Home secretary Yvette Cooper has commissioned the Migration Advisory Committee (MAC) to investigate these sectors’ reliance on international workers, amid concerns over high levels of immigration and years of failed promises by both Conservatives and Labour to control migration numbers.
In a letter sent on Wednesday, Cooper called on the MAC to identify specific roles within the tech and engineering sectors that are experiencing shortages.
She asked the committee to assess whether pay, training and working conditions in the UK are contributing to these gaps, and to explore how companies have adapted beyond hiring from abroad.
While acknowledging the valuable contributions of foreign workers, Cooper said a more sustainable and managed immigration system is needed.
“The system as it exists is not operating in the national interest,” she wrote, noting that high levels of international recruitment were evidence of underlying weaknesses in the UK labour market.
The review will examine factors contributing to labour shortages in IT and engineering, including training, pay, and working conditions. It will also assess the effectiveness of current immigration policies, such as the Shortage Occupation List, in addressing these shortages.
The MAC will explore potential policy changes that would encourage employers to prioritise domestic recruitment. This could involve modifying the Immigration Salary List, which sets minimum salary thresholds for foreign workers. The Conservatives controversially raised the threshold last year.
The government aims to develop a more structured approach to labour market challenges by coordinating efforts between the MAC, Skills England, the Industrial Strategy Council and the Department for Work and Pensions.
The collaboration will involve data sharing, analysis and regular meetings to identify the sectors facing significant shortages.
The review is expected to be complete within nine months, allowing for extensive stakeholder engagement.
The findings will inform future government policies to address labour shortages and promote a more balanced immigration system.
The move marks a shift from the Conservative’s approach, which focused on restricting low-skilled immigration while maintaining fewer limits on high earners.
The Conservative government raised the salary threshold for sponsoring visas and implemented stricter rules for family reunification, both of which Cooper has paused.
The Labour Party has pledged to further reduce immigration, including through work-related routes.
Currently, the tech sector accounts for roughly one in six skilled worker visas, with roles such as programmers and IT business analysts in particularly high demand.
Engineers, while accounting for fewer visas, are also in short supply, with manufacturers pushing for more flexible visa rules for lower-skilled technicians. Over the past year, 67,703 skilled worker visas were issued, representing a 2% decrease compared to the previous year.
Industry leaders, however, are concerned about the potential impact of further restrictions.
Verity Davidge, director of policy at the manufacturers’ group Make UK, noted that the sector is facing 62,000 live vacancies with no short-term solution to replace retiring workers.
“We really need a new government to help open up the talent pool. The fear is we could see a tightening of restrictions,” she told the Financial Times.
Nimmi Patel, head of skills, talent, and diversity at TechUK, welcomed the focus on enhancing the domestic talent pipeline but underscored the ongoing need for international talent.
She noted that persistent skills shortages in areas like datacentres, cybersecurity and telecoms would be highlighted in the MAC’s review, arguing that migrant workers are a valuable addition to the UK’s home-grown skills base.
Computing says:
I’ve argued before that pay is only part (admittedly a large part) of the issue: training is just as important. Even recognising that, though, there is no easy fix. Companies have been driven to seek the cheapest labour they can for decades to remain competitive, which has meant outsourcing, and now skilled British workers don’t exist in the quantities needed. If the Labour government wants to change things, it should look to boosting training budgets as a first step.
