REC calls for government to go further on Shortage Occupations List

Responding to suggestions that Ministers will ease restrictions for construction sector, Shazia Ejaz, REC Director Campaign, said:

“We would welcome any steps forward to ease labour shortages in the UK by making it easier for employers to hire from abroad. Not doing so holds our economy back on much-needed growth, innovation and productivity. Ideally we would like government to commit to reviewing and updating the Shortage Occupations List every six months to make the immigration system more responsive to business needs. We need this urgently to help re-balance our labour market which saw new job ads hit a 14-month high last month.

“A buoyant construction sector with enough labour is vital to underpin our economy and minimise economic decline, let alone ensure the government’s housing target can be met. Our latest Report on Jobs data showing a second successive monthly rise in vacancies for permanent construction roles during February, with the rate of growth the sharpest and the fastest since last August. And temporary vacancies for construction roles increased for the 32nd consecutive month.

“With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy up to £39 billion every year. This figure is just short of building two whole Elizabeth Lines. More immigration isn’t the silver bullet but it’s definitely part of the mix on addressing our crippling labour shortages.”

Ends

Notes for editors

Report on Jobs: Firms' hesitancy to hire weighs on permanent staff recruitment in February – March 2023.

Labour Market Tracker: New job ads hit a 14-month high as businesses still need to hire – February 2023. Notable increases in adverts for construction trades floorers and wall tilers (+ 52.7%), painters and decorators (+43.1%), construction operatives (+23.5%), and carpenters and joiners (+22.8%).

Overcoming shortages - How to create a sustainable labour market - July 2022. In this report, we show exactly how much damage could be done if we don’t step up. With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of the entire current defence budget, or two whole Elizabeth Lines.

Britain plans looser foreign worker rules to plug labour gap – Financial Times, 8 March 2023

For more information and interview enquiries, contact the REC Press Office on 020 7009 2157, 020 7009 2129 or pressoffice@rec.uk.com. Outside of regular office hours, please call 07702 568 829.

Click here to view all REC press releases.

The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.