that the views and needs of businesses are understood loud and clear.

"It is essential that British businesses that require highly-skilled workers are able to meet their recruitment needs. Firms should be able to employ the best possible talent to ensure the UK remains competitive.

"The stakes for the UK economy are very high. If restrictions on the entry of highly-skilled non-EU migrants are too strict, there could be damage to the economy and to future economic growth. It is absolutely essential to get the balance right."

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