UK is failing to attract foreign workers in key economic growth sectors
Home Office data has revealed that fewer than 181,000 visas out of a total of about 560,000 were allocated to foreign workers in the key fields identified for economic growth.
This means that just 32% of work visas issued since 2021 have gone to highly skilled professionals in vital fields such as life sciences and clean energy, where foreign talent is critical to fill skills gaps in the resident labour market and help the UK reach its economic growth targets.
The discovery has sparked accusations that Britain’s visa system is “unfit for purpose” and should be reformed to allow more highly skilled people to come into the country.
It comes as Downing Street revealed that the government’s new immigration blueprint to reduce net migration has been pushed back until after Easter. The White Paper, which the government says will lay out plans to restore the UK’s “broken immigration system”, had been due early this year, but is now not expected until after the local elections in May.
A report from Centuro Global titled How to Fix the UK’s Broken Visa System, reveals that key industries are suffering from acute talent shortages and if left unchecked, these shortfalls could jeopardise national missions like AI, net zero and the future of the City of London.
Visa shortage in 8 key sectors
The Government’s Invest 2035 industrial strategy highlights the following 8 key sectors as being the most vital for economic growth in the UK:
- Advanced manufacturing
- Clean energy industries
- Creative industries
- Defence
- Digital and technologies
- Financial services
- Life sciences
- Professional and business services.
But according to the latest data, less than a third of UK work visas issued in the last four years were handed to professionals in these sectors, suggesting that the UK could be losing out to other countries in the race for global talent.
Impact of recent changes to the Skilled Worker route
The shortage of visas granted to these professionals could be partially due to the raft of changes to the Skilled Worker visa that were introduced in 2024.
In a bid to cut high levels of net migration, the previous Conservative government introduced tighter rules under the Skilled Worker route, including raising the minimum salary threshold by 48% and replacing the previous Shortage Occupation List with a more limited Immigration Salary List, removing salary discounts for shortage occupations.
As the Skilled Worker visa route currently caters for a broad range of high and lower-skilled occupations, any restrictions intended to discourage employers from filling lower-skilled roles with overseas worker will also make it more difficult for high-value firms to access the talent they need to fill shortage roles.
The report by Centuro Global exposes the severe impact of these recent visa restrictions on businesses and critical industries. As a result, businesses have reported significant financial harm, with many struggling to fill key roles due to tightened immigration policies.
Proposed new ‘Growth Visa’
In its report, Centuro Global outlines how the government could substantially reduce migration while also safeguarding the growth of key businesses. It proposes replacing the current Skilled Worker visa with a new ‘Growth Visa’, focused on high-skill sectors that drive economic growth while ensuring better workforce planning.
Key recommendations include:
- Prioritising high-skill sectors – prioritise applicants for jobs in industries driving economic growth.
- Raising qualification thresholds – require a minimum of an RQF Level 6 (Bachelor’s degree).
- Capping salary threshold increases – limit future hikes to 5% at a time to avoid sudden business shocks.
- Sector-specific weighting – adjusting the points system to favour strategic industries.
- Cross-government task force – establishing an interdepartmental Growth Visa Joint Unit to oversee evidence-based policy changes.
Final thoughts
Whilst the government pushes forward with its plans to cut net migration, it is clear that recent policies are having a profound effect on many businesses that rely on overseas talent to access the skills they need.
By introducing sweeping policies that affect a visa category as broad as the Skilled Worker route, the government may be inadvertently undermining its own plans for growth by failing to attract foreign workers in key sectors.
Coupled with the rising immigration costs and tighter rules for sponsors, employers may struggle to offer a competitive relocation package for top global talent, and the UK could risk losing out to other countries such as our European neighbours and other English-speaking destinations such as Australia or Canada.
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