British employers are "totally unprepared" for a fall in migration once Britain leaves the EU, a study has found.

Around a third of firms expect the current system of freedom of movement for EU nationals to the UK to remain the same so long as they have a job offer., according to a survey of 500 businesses who employ EU nationals by the think tank Resolution Foundation.

A quarter expect their migrant workforce to increase, roughly the same proportion are also expecting numbers to fall, while almost half of employers do not expect any change during the next 12 months.

The Foundation said these expectations were "unrealistic" given that Prime Minister Theresa May has pledged to cut immigration to the tens of thousands.

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It said lower migration, coupled with a higher minimum wage and a tightening jobs market, could put an end to the era of readily-available cheap labour that has characterised the UK labour market in recent years.


Torsten Bell, director of the Resolution Foundation, said: "As the fallout from last week's election rumbles on, the new government will need to be making fast preparations for Brexit negotiations that start in just seven days' time.

"But it's not just government that needs to step up preparation for Brexit.

"Many British firms are totally unprepared for this change, particularly when it comes to migration. Ministers have compounded this uncertainty by choosing not to answer questions over what a post-Brexit immigration regime might be.

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"Whatever people's views on Brexit, the journey, not just the destination, matter hugely to growth, jobs and living standards.

"Now is the time for both firms and government to focus on how we navigate that journey and the changes to our labour market it brings."

Mrs May is sticking by her controversial pledge to reduce net migration to below 100,000, something that was last achieved in 1997.

Britain's Brexit deal following its departure from the bloc is expected to include restrictions on free movement rules, although the precise arrangements are yet to be decided.