Britain announces stricter visa measures to reduce net migration.

As Prime Minister Rishi Sunak is under increasing pressure to address the issue of record net migration numbers, the United Kingdom said on Monday that it intends to reduce the number of migrants who arrive through legal channels. Additionally, there will be a third increase in the minimum wage these immigrants must receive for a skilled job.

High legal immigration levels have dominated Britain’s political landscape for more than ten years, which played a significant role in voters’ decision to leave the European Union in 2016. Even though the opposition Labour Party is now leading in opinion surveys, Sunak has pledged to increase his level of control after MPs in his Conservative Party criticized his performance before an anticipated election the following year.

On the other hand, companies and trade unions criticized the measures, arguing that they were futile and burdensome for the private sector and state-run health care, both struggling with a lack of available workers.

A significant number of migrants are increasingly arriving from countries such as India, Nigeria, and China rather than the European Union, according to data that was released a month ago. The yearly net migration to the United Kingdom reached a record high of 745,000 in 2022 and has remained at high levels ever since.

Home Secretary James Cleverly, an interior minister, stated that the new measures could cut that number by 300,000.

“There is an excessive amount of immigration. According to Sunak, who is also working to deport migrants who have arrived in Rwanda illegally, “today we are taking radical action to bring it down.”

They cleverly stated that the government would raise the minimum pay threshold for foreign skilled workers from 26,200 pounds to 38,700 pounds ($48,900). However, health and social professionals would be exempt from this increase.

In addition, some actions were taken to prevent foreign health professionals from bringing in family members on their visas, to raise the minimum income requirement for family visas, and to increase the surcharge migrants must pay to access health services by 66%.

A COMPETITION IN THE LABOR MARKET
Given Britain’s perennially tight labor market and the end of free movement from the EU following Britain’s exit from the group in 2020, the measures might trigger new confrontations with company owners who have struggled to find people in previous years. This is because of the combination of the two factors mentioned above.

The independent migration consultant for the government recommended doing away with the so-called shortage occupations list in October. This list is recognized as one of the primary avenues through which firms may acquire foreign workers in industries experiencing significant personnel shortages.

They cleverly stated that the government would examine the list of occupations that are in short supply of workers and would also put a stop to the existing system that allows firms to pay migrants just 80 percent of the market rate for taking positions in areas with a shortage of employment opportunities.

“We will stop immigration undercutting the salary of British workers,” Cleverly told MPs. “Thank you for your attention.” “We will create a new immigration salary list with a reduced number of occupations.”

On the other hand, several studies have demonstrated that foreign workers have a minimal or nonexistent influence on the total salary or employment levels. Furthermore, the severe lack of applicants available to fill open positions in the United Kingdom continues to challenge many business leaders.

According to Kate Nicholls, chief executive of the trade association UKHospitality, “These changes will further shrink the talent pool that the entire economy will be recruiting from, and they will only make the shortages that hospitality businesses are facing even worse.”

We have an immediate need to see an immigration system suitable for its intended purpose and that considers the requirements of both the corporate world and the labor market. At this time, the system does not perform any of those actions.

In a statement released a month ago, the Bank of England stated that although firms found it somewhat easier to employ, chronic talent shortages continued to exist in specific industries.

Trade unions also raised reservations over Cleverly’s idea. It was a “total disaster” for the health service, according to Christina McAnea, the general secretary of UNISON, which is the most prominent union in the health sector.

“Migrants will now head to more welcoming countries rather than be forced to live without their families,” added the spokesperson.