{"id":70877,"date":"2022-11-21T04:13:05","date_gmt":"2022-11-21T04:13:05","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/11\/21\/solve-worker-shortages-with-immigration-cbi-boss\/"},"modified":"2022-11-21T04:13:05","modified_gmt":"2022-11-21T04:13:05","slug":"solve-worker-shortages-with-immigration-cbi-boss","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/11\/21\/solve-worker-shortages-with-immigration-cbi-boss\/","title":{"rendered":"Solve worker shortages with immigration – CBI boss"},"content":{"rendered":"
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Britain should use immigration to solve labor shortages and boost economic growth, the boss of Britain’s largest corporate group will say on Monday.<\/b><\/p>\n<\/div>\n

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Tony Danker will urge politicians to be “hands on” on immigration at the CBI conference in Birmingham.<\/p>\n<\/div>\n

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Mr Danker will also say that the UK should allow “economic migration” in areas where skilled labor cannot be found.<\/p>\n<\/div>\n

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His speech comes at a time when many companies are struggling to hire staff and job vacancies are near record levels.<\/p>\n<\/div>\n

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However, recent official figures show that the UK’s unemployment rate has risen slightly, and the Bank of England has forecast it to nearly double by 2025 as the country navigates a severe recession.<\/p>\n<\/div>\n

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The Office for National Statistics (ONS) has also said business investment in the UK has fallen in recent months and remains below pre-pandemic levels.<\/p>\n<\/div>\n

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Mr Danker will urge leaders to “be honest with people” amid the country’s “huge” labor shortages, adding: “We don’t have the people we need, nor the productivity”. <\/p>\n<\/div>\n

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“First, post-Covid, we lost hundreds of thousands of people to economic inactivity,” he will say. “And anyone who thinks they will all come back any day now – when the NHS is under pressure – is fooling themselves. <\/p>\n<\/div>\n

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\u201cSecondly, we don’t have enough Brits to fill the vacancies and there is a skills mismatch anyway. And third, it’s unrealistic to think that automation can step in to get the job done in most cases.\u201d<\/p>\n<\/div>\n

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Mr Danker will argue that the country “should have economic migration to areas where we won’t be getting the people and skills home anytime soon”.<\/p>\n<\/div>\n

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“In return, we should make these visas temporary,” he will say.<\/p>\n<\/div>\n

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Mr Danker is expected to praise some of the Government’s autumn statements, in which Chancellor Jeremy Hunt announced \u00a355bn of spending cuts and tax hikes in a bid to curb rising prices while protecting public services.<\/p>\n<\/div>\n

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But the CBI director-general will warn the UK needs to go further to solve years of stagnant growth.<\/p>\n<\/div>\n

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The CBI, which represents 190,000 British companies, expects senior politicians to attend its annual conference, which starts on Monday.<\/p>\n<\/div>\n

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  • Listen to Understand: The Economy on BBC Sounds<\/li>\n
  • Jeremy Hunt has no plan for growth, says CBI chief<\/li>\n
  • Where are Britain’s missing million workers?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
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    The UK economy is underperforming other major nations and is smaller than before the Covid pandemic.<\/p>\n<\/div>\n

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    The government has said the UK is already in recession, which is defined as an economy contracting for two consecutive three-month periods. It is a sign that the economy is performing poorly, as companies often make less money and unemployment rises.<\/p>\n<\/div>\n

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    The causes of the recession are partly global factors, with energy and food prices skyrocketing this year due to the war in Ukraine and Covid.<\/p>\n<\/div>\n

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    However, the UK also faces significant labor supply challenges, as it is more difficult for small businesses to trade with Europe or hire workers due to Brexit, which ended the free movement of EU citizens coming to the UK and vice versa .<\/p>\n<\/div>\n

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    According to the ONS, net migration to the UK in the year to June 2021 was estimated at around 239,000, down slightly from last year’s figure of 260,000. The number was driven by immigration from non-EU countries.<\/p>\n<\/div>\n

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    Last month, a survey by the CBI found that nearly three-quarters of UK businesses had suffered from labor shortages in the past year and almost half of those polled wanted the government to issue temporary visas for positions that were “apparently in short supply”.<\/p>\n<\/div>\n

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    The boss of retailer Next has urged the government to let more foreign workers into the UK to ease labor shortages.<\/p>\n<\/div>\n

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    Lord Wolfson, who was a prominent Brexit supporter, said the UK’s current immigration policy is crippling economic growth.<\/p>\n<\/div>\n

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    The government has introduced a skilled worker visa system for some shortage occupations. It also has a seasonal worker program to cover jobs like fruit picking and a health and care visa for medical workers.<\/p>\n<\/div>\n

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    Mr Danker will say that people might “argue against immigration, but it’s the only thing that has increased the potential growth of our economy since March”.<\/p>\n<\/div>\n

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    \u201cGrowth is a prerequisite for a stable society. Without growth, the NHS will get worse, not better. People’s lives are getting worse, not better. And we lack the resources we need to transform ourselves into a zero-carbon world,\u201d he will say.<\/p>\n<\/div>\n

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    \u201cYet Britain had 15 years of low growth and stagnant productivity. We cannot afford a repeat.\u201d<\/p>\n<\/div>\n

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    Mr Danker will also be pushing for reform of trade rules, saying: “I know some Conservative politicians today think this problem is Europe’s fault. But the biggest regulatory obstacles companies face today are based on UK laws created by a UK Parliament and administered by UK regulators.”<\/p>\n<\/div>\n

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    Mr Danker told the BBC on Sunday that the Chancellor’s autumn statement did not include a plan to revive economic growth and that Mr Hunt had instead prioritized stability.<\/p>\n<\/div>\n

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    Speaking to Laura Kuenssberg on Sunday, Mr Danker said Mr Hunt’s statement was “all about fighting inflation and getting the state budget in decent shape and that has to be done”.<\/p>\n<\/div>\n

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    “There was really nothing telling us that the economy will avoid another decade of low productivity and low growth,” he added.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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