According to the Migration Advisory Council, government policies that focus on domestic workers’ skills and refocus them may not be successful in reducing net migration.
Early next year, a white paper will be released outlining how the ministers plan to boost domestic worker skills and reduce immigration.
In its annual report, published this week, the MAC warned against a one-size-fits all approach. The report said that while improving domestic skills is worthwhile on its own, it does not guarantee a reduction in reliance on immigration.
The report said that some shortages are caused by low pay and poor conditions, rather than by a lack in skills. It also stated that the impacts of immigration and investment on certain sectors vary depending on “individual circumstances”.
MAC said that employers would still hire foreign workers even when they had enough domestically trained workers. This is because “they seek the best match for their vacancy which may include international recruits”, MAC stated.
The report stated that the government had acknowledged that shortages in different sectors were caused by different factors and that it had asked MAC to examine the IT and engineering industries.
According to Office for National Statistics figures released last month, net migration dropped from a high of 960,000 in the year ending June 2023 down to 728,000 for the year ending June 2024.
The MAC expects numbers to continue to fall due to restrictions introduced by the previous Conservative government. These include a ban on care workers and foreign students bringing their families to the UK.
Professor Brian Bell, Chairman of the MAC said: “While the MAC expects net migration to decrease further, it cautions the government to not see linking immigration with skills policy as a single-size-fits all approach to reducing net migration. We encourage them to continue considering individual circumstances within sectors.
This report provides a method for assessing the fiscal impact on skilled workers visas, a key metric to determine whether a route is beneficial for the local population. This analysis will inform future MAC Commissions.”
MAC said that migrants on skilled worker visas contributed more to public finances than what they took out. The average migrant with the visa was estimated to have a net fiscal benefit of PS16300 in 2022/23. This compares to a net fiscal benefit of PS800 for the average UK born adult.
The assessment was made based on the route for skilled workers, where the minimum salary required for migrants to be eligible for a visa was PS18,600.
The minimum salary threshold has been raised to PS38700 in March of this year.
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