From Students to Workers: The Changing Role of International Graduates in the UK Labour Market After Brexit

 

In recent years, tensions between the UK’s higher education system and its immigration policy have become increasingly pronounced. International students—once perceived as temporary visitors—are now emerging as a critical component of the UK’s labour market. Traditionally, most of them would leave the country after completing their studies. But today, a growing number are staying and transitioning into the workforce, challenging long-held assumptions about student migration.

This shift is not without context. Since the UK’s official departure from the EU, labour shortages across key sectors have pushed the government to rely more heavily on non-EU migration. In this environment, international students have moved from being merely “consumers” of education to being part of the economic fabric of the country.

One of the clearest indicators of this change is the rising number of students switching from student visas to work visas soon after graduation. According to available data, approximately 18% of international students who arrived in 2022 transitioned to work visas within a year of entry—many of them securing long-term sponsored employment via the Skilled Worker route. This suggests not just a policy shift, but also a behavioural one: students are increasingly career-minded and strategic about their post-study pathways.

This trend has not gone unnoticed by policymakers. In 2024, the Conservative government raised the salary thresholds for skilled worker visas to £38,700 and barred newly arriving care workers from bringing family dependants. When Labour took power in 2025, they went further—proposing the removal of most medium-skilled occupations from eligibility lists and raising wage requirements for graduate-level roles. In parallel, they announced that social care providers would no longer be permitted to recruit directly from overseas. These developments reflect a broader dilemma: the state’s desire to reduce immigration while maintaining the essential functions of an economy heavily reliant on migrant labour.

Crucially, international students are not just relying on the post-study “Graduate Route” (currently offering 2 years of unsponsored work eligibility, now proposed to be shortened to 18 months). Many are going straight into the Skilled Worker visa category, skipping the graduate phase entirely. The motivation is obvious: the latter offers a clearer path to permanent residency. In sectors like healthcare, this route has become particularly significant—an estimated 40% of student-to-worker transitions in 2024 ended in care-related roles.

But this comes with complications. Many of these graduates are vastly overqualified for such work. A master’s graduate in public health or data analytics ending up in a care home presents a case of credential underutilisation. The UK is not alone in facing this issue. The United States experienced a similar pattern in the late 1990s and early 2000s, when international graduates flooded into the IT sector via the H-1B visa system. Though the visa was intended for high-skilled workers, many ended up in low-value support roles due to lack of sponsorship options or pathways into more prestigious firms. It led to public debate about “brain waste” and the economic inefficiency of mismatching skilled talent with low-skilled work.

By comparison, the UK's reliance on international graduates for care work raises longer-term questions. On the surface, these workers may be less vulnerable to exploitation than those recruited directly from abroad, given their educational background and familiarity with the UK system. But their overqualification also means they are likely to leave the care sector once they gain permanent status, potentially exacerbating the very shortages their presence was meant to address.

The UK government has now proposed banning care sector employers from international recruitment entirely by 2028. If implemented, this will almost certainly increase dependence on international graduates already residing in the UK. From a policy standpoint, this is both logical and risky. Logical because it draws on a pool of educated, UK-trained individuals. Risky because their stay is conditional, and their aspirations may not align with the roles available.

There are two main routes for students wishing to remain in the UK post-graduation. The first is the Graduate Route, which allows for unrestricted work (regardless of sector or salary) for up to two years. The second is direct transition into the Skilled Worker route, which requires a job offer from a licensed sponsor and a salary meeting set thresholds. Since Brexit, these rules have evolved significantly. Initially, the salary threshold was lowered to around £26,000 (or £21,000 for student switchers), and care workers were added to the eligibility list in 2022. But by 2024, the government reversed course, pushing thresholds up again and tightening family reunification rules.

Given these barriers, the Graduate Route remains popular—over 238,000 Graduate visas were issued in 2024 alone. But it’s a temporary fix. Once this unsponsored work period ends, graduates face the same rigid requirements if they wish to stay permanently. The clock starts ticking from the day they graduate, making their job search a race against time.

We’re already seeing structural shifts in employment patterns because of this. Employers in lower-wage, high-demand sectors like care, hospitality, and retail are increasingly dependent on student switchers. While this provides temporary relief, it doesn't solve systemic labour shortages. The US faced a similar problem when it relied heavily on OPT (Optional Practical Training) as a bridge between study and work for foreign students—only to find that many ended up in roles that didn’t match their qualifications or long-term intentions.

A particularly pressing concern in the UK is what happens once students reach the end of their Graduate visa term. Many of them are either unable to meet the new salary thresholds or cannot secure sponsorship in time. As a result, some leave, while others move into the informal economy, risking visa overstays and legal complications. Data from the 2021 student cohort shows that while 60% still had valid leave by 2024, only about half were either still studying or on a Graduate visa—indicating that the rest had either moved into the workforce through another route, returned home, or perhaps remained without proper documentation.

Universities, too, are adapting. Many now offer career-focused master’s degrees in fields like health administration, data science, and social care, explicitly designed to feed into the Skilled Worker visa system. This is reminiscent of the way some U.S. universities rebranded their MBA or STEM programs during the 2010s to boost employability and help graduates qualify for H-1B or green card routes.

Looking ahead, the trajectory is clear. The UK is likely to tighten work visa criteria further, limit low-wage migration, and steer international graduates toward sectors deemed economically strategic—particularly in AI, fintech, and digital infrastructure. For students, this means being more selective about programs and institutions. For policymakers, it requires careful calibration: reducing immigration without alienating the very people who help drive innovation and support critical sectors.

In sum, international students in the UK are undergoing a profound transformation—from learners to labour market actors. Far from being temporary visitors, they are now central to discussions on immigration, public services, and economic resilience. Whether the UK can offer them a stable, equitable pathway to remain and contribute depends on how it balances politics with pragmatism in the years to come.