The Recruitment and Employment Confederation has hit out at hints by Home Secretary John Reid that he will restrict the number of Romanians and Bulgarians allowed to work in the UK.

The REC said it believes that these workers “can make a vital contribution to key sectors of the economy”. It points to skills shortages in areas such as construction, engineering and social care, adding: “Recruiters have been under considerable pressure in a candidate driven market. Continued EU expansion can help to ease this problem.”

Newly-appointed REC chief executive Marcia Roberts said: “If Romanians and Bulgarians are entitled to come to this country but prevented from finding work legitimately, they will do it through the black economy and this will lead to far greater problems.

“The decision by the Government on whether to allow Romanians and Bulgarians to work in the UK from next year should be made on the basis of the labour market’s needs. The challenge is to manage the migrant labour supply effectively.”