The UK’s system of post-study work visas is likely to be fuelling low-wage migration rather than drawing “global talent” into high-skilled jobs, according to the committee tasked with reviewing the scheme.
In a report published on Tuesday, the independent Migration Advisory Committee said the introduction of the graduate route, which allows international students and their dependants to work in the UK for two years after graduation, had made the UK a “significantly more attractive destination” for those who wanted to enter its labour market.
Even before its introduction in 2021, many international masters students worked in low-wage roles in their first year after graduation, and earned little more after five years, the MAC said.
Since then, a surge in international student numbers has been driven by enrolment at less selective, low-cost universities and the MAC believes there is “strong evidence” that the graduate visa is boosting the number of students who aim to stay in the UK longer term.
“The most likely outcome is that their performance in the labour market will be weaker than previous cohorts . . . we expect that at least a significant fraction of the graduate route will comprise low-wage workers,” the committee concluded.
The committee’s analysis will fuel fears among university leaders that they could soon face a further narrowing of visa routes for international students, as Rishi Sunak seeks to quell a rebellion by rightwing Tory MPs over record net migration.
A surge in students coming to the UK has driven the recent rise in international arrivals, with more than 620,000 student visas issued in 2022, and a growing proportion bringing family and staying for longer.
UK universities have become increasingly reliant on higher-paying international students to fund teaching and research, with international fees now accounting for nearly 20 per cent of their income. They fear that new curbs on masters students bringing family to the UK will hit their international recruitment.