Decreasing immigration to the UK will spell disaster for its SMEs

Decreasing immigration to the UK will spell disaster for its Small and Medium Enterprises as they will find it tougher to hire required skilled workers. In 2018 the net Immigration to the UK is likely to decrease to 180, 000.  This will be the closest the government will come to its repeated aim of decreasing immigration by 10s of 1000s.

The decrease in immigration to the UK has been forecasted by Institute of Directors. It says that PM Theresa May will welcome the decreased immigration by 50,000, though she was never able to come any closer to this in her 6 years as Home Secretary. Even in her 18 months of premiership this was unachievable, said the IOD.

However, Businesses in the UK, especially the SMEs will definitely not welcome the decreasing immigration to the UK. The obvious reason is that they will find it tougher to hire workers required for economic prosperity. This will result in enhanced pressure on the labor market said the IOD.

A section of the companies will face pressure to increase salaries. But others will find it difficult to cope and eventually will downsize or stagnate. This is definitely not a picture of the vibrant UK economy that May seeks to project amidst negotiations for EU exit.

The hardliner Brexiteers in the Conservative Party persistently stuck to the immigration target even as the net annual immigration remained as high as 336, 000 in the year ending 2016 June. After the referendum for EU exit, quantities have been falling in the UK. More and more EU workers are feeling less safe and welcome. As a result, the net annual immigration for the year ending 2017 June was 230, 000.

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