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UK Businesses “Fearful” of Post-Brexit Migration System

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British employers feel “fearful” about the state of the migration system following Brexit.

A new report shows there is serious concern among businesses regarding this issue in the future.

The Migration Advisory Committee

The Migration Advisory Committee released a report showing that businesses are worried about their ability to effectively recruit new hires from the E.U. once Great Britain has left. British employers view the broad pool of employees from the E.U. to be “more reliable” and motivated than their counterparts within the United Kingdom, said the report.

The Home Office has released a statement underscoring its commitment to “sustainable migration.” Still, the report made it clear that businesses have yet to feel confident in those intentions.

The Interim Report

The report is one component of a review conducting an assessment on Brexit’s impact on the British labour market. Employers stated that they felt migrant workers from the European Economic Area show greater willingness to work long and anti-social hours and improved reliability than workers born in the U.K., said the report.

Still, the Migration Advisory Committee stated that it would be challenging to assess those claims in an objective way.

The report also found that workers from the original E.U. countries receive a 12 percent higher pay than U.K. workers. That said, the report also determined that workers hired from the newer E.U. members states are paid an average of 27 percent less than U.K. workers in similar positions.

Employers claimed that even if they raised the wages for U.K. workers, they would not be able to attract them for those positions. However, the report stated that this claim was “not credible.”

Reduced Growth

The report’s conclusion was that employers are not deliberately attempting to hire new workers from E.U. countries. However, they do hire E.E.A. migrants when those individuals are the only available candidates or when they are “the best” for filling those positions.

Reducing migration into the United Kingdom will “very likely lead to lower growth” said the Migration Advisory Committee. It is “less clear” what, if any, impact Great Britain’s withdrawal from the European Union will have on living standards.

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.