One in five organisations is considering relocating all or part of their UK operations outside the UK, and 9% are focusing future growth outside the UK as a result of the vote to leave the EU, according to a report from the CIPD and NIESR. It states that there are macro-economic risks in developing post-Brexit immigration policy, given that much of the UK’s strong labour market performance pre- and post-Brexit has been driven by high employment rates among migrants.
Clear conclusions to emerge from the CIPD/NIESR research include the need for a safety net for recruiting unskilled or low-skilled workers from overseas to ease labour shortages, and an immigration system that works for them.
‘Without these two provisions, some of Britain’s key industries and services, including food and drink manufacturing, hospitality and social care, are likely to sustain considerable damage.’
Many managers, particularly in the above sectors and the public sector generally, fear that a new system restricting the supply of EU workers will have a negative impact on their operations as the main reason employers recruit EU nationals is because they cannot fill low or semi-skilled jobs with UK-born applicants. Many claim improving pay and conditions in their low paying sectors would not necessarily stimulate interest from the domestic workforce, due to a poor image of their industry or a lack of development opportunities.
Employers are concerned about the potential complexity of new immigration policies, and at the costs that might be imposed on them to, for example, check workers’ status. At the same time, complex rules will not deter employers from hiring EU migrants as they do so principally out of necessity rather than preference.
The report concludes:
‘Difficult processes will simply add cost to businesses and services in what may be a more generally challenging environment as Britain leaves the EU.’