The Migration Advisory Committee (MAC), which recently released a review of how UK companies hire foreign talent in the engineering and information technology (IT) industries, has determined that there are no major immigration-related issues that need immediate attention.
The inquiry was ordered by Home Secretary Yvette Cooper in August 2024 in response to worries over potential over-reliance on foreign employment. The MAC was given the responsibility of determining the level of foreign hiring in certain industries as well as the impact of migrant employment on the UK labour market.
Important Results:
Although IT and engineering are among the industries that exploit the immigration system the most, the MAC concludes that their reliance on foreign hiring is reasonable and supported by actual labour market demand. In both industries, the majority of new hires are still from the UK resident workforce.
Similar to other graduate-level jobs, engineering roles exhibit immigration utilisation.
Although IT positions use the immigration system more frequently, they nonetheless adhere to immigration regulations and are mostly driven by a need to hire top talent from around the world and skills shortages.
The MAC says in its cover letter to the Home Secretary, “From an immigration perspective, we have not found major problems to be fixed.”
Citing higher-than-average incomes and less reliance on public services, the report also emphasises the significant net fiscal contribution of foreign workers in both sectors.
Strategic Observations Instead of Official Recommendations
The MAC gives a number of strategic observations to direct future immigration and skills policy, even if it does not make any official recommendations.
These consist of:
Support for the skilled worker route’s elimination of the Immigration Salary List (ISL).
Support for a more thorough examination of pay thresholds and related savings, as suggested in the government’s most recent Immigration White Paper.
A request that technical positions below the degree level, which are essential to the skills pipeline for both industries, be included in future reviews.
Additionally, the paper emphasises that increasing domestic skills by themselves won’t always result in a decrease in migration. Rather, it suggests a coordinated strategy that combines long-term investments in education and vocational training with immigration policy.
The results emphasise that immigration is still an essential “safety valve” for meeting the changing demands of the labour market and that any systemic adjustments should be supported by data and sector-specific.
“Employers should keep a close eye on developments as we await the government’s next steps following the recent white paper,” the expert said. “Changes could significantly affect their ability to hire top talent from around the world.”
The 101-page study is available for online reading here.