Job vacancies are becoming harder to fill as fewer migrants want to work in the UK, according to a report.

A study by the Chartered Institute of Personnel and Development (CIPD) and the Adecco Group found a worsening situation, amid a ‘sudden reversal’ in the number of EU and non-EU migrants in employment in this country.

Research among over 1,000 employers suggested that vacancies are becoming harder to fill.

The squeeze on skills is leading employers to increase pay rates, with the shortage driven by a falling interest among migrants wanting to work in the UK.

Gerwyn Davies of the CIPD said: “The data implies that the pendulum has swung away from the UK as an attractive place to live and work for non-UK-born citizens, especially non-EU citizens, during a period of strong employment growth and low unemployment.

“This has heightened recruitment difficulties for some employers. It also underlines the risk that more non-UK-born citizens and employers will be discouraged from using the post-Brexit system if more support is not provided and it is not made simpler, fairer and more affordable; especially for lower-skilled roles.

“Against the backdrop of a tight labour market, failure to do this will heighten recruitment difficulties and could lead to negative consequences for existing staff, such as higher workloads, and loss of business or orders for firms.”

Alex Fleming of the Adecco Group added: “The labour market in the UK is tight and this research is reporting increasingly high levels of recruitment and retention difficulties.

“While the data is not showing wages rising across the board, we are regularly seeing this pressure being exerted in the recruitment space.”