Recruiters have welcomed news that workers from countries joining the European Union in May will be able to work legally in the UK.

Home Secretary David Blunkett said last week that jobseekers from new EU states would not need work permits but would have to sign up to a work register. But migrants without work would be banned from drawing benefits for at least two years.

Scottish recruitment firm Topstaff Employment has just opened an office in Latvia, so director Kathy McBride is pleased with Blunkett’s announcement. “There’s a willing and available workforce there, some of whom only get £5 a day for working in a hotel – practically the equivalent of the hourly minimum wage in the UK,” she said.

James Kilbane, director of Grafton Recruitment, said: “It’s tremendous news for us as it means we’re even better positioned to take advantage of the skills available.” Grafton has recruited workers from the new EU states for clients such as Diageo.

Gareth Osborne, managing director of the Recruitment and Employment Confederation, said: “The government’s commitment to a flexible but regulated migration policy is essential in order to help fill skills gaps in the UK market. Recruitment agencies can play a key role in maximising the benefits of free movement provisions within an enlarged European Union.”