UKHospitality has reacted to the Migration Advisory Committee’s report into EEA migration in the UK – released earlier today – warning that the recommendations would drive worker shortages and undermine a major part of the UK economy, which employs over three million individuals.
The trade group said that the recommendations would, ultimately, lead to higher costs for both businesses and consumers, and impact service levels and the overall experience for hotel guests, restaurant customers and pub goers.
UKH has warned that any future immigration policy that favours highly-skilled migrants above low-skilled labour will undermine the hospitality sector’s efforts to provide jobs.
The report’s recommendations include:
· making it easier for highly-skilled workers to migrate to the UK than lower-skilled workers
· no preference for EU citizens
· abolishing the cap on Tier 2 migrants
UKHospitality Chief Executive, Kate Nicholls said, “The report states that there is no way to change the migration system without creating winners and, ultimately, losers. There is acute concern from this industry – which is a huge employer and significant part of the UK economy – that a new system that does not take into account the fundamental challenges being faced by in the sector will only ensure that businesses, their employers and customers are the losers.
“We have a world-class hotel, hospitality and eating-out market in the UK, but it is under significant pressure from mounting costs, a shortage of workers and economic uncertainty. This sector must not be overlooked in the UK’s departure from the EU, otherwise there is a very real risk of tangible and long-term damage to a sector that employs 3 million people and generates a lot more than £350m a week to the public purse*.
“The sector invests significantly in its domestic workforce, employing over 2 million British workers and providing jobs in every region. We are very proud to offer opportunities, training and careers to UK employers and there are plans to use T-Levels and apprenticeships to continue to boost our domestic workforce. The MAC report acknowledges the ongoing need for medium- and lower-skilled workers but this cannot be met domestically.'
Nicholls continued, “We are forecast to have 200,000 fewer 18-24 year olds who were born in the UK by 2020, so we have a labour shortage in hospitality, where young workers make up half the workforce. Some 90% of our jobs are not covered by the current visa regime. The reality is that the hospitality sector workforce needs supporting with additional non-UK nationals and many of them will be from the EU.
“It is disappointing and frankly illogical to see the MAC report place too much emphasis on the economic worth of individuals, rather than the wider benefits they bring to the UK. If preference is given to high-skilled workers from outside of the UK, then hospitality businesses will struggle to fill vacancies, investment will dwindle and businesses will suffer. Ultimately we will all lose because the guest experience will also suffer.
“The expansion of the Youth Mobility Scheme is a welcome first step, but this needs to be much greater in focus and with a wider scope of ages. Widening of the Tier 2 visa to incorporate more occupations can help, but there is still concern that smaller businesses will be deterred. It is crucial that EU migration policy is factored into a future trade deal with the EU, for the benefit of Britain, the EU and all citizens.'
Nicholls concluded, “Any negative impact on hospitality businesses’ ability to employ is ultimately going to be felt by customers on high streets around the UK. We will be making these points to the Government, highlighting the dangers of a future immigration system that is disproportionately restrictive towards lower-skilled workers who are vital to the ongoing success of the hospitality sector and the wider UK economy.”
