UK im­mi­gra­tion crack­down ‘could send com­pa­nies to the wall’

Iran Daily - - Global Economy -

UK Prime Min­is­ter Theresa May’s plans for a crack­down on im­mi­gra­tion af­ter Brexit could cause UK com­pa­nies to go bust and spark job losses across the coun­try, the head of Bri­tain’s big­gest busi­ness lobby group has warned.

Carolyn Fair­bairn, the di­rec­tor gen­eral of the Con­fed­er­a­tion of British In­dus­try (CBI), said the mea­sures aimed at re­strict­ing low-skilled im­mi­gra­tion could have un­in­tended con­se­quences, and warned the prime min­is­ter against us­ing ‘deroga­tory terms’ about EU mi­grants work­ing in Bri­tain, the­ wrote.

If greater con­trols were im­ple­mented overnight, she told The House mag­a­zine: “[The UK could see] busi­nesses go un­der and we would lose jobs rather than cre­ate jobs for our pop­u­la­tion.”

Her com­ments come af­ter May used a speech to the CBI last month to warn that, af­ter Brexit, EU mi­grants would no longer be able to ‘jump the queue’ to come to Bri­tain.

Fair­bairn said busi­ness lead­ers had real con­cerns about the rhetoric, adding that the gov­ern­ment might have un­der­es­ti­mated how big a shock it would be for the econ­omy. “Some have equated it to the oil price shock of the 1970s,” she said. Com­pa­nies are re­port­ing grow­ing prob­lems hir­ing staff, with fewer EU mi­grants com­ing to Bri­tain since the Brexit vote. Net EU mi­gra­tion to the UK has fallen to the low­est level in six years.

Ac­cord­ing to the lat­est snap­shot from the la­bor mar­ket by the ac­coun­tancy firm KPMG and the Re­cruit­ment and Em­ploy­ment Con­fed­er­a­tion, the over­all avail­abil­ity of staff con­tin­ued to de­cline in Novem­ber.

The Mid­lands reg­is­tered the steep­est fall in per­ma­nent can­di­dates avail­able for work of four English re­gions mon­i­tored by its lat­est em­ploy­ment barom­e­ter, although there were also marked de­clines else­where across the coun­try.

Un­em­ploy­ment has dropped to the low­est lev­els since the mid1970s, hand­ing more power to work­ers to de­mand greater pay in­creases.

The sur­vey of 400 UK re­cruit­ment and em­ploy­ment con­sul­tants said pay for tem­po­rary work­ers rose at the fastest pace for more than a decade last month, driven by the skills short­age across the UK.

The snap­shot came in the lat­est sign that pay growth has fi­nally be­gun to emerge for work­ers af­ter a ‘lost decade’ for pay since the fi­nan­cial cri­sis. Real wages, how­ever, which take ac­count of in­fla­tion, are still to re­cover their pre-cri­sis peak.

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