The Home Secretary commissioned the Migration Advisory Committee on 6 August 2024 to begin investigating the use of international recruitment and immigration in particular sectors, starting with the information technology, telecommunications and engineering sectors, which are in the top 10 sectors that have been reliant on international recruitment. The Home Secretary indicated that this would be the first of similar sectoral reviews.
During and since the general election, the new Labour government has said that it wishes to “fix the foundation” of the UK’s economy to grow the economy while keeping taxes, inflation and mortgages low. This relies on businesses in the UK being able to grow, which relies in turn on access to workers and necessary skills in order to do so. Unfortunately, the Labour government has also insisted that it wishes to reduce immigration and employers’ reliance on immigrants, despite many sectors in the UK facing a shortage of key skills.
One obvious way employers can fill vacancies when there is a skills gap in the UK is to rely on international recruitment – in recent years following Brexit and the end of free movement of workers, this has led to huge increases in the number of skilled work visas being issued, particularly in the health and care sector. This led to the previous government hiking visa fees, the Immigration Health Surcharge and minimum salaries for Skilled Workers in a bid to reduce net migration. This appears to be working, but at the cost of reduced numbers of workers to support struggling sectors.
In July the new government announced a bill to introduce a new body, Skills England, that would work alongside the Migration Advisory Committee (MAC), Industrial Strategy Council, Department for Work and Pensions and others to develop a strategy to address skills shortages in the UK.
The MAC’s role in this is to incorporate immigration into the strategy, including how international recruitment is used to fill those shortages while considering the needs of resident workers.
What will the MAC review?
The MAC has been asked to advise the government on the reasons why key occupations rely on international recruitment and future demand in these sectors. As well as identifying key shortages, the MAC has been asked to consider to what extent training, pay and conditions have driven these shortages and how sectors have tried to adapt to these beyond recruiting from other countries, although the scope of the review is wide and not limited to these topics.
They have also been asked to consider a wide range of options by which the government may respond and develop its skills strategy, including whether approaches should vary depending on region and sector or other factors.
The MAC has been asked to conduct its review and respond within nine months (by 6 May 2025). In order to carry out a review of this size and scope, the MAC has requested additional staff as well as data from the Home Office and HMRC. They have confirmed that they will be planning “targeted stakeholder engagement”, although it’s not clear yet whether this will include a full public call for evidence and consultation.
How should employers respond top the MAC review?
Employers in the information technology, telecommunications and engineering sectors and their representatives would be well advised to keep an eye out for updates on this MAC review. They have said they will carry out targeted engagement, so we would expect this to involve industry bodies at least, such as TechUK, and employers may wish to get in touch with bodies representing their industries to indicate their interest in contributing. There may also be a wider call for evidence in due course, where employers may be able to contribute directly.
As the Home Secretary indicated that this may be the first of a series of reviews for different sectors, businesses in other sectors may wish to keep abreast of any further reviews that may be commissioned in the near future.
Read Ross Kennedy's full article in Free Movement
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