Despite changing visa & student immigration laws, London businesses want international talent back: Report

How international talent plugs skills gaps and supports London’s global edge

At a time when countries are debating whether international students strain local systems or fill crucial labour shortages, London employers lean firmly toward the latter view. According to the survey,  93% of business leaders say international talent helps address skills gaps — from digital skills to multilingual communication and adaptability.

Of which, only 4% believe international workers reduce opportunities for domestic talent. Whereas 89% say international professionals support innovation, compared to just 6% who think they slow local innovation. About 91% say they help maintain London’s competitiveness vis-a-vis New York, Singapore and Paris.

This aligns with the long-term reality that London’s workforce is deeply international: 40% of payrolled workers are non-UK nationals, many in high-growth sectors like information technology, finance, consulting and creative industries. 

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The city’s universities, which host 208,000 international students, also act as a pipeline into high-value graduate roles.

Businesses note that London’s global connectivity is a competitive advantage in itself. Workforce diversity is repeatedly linked to stronger products, services and problem-solving capacity, particularly in technology-driven and globally integrated sectors.

Which sectors and companies are more inclined to take international workers

Support for global talent is strongest among medium and large employers, those that account for roughly 70% of London’s turnover. The survey shows that 96% of leaders of businesses with 50+ employees say international talent is very important. Whereas, only 58% of small business leaders express the same level of reliance. 

This reflects the needs of London’s fastest-growing sectors, which include, Information & communications (which saw strongest support), Business and professional services and Finance and insurance.

These are precisely the industries highlighted in London’s Growth Plan as critical for the next decade. They also face the sharpest shortages in digital, data and specialist technical roles.

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The survey also notes a performance correlation: 73% of businesses employing more than 10% international staff believe they are outperforming their competitors, compared to 54% among firms with fewer global hires. In other words, firms that are winning in the market also tend to be those investing most in global talent pipelines.

Why business leaders want easier, not tighter, post-study work pathways

When asked what future immigration policy should look like, 59% of business leaders want easier pathways for international students to come and stay; and, 28% believe the current system is adequate. Notably, only 10% want stricter rules.

Moreover, 84% say it is important that international students can transition into work visas — describing it as essential for talent pipelines, especially in central London and among large employers.

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Another notable trend, 58% of respondents say access to skilled workers has improved over the last five years, partly due to the Graduate Route’s introduction post-Brexit and the easing of pandemic disruptions. The concern now is whether tightening rules will reverse these gains.

What changes have been announced so far for student mobility and immigration in 2025?

The UK has introduced and proposed several significant shifts to student mobility and post-study immigration pathways through 2025, signalling a tighter, more skills-linked system. These moves span reductions in post-study work duration, stricter English-language rules, limits on dependants, and higher financial requirements — all part of the government’s plan to curb net migration while restructuring international education routes.

Key changes announced in 2025 include:

—Graduate Route visa shortened: The UK government’s White Paper proposes cutting the post-study work visa from two years to 18 months, altering the window available for graduates to secure skilled work.

—Dependants barred for most students: The tightened policy continues into 2025, allowing dependants only for PhD and research-level students, restricting nearly all taught-master’s applicants.

—Higher English-language requirements: Skilled-visa applicants must now meet elevated standards, including a mandatory Secure English Language Test (SELT) at B2 level from 2026, announced as part of 2025 reforms.

—Increased financial thresholds: Students applying for the 2025–26 academic year are required to show higher maintenance funds, with steeper requirements in the UK.

—Stricter compliance for universities: The White Paper outlines tougher oversight through an upgraded Basic Compliance Assessment and monitoring of education agents via a new Agent Quality Framework.