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Government report could end low skilled migration if accepted, so it's robots or bust for some employers

The Migration Advisory Committee argues for an end to the cap on skilled migrants from outside the EU post Brexit, but many employers of low skilled labour are finding it very hard to find staff 

James Moore
Chief Business Commentator
Tuesday 18 September 2018 13:06 BST
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With Britain suffering labour shortages, who's going to make coffee for this lot if they ban low skilled migration?
With Britain suffering labour shortages, who's going to make coffee for this lot if they ban low skilled migration? (PA)

A report into post Brexit migration by the Migration Advisory Committee (MAC) has garnered a rather positive response.

Words such as “measured” and “thoughtful” have been used about the document, which probably guarantees that it will ultimately be ignored by Theresa May & Co. They aren’t overly fond of anything resembling common sense.

There’s a lot to digest, but the report notably concludes that EU migrants have not landed Britain with the big costs that demagogues like to claim for them, and that the Brexit driven fall in the value of pound has had a more negative impact on living standards than they might have had by allegedly driving down wages.

In point of fact, Europeans working here contribute an average of £2,300 a year (net) more to the UK than does the average Britain.

The MAC’s chair says they haven’t brought “big benefits”. I suppose much depends on how you define “big”.

But to the future: The report sensibly calls for an an end to the cap of 20,700 on highly-skilled workers coming in from outside the European Economic Area. That makes sense. The Government’s migration capping is absurd. It serves only to deny Britain the skills it needs, and effectively cuts off the the nation’s nose to spite the faces of its citizens.

The MAC would also end any preferential treatment for EU migrants. This, and its other recommendations, would, says the Resolution Foundation, effectively end low-skilled migration if accepted.

There will probably be an exemption granted for agricultural workers. Environment Secretary Michael Gove has been cozying up to rich Tory farmers. They tend to be fond of fat subsidies and gangs of overseas labourers on skinny wages.

But other sectors are going to take a big hit. To give some context, some 75 per cent of EU nationals working in the UK currently earn less than the £30,000 salary threshold that the MAC proposes retaining, and extending to all new migrants wanting to come here.

While it might be fun to witness the reaction of the anti immigration yobs on the Tory benches to the closure of the Caffe Nero outside Westminster because it can’t find staff (WHERE IS MY BLOODY COFFEE) this is no laughing matter for business owners.

The proposals, as the Foundation says, represent the biggest change to the UK labour market in a generation.

They promise to hit sectors like hospitality, food manufacturing and others; sectors already struggling to find the people they need under the current European free movement regulations.

This morning Ocado, the online retailer, was touting the benefits of its robot driven warehouses.

I imagine a lot of businesses might now have to beat a path to its doors.

You’ve probably read stories about the rise of automation leading to the loss of tens, even hundreds of thousands of job cuts. But there are tens of thousands of jobs not being filled right now. Thanks to our mad Government, the bots are starting to look more like a necessity than a threat.

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