Sadiq Khan: London faces ‘full blown recruitment crisis’ over migration salary rules
London is facing a “full blown recruitment crisis” over the government’s new policies on migration, Sadiq Khan has warned.
The mayor of London today revealed City Hall analysis showing sectors including hospitality, the arts and social care may no longer be able to fill vacancies.
It follows home secretary James Cleverly’s announcement of changes to migration policy, including raising the salary threshold for skilled workers to come to the UK to £38,700, after it emerged that net UK migration had reached 745,000 in 2022.
But Khan has stressed the new approach poses a risk to critical sectors of the capital’s economy, branding the impact “severe” and “devastating”.
Greater London Authority (GLA) research warned that sectors worth around £75bn of London’s economy – or 14 per cent – and almost 20 per cent of the UK’s GDP are in danger.
Around 250,000 hospitality employees – or 58 per cent – and 200,000 health and social care workers in London are non-UK citizens, their findings revealed.
While there are 40,000 non-UK nationals working in the city’s world-famous arts, recreation and entertainment businesses, and 40 per cent of the construction workforce is non-UK.
Khan said: “This analysis lays bare the devastating impact the government’s misguided migration policies could have on sectors crucial to London and the UK’s economy.
“Migrants are absolutely integral to our economy and public services, whether running our care homes, bars and restaurants, or helping power our world-leading creative sector.
“Government needs to realise these immigration policies will lead to a full-blown recruitment crisis… [with] severe consequences for public services and the economy, across the UK.”
Announcing the policy in the House of Commons, Cleverly said the scheme “will deliver the biggest ever reduction in net migration and will mean around 300,000 people who came to the UK last year would not have been able to do so”.
He added: “I am taking decisive action to halt the drastic rise in our work visa routes and crack down on those who seek to take advantage of our hospitality.”
The Home Office has been contacted for comment.