UK work visa applications have fallen by a third. What will this mean for the ongoing skills shortage?

The number of overseas workers and students applying for UK visas fell by a third in July compared with the same period last year, according to new figures.

According to provisional figures released by the Home Office, the total number of people applying to come to the UK as skilled workers, health and care workers and students was 91,300 in July 2024, compared to 143,000 in July 2023.

Due to reforms implemented in March that restricted migrant health and care workers from bringing their families to the UK, there were only 10,800 visa applications for these roles between April and July 2024, down 81% on the same period in 2023. There were also 22,200 applications for dependents on the health and care worker route between April and July 2024, down 71% on the same period in 2023.

HSBC and Deloitte have withdrawn job offers to international graduates in the UK due to new visa rules. But what do these changes mean for employers?

Changes to skilled worker visas will deal a huge blow to industries that need to attract talent.

Upcoming changes to skilled worker visas

Meanwhile, the number of applications for skilled worker visas through the first round of applications remained “generally stable” at around 6,000 per month from January 2022 to March 2024.

It follows changes to the previous Conservative government led by Rishi Sunak earlier this year, which saw the salary cap raised from £26,200 to £38,700 and cut the number of jobs on the shortage list, as well as allowing healthcare workers to bring their families.

The new Home Secretary, Yvette Cooper, wrote to the government’s Migration Advisory Committee (MAC) last week, recommending that visa restrictions be tightened for talented individuals in IT, communications and engineering to come to the UK to fill jobs. She said she wanted the MAC to “look at key occupations to understand why they rely on overseas recruitment”.

So how will the decline in visa applications affect talent shortages across industries?

UK now 'less attractive' for migrant health workers

Jonathan Beach, founder and managing director of Immpact, highlighted the NHS’s long-term workforce plan, which places education and retention at the heart of the plan. “Home education and training needs to increase by 50-65% by 2030/31, but this cannot happen overnight. Rather, education and training capacity needs to be increased gradually but significantly,” he said.

He said immigration would be “key to bridging the gap”, but the dependant-care ban had “made Britain less attractive”. But he added that wages were also an issue. According to Skills for Care, the average pay for adult social care workers is lower than for equivalent roles in the NHS, at £10.11 an hour in 2023.

Shazia Ijaz, REC's campaigns and research director, recently highlighted the labour market tracker, which revealed 48,200 active job postings for caregivers and home care workers.

“Politicians tend to talk about the massive numbers of immigrants, but we don’t talk enough about the labour shortages and the economic inactivity that we endure,” she said, adding that an immigration system that better balances the needs of businesses and society while remaining competitive in attracting talent from abroad was needed.

“We need to stop politicking around our critical manpower needs and make the most of our domestic and international talent,” Ejaz said.

Chetal Patel, head of immigration at Bates Wells, told People Management: “It’s clear that immigration is vital to filling gaps in our care system, but the root causes of the shortage have not been addressed.

“The knock-on effect of the rule change in March this year, which left most international students and carers unable to bring their partners or children to the UK, is being reflected in the latest figures to some extent. The UK may now be seen as a less attractive destination for families who do not want to be separated.”

Patel said there needs to be a fine balance between “reducing net immigration” and “creating a hostile environment for global talent,” adding that “a series of restrictions on visas will narrow some employers’ hiring options.”

Similarly, Bates Wells senior associate Smuruthi Jayandan said while the changing skilled worker pathways are leaving many employers struggling to attract the talent they desperately need, “the biggest hit has been the ban on bringing in dependents, making it virtually impossible for many skilled workers with young families to relocate.”

As a result, she said, “the talent pool available is shrinking rapidly, the workforce crisis in the NHS and care home sectors is deepening, and the most vulnerable are at risk”.

'The problem of lack of skilled workers cannot be solved by training domestic talent alone'

With the skilled worker salary cap increased, Patel said employers would take a “more cautious approach to overseas hiring”.

“It has become common for employers to introduce visa reimbursement policies that have a gradual rollover effect,” she said, adding that nurturing domestic talent alone “will not solve all the problems overnight.”

“Training takes time, and there are questions about whether there are domestic workers willing to take on roles previously filled by overseas recruits.”

HyperionDev chief executive Riaz Moola said the drop in applicants could have a “huge impact” on skills shortages in the UK, particularly in the technology sector.

“The technology industry has historically relied on international talent to fill specialized roles. A decline in visa applications could make it more difficult for companies to find qualified candidates for critical positions,” he says.

He also highlighted that “there could be a growing push towards automation and AI to address the talent gap” as companies struggle to find qualified workers to fill the skills gap, and said that to address this challenge, companies could invest in specific initiatives such as domestic education and tech boot camps to upskill individuals in high-demand fields.

Meanwhile, considering the potential legal implications of the drop in visa applications, Michael Stokes, partner and head of employment and immigration at HCR Law, said there could be an “increase” in objections based on human rights law and family life rights, but the key takeaway is that migrant workers already in the UK are exempt from the new rules.

“Potential migrant workers who are still outside the UK are less likely to come to the UK to work, as has been shown, but they are also less likely to pursue a legal challenge. Instead, they will vote with their feet and seek work in countries where restrictions are less problematic,” Stokes said.

Read the CIPD fact sheet on employing overseas workers

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos