The head of the United Kingdom’s largest business group stated that immigration should be used to address labor shortages and stimulate economic growth.
Tony Danker urged politicians at the CBI convention in Birmingham to be “realistic” regarding immigration.
His address comes at a time when many companies struggle to recruit personnel.
Prime Minister Rishi Sunak stated that he wished to recruit the brightest minds from around the globe, while also combating illegal immigration.
Recent official numbers indicate that the unemployment rate in the United Kingdom has increased, and the Bank of England predicts that it will nearly double by 2025 as the country endures a severe recession.
Vacant positions remain near record levels.
Additionally, the Office of National Statistics (ONS) reported that business investment in the United Kingdom has declined in recent months and remains below pre-pandemic levels.
Mr. Danker stated in his address that the United Kingdom should permit “economic migration” in places where skilled labor is scarce.
He asked leaders to “be honest with the public” over the country’s “huge” labor shortages, stating that “we don’t have the people we need nor the productivity.”
“First, we have lost hundreds of thousands of people due to economic inactivity since the implementation of Covid,” he stated. “And anyone who believes they will all return any day now, given the NHS’s current state of stress, is delusional.
“Secondly, there are insufficient Britons to fill the available positions, and there is a skills mismatch regardless. In the majority of instances, it is impractical to expect automation to perform the work.”
“first point of contact”
Mr. Danker is requesting more temporary permits for foreign workers in shortage occupations.
In an address at the CBI conference, Rishi Sunak expressed his desire to recruit “the brightest and best from around the globe” to work in the United Kingdom.
He stated that the United Kingdom would develop “one of the world’s most attractive visa regimes for entrepreneurs and highly-skilled people” to recruit artificial intelligence experts.
However, he stated that the United Kingdom’s “number one priority right now, in terms of migration, is combating illegal immigration,” and that he is determined to accomplish so.
Mr. Sunak stated, “If we’re going to have a system that provides businesses access to the sharpest minds from across the world, we need to do more to offer the British people faith and trust that the system is fair and effective.
Earlier, Immigration Minister Robert Jenrick told TalkTV that domestic workers should be the “first port of call” for employers seeking “lower-skilled” workers.
“We seek to reduce net migration. It’s quite important to the British people, and we’re on their side,” he stated.
The chancellor stated on Friday that immigration would be vital to the UK economy in the coming years, despite the government’s desire to reduce numbers.
He stated that he wants to increase domestic skills to reduce reliance on foreign labor.
Mr. Danker lauded a portion of the government’s Autumn Statement, in which Chancellor Jeremy Hunt proposed £55bn in spending cutbacks and tax increases to contain growing costs while preserving public services.
However, he cautioned that the United Kingdom must do more to reverse years of stagnant development and asked the government to make “difficult choices” to assist.
The United Kingdom’s economy is performing worse than those of other major countries and is smaller than it was before the Covid epidemic.
According to the government, the nation is already in recession, which is defined as two consecutive three-month periods of economic contraction. It is a sign that the economy is operating poorly when corporations are frequently losing money and unemployment is rising.
As a result of the wars in Ukraine and Covid, oil and food costs have skyrocketed this year due to global reasons.
Brexit, which halted freedom of movement for EU people coming to the UK and vice versa, has made it more difficult for small businesses to trade with Europe and attract workers. As a result, the United Kingdom confronts substantial labor supply issues.
According to ONS estimates, net migration to the United Kingdom for the year ending June 2021 was around 239,000, a modest decrease from the previous year’s total of 260,000. Immigration from non-EU nations drove the growth rate.
In a survey conducted last month, the CBI, which represents 190,000 UK firms, found that nearly three-quarters of respondents had experienced labor shortages in the past year and that nearly half of respondents wanted the government to give temporary visas for positions in “clear shortage.
To alleviate labor shortages, the CEO of Next has urged the British government to allow more foreign employees into the country.
Lord Wolfson, a prominent Brexit supporter, stated that the United Kingdom’s present immigration policy was stifling economic growth.
The government has implemented a skilled worker visa program for shortage-stricken occupations. In addition, it has a seasonal workers program that includes fruit pickers and a health and care visa for medical personnel.
Mr. Danker stated, “People may argue against immigration, but since March, it is the one factor that has increased the potential development of our economy.”
“Growth is a prerequisite for social stability. Without expansion, the NHS declines, not improves. People’s lives get worse, not better. And we lack the resources necessary to transition to a carbon-free planet,” he remarked.
“However, Britain has had 15 years of sluggish growth and stagnating productivity. We can’t afford to do it again.”
Mr. Danker also advocated for the revision of trading restrictions, stating that politicians could no longer blame EU legislation.
“The greatest regulatory obstacles that firms face today are based on British legislation, enacted by a British Parliament, and handled by British regulators,” he stated.
