CBI calls for immediate updating of 'shortage occupation list' to tackle labour shortage

Britain’s biggest business lobby group has called on the government to relax post-Brexit immigration rules with immediate effect to ease the acute labour shortage that is being witnessed in businesses across sectors in the country.

In a speech to the Recruitment and Employment Confederation’s (REC) annual conference on Tuesday (29 June), the Confederation of British Industry (CBI) president Karan Bilimoria presented a series of recommendations to tackle the manpower shortage issue.

Identifying how the UK government can make sure that the economic recovery on the right track, the CBI has called on the government to update the ‘shortage occupation list’ immediately, especially to deal the shortage of certain roles that were recommended by Migration Advisory Committee last year in September- butchers, bricklayers, and welders for example, the exact same roles which the country is now facing shortage.

Highlighting how “perfect storm of factors are coalescing”, the CBI claimed that post-Brexit immigration rules followed by pandemic are now playing havoc in the country as businesses are now ready to open but almost every other sector is facing acute manpower shortage, with hospitality, logistics, and food processing industries being hit particularly hard.

Citing examples across the industries, the CBI made it clear that the problem is deep and complex.

“One workwear supplier in the North West told us they used to get 20-30 applications for HGV driver positions prior to the pandemic. But are now averaging fewer than ten applications per post,” Bilimoria said. “Or in food and drink. Where a leading food supplier told us they’ve seen EU workers leaving during the pandemic and despite offering apprenticeships, they can’t attract new workers to fill the gaps.”

He also proposed a commitment to review the list annually to keep it responsive to the ebb and flow of skill demands.

“Where there are clear, evidenced labour shortages, businesses should be able to hire from overseas. An evolving shortage occupations list could help.”

Speaking on behalf of 190,000 firms of all sizes and sectors, CBI said that the employers also need to step up to labour shortages by investing in the skills of the domestic workforce, and by taking a chance on job seekers who otherwise get overlooked owing to their gender, ethnicity, or background.

CBI’s demand to update ‘shortage occupation list’ comes after the Defra held emergency talks with various stakeholders on the HGV driver shortage.