Investing in the UK’s Future Part 1: Retaining International Graduates for Economic Growth

Race for Global Talent

British universities are regarded as some of the best in the world. Students from around the globe are keen to study in the UK and advance their education while enjoying the country’s history and culture.

The UK has consistently been a hub for student migration. The Office for National Statistics published that in 2022, migration to the UK was at an all-time high. A large percentage of these migrants are students who bring valuable knowledge and skills that can benefit the UK economy, fresh perspectives to the workplace and a positive impact on the cultural and professional development of those around them.

Student migration is a valuable source of export earnings. In the period between June 2021 to June 2022, approximately 500,000 students came to study in the UK. International students and graduates are motivated to enter the UK workforce during their studies, as this helps them to gain valuable experience, culturally integrate and finance their courses.

However, with the recent increase in visa application and immigration health surcharge fees and restrictions on bringing family members to the UK, it is becoming increasingly difficult and expensive to be a student in the country. This creates a barrier to attracting the brightest and best to the UK and makes it even more necessary to create a favourable environment to retain graduates.

The first part of this blog series explores the current visa options available for international graduates and the potential challenges that these routes pose.

Graduate Visa

The UK offers a variety of options for graduates to continue living in the UK following the completion of their studies. The most straightforward option is the Graduate Visa.

Securing a job straight out of university can be hard, particularly if the job seeker is a migrant, as not all employers can provide a sponsorship. The Graduate visa route allows international students permission to stay in the UK for at least two years after completing their course in the UK. The grant of leave is typically two years for most students and two years for students who have a Ph.D. or other doctoral qualification. 

This route is attractive to students as it allows them a period in which they are permitted to work with any employer without sponsorship. They will have the flexibility to work for multiple employers, thus allowing them to make an informed decision if they wish to obtain a Skilled Worker visa. However, this visa route is non-extendable and will not lead towards settlement.

Alternative Routes

On 4 December 2023, the Home Office announced that it was asking the Migration Advisory Committee to review the graduate visa route “to ensure it works in the best interests of the UK and to ensure steps are being taken to prevent abuse.”

Whilst this review may well take many months, if the category is tightened or removed, what alternative options will be available to graduates?

Skilled Worker visa

Upon completing their course, or whilst holding a Graduate visa, graduates can apply for a Skilled Worker visa if they have secured sponsorship from an employer holding a valid sponsor licence. They will need to be sponsored to do a specific job that meets certain skill and salary requirements. The route can lead to settlement in the UK after five years.

However, employers, especially the smaller ones, may find it difficult to hire someone in this category due to high application costs. By contrast, British nationals or other migrants with an unrestricted right to work hold a competitive advantage.

Innovator Founder visa

The Innovator Founder visa offers a route for business-savvy graduates intending to establish a business in the UK. They must demonstrate that they have an innovative, viable and scalable business idea, supported by a business plan, which has been approved by an endorsing body. They must intend to have a key role in the day-to-day management and development of their business. The route can lead to settlement in the UK after three years.

Whilst the investment funds requirement has been removed, the reality is that substantial funds will be required to get their business idea off the ground, which is not feasible for many new graduates.

Global Talent visa

Highly skilled and ambitious graduates may apply for the prestigious Global Talent visa. Recent graduates can apply if they fit the profile of a potential leader in the fields of academia or research; arts and culture; and digital technology. They can settle in the UK after three or five years, depending on how they applied and their field of work.

It should be noted that the stringent endorsement requirements for a Global Talent visa under exceptional promise can only be obtained by the “crème-de-la-crème” of graduates, as applying without work experience is unlikely to succeed.

Exploring the UK as a Post-Graduation Destination

Whilst job hunting and settling in the UK post-graduation may seem challenging, there are options available and students should seek professional advice as graduation approaches to determine the correct route for them.  

Stay tuned for the second installment in this series which will explore how the visa options available to international graduates in the UK stand in comparison to other countries across the world, such as the US, Canada and Australia.

Need to know more?

For details or questions related to your options as a graduate, please contact Director Olga Nechita at [email protected], Associate Huma Malik at [email protected] and Immigration Paralegal Elizabeth Collier at [email protected].

This blog was published on 21 February 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.