Last week, Financialadvice.co.uk reported that the UK government is in a desperate race to refloat the UK economy before we see a major collapse in the employment market. Recent announcements by various recruitment agencies have revealed new vacancies are becoming more and more scarce with many companies looking to cut back on their recruitment costs and employment base.

In spite of the shrinking job market, migrants to the UK are unlikely to have difficulties in finding positions in some sectors. Skill shortages still exist and the only way Britain can combat the problem is to recruit from far-off shores. The UK Border Agency’s new Migration Advisory Committee (MAC) underpins the points-based system (PBS) for immigration by advising on which jobs should be designated as 'shortage occupations'. The flexibility of the PBS means it can adapt to meet the needs of the UK economy in the current downturn.

The latest list of shortage occupations was released in November and included various areas of nursing. Nurses.co.uk, a UK-focused nursing jobs board launched in 2008, could help migrants identify opportunities. The site advertises jobs for some of the most dominant healthcare recruiters including Hays, Allied Healthcare, Spire Healthcare, Ambition 24, HCL, the NHS and Beresford Blake Thomas.

The current economic downturn in the UK has lead the number of Eastern Europeans applying for UK working visas to drop to it’s lowest since 2005. This, along with the new Points-Based System (PBS) placing stricter rules on employing migrant workers is making the void of skilled workers in the UK even bigger.

This is likely to make life increasingly difficult for businesses in the UK who are already struggling through the financial storm, and in particular SMEs. According to figures from the federation of small businesses, 48% of SMEs in the UK are currently employing non-UK workers.

However, one of the major benefits of the UK’s new PBS is its flexibility. The PBS was specifically designed to be able to adapt to the needs of the economy at any given time. For example, If the Polish and other A8 citizens (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia, Slovenia) return to their own countries, the UK might be faced with a shortage of low skilled workers. In that case, Tier 3 of the PBS, which is specifically designed for that group, could be developed.

Given the current situation, to make up for the departed highly skilled Eastern Europeans, the bar can be lowered on Tiers 1 and 2 to allow more non-EU workers to enter the country and fill the void. Another option would be to even up the quota on the Youth Mobility Scheme allowing more working holidaymakers into the country.

The PBS can be utilised to combat the current skills shortage caused by the departure of Eastern Europeans, meeting the needs of the UK economy during the downturn and making life much easier the businesses, in particular SMEs.

This week, the BBC reported the UK Government’s controversial ID card scheme is now live. The first people to receive the cards will be non-EU students and husbands, wives or partners of permanent residents who apply to extend their stay. Officials say these two categories are those who are most likely of abusing immigration rules. The cards will include the individual's name and picture, their nationality, immigration status and two fingerprints.

However, the new scheme has faced tough opposition with shadow home secretary Dominic Grieve who branded the ID cards “a gimmick with a price”. He has also been quoted saying the cards “won’t stop illegal immigration or terrorism but will land the tax payer with a multi-billion pound bill.”

It seems this may not be entirely true. Although the scheme is costly, extra charges will be incorporated in the already expensive visa application process meaning the scheme will actually be financed by foreigners not the taxpayer.

In addition to this, there are some very obvious benefits to employers. The new points based system places the responsibility of ensuring migrants are entitled to work on employers and hefty fines are imposed on those who employ illegal workers. The new ID cards will make it much easier as well as time and cost-efficient for employers to check work entitlement, as they clearly show the individual’s immigration status.

The week has also seen immigration minister, Phil Woolas resort to calling mayor of London, Borris Johnson, 'a nincompoop' over his decision to commission a study into the impact of an amnesty for illegal immigrants.

Mr Woolas may want to reconsider; Mr Johnson is proposing nothing more than a study into the impact of an amnesty. Such a study actually might have been a good idea before the current launch of the Tier 2 system for which many UK employers were not prepared.

The Institute for Public Policy Research's (IPPR) Economics of Migration project has released it's first working paper. The project aims to improve understanding of the economic impacts of migration in the UK, and how policy should respond to that migration in order to maximise its economic benefits, and minimise its costs. The paper underlines the importance of looking at migration’s longer-term impacts in local areas, as well as its short-term effects.