We’re in crisis, say firms as EU workers shun UK
New survey by recruiter shows business wants to delay Brexit
FEARS are growing of a recruitment crisis for British business in the event of a hard Brexit with almost half of companies reporting a drop in the number of EU nationals applying for jobs.
The vast majority of firms want a soft Brexit and half of those questioned believe negotiations – which are due to begin in Brussels tomorrow – should be delayed because the prospects of a good deal have been damaged by the shock Election result.
The findings emerged in research carried out by reed.co.uk, the UK’s largest online recruitment consultancy, which has been seen exclusively by The Mail on Sunday.
It emerged that 43 per cent of firms have seen a fall in job applications from EU citizens since last June’s referendum.
Business confidence fell sharply as a result of the hung Parliament. More than a third of those questioned said the outlook for their firm had become less positive because of the uncertain result of the Election.
An overwhelming majority – 86 per cent – were convinced that a soft Brexit was the best option.
The survey findings chimed with comments from veteran retailer Lord (Stuart) Rose who told The Mail on Sunday that Britain was risking ‘economic suicide’ if it failed to reach a good deal.
James Reed, chairman of reed.co.uk, said: ‘We should all be concerned about the drop in job applications from EU candidates. With
certain sectors already facing skills shortages, there’s a real risk that the situation will get worse when we leave the EU and Britain’s productivity and prosperity will suffer.
‘The healthcare sector is just one example where European workers make a big contribution. Further NHS understaffing means patients won’t be cared for. It’s a matter of life and death.
‘One positive we can take from the situation is that there will be an incentive for businesses to invest in apprenticeships and training, but it will take time for businesses to retrain staff.’
Last week, the Nursing and Midwifery Council revealed the number of EU nurses registering to work in the UK had nosedived by 96 per cent. The remarkable finding means the NHS could soon be facing its worst nursing crisis for 20 years.
The hospitality industry is also reporting major recruitment problems. Ufi Ibrahim, chief executive of the British Hospitality Association, told The Mail on Sunday: ‘We’ve had reports that owners have been forced to delay or abandon plans to open new restaurants due to the uncertainty surrounding the future rights of EU citizens in the UK.
‘This level of uncertainly is putting off skilled workers and is now impacting investment decisions. This was already an acute problem for restaurants before the Brexit vote. We now face a predicted shortage of more than 11,000 chefs by 2020.’
The British construction industry has warned it could lose more than 175,000 EU workers – 8 per cent of the sector’s workforce – if there is no agreement over freedom of movement.
The Royal Institution of Chartered Surveyors (Rics) warned this could put key infrastructure and construction projects at risk. It said loss of access to the single market would have the potential to slowly bring the UK’s £500billion infrastructure pipeline to a standstill.
Three quarters of those polled said they believed the hung Parliament would have a negative impact on Brexit negotiations, with 82 per cent of those saying the political uncertainty would weaken Britain’s negotiating position.