An All-Parliamentary Party Group on Migration published a report yesterday analysing the opportunities international students have for work in the UK after they finish university. The report found that since the closure of the Tier 1 (post-study work) visa route, there has been a decrease of 88% in the number of students securing visas after university.

“We are already losing out to countries with a more sensible approach such as Australia, Canada and the United States”

“The report lays bare the negative impact that closure of the former post-study work visa has had on British businesses and universities,” said Paul Blomfield, Labour MP and Chair of the Inquiry Committee.

“Alternative visa routes have failed to attract talent and have actually prevented skilled graduates from contributing to the UK jobs market.”

In April 2012, the government closed the Tier 1 visa route, which enabled international graduates to seek employment in the UK without sponsorship for up to two years. As a result of its closure, students are presented with fewer graduate work options.

The UK’s intake of students from overseas declined in 2012-13 for the first time in 29 years. Despite a rise in European students last year, overall numbers for non-EU students continue to fall, including 25% drop in Indian students.

“Higher education is one of our country’s leading export success stories, increasing our soft power and helping the UK shape the world of the future,” said Richard Bacon, Conservative MP and member of the committee.

“But the government’s current approach to post-study work and student migration policy is jeopardising Britain’s position in the global race for talent.”

The international student market contributes more than £10bn a year to the UK economy, and the UK is currently the second most popular study destination for foreign students behind the US.

“Alternative visa routes have failed to attract talent”

However, the report outlines concerns that this may be affected by the difficulty in these students getting a visa to stay, stating that competitor countries, including Canada and Australia, offer far more generous post-study work opportunities than the UK currently does.

The report also lays out policy recommendations for the government including allowing non-EU students to remain in the UK for 12 months after graduation to secure employment, reviewing the Tier 2 route (highly skilled sponsored workers), considering the improvement of the other visa routes as well as reviewing the impacts of the policies and the UK international student market.

“We are already losing out to countries with a more sensible approach such as Australia, Canada and the United States,” said Bacon.

“Such a short-sighted stance is damaging to our economy and hinders the delivery of the government’s long term economic plan. We need to adjust our policy and improve our ability to attract students from around the world.”