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ISSUE 218
CLHNews
Editor's Viewpoint
NOVEMBER 2018
Falling Migrant Worker Numbers Will Undermine Hospitality Sector
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A new report has revealed an alarming fall in the number of both EU and non-EU migrants working in the UK, with experts warning that “the pendulum has swung away from the United Kingdom as an attractive place to live and work”. A report entitled Labour Market Outlook from the CIPD and The Adecco Group, reveals that while the short-term outlook for employment remains strong, labour and skills shortages are accelerating. The survey’s net employment balance – a measure of the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease staff levels – has remained extremely positive at +22 (compared to +23 in Q3 2018). However, among employers which currently have vacancies, seven in ten (70%) report that at least some
of their vacancies are proving hard-to-fill, higher than in Summer 2018 (66%) and Spring 2018 (61%). In addition, over two in five of all employers (44%) report that it has become more difficult to fill vacancies over the past 12 months at their organisation, while over a third (34%) of employers say that retention pressures have risen during the same period. This situation is being exacerbated by a relatively significant drop in the number of both EU and non-EU migrants that are employed in the UK. According to the latest official data, the number of non-UK-born workers in the UK decreased by 58,000 between Q2 2017 and Q2 2018, compared with an increase of more than a quarter of a million (+263,000) from Q2 2016 to Q2 2017. Contrary to the popular narrative, the labour supply shock is being driven primarily by falling interest
from migrants from outside the EU. The number of nonEU-born workers in the UK decreased by 40,000 between Q2 2017 and Q2 2018, compared with an increase of almost a quarter of a million (225,000) during the same period in the previous year. Looking ahead, labour supply looks set to be further constrained from 2021 when migration restrictions for EU citizens are introduced, especially for lower-skilled workers.
In particular, employers express concern that the main route for recruiting EU citizens to fill lowerskilled roles that was recently proposed by the Migration Advisory Committee won’t be enough to satisfy their recruitment needs. (CONTINUED ON PAGE 3...)
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We will tailor a package that is realistic… and practical, for you… Please call David Hunter of The Bowden Group about how we can HELP you…
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