The UK’s immigration advisers have called on the government to abolish one of the most popular routes for employers to hire foreign workers in industries with chronic staff shortages.
The Migration Advisory Commission, which is responsible for reviewing the “shortage occupational list” (SOL), and deciding whether visa conditions should be loosened in those cases, stated on Tuesday that this system could lead to lower wages, as well as leave workers vulnerable to exploitation.
The MAC also said that the overall economic benefits of the system were doubtful, and many employers could not afford to pay the high fees associated with using it.
Brian Bell, professor of economics and chair of the MAC at King’s Business School, said: “We’re not convinced that SOLs are an effective tool for addressing labour shortages in different occupations and industries.”
If adopted, the committee’s recommendations will frustrate many business groups who have lobbied that SOL be extended to other areas, such as hospitality where employers have had difficulty hiring since Brexit.
Some Conservative MPs, including Immigration Minister Robert Jenrick, have also called for a review of the post Brexit visa system and, in particular, the decision to include care workers on the shortage occupation list at the beginning of 2022.
The SOL allows employers outside the UK to hire for 80 percent of Britain’s “going rates” for occupations, which is a minimum of £20.960 per year. This compares to the threshold of £26.200 for the main “skilled workers” visa route. The usual skill criteria for care workers has also been waived.
The hiring of overseas workers by the care sector has soared since this change. This has led to a record-breaking net migration. Care and senior care workers accounted for more than half of the visas issued to skilled workers in the year up to June.
There have been many reports of employers abusing care workers by underpaying them or charging them “relocation fees” that were inflated if they wanted to switch jobs due to poor living and working conditions.
The committee stated that its review was based upon the principle of employers not being allowed to pay wages lower than the UK going wage.
It was therefore pointless to keep higher-paid occupations like architects or IT technicians in the shortage list as employers who were willing to match UK rates of pay could already go down the route of hiring skilled workers. In any case, nurses and other NHS staff were on a national salary scale.
The MAC stated that the list of shortage occupations would be most useful to employers who work in low-wage sectors where there is a “particularly high” risk for workers to be exploited.
It said that constructing a system in which migrants are dependent on their visa sponsors to remain in the nation increased this risk. “We should not be afraid of this — this is a natural consequence of such a choice.”
The MAC stated that care workers should be kept on the shortage list despite concerns about exploitation, as employers have no other option but to hire overseas if they cannot afford to pay wages competitive with those in their home country.
The MAC, however, said that it did not see any evidence to support including other low-wage roles. Bell stated that a greater expansion of youth mobility programs would be better suited to sectors like hospitality. Bell said that employers can hire migrants who have arrived via other routes as students or families.
The MAC urged government to adopt a broader strategy in sectors with acute labour market problems, focusing on wages, conditions and training as well as immigration laws.
The report recommended that if ministers wanted to maintain a SOL they should reduce the list down to just eight occupations. These include bricklayers and roofers, laboratory and pharmaceutical technicians, and certain racing industry roles. It also included care workers and senior care workers. If Scotland only had a list, it would include shipbuilders and fishing boat masters.
Jamie Cater is the senior policy manager for manufacturers’ group Make UK. He said that the removal of certain roles, such as welders and the refusal to include others, such as sheet metal workers would be a problem for the industry.
He said that while overseas hiring is not a solution for long-term shortages, it was “an effective method to alleviate some of these problems”.
We contacted the government for comment. Home Office Ministers stated at the beginning of the review they agreed with the MAC that employers should be required to pay the going rate. However, they have not yet indicated whether they accept the recommendations.