Surge in UK Firms Seeking International Talent as Workforce Challenges Persist

In the past two years, the demand for sponsorship by UK firms to hire internationally has surged, doubling amid a substantial workforce exodus. The National Institute of Economic and Social Research (NIESR) reveals a growing frustration among businesses grappling with challenges in recruiting British workers, leading to an uptick in international hires.

With Britain’s economically inactive population expanding by 884,000 during the pandemic, over 9 million working-age individuals exited the job market. Home Office data highlights a 50% surge in new work visas, reaching 169,000, reflecting the struggles of employers to find suitable candidates domestically.

The number of businesses registering to sponsor visas has more than doubled since 2021, reaching 76,310. Despite substantial wage increases, the pool of available workers has not met the demand for over 900,000 open positions. NIESR’s Max Mosley notes that employers are compelled to seek essential staff from overseas to fill staffing gaps.

This has led to a significant influx of international workers into the labor market, presenting challenges for employers. Among them, 2.8 million cite long-term sickness as a reason for not actively seeking employment.

Contrary to expectations, claimants are staying on benefits for extended periods, despite a 6.5% rise in average wages up to November. Mosley highlights a tightening domestic labor market during the pandemic, signaling growing frustration among firms.

This trend persists despite warnings against overreliance on immigration for economic growth. Measures to tighten work migration may pose challenges for foreigners, including Nigerians, seeking UK jobs and work visas. The UK remains vigilant in addressing workforce challenges while navigating immigration concerns.