Mind the (Skills) Gap: A government bid to attract "brightest and best"

We may have emerged from the pandemic but the UK economy, it seems, continues to have more than its share of problems.

Such reliable sources as the British Chambers of Commerce (BCC) have forecast that a combination of rising inflation, tax rises and the consequences of Russia's invasion of Ukraine will all have consequences for businesses and households (https://www.britishchambers.org.uk/news/2022/03/bcc-forecast-uk-economic-growth-to-halve-this-year-as-domestic-global-headwinds-soar).

One problem which those issues have arguably exacerbated is the labour market.

Last month, the Office for National Statistics (ONS) published data showing that the number of job vacancies between February and April this year had reached record proportions (https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/may2022).

Part of that problem, it would seem, relates to the recruitment of skilled employees, a need which had, in part, been met by an influx of workers from European countries prior to Brexit.

It is of special interest to a lawyer like myself who has handled a volume of employment immigration work over the last decade or so, advising UK businesses on the recruitment of highly skilled foreign nationals.

As specialist HR media reported last year, the UK's withdrawal from the European Union has made Britain a far less appealing place to consider for citizens in the remaining 27 member states looking to leave their home countries in order to further their careers (https://www.hrmagazine.co.uk/content/news/brexit-five-years-on-european-interest-in-uk-jobs-has-plummeted).

Now, they must formally apply for the right to move here for work.

To mitigate the potential exodus of foreign staff, a new immigration system took effect on the first of January last year. The 'points-based system' meant a shift from employers having to prove that no domestic citizen had been found to fill the position being offered to a non-UK national (https://www.gov.uk/guidance/new-immigration-system-what-you-need-to-know).

Even so, there remains a deficit. Whitehall regularly updates something referred to as the "shortage occupations list", effectively advising citizens in the EU and further afield of the professions needing skilled workers.

The most recent list detailed a requirement for health service managers, vets, engineers and IT, dancers and musicians among others (https://www.gov.uk/government/publications/skilled-worker-visa-shortage-occupations/skilled-worker-visa-shortage-occupations)

Going by statistics released by the Home Office only last week, one might conclude that some progress is being made (https://www.gov.uk/government/statistics/immigration-statistics-year-ending-march-2022/why-do-people-come-to-the-uk-to-work).

A total of 277,069 work-related visas were granted to foreign employees and their dependents in the 12 months to March this year - a rise of 129 per cent on the 2020-'21 financial year.

Skilled workers accounted for two-thirds of all visas issued with people from France, Italy and Spain being the three most frequent recipients.

Government doesn't want to stop there, however, and has its eyes firmly fixed on the future.

As The Times reported earlier this week, a new visa initiative took effect, aimed at persuading “brightest and best” graduates from overseas universities to move to the UK to begin their careers (https://www.thetimes.co.uk/article/2ac77792-dfa4-11ec-baab-53d14c642149?shareToken=1fe0f0d95c7c33cec2b5cd364bca23bc).

There are, of course, language and financial eligibility criteria for those hoping to take advantage of the 'High Potential Individual' visas but they no longer need a sponsor guaranteeing a job or university place (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1061106/E02724891_-_Immigration_Rules_changes_-_HC_1118__Web_Accessible_.pdf).

Those clearing the administrative hurdles may qualify for visas of up to five years.

Yet the pride which Priti Patel expressed at unveiling a "system which puts ability and talent first” has already generated some questions.

Successful applicants must have a Bachelor or Masters' degree or PhD from one of 37 approved educational institutions (https://www.gov.uk/government/publications/high-potential-individual-visa-global-universities-list/high-potential-individual-visa-global-universities-list-2021).

Twenty-three, including Yale, Harvard, Princeton and McGill University are from North America and six are from Asia (two each from China, Japan and Singapore). None are from Africa or the Middle East.

In addition, although the latest 'High Potential' scheme may seem a very attractive option to those leaving overseas universities, the scheme could be said to be a form of "levelling up" by putting foreign graduates in the same position as their UK counterparts.

That is something which could be said to constitute a further challenge to efforts to help those leaving full-time education in the UK into the domestic labour market.

It is also far from certain about whether those taking up the new student visas will choose to remain in the UK once they expire as the Government hopes or whether they will opt to take their experience and training home with them.

What the new system undoubtedly means is a simplification of the process by which British bosses are trying to hire the sort of skilled individuals to help take their businesses forward.

Whilst the paperwork, time and cost involved in doing so might have been off-putting to some in the past, there now seem fewer barriers to finding workplace talent.