Despite the government announcing that 2018 would be the ‘year of engineering’, the sector is still struggling to plug the skills deficit which will need a predicted 186,000 people a year until 2024 to fill. If this target is not met, the sector risks being left with a shortage of around 1.8 million engineering and manufacturing workers by 2025.
This May, the Migration Advisory Committee (MAC) released its ​review of the Shortage Occupation List (SOL) and recommended that it be updated to include new roles throughout the engineering sector, as well as extending existing ones.
Prior to this review, the SOL had not been updated since 2013, therefore the recommendations are vital to ensure that the list reflects the UK’s current economy and labour market. Although a variety of roles from various sectors have been flagged up, those in the engineering sector are the most common across the board, making up to 50% of those on the list.
Although the civil and mechanical engineering sectors have been experiencing skills-shortages at a consistent rate, other sub-sectors in the industry such as process engineering appear to be struggling the most.
These areas are typically filled with older workers who are close to retirement, and with a steady reduction in the number of students enrolling in engineering degrees – particularly in less popular and more specialised area -there are few adequately qualified graduates to replace them.
The Institution of Mechanical Engineers believes that the failure of the education system to engage children with engineering is partly responsible for the shortage of workers too, as this has a knock-on effect on the number of students choosing to study STEM subjects at a more advanced level.
The Shortage Occupation List
​The Shortage Occupation List assesses the need for overseas recruitment from areas outside the European Economic Area (EEA). When a role is added on to the Shortage Occupation List the cost of visa fees are reduced (from £610 to £464 per applicant), applicants do not have to meet a minimum salary threshold to attain settled status after five years, and occupations also get priority to gain Tier 2 Visas.
This ultimately makes the process easier for employers and employees alike, particularly as the Resident Labour Market Test (RLMT) which requires a job advertisement to be live for a minimum of 28 days before it can be offered to an applicant outside of the European Economic Area (EEA), can be by-passed when on the SOL.
However, as Peter Finegold, iMeche’s head of education and skills has said, ‘despite contributing £1.23tn to the UK’s total turnover, the engineering industry retains a persistent skills shortage.’ The sector also relies on migrant labour to stay afloat which currently accounts for just under 10% of the engineering workforce.
What has not been discussed in the MAC’s review is how the end to free-movement’s steady flow of migrant labour will influence the landscape of the engineering sector post-Brexit.
An increase in the vacancy ratio of such roles has already been observed, standing as high as 27% in the construction industry. The Centre for Economics and Business Research estimated that the engineering sector generated 25% of the UK’s total GDP in 2015, so if skills-shortages continue at the rate predicted, the recruitment deficit could prove fatal to the UK’s economy and detrimental to an industry already in crisis.
Process engineers
​Chemical, or process engineers, are one group particularly at risk of enduring the backlash of free movement’s bitter end. Many in the sector fear that the ‘skills-based’ approach which was laid out in the ​Immigration White Paper will only aggravate the worker shortage further, as only ‘skilled migrants’ will be prioritised.
This may mean that those who don’t possess an adequate level of education but who wish to enrol in education in the UK that would enable them to qualify as an engineer, face being rejected.
EngineeringUK discovered that the UK risks losing out on around 22,000 graduate engineers every year which are crucial for replenishing the work force. With a general estimated shortage of between 83,000 and 110,000, the future appears bleak for an industry which was formerly celebrated for its stature as a pillar of economic stability.
Concerns continue to grow as the UK’s Visa System, and the associated costs with applying for certain Visas, may prove expensive and unattainable for thousands of talented applicants. When free movement ceases in the UK, all new engineers coming from the EEA will need to meet the same criteria as applicants from outside the EEA.
This will mean that the need to apply for a Work Visa, along with a Dependent Visa for any additional family members, will become compulsory. Those wishing to enter a more permanent role in the industry will then need to apply for British Citizenship and/or Indefinite Leave to Remain.
Applications for British Citizenship currently stand at £1,330 and an extra £1,330 for each family member or dependent in the family unit. Costs for Indefinite Leave to Remain, or ILR, (the form of settled status needed to gain citizenship) are £2389 per applicant, with a further £2389 for each dependent.
Whenever a role is listed on the Shortage Occupation List the Work Visa application fee is reduced, but even with this, the ILR and British citizenship fees remain at full price.
Whilst free movement remains intact, European process and chemical engineers are likely to apply for roles in these areas where they will be eligible to access a multitude of opportunities without restriction.
The engineering sector is responsible for around half of the UK’s exports and an estimated 3.6 million jobs. The end to free movement could prove a harsh blow to the engineering sector.
Although the Migration Advisory Council’s addition and extension of many roles on the Shortage Occupation List is a promising move, further action is needed to ensure the survival and growth of an industry which is a pivotal part of the UK economy.
