Migrant worker concerns Manufacturers see export growth

Fresh concerns have been raised by smaller firms about the impact of Brexit on employing EU workers.

The Federation of Small Businesses Scottish policy convener, Andy Willox, said consideration had to be given to the needs of smaller concerns when migration policy was being thrashed out by Brexit negotiators.

“Smaller Scottish employers don’t have the resources of their larger counterparts to navigate complex immigration systems,” Mr Willox said.

“Any future system needs to work for the real economy and flex to adapt to the needs of all sectors and geographies. It can’t just be big businesses that gain access to the skills they need.”

FSB is also recommending changes to the Scottish skills and education system to try to mitigate the impact of any immigration changes.

The call came after a study of 1,200 FSB members showed more than half of small businesses with EU workers are worried about accessing skilled staff.

Nearly three quarters of those with EU workers recruited them while they were already living in the UK.

The vast majority of small firms have no experience using the UK’s pointsbased immigration system to recruit non-EU workers.

The FSB said its report highlighted the need for small firms to have continued access to labour and skills from the EU post-Brexit. Manufacturers enjoyed their biggest jump in export growth for six years thanks to the appetite for British goods from non-EU buyers, a report said.

Export orders had lifted by plus 22% in the first quarter of this year, their highest level since April 2011, despite Brexit-induced cost pressures continuing to bite, according to the Confederation of British Industry (CBI).

The industrial trends survey, which covers 397 manufacturers, said sterling’s slump since the Brexit vote had caused unit costs to reach a six-year high in the three months to April.

However, the costs squeeze failed to hold back domestic orders, which rose at their fastest pace since July 2014 at plus 20% over the period.

British manufacturers are enjoying a sweet spot, as the UK remains a member of the European single market while the Brexit-hit pound boosts demand for goods by making them cheaper for overseas buyers.

CBI chief economist Rain Newton-Smith said cost pressures remained at large despite the strong performance from export orders.

Picture: Getty. Scotland’s leisure and hospitality trade employs a significant number of migrant workers.