Member Article

Recruitment Industry Leader Warns Of Post Brexit Skills Shortage

The head of the UK’s £35billion recruitment industry has told Yorkshire’s leading HR professionals that they must start preparing for the implications of Brexit and warned how EU nationals are hugely overrepresented across some of the region’s most prominent industries.

Kevin Green, Chief Executive of the Recruitment & Employment Confederation (REC), was a guest speaker in Leeds for an exclusive event hosted by leading multi-sector recruitment firm Futures.co.uk and retained executive search business Burns Tempest.

During the event he unveiled new research revealing that the EU population now represents close to 6% of the UK population, but 7%, or 2.2million, of the labour force. The study, commissioned in conjunction with the Migration Policy Institute and global law firm Fragomen Worldwide, also revealed EU nationals are overrepresented in a number of crucial sectors across the country.

These include manufacturing where 11% of the workforce comprises of EU nationals and 9% across wholesale, retail, hotels, restaurants, transport and communication. EU nationals also make up 8% of the workforce in both the construction and agricultural industries. These figures rise significantly in London where 33% of construction workers are EU nationals and over 20% of hospitality, retail and manufacturing workers are from the EU.

David Winterburn, who heads up Burns Tempest, recruited Green into the CEO role for the REC in 2008. Previously from the Royal Mail where he was the HR Director of the Royal Mail and pivotal in the organisation’s dramatic turnaround, from losing £1million a day in 2003 to making over £600million profit in 2007.

Green said: “The UK’s economy is growing, interest rates remain low, unemployment is just 4.6% and employment rates stand at 74.8%, which is at its highest level since 1971, so there’s a lot to be positive about. However, there are challenges ahead including flexibility, an aging population and post Brexit immigration. Forward-thinking employers have to plan for these now.

“The REC believes any EU nationals already in work with a National Insurance number should stay and that any new rules should start when we finally ‘Brexit’. An interim immigration system could also be introduced until at least 2022. We could differentiate the immigration system by skills levels, with a jobseeker visa for high-skilled individuals and employer sponsorship for non-graduate jobs.

“Temporary work visas could benefit the needs of the flexible labour market. The immigration system must then have a focus on speed, cost and predictability and reconsider the Resident Labour Market Test. It should be evidence-led and free from political pressure.”

Burns Tempest’s David Winterburn added: “Kevin offered a fascinating insight into what the labour market looks like in post-Brexit Britain. It’s clear that attracting and retaining the best people is now more important than ever and that’s where quality recruiters and executive search firms really add value when it comes to building successful teams and spotting leadership talent.”

Burns Tempest specialises in business critical appointments throughout the UK that typically pay an annual salary of between £50,000 and £500,000.

This was posted in Bdaily's Members' News section by Steven Wright .