Robert Jenrick urges businesses to train locals while the head of the CBI asserts that more immigration is required to fill positions and stimulate economic growth.
A minister has stated that post-Brexit, British companies should “turn to the British workforce” rather than depending on immigrants to fill open positions.
Tony Danker, the director general of the Confederation of British Industry (CBI), urged the government to use immigration to alleviate labor shortages in the UK at the CBI’s annual conference, stating that the government must be “realistic” on the subject.
However, immigration minister Robert Jenrick disagreed, and stated that businesses should first look closer to home.
Brexit has made it difficult for many foreign workers to work in the United Kingdom, and employers are struggling to recruit, particularly in industries such as hospitality that have relied significantly on European labor in recent years.
Despite four quarterly declines this year, total job openings remain elevated at nearly 1.2 million.
According to the Office for National Statistics, between August and October 2022, they were 429,000 (54%) above the pre-pandemic levels of early 2020, and 32,000 (2.7%) more than the previous year.
Mr. Danker stated, “People are arguing against immigration, but it is the one factor that has enhanced our economy’s potential for growth since March.”
‘Our labor shortages are tremendous’
“Remember that the Gross Domestic Product (GDP) is a simple multiplier of two factors: people and their productivity. And it’s time, to be honest: neither do have the necessary personnel nor the required output.
He continued, “Our labor shortages are severe.
First, as a result of COVID, we have lost hundreds of thousands of individuals to economic inactivity. And anyone who believes they will return any day now, with the NHS under such pressure, 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.”
He advocated for economic immigration in areas with labor shortages, fixed-term visas, and a shortage occupation list controlled not only by the immigration minister but also by the secretary of state for education and enterprises.
Mr. Jenrick stated earlier on Monday that the government will “listen to the business community” and was “conscious of some talent shortages,” adding, “We want a pragmatic, rational partnership with business.
“However, our overall objective is to limit net migration. We believe this is what the British public desires. This was one of the main causes for the 2016 vote to leave the European Union, and it’s just not true that we’ve adopted a closed-door policy since then.”
Mr. Jenrick cited programs such as visas for health and social care workers and stated that more than 300,000 work visas were issued last year “to people who had a certain standard of living so that they could take care of themselves and not rely too heavily on the state” and would cover shortage occupations.
He continued, “I believe this is the best strategy, as opposed to relying on less-skilled individuals.”
“And if I were a business manager, I would go to the British workforce in the first instance, considering how I could recruit, train, and employ locals for the position.”
At the CBI conference, Prime Minister Rishi Sunak also spoke, but in response to a question on the labor crisis, he addressed illegal immigration.
Then, he claimed, his government would ensure that the United Kingdom is “a beacon for the world’s brightest and greatest,” although he did not specify how this would be accomplished.
Mr. Danker also referenced the current dispute with the EU over the Northern Ireland Protocol, stating, “…we continue to disagree over the Northern Ireland Protocol. We continue to fight about sovereignty. Gather around the table; negotiate; activate the TCA.
“And I say to Brexiteers that the best assurance of Brexit is a growing economy. And the greatest threat is one that does not.”
“Reject a Brexit à la Suisse”
His comments come amid weekend rumors that the administration is seeking to establish a “Swiss-style” partnership with the EU to liberalize trade.
Brexit supporters have responded with anger to the rumors, which Downing Street has refuted.
Mr. Jenrick stated, “I have no idea where the Sunday newspaper article originated. It is not one we recognize, therefore we will maintain the bond we’ve established.
“This does not mean that we are not interested in enhancing our commercial links with the European Union or, in my area of responsibility, our security and migration collaboration with the European Union.
However, we will not revisit the discussions from a few years ago. We have concluded and are proceeding on that premise.”
