Fall in number of EU and non-EU migrants leads to skills “supply shock” for UK employers

A significant fall in the supply of both EU and non-EU migrant workers has created a significant ‘supply shock’ for UK employers, the latest quarterly Labour Market Outlook survey from the CIPD and The Adecco Group has been able to reveal.

Results of the poll suggests that while the short-term outlook for employment remains strong, labour and skills shortages are accelerating. In fact, the figures show that among employers which currently have vacancies, seven in ten (70 per cent) report that at least some of their vacancies are proving hard-to-fill, higher than in Summer 2018 (66 per cent) and Spring 2018 (61 per cent).

In addition, over two in five of all employers (44 per cent) report that it has become more difficult to fill vacancies over the past 12 months at their organisation, while over a third (34 per cent) of employers say that retention pressures have risen during the same period.

These skills shortages are also affected by a relatively significant drop in the number of both EU and non-EU migrants that are employed in the UK. According to the latest official data, the number of non-UK-born workers in the UK decreased by 58,000 between Q2 2017 and Q2 2018, compared with an increase of more than a quarter of a million (+263,000) from Q2 2016 to Q2 2017.

The number of non-EU-born workers in the UK decreased by 40,000 between Q2 2017 and Q2 2018, compared with an increase of almost a quarter of a million (225,000) during the same period in the previous year.

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