Points based system is legitimate - CIPD Report

Today's publication of details of the next phase of the Government's new points based system for managing migration from countries outside the European Union gives rise to a range of practical concerns for many UK employers and will in due course be a cause of consternation for some, according to evidence drawn from members of the Chartered Institute of Personnel and Development (CIPD).

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The CIPD's Chief Economist, John Philpott, says that employers looking to hire workers with specific occupational skills from outside the EU must be quick to get up to speed with the detail of the new system while those who end up frustrated by the new rules will need to be helped to come to terms with the consequences of curbs on recruitment of some non-EU migrants.

Dr Philpott comments: ìConsultations with CIPD members show that at least 1 in 3 UK employers are actively recruiting migrant workers to fill job vacancies at all skill levels and in many sectors, ranging from agriculture and food processing to IT, shops, hotels, bars and restaurants, private care homes, and the public services.

ìThough in recent years these vacancies have increasingly been filled by migrants from elsewhere in the EU many employers continue to hire staff from outside the EU ñ and as last weekís IPPR study indicates, a steady inflow of EU migrants cannot be taken for granted in the long-term. CIPD members are therefore understandably concerned about the practical, labour cost, and business implications of the incoming points based system.

ìCIPD consultations with employers suggest that there will be considerable teething troubles during the course of the role out of the new system. It is evident from our consultations that the Home Office will have to display considerable efficiency and dexterity in introducing the new system in order to avoid a welter of employer confusion and complaints. Indeed, while figures publicised over the weekend indicating a surge in the number of employers being caught employing illegal immigrants may be a welcome sign that the government is cracking down on genuine rogue practice care must be taken to ensure that decent employers who are simply confused by the new rules are not branded rogues.

ìHowever, while some employers may have legitimate cause for practical concern as the new system is introduced it is important that those employers who feel aggrieved by the objectives of the new system quickly come to appreciate that the system's basic rationale is fully justified.

ìIn the CIPDís view the high level of migration of recent years has had a clearly identifiable positive macroeconomic impact but an uncertain and possibly negative impact on some local communities and disadvantaged non-migrants. In other words there are both winners and losers from large scale immigration ñ a view ably supported by last monthís comprehensive House of Lords report on the economic consequences of immigration.

ìThe CIPD is sceptical of the Lordsí conclusion that there should be a formal cap on immigrant numbers but accepts that government should only allow entry of economic migrants from outside the EU who have specific skills or general abilities not readily available in the UK or broader EU labour market.

ìIn view of this the CIPD is fully supportive of a points based system so long as it operates flexibly and can be fined tuned to meet changing economic and labour market conditions, for example an unforeseen drop in immigration from within the EU. With this in mind the CIPD concurs with the methodology adopted by the Migration Advisory Committee that is currently analysing the UK labour market to identify labour shortages in skilled occupations that can be sensibly filled by migrants.

ìThe CIPD recognises that the points based system will inevitably frustrate some employers who wish to recruit workers from outside the EU who are unskilled or who have occupational skills but are unable to ëscoreí the points required for legal entry to employment in the UK. However, the acid test of any policy for managing migration is that it meets reasonable and legitimate employer need without detriment to the common good.

ìThose employers who are frustrated by the points system will need help and advice from policy makers in terms of labour market information, recruitment and training measures so as to wean them off any reliance on workers from outside the EU whose entry will be restricted.î