A growing number of employers’ groups are calling for the government to rethink the Visa cap as the effects of this new cap are already being felt in many sectors.
Legal sector affected
Among those who are looking ahead to potential staffing issues are UK law firms, who are concerned in particular about potential trainees from India and Australia. Because India and Australia share a similar common law legal system to the UK, students from these two countries are perfect for internships, as opposed to those from EU nations which operate as civil law jurisdictions.
A Visa cap imposed too quickly could “choke off” the economic recovery…
The Law Society is said to be surveying the opinions of British law firms and plan to make a submission to the Migratory Advisory Committee and the UKBO before the permanent cap figures are finalised for April 2011.
One in 10 companies plan to relocate jobs abroad
But they aren’t the only ones affected. Figures reveal that almost one in 10 UK companies plan to relocate jobs abroad in 2011. The Chartered Institute of Personnel and Development (CIPD) and accounting firm, KPMG, have conducted a study which shows that many industries are likely to move jobs to India and other suitable countries. These include call-centre, IT and finance functions, which can ostensibly be conducted from anywhere.
Gerwyn Davies, public policy adviser at CIPD and author of the report, said that a radical UK Visa cap imposed too quickly could “choke off” the economic recovery.
“The proposed introduction of a migration cap comes at a time when many employers are still struggling to fill skilled vacancies despite the high unemployment rate. The training of local or British workers to fill skilled jobs currently occupied by migrant workers will not happen overnight.” said Davies.
The cap is also reported to be causing diplomatic strain with the Indian Government. There is concern that skilled Indian migrants are no longer welcome, despite India being a major source of much- needed skilled migrants including nurses, doctors and engineers.