UK government review: International recruitment policy for IT, telecoms and engineering
The UK government has tasked the Migration Advisory Committee (MAC) with conducting a comprehensive review to understand why UK employers continue to rely on international recruitment and sponsored immigration work routes to fill skills shortages in IT, telecoms and engineering. Employers in these sectors will likely be given the opportunity by the MAC to contribute to this review.
In a letter dated 6 August 2024 from Home Secretary Yvette Cooper to the MAC, emphasis was placed on the Labour government’s commitment to reducing migration levels: “The current high levels of international recruitment reflect weaknesses in the labour market including persistent skills shortages in the UK. The current approach is not sustainable and the system as it exists is not operating in the national interest.”
The UK’s IT, telecoms and engineering sectors are amongst the top ten most dependent on international recruitment. The government is engaging the MAC to explain the reasons for this reliance and to project upcoming demand on these sectors. The removal of IT and engineering roles from the immigration salary list (which provides discounted salary rates for sponsored workers in certain occupations) has not decreased levels of skilled worker sponsorship in these sectors, further highlighting the need for specialist skills and a shortage of homegrown talent.
What exactly will the MAC examine?
The government has instructed the MAC to consider:
- Which roles in these sectors are in shortage and why, considering factors such as training, pay and conditions.
- What impact has being included on the Immigration salary list (formerly known as the shortage occupation list) had on these sectors/jobs.
- How employers in these sectors have attempted to address these shortages, outside international recruitment.
- Potential immigration system changes to encourage these sectors to recruit from the resident workforce, including possible reforms to the immigration salary list.
The MAC is free to explore various options, including whether a region- or occupation-specific approach is suitable, with the government cautioning that care must be taken to avoid the risk of undercutting British workers’ wages or muddying an already complex immigration system.
Deadline
The Home Secretary has specified a May 2025 deadline for the MAC to carry out their review. This should allow for adequate engagement with and contribution from employers and other relevant stakeholders.
Results of the MAC’s review
The UK government may use the MAC’s findings to adjust the eligibility criteria for sponsoring IT, telecoms and engineering roles under immigration work routes. As of yet, there has been no indication from Labour of a return of the resident labour market test, abolished in January 2021 after Brexit. However, if existing immigration regulations are amplified to mandate documentation of efforts to hire a UK citizen or settled worker before sponsoring a non-settled worker, the process of recruiting a migrant worker could become much longer and elaborate.
The MAC’s findings may also support a wider workforce strategy to address labour shortages in these sectors. This strategy will involve coordinated efforts from the newly formed public body Skills England, the Industrial Strategy Council and the Department for Work and Pensions, with the goal of attaining a more evidence-based approach to filling existing gaps in the UK labour market.
Employer participation in the MAC’s review
Potential changes to UK immigration work routes resulting from the MAC’s findings will impact employers in the IT, telecoms and engineering sectors. Compared with other sectors, they recruit more international workers via the UK’s sponsorship system. Furthermore, since professionals in these sectors work across all manner of and type of organisations, immigration policies impacting IT, telecoms and engineering roles will have widespread implications.
The MAC plans to engage with stakeholders through targeted consultations, including industry bodies and employers who sponsor migrant workers. We will monitor these developments and provide updates on opportunities to provide feedback as more information becomes available.
