The recently published report by the Migration Advisory Committee has called into question the IT skills crisis that is cited by predominantly foreign body shop IT companies.
These companies have been accused by industry experts and politicians alike of abusing the system to flood the market with cheap migrant IT labour.
The NHS and other sectors have been crying out for Tier 2 staff but have been thwarted by the continual abuse of the system by IT corporations who use up the allotted visas unnecessarily.
The report also raises the unprecedented supply of migrant workers from India – with the suggestion that nowhere else in the World can there be found skilled IT staff – whilst industry experts suggest that the truth is much more sinister.
In the report the Migration Advisory Committee states:
In the year ending August 2015, 72 per cent of all applications within the Tier 2 (Intra-company Transfer) route were for Indian nationals, of which 86 per cent were working within the IT sector
The use of Tier 2 migrants is at the expense of UK IT firms and workers who would have been employed in the absence of third-party contracting.
And because this lowers the return to working in the IT sector for UK resident workers, it may reduce the incentives to acquire these skills to the longer-term disadvantage of the UK.
The relatively high unemployment rate in this occupation could also be an indication of over-supply of certain skills
The salaries in IT occupations also do not seem to be increasing significantly relative to average earnings in other graduate-level occupations
this is not consistent with the view of a labour market with a high level of skill shortages
In their October 2015 report, the Higher Education Careers Service Unit (HECSU) found, in a survey of over 10,000 graduates, that the unemployment rate of Computer Science graduates six months after graduating was 10.6 per cent, substantially higher than the overall average for all graduates of 6.3 per cent
“With massive layoffs in the UK of UK staff numbering close to half a million UK workers it has been a grave concern to see the UK Government approving 97% of 400,000 visa applications from India alone.” One IT consultant told us.
Industry experts told us
“The Government’s own figures reveal that the public sector has delivered failure after failure by using these foreign IT body shops that abuse the Tier 2 visa process.”
“Indeed the costs of these failures alone has cost the public purse a staggering £45 Billion, and has sabotaged British Industry and destroyed UK worker livelihoods.”
“George Osborne would not need to implement additional austerity measures if he had not squandered the public purse so on IT failures.”
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