How Could Immigration Affect Contractors?

Recruiters have this week expressed concerns over Government immigration cap plans. They plan to put a cap on non-EU migrants which recruiters feel will hit the UK’s recovery, and in particular small businesses.

Tom Hadley, the REC’s Director of Policy and Professional Services, said that although immigration is a highly sensitive issue, there needs to be a balance between reducing the number of immigrants and helping the economic recovery.

He said, “The proposed cap could rupture the umbilical cord to the global talent pool. Sectors such as pharmaceutical and science, healthcare and financial services have expressed particular alarm at the potential resourcing implications.”

In terms of how this will affect contractors and freelance workers, an influx of immigrant workers in some of the sectors mentioned, such as engineering, is likely to reduce opportunities for some temporary positions. In this case there could be a support for an immigration cap.

However, My Hadley goes on to say, “The shortage of suitably skilled workers in many sectors is a reality and will not be rectified overnight. Immigration policy must be flexible and reflect the evolving needs of the UK labour market.”

Phil McCabe, of the FPB, agrees that it could mean that the sectors mentioned will be unable to properly progress without these specialist workers, whose skills are currently hard to find within the EU. “Scientific sectors such as engineering or pharmaceuticals need highly specialised skills which require recruitment on a global basis.”

The other issue which affects SMEs is that the government will allow larger multinational companies to transfer workers from their overseas offices, and effectively overlook this cap. This will create a clear disadvantage in terms of growth to smaller businesses, which could mean that contractors who rely on small businesses for work could see their opportunities reduced.

Ann Swain, chief executive of the Association of Professional Staffing Companies (APSCo), wants intra-company transfers to be included within the immigration cap and she claimed that “a large proportion” of IT roles could be filled by the resident labour market. She said, “A reduction in the number of intra-company transfers would be compensated for by increased employment within the existing pool of resident IT professionals.”

Finally, Jeff Brooks, of the REC Technology Group, understands the need for these intra-company transfers, but wants the government to ensure that it doesn’t harm contractors. He said;

“There are valid reasons for Intra-Company Transfers in a global economy. Getting rid of these all together would impact on the viability of the UK as a location for international businesses. However, the Government must ensure that the criteria are clearly understood and that the system is not abused which could limit opportunities for UK contractors.”