Migration fuelling polish skill shortage, while not yet countering UK shortages

There is strong evidence to suggest the influx of Polish immigrants into the UK is leading to a rapidly growing shortage of skilled workers in Poland, according to Grant Thornton's International Business Report (IBR).

The number of businesses citing the lack of a skilled workforce as a barrier to growth in Poland increased from 28% to 43% between 2004 and 2007. In a similar period, between May 2004 and December 2006, an estimated 375,000 Poles* registered to work in the UK, a figure that does not include the self-employed.

However, this has not resulted in any visible easing of skill shortages within the UK, according to the IBR. The number of companies citing the lack of a skilled workforce as a barrier to growth remaining steady, growing 1% between 2004 and 2007 (from 31% to 32%). In total more than 579,000* migrants from A8 countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) have registered to work in the UK since joining the EU in May 2004.

Alysoun Stewart, head of Grant Thornton's Strategic Services Group, said it was clear there were still more opportunities for utilising the skills of the migrant workforce to fill gaps in the UK market.

Necessity has encouraged UK companies to look outside the traditional employment channels and to tap into new skill pools, and with the skill shortage problem this process is set to continue. However, there is evidence to suggest that many of the Eastern European immigrants may be targeting lower skilled jobs in the UK than their level of qualification at home would merit simply to get a foothold in the job market here.

According to the Government's Ascension Monitoring Report, which measures the impact of EU workers in the UK, A8 workers were 'continuing to go where the work is, helping to fill the gaps in our labour market, particularly in administration, business and management, hospitality and catering, agriculture, manufacturing and food, fish and meat processing. In 2006, 43% of registered workers applied for jobs in administration, business and management (which includes employment agencies), compared to 36% in 2005'*.

In spite of this, however, recruiting the right people remains a tough challenge. Beyond the UK averages, Scotland was the area most affected, with 44% of businesses saying the lack of skills in the local market was a constraint on growth, compared with 29% of London and Southern businesses. The area experiencing the least disruption from lack of skills was Northern Ireland, in which just 22% of businesses felt constrained.

Skill shortages will always exist, but the key to minimising the problem is building an industry-wide skill base in every sector of the economy. This can only happen when both public and private sector organisations make substantial efforts to offer training and career support to all staff on an ongoing basis, and recruitment is wide open to every sector of society, Stewart concluded.