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Dr Philpott pointed out that at least one in three UK employers were actively recruiting migrant workers to fill job vacancies at all skill levels and in many sectors, ranging from agriculture and food processing to IT, shops, hotels, bars and restaurants, private care homes, and the public services.

Though in recent years these vacancies have increasingly been filled by migrants from elsewhere in the EU, many employers continue to hire staff from outside the EU.

As last week’s IPPR study indicates, a steady inflow of EU migrants cannot be taken for granted in the long-term.

Dr Philpott added that CIPD members were therefore understandably concerned about the practical, labour cost, and business implications of the incoming points based system.

He said that CIPD consultations with employers suggested that there will be considerable teething troubles during the course of the role out of the new system.

“It is evident from our consultations that the Home Office will have to display considerable efficiency and dexterity in introducing the new system in order to avoid a welter of employer confusion and complaints,” he added.

Clearly identifiable positive macroeconomic impact 

Figures publicised over the weekend indicated a surge in the number of employers being caught employing illegal immigrants.

The CIPD warned, however, that care must be taken to ensure that decent employers who were simply confused by the new rules were not branded rogues.

“While some employers may have legitimate cause for practical concern as the new system is introduced, however, it is important that those employers who feel aggrieved by the objectives of the new system quickly come to appreciate that the system's basic rationale is fully justified,” Dr Philpott said.

In the CIPD’s view the high level of migration of recent years has had a clearly identifiable positive macroeconomic impact but an uncertain and possibly negative impact on some local communities and disadvantaged non-migrants.

“In other words, there are both winners and losers from large scale immigration – a view ably supported by last month’s comprehensive House of Lords report on the economic consequences of immigration,” Dr Philpott added.

Labour shortages in skilled occupations 

The CIPD is sceptical of the Lords’ conclusion that there should be a formal cap on immigrant numbers but accepts that government should only allow entry of economic migrants from outside the EU who have specific skills or general abilities not readily available in the UK or broader EU labour market.

The CIPD said it was fully supportive of a points based system so long as it operated flexibly and could be fine-tuned to meet changing economic and labour market conditions, for example an unforeseen drop in immigration from within the EU.

The Migration Advisory Committee is currently analysing the UK labour market to identify labour shortages in skilled occupations that can be sensibly filled by migrants.

The CIPD said that it recognised that the points based system would inevitably frustrate some employers who wished to recruit workers from outside the EU who were unskilled or who had occupational skills but were unable to ‘score’ the points required for legal entry to employment in the UK. 

Dr Philpott said that the acid test of any policy for managing migration was that it met reasonable and legitimate employer need without detriment to the common good.

“Those employers who are frustrated by the points system will need help and advice from policy makers in terms of labour market information, recruitment and training measures so as to wean them off any reliance on workers from outside the EU whose entry will be restricted,” he concluded.

Related articles

• Half of EU migrants have left UK
• Lack of basic skills hits businesses
• London firms forced to recruit abroad

Related links 

• UK Border Agency