An act of “economic self-harm”: UK businesses respond to leaked government immigration proposals
Senior figures from a range of UK industries have condemned draft government proposals that would seek to drastically drive down the number of EU workers in the UK following Brexit, with some describing them as having potentially “catastrophic” consequences.
The proposals, set out in a Home Office blueprint leaked to the Guardian newspaper, suggest the UK government is looking to prioritize domestic labor and ensure a strong skill base among the British workforce once the country leaves the EU. Draft policies include plans to give lower-skilled EU workers a maximum of two years residency in Britain, with higher-skilled employees granted a longer period of three to five years.
Further ideas held in the documents include new restrictions on the rights of EU workers to bring in family members, and the introduction of a salary and skills threshold.
While EU workers are equivalent to roughly 7% of the total UK workforce, the figure is much higher in certain industries, such as hospitality, retail, and hotels. Around 75% of waiters and 25% of chefs are estimated to come from other EU nations, and it is thought that the hospitality industry needs at least 60,000 new EU workers a year in order to fill vacancies.
Responding to the policies, the British Hospitality Association said: "If these proposals are implemented it could be catastrophic for the UK hospitality industry and for those who enjoy the hospitality it brings."
Ian Wright, director general of the Food and Drink Federation, said: "If this does represent the government's thinking it shows a deep lack of understanding of the vital contribution that EU migrant workers make—at all skill levels—across the food chain."
John Dickie, director of business group London First, said: “Bringing the shutters down without a credible plan to fill the massive skills gaps left behind would be economic self-harm.”
“London and the south-east already have a shortfall of 60,000 construction workers, people we need to build homes, transport links and the infrastructure that will get the UK economy firing on all cylinders.”
In her article Do migrants take the jobs of native workers?, Amelie F. Constant argues that “Immigration’s positive effects far outweigh any negative impact.”
She continues: “Migrants choose locations with available jobs and fill labor shortages. Whether high- or low-skilled, migrants rarely substitute directly for native workers. Instead, migrants often complement native workers or accept jobs that natives don’t want or can’t do. They create new jobs by increasing production, engaging in self-employment, and easing upward job mobility for native workers. The presence of immigrants increases demand and can spur new businesses to open, creating more jobs for immigrant and native populations.
Read more articles on the effect migration has on labor markets
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