The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

CBI Boss Calls for “Economic Migration” to Tackle Labour Shortage

CBI Boss Calls for “Economic Migration” to Tackle Labour Shortage
22 November 2022
 

The UK’s low economic growth could be solved by immigration, says the Director-General of the CBI.

On the first day of the CBI Annual Conference 2022, Director-General Tony Danker's keynote speech addressed the current labour shortage caused by post-lockdown economic activity and a lack of “Brits to go round for the vacancies that exist.

 

"Immigration. Let’s be honest with people. Our labour shortages are vast. First, we have lost hundreds of thousands of people to economic inactivity post-COVID. And anyone who thinks they’ll be back any day now – with the NHS under this kind of pressure – is kidding themselves."

–Tony Danker

Director-General, CBI

 

He also referred to immigration as “the only thing that’s increased the potential growth of our economy since March.” He said: “So, let’s be practical. Let’s have economic migration in the areas where we aren’t going to get the people and skills at home anytime soon. In return, let’s make those visas fixed term. And let’s agree a skills policy that works to fill these roles from the UK in the medium term.”

Industry bodies such as the British Cleaning Council (BCC) have long warned that the UK’s post-Brexit landscape would pose a challenge when it comes to filling vacancies with UK-based citizens.

The cleaning and hygiene industry has always depended on employees of all nationalities, with Labour Force Survey figures from 2020 showing that 20 per cent of the cleaning and hygiene industry workforce nationwide were from overseas, rising to 55 per cent in London.

In 2019, the BCC’s Chair Paul Thrupp predicted that the cleaning and hygiene sector would eventually feel the effect of the labour shortage hugely, causing a detrital impact in public health standards in buildings.

 

Calls for a Shortage Occupations List

 

Tony Danker also pointed out the “skills mismatch” amongst the current British labour force, an issue that was echoed by CBI President Brian McBride on the second day of the conference.

COVID-19 and Brexit aren’t the only things causing the skills shortage, Tony argued:

“Because the reality is the UK has an ageing society, and one of the legacies of the pandemic is a sharp rise in inactivity among older workers, with tens of thousands retiring early – and record numbers reporting chronic ill-health.  We also have one of the biggest skills mismatches in the G7. CBI analysis shows 90 per cent of the current UK workforce will need to add to their skills by 2030.” 

He spoke about a “Shortage Occupations List” that would help guide policies of immigration and education, but also for businesses to account for in their training budgets. He also called for changing the Apprenticeship Levy into a Skills Challenge Fund which allows employers to spend their budgets on the skills they need. 

Picture: a photograph of a person wearing a hi-visibility jacket and a protective hard hat holding a ladder and looking into the distance. Image Credit: Big Stock

Article written by Ella Tansley | Published 22 November 2022

Share



Related Articles

Fuel and Labour Shortages – CBI Calls for COBR-Style Action 

As the UK experiences supply shortages from labour to CO2 to fuel distribution, the UK’s biggest business group is urging the government to empower...

 Read Full Article
London Mayor Calls for Temporary Visa Scheme for Construction Workers

Shortages caused by Brexit and COVID-19 must be dealt with by creating a temporary visa scheme for workers in the construction industry, says Sadiq Khan. In September...

 Read Full Article
The Staff Shortage Crisis – Recruiting and Retaining Cleaning Staff

Amidst national staff shortages in the UK, cleaners and domestic staff are some of the most in-demand. In the week of 23-29 August, there were a total of 1.66 million...

 Read Full Article
Spring Budget 2023 – What FMs Need to Know

Upskilling programmes for the over 50s, twelve new high investment zones and additions to the Shortage Occupation List were all revealed in Jeremy Hunt’s spring...

 Read Full Article
National Careers Week – Making FM Appeal to Young People

For National Careers Week, Michelle Connolly from 300 North shares her advice on how FM companies can make the sector more appealing to young people. Michelle...

 Read Full Article
Spotlight Interview – Julie Jarvis | Phoenix Resourcing Services

Julie Jarvis is the Managing Director of Phoenix Resourcing Services, and has over twenty years of experience in the recruitment industry specialising in building...

 Read Full Article
BCIS Forecasts Maintenance and Cleaning Costs are Set to Rise in 2023

Building maintenance and cleaning costs are to rise by 4.8 per cent and 7.7 per cent respectively this year.  The Building Cost Information Service...

 Read Full Article
ISS Joins Age-Friendly Employer Pledge

ISS has signed up to the Age-Friendly Employer Pledge, as part of a commitment to maintaining age-positive recruitment, flexible working solutions and a workforce that...

 Read Full Article
Employment Programme for Women in Construction Launches

Major home builders and a not-for-profit have launched a nationwide employment programme for women, helping to address the gender imbalance in the construction...

 Read Full Article
Predictions for Supply Chain Issues in 2023

Alex Minett from CHAS, the supply chain risk management company, looks at seven issues that will affect supply chains in 2023.  The last year has been challenging...

 Read Full Article