However, some studies have shown that foreign workers have little or no impact on overall wages or employment levels, and the severe shortage of candidates to fill vacancies in the UK remains a problem for many company owners.
Kate Nicholls, chief executive of trade body UKHospitality, said: “These changes will further reduce the talent pool from which the entire economy recruits, and will only worsen the shortage of hospitality businesses.”
“We urgently need to see an immigration system that is fit for purpose and reflects the needs of both businesses and the labor market. At the moment the system does neither of those things.”
The Bank of England said last month that it was becoming slightly easier for businesses to hire but that skills shortages remained persistent in some sectors.
Trade unions also expressed concern over Cleverley’s plan. Christina McNea, general secretary of UNISON, the main health sector union, said it was a “complete disaster” for the health service.
“Migrants will now head to more welcoming countries rather than being forced to live without their families,” he said.