Only 32% of work visas since 2021 have gone to highly skilled professionals in growth sectors  Vital industries, including advanced manufacturing, clean energy and defence, are being severely impacted by a failing system There was a 32% drop in Skilled Worker visas issued in Q3 2024 compared to the previous year

New analysis of Home Office immigration data reveals that just 32% of visas issued for work go to high-skilled professionals in the eight key sectors outlined in the Government’s industrial strategy. This suggests the government could substantially reduce migration while also safeguarding the growth of key businesses.A raft of restrictions to the Skilled Worker visa in 2024 made it more challenging and expensive to hire through this route. But this measure, targeted at firms using immigration as a hiring strategy of first resort, has created unintended consequences for higher-value recruitment due to problems with the visa’s design.  The Skilled Worker visa route currently caters for a broad selection of high and low-skilled occupations. This means that any restrictions intended to discourage using immigration to fill lower-skilled roles will also hinder high-value firms’ access to genuinely scarce skill sets. How to Fix the UK’s Broken Visa System from Centuro Global reveals that industries such as engineering, defence, software development, and life sciences are suffering from acute talent shortages, exacerbated by a 32% drop in Skilled Worker visas issued in Q3 2024 compared to the previous year. If left unchecked, these shortfalls could jeopardise national missions like AI, net zero and the future of the City of London. The report exposes the severe impact of recent skilled worker visa restrictions on businesses and critical industries. The findings show that businesses report significant financial damage, with many struggling to fill key roles due to tightened immigration policies.Its launch closely follows the announcement from government watchdog, the National Audit Office, that officials do not fully understand the UK Skilled Worker visa, and the Home Office cannot say what the immigration mechanism is contributing to the economy.Key sector insights from the report include:

• Advanced manufacturing – 55% of firms report skill shortages, but only 10,875 visas were issued for highly specialised roles between 2021 and 2024.
• Clean energy – With a green skills gap of 184,000 workers, visa uptake is far below industry needs.
• Creative and digital industries – A 33% skills shortage, but Skilled Worker visa holders make up just 3.2% of the workforce.
• Financial and professional services – A 160,000-person skill gap, yet only 67,617 visas issued over four years for top-tier roles.
• Life sciences – 133,000 more workers are needed by 2030, but only 16,227 visas issued for highly skilled professionals.

Zain Ali, CEO and co-founder of Centuro Global, stated: “The UK’s visa system is unfit for purpose and fails to differentiate between roles critical to our economy and those that could be filled domestically."The recent report by the National Audit Office confirmed what businesses have been telling us for months: frequent and unpredictable changes to visa rules make workforce planning almost impossible. Immigration policies should be shaped by labour market realities, not short-term political pressures."

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In April 2024, the government raised the minimum salary threshold for the Skilled Worker visa by 48% to £38,700, restructured the occupation list, and imposed restrictions on dependents for Health & Care visa holders. While these changes aimed to reduce net migration, they have inadvertently hurt industries that rely on highly skilled foreign workers.Centuro Global consulted a panel of executives from large multinationals in key strategic sectors, including engineering, telecommunications, construction and energy, on the impacts they had experienced due to these changes. The findings show that over half (55%) of businesses report moderate-to-severe financial damage, with 22.2% struggling to fill key roles due to tightened immigration policies.To address the crisis, Centuro Global 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.

Meena Sangar, founder and fractional chief people officer at TalonX Ltd, said: “I’ve gone through the process of hiring skilled talent before, and it’s always very difficult. Why would a company go ahead and hire a skilled worker from another country when it’s going to be more expensive and more time-consuming? It shouldn’t have to be so difficult.”Zain continued: “A smarter, growth-focused visa system is needed to ensure businesses can access top global talent while maintaining control over immigration. Our proposal offers a balanced, long-term solution to protect jobs, investment, and Britain’s global competitiveness.”With industries already struggling to fill specialist roles, the report calls on the government to act urgently. For more information and to read the full report, visit www.centuroglobal.com/how-to-fix-the-uks-broken-visa-system 

About Centuro Global Launched in 2020, Centuro Global is an AI-powered SaaS platform that ensures a company’s global expansion and mobility needs are serviced compliantly in one place. With the Centuro Connect platform, every step of the global expansion journey, from tax, legal, and immigration to payroll and HR, is found in one system, allowing companies to trade in any jurisdiction with ease and efficiency. Please see an explainer video at https://youtu.be/WDj5O6Sf79U

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