It's a bit of a tangled web, isn't it? The whole process of figuring out which jobs are in demand and how to fill those gaps. The Migration Advisory Committee (MAC), tasked by the Minister for Safe and Legal Migration, found themselves in the thick of it back in August 2022, looking at the Shortage Occupation List (SOL).
Initially, things hit a snag. The Office for National Statistics (ONS) flagged some inconsistencies with the occupational coding data, specifically the SOC2020 system. So, the MAC decided to stick with the older SOC2010 codes. Then, just as they were getting going, another pause. This time, it was the Home Office requesting a hold, waiting for more clarity on the government's direction for work migration.
Finally, a green light came on February 16, 2023, and the call for evidence went out on February 27. But before diving into the full SOL review, the MAC was given a specific, expedited task by the Home Secretary on February 7: to look closely at the construction and hospitality sectors. The goal? To recommend adding eligible occupations to the SOL and, where it made sense, to the Skilled Worker (SW) route for RQF 1-2 occupations.
It's important to note that the MAC didn't pick these sectors or the tight timelines themselves; that was all laid out by the government. They were asked for interim recommendations within four weeks, with the report to be published around the time of the Budget. These recommendations, mind you, are interim. They'll be revisited as part of the larger SOL review. So, if you're in construction or hospitality and submitted evidence, keep engaging with the full review – it's a separate, but related, commission.
So, what's the approach here? At its heart, the MAC assesses which jobs are genuinely in shortage – meaning employers struggle to find skilled workers – and where bringing in workers from overseas is a sensible solution. When an occupation makes it onto the SOL, employers get a bit of a leg up. They can recruit for those roles with more favourable migration terms, most notably a lower salary threshold and slightly cheaper visa fees. This opens the door to a wider pool of talent.
To even be considered for the SOL, a job needs to meet the SW route's criteria. This means it has to be at a Regulated Qualifications Framework (RQF) level 3-5 or higher and hit a minimum annual salary. The government has recently updated these thresholds, with the minimum set to be £26,200 (subject to parliamentary approval). For this particular review, they also asked the MAC to consider occupations currently at RQF levels 1-2 for potential inclusion, though they made it clear this would be a rare exception, with a high bar to clear.
The MAC is also recommending a change to how the SOL salary discount works. They suggest it shouldn't apply to occupations where the 'going rate' salary (that's the 25th percentile of wages) is already above the general threshold of £26,200. This review was conducted with that recommendation in mind, meaning occupations that wouldn't significantly benefit from the SOL discount if it's removed were excluded. This doesn't mean they aren't in shortage, just that they can already leverage the immigration system effectively.
Their methodology for reviewing the SOL is always evolving, and they've updated their documentation on that. This expedited review required an 'augmented' approach, which they detail further, along with any limitations. The focus, however, remains on using the most reliable and comprehensive evidence available. Given the tight timeframe, they prioritized speaking directly with key stakeholders through roundtable discussions, alongside reviewing all written submissions.
Looking at the bigger economic picture, forecasts from the Bank of England suggest a slight dip in Gross Domestic Product (GDP) for 2023 and much of 2024. This economic backdrop naturally influences the labour market dynamics within sectors like construction and hospitality.
