SMF blog questions Labour’s omission of hiring test
Jonathan Thomas, Senior Fellow at the Social Market Foundation (SMF) has highlighted in a blog the government’s continued omission of the Resident Labour Market Test (RLMT) from its post-Brexit labour immigration framework, despite its alignment with the Labour administration’s stated aim to reduce reliance on overseas workers. Thomas, a migration expert atSMF, notes that although the government’s White Paper confirms tighter eligibility for overseas workers, it stops short of reinstating the RLMT—which previously required employers to advertise locally before hiring abroad. The blog observes that the RLMT’s absence risks undermining the government’s narrative that immigration should supplement, not supplant, the domestic workforce. Without it, the Immigration Skills Charge (ISC)—a levy on employers hiring from abroad to fund local training—lacks a crucial complementary mechanism that would evidence employers’ efforts to hire locally first. While its removal was initially welcomed by employers as a reduction in bureaucracy, legal ambiguity around prioritising local candidates has created new concerns. Thomas remarks that employers now fear potential discrimination claims if they give preference to UK workers without a legal basis, leading some to unnecessarily consider overseas candidates. Heargues that reintroducing a modernised RLMT could clarify employers' obligations, support the government’s policy aims, and open the door to more constructive engagement between ministers and businesses. Despite Labour’s prior pledges to collaborate with industry, the government’s approach has so far lacked consultation. Nonetheless, there is emerging interest among compliance-minded employers in reviving the RLMT’s principle of prioritising the domestic workforce, suggesting a potential basis for renewed dialogue.