The proposals are contained in a report released on Monday titled ‘The Whole of the Moon’, which covers immigration policy.
Explaining its reasons for a change of the system, the Social Market Foundation claims that the status quo is putting “downward pressure” on wages in some professions.
For those unfamiliar with the existing shortage occupation system, visas can be granted to foreign workers who take on roles that are on the shortage occupation list. Despite requests in the past from industry groups like the RHA, lorry driving remains off the list.
The Social Market Foundation argues that it should be possible for UK employers to hire drivers from overseas – provided they are paid enough. The think tank notes that as it stands, it is impossible for hauliers to hire drivers from abroad no matter how much they are paid. Therefore, the Social Market Foundation believes the current visa system should be replaced with a simpler rule that grants entry to anyone who meets the salary threshold. This, says the think tank, would mean that any employer who was willing to pay enough for a foreign worker would be able to bring them to the UK.
“The aim should be to use the immigration system to fill shortages that cannot be otherwise filled, by employers paying more, not less, to attract foreign workers,” says the Social Market Foundation.
The current system can work particularly poorly for low-income parts of the UK because it “risks institutionalising regional wage differences by allowing wages to be lowered to fill vacancies, rather than increased to attract applicants”, the SMF added.
Commenting on the report and its findings, Social Market Foundation representative Jonathan Thomas said:
“The current shortage occupation list system which allows filling labour shortages with foreign workers in the UK can put downward pressure on wages in places that need higher incomes. Allowing wage levels alone to decide who can get a visa would allow businesses in areas of the country experiencing particular labour shortages to be able to access overseas labour provided that they were willing to pay salaries at or above the required salary threshold.”
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