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Employer uncertainty and graduate anxiety plague UK job market

International graduates in the UK are struggling to secure employment and, as a result, are seeking future opportunities outside the country, a survey has found.
April 19 2024
7 Min Read

International graduates in the UK are struggling to secure employment and, as a result, are seeking future opportunities outside the country, a survey has found.

In a recent survey, 72% of university careers professionals reported that Graduate Route visa holders are having their applications refused by some UK employers.

Equally, 75% of careers professionals are finding that some employers are refusing to offer Skilled Worker sponsorship to international students and graduates, while 70% are also reporting recruitment pauses from employers.

The findings are based on a survey of careers and employment professionals from 35 UK universities.

The survey, led by AGCAS’s International Task Group, aimed to gather information on the current recruitment environment for international students and graduates, following visa changes and the upcoming Migration Advisory Committee review.

AGCAS has shared the survey results with UKCISA “to feed into a sector level response to the MAC review”.

Half of respondents reported that these trends are happening due to changes to the UK’s Skilled Worker visa requirements, plus uncertainty caused by the upcoming MAC review.

Through the survey, careers staff shared reflections and trends from their day-to-day work with employers and with international students and graduates.

Their responses captured current employer understanding, views and recruitment activity in relation to international students and graduates, as well as the concerns and experiences of the students and graduates themselves.

AGCAS reported that 70% of survey respondents said that the international students and graduates they were in contact with are now considering alternative employment options outside of the UK.

Some 56% of careers professionals reported that international students and graduates are looking outside the UK for their next course.

“Collectively, the responses paint a concerning picture of employer uncertainty and graduate anxiety”

“Collectively, the responses paint a concerning picture of employer uncertainty and graduate anxiety, with many international students and graduates deliberately looking outside of the UK for their next opportunity,” said AGCAS in a statement.

The report also found that 51% of respondents reported that employers are requesting advice and support on their recruitment practices from their university contacts.

Meanwhile, 77% of careers and employer engagement professionals reported that employers have a lack of awareness on visa and immigration routes.

“The results of this survey show the need for the Graduate Route to be maintained, and for clarity and support for employers to ensure they can realise the benefits that international graduates can bring to their workplaces and to the UK as a whole,” said Jeremy Swan, AGCAS’s interim executive director.

Swan highlighted a recent policy positions paper from AGCAS which suggested that action must be taken to ensure UK remains an internationally competitive study destination and that international graduates are supported to fill skills gaps in the economy.

The survey also collected additional comments from careers and employer engagement professionals. The feedback illustrated the concerns and frustrations of international students and graduates.

According to AGCAS, the most common theme was the level of anxiety and pressure felt by international students and graduates, with a “significant impact on mental health due to the uncertainty on visas, which is subsequently putting additional pressure on university services”.  

Many respondents also highlighted that students were feeling unwelcome and exploited following their decision to study in the UK, with one respondent commenting on “a certain sense of injustice as well as disappointment and frustration”. 

Another said that “many international students have expressed regrets about studying in the UK”.

Positively, most respondents found that the majority of employers were currently honouring existing offers, although 30% had seen offers withdrawn from international students and graduates.

Meanwhile, 52% of those surveyed said that the employers they have spoken to are reporting that the minimum salary increases will have an impact on their ability to recruit international graduates via the Skilled Worker visa.  

“This research shows how uncertainty about post-study work can have a real impact on the international student and graduate experience, and on student sentiment,” UKCISA chief executive Anne Marie Graham told The PIE.

“It’s important for any review of the Graduate Route to understand the intrinsic importance of careers and employability as part of a sustainable education experience for international student.”

The findings come at the same time as research from job-readiness platform Student Circus presented fresh concerns for international graduate employability in the UK, commenting on the size of the job market currently.

It found that the job market for international graduates in the UK is much smaller than anticipated despite a “steep increase” in the number of companies with a sponsorship license, the organisation working to help international students find work has indicated.

The State of International Student Job Search report found that an employer with a sponsorship license does not necessarily mean they will employ international graduates.

“There are over 100,000 employers on the Register of Licensed Sponsors. Half of them were added in the last four years,” said Tripti Maheshwari, co-founder of Student Circus and ex-international student.

“Our research shows that only 10% of employers with a sponsorship license might be a good fit for international students.”

The realistic picture is that the UK job market cannot absorb all the international graduates searching for work, she continued.

International students are often “playing catch-up” when it comes to work due to the fact that the student visa means they have limited time in the country in which to secure UK work experience, learn about the job market and secure a job with a visa sponsorship when they graduate, Student Circus said.

Student Circus found that only 10,000 of UK companies are “authentic” employers that have sponsorship licenses, legitimate online presences, listings with companies house and decent working conditions.

Some companies, such as Vodaphone, include that individuals on the Graduate Route visa are not eligible for some jobs they advertise, the report found.

The 100,000 figure creates a “sense of false optimism” about employment prospects for international students, it added.

Student Circus highlighted the need for students to be informed about the UK job market when they arrive in the country, if not before, as well as about the work visa sponsorship and how it affects their job prospects.

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