Keir Starmer's strategy to curb UK net migration by enhancing domestic training and skills development may fall short of its goals, according to the Migration Advisory Committee (MAC), an independent body advising the government.
In its annual report, the MAC questioned the effectiveness of linking immigration policies to domestic skills development, noting that such an approach is not universally applicable. The committee highlighted that net migration reached 906,000 in the year ending June 2023, underscoring the scale of the issue.
“Linking immigration and skills policy is not a one-size-fits-all solution,” the report stated. “Shortages in sectors and occupations may be driven by factors like poor pay and working conditions rather than a lack of skills.”
The MAC emphasized that while improving the domestic labor pool is a commendable policy, it does not necessarily reduce employers' reliance on foreign workers. “Employers will still aim to find the best candidates for their roles, which could include international recruits,” it added, suggesting that the impact of domestic skills development on migration will vary across industries.
Starmer, who has previously committed to reducing reliance on overseas workers, stated in July, “We won’t be content just to pull the easy lever of importing skills. We’re turning the page on that.”
However, the MAC's findings cast doubt on the feasibility of this approach. Skilled migrant workers contribute significantly to the UK economy, with a positive net fiscal impact of £16,300 per person, compared to just £800 for the average UK-born adult in the 2022-23 fiscal year.
The report attributes this disparity to higher incomes among skilled migrants, which lead to greater tax contributions, and reduced public spending due to restrictions on accessing public funds. Additionally, skilled migrants tend to be younger, resulting in lower healthcare costs.
MAC Chair Prof. Brian Bell warned against oversimplifying the relationship between immigration and skills policy. “We caution against treating this as a universal approach to reducing net migration. Policies must consider the unique circumstances of each sector,” Bell advised.
The government has tasked the MAC with monitoring sectors facing acute skills shortages and reporting annually to guide immigration policy. Stricter rules for visa sponsorship and measures against employers violating labor laws are also in the pipeline.
While Starmer’s administration remains committed to reducing net migration, the MAC’s findings suggest that achieving this goal will require a more tailored and sector-specific strategy.
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