28th November, 2008

The current economic downturn in the UK has lead the number of Eastern Europeans applying for UK working visas to drop to it’s lowest since 2005. This, along with the new Points-Based System (PBS) placing stricter rules on employing migrant workers is making the void of skilled workers in the UK even bigger.

This is likely to make life increasingly difficult for businesses in the UK who are already struggling through the financial storm, and in particular SMEs. According to figures from the federation of small businesses, 48% of SMEs in the UK are currently employing non-UK workers.

However, one of the major benefits of the UK’s new PBS is its flexibility. The PBS was specifically designed to be able to adapt to the needs of the economy at any given time. For example, If the Polish and other A8 citizens (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia, Slovenia) return to their own countries, the UK might be faced with a shortage of low skilled workers. In that case, Tier 3 of the PBS, which is specifically designed for that group, could be developed.

Given the current situation, to make up for the departed highly skilled Eastern Europeans, the bar can be lowered on Tiers 1 and 2 to allow more non-EU workers to enter the country and fill the void. Another option would be to even up the quota on the Youth Mobility Scheme allowing more working holidaymakers into the country.

The PBS can be utilised to combat the current skills shortage caused by the departure of Eastern Europeans, meeting the needs of the UK economy during the downturn and making life much easier the businesses, in particular SMEs.