Urgent immigration reform: A necessity for business growth

This article first appeared in HR Magazine in August 2024.

We need Labour to make urgent and necessary changes to address the growing labour shortage and bolster the UK economy. Technology, care, hospitality and construction are amongst the worst hit industries. Yet, the demand for staff is continuing to surge. For example, by 2027, it is predicted that an additional 225,000 construction workers will be required to undertake the projected development projects across the country. The staffing shortage is delaying projects and limiting growth potential. This is where immigration plays a crucial role.

Despite the stalwart of Labour’s campaign, “reduce net migration”, I am at pains to stress that immigration is a vital solution to sustain the workforce and support economic growth.  Critical gaps can be filled, operations maintained, and businesses can be expanded by relying on skilled and willing migrant workers. Moreover, UK businesses can benefit from these workers’ diverse perspectives and skills. And let’s not forget that our population is aging, and more and more people are not having children. Immigration is thus not just a matter of economic necessity but also a strategic imperative to ensure our country’s sustainable growth and competitiveness in the global market.

Unfortunately, radical immigration reforms appear unlikely in Labour’s first 100 days in office. Labour is focused on upskilling the settled UK workforce to plug the staffing gaps. There is certainly merit to such a plan, however, this simply overlooks the reality that the skill gap in many industries is too wide to be bridged solely by local talent, particularly in the short to medium term.

Labour thus needs to implement immediate measures to address the UK staffing crisis:

1. Create a fast-track Skilled Worker visa programme for critical industries like technology, healthcare, and agriculture. We’ve seen this before with seasonal worker changes, which permitted horticultural and poultry workers from overseas to enter the UK on a short-term basis, following a significant reduction in European labour. These programs should offer reduced salary expectations, expedited processing and provide pathways to permanent residency to attract long-term commitments from migrants.
2. Streamline the visa application process by reducing paperwork, shortening processing times, and increasing the number of visas available for high-demand sectors. This would make it more efficient and less burdensome.

Longer-term, Labour needs to implement comprehensive, sustainable and effective immigration reform:

• Develop a Flexible Immigration System: Create an adaptive immigration system that can respond swiftly to changing economic needs. This system should have mechanisms to adjust immigration criteria based on real-time labour market data and industry demands.
• Encourage Regional Distribution: Alleviate the pressure on major urban centres and support regional development by incentivising migrants to settle in less populated areas, which, given the rise in remote working practices, is much more workable in the present day than it has been historically.
• Cease the anti-immigration rhetoric: Awareness of the importance and benefits of bringing in overseas talent should be highlighted. Immigration should not be vilified
• Promote Integration and Inclusion: Invest in programs that help migrants integrate into society and the workforce, such as language training, recognition of foreign qualifications, and cultural orientation.
• Extend the Youth Mobility Scheme to the EU: During the previous Government’s term, ongoing negotiations on a reciprocal agreement to include EU nationals in the Scheme looked promising. The incoming Government have confirmed no plans to reengage such discussions, a disappointing position given the level of flexibility to engage migrants under this route.

Urgent and strategic immigration reform is essential for businesses to thrive in the current economic landscape. The new government must move beyond ineffective proposals and implement both immediate and long-term measures that attract and retain the necessary talent and labour.