The CBI says that some its members are struggling because the tight migration policy in the UK means they cannot recruit skilled foreign workers.
The cap on tier two general visas for skilled workers stands at 20,700 per year, with each month having a quota.
CBI director John Cridland says this was exacerbating the existing skills shortage in British firms, calling it “the Achilles’ heel of our productivity performance”.
The quotas were reached in both June and July. The CBI said the current cap worked during the Great Recession but the demand for skilled labour is growing with the recovering economy.
About 20 large companies have complained to the CBI that candidates from outside the European Economic Area were being thwarted by unsuccessful visa applications.
Companies must first show that they cannot find a suitable British-based worker before they can sponsor an application for this visa.
“I understand the need of government to tackle public concerns about migration but I don’t think they are concerned about skilled migrants or students,” he said, referring to the Home Office plans to limit international students working during or after their studies.
The Home Office reports a 13% increase in this type of visa applications, reaching 93,067 in the year to March. Applicantions include inter-company transfers, sportspeople and ministers of religion.
Four-fifths of applications came from the US, India, Australia, China and Japan.
