Business leaders worried over fall in UK migration

Figures from the Office for National Statistics show that net long-term international migration was 248,000 in 2016 – a fall of 84,000 from 2015. Immigration was 43,000 lower than in 2015, while emigration was 40,000 higher. The main reasons were believed to be uncertainty among foreign staff in the UK following the vote to leave the EU in last year’s referendum and the subsequent fall in the value of the pound against the euro.Tim Thomas, head of employment issues at the manufacturers’ organisation EEF, described the figures as offering the first real insight into the impact on migration of the referendum.

A chilled labour market

“With a clear warning that the Brexit effect is chilling the labour market, the future UK government must unequivocally make it clear quickly that EU workers in the UK will retain all of their current rights after the UK leaves the EU, as well as spelling out how EU workers will be able to work in the UK after 2019,” he said.“Many British businesses will face serious difficulties if this is not resolved reasonably quickly.”Seamus Nevin, head of employment and skills policy at the Institute of Directors (IoD), said the new figures enforced the importance of immigration to British companies and represented a warning of the damage a significant reduction could do.

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Fewer people arriving

“Alarmingly, the fall in net migration is being driven as much by people leaving as by fewer arriving,” he said. “This is a big worry for employers who risk losing key members of staff in positions that cannot easily be replaced from the home-grown pool available.“The IoD has repeatedly called for the government to guarantee the status of EU migrants already living here. Doing so would allow businesses to start planning for the future.“There is a well expressed public desire for increased control of immigration but all parties in the general election should set out clearly the costs of any proposals they make.”Stephen Clarke, of the Resolution Foundation think tank, added, “The sharp fall in migration since the referendum shows that British businesses need to start preparing now for a big shift in the labour market, even before we leave the EU.“Rising emigration among EU nationals, particularly from Eastern Europe, means that many firms would be wise to rethink their investment, recruitment and training policies.“What businesses also need during this election campaign is far more clarity from political parties about what their post-Brexit migration policy will be.”For related news and features, visit our HR section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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