JAKARTA: Indonesians and other foreign nationals are looking with hope to Starmer's Labour government for potential easing of a new set of stringent visa rules designed by the previous Conservative administration that has left them with fewer options in a narrower jobs market.
Siti Muthoharoh, an Indonesian employed at a university in Sussex, South East England, recalls coming across an online ad on reinstating the graduate visa, which allows international students to work in the United Kingdom for a limited period after completing their studies.
Feeling emboldened, Siti enrolled in a master’s degree at the university in 2021 and has since “met people from all over the world”.
“The UK, especially in the city of Brighton where I live, is very multicultural. [Living here] has broadened my perspectives and enriched my personal and professional network,” she said. But Siti’s plans to continue living in the UK are now up in the air after then-Home Secretary James Cleverly announced a set of action plans to “deliver the biggest-ever cut in net migration” in December 2023.
The action plans, which have since entered into force, were described by the Conservative government at that time as a robust move to slash “record levels” of net migration: The UK saw a record number of around 764,000 immigrants in 2022, and hopes to bring it down by 300,000 this year.
The Conservative government’s overhaul of UK visa policies includes prohibiting overseas care workers from bringing dependents and increased salary thresholds for the family visa and skilled worker visa.
This latter visa provides the most viable route for international students like Siti to remain and work in the UK after their graduate visas expire.
At the crux of the revision to the skilled worker visa is a 48 per cent increase in minimum annual income to 38,700 pounds (US$49,000), ensuring that UK-based businesses “pay significantly more” when hiring overseas talent, according to Cleverly.
Under the revised visa rules, a sponsor could shell out up to 5,000 pounds (US$6,378) to secure a work visa for an international hire, excluding the fees of third-party advisers or lawyers.
Shortly after the new rules took effect earlier this year, multinational giants including Deloitte, HSBC, EY and KPMG International retracted their job offers to graduates.
Today, foreign workers are scrambling to find ways to meet the new visa threshold in an already tough job market.
“It felt like a cruel joke,” Siti said. “It is very challenging, especially in my field. [Earning] such a salary usually requires up to four years of experience or a managerial position in a top-tier company.”
Out of reach
Adam Oxborrow, an immigration consultant and founder of Access UK Visa in Bristol, said “the 38,700-pound [salary] bracket is higher than the UK median full-time wage of 35,000 pounds”, which made it particularly hard-hitting for sectors like hospitality, construction and architecture.
“Graduates have also been affected with the big four [accounting] firms withdrawing their offers,” Oxborrow said.
Under the revised immigration and visa policy, the new points-based system might exempt certain graduates, including those aged below 26 who are in training or currently studying, from meeting the increased minimum income and instead meet a 30,960-pound salary. But “this is still high for a graduate-level job”, Oxborrow noted.
That this exemption rule was not being communicated effectively added another barrier, leading to a lack of awareness among both recruiters and employers.
Javier Patria, executive director at the UK-based Young Indonesian Professionals’ Association (YIPA), said many of its members “had to communicate this nuance directly to their hiring teams”.
“However, some companies continue to rescind their offers for certain graduate roles as a result of this change,” Javier said.
This resonated with Siti, who noted “a noticeable increase in job rejections” and even one company that “abruptly ended my hiring process” upon learning her visa status.
Javier, who secured his sponsorship since he started working at a UK bank in 2019, said several YIPA members had decided “to return to universities to pursue higher education to extend their chances of landing a role or returning to Indonesia”.
He added that the changes had largely affected job opportunities outside London due to salary gaps.
All eyes on Labour
The new visa rule has also pitted a large portion of the almost 140,000 individuals on a postgraduate work visa as of March against significantly fewer opportunities for limited occupations, such as in engineering, bioscience, health care and graphic design.
Tasia Sugiyanto said the job search she underwent before landing her current job, a design manager at a catering company, “was probably the longest I’ve been unemployed”.
“It was intense and quite depressing,” she said.
Tasia added that the changes to the visa policy made her work and living situation more difficult due to the limited available options and companies’ reluctance to sponsor foreign talent.
“Designers are included in the UK Shortage Occupation List and I would have just made it with what I currently earn, but my company has not been very clear about whether or not they can sponsor me.”
After the Labour Party replaced the Conservative government in the recent elections, foreign workers are pinning their hopes on Prime Minister Keir Starmer for adjusting the visa regime to make the UK welcoming of a globally diverse workforce.
Tasia expected more “wiggle room” for international hires after the Tories lost at the polls in early July, while Javier pointed to a “general perception that Labour will be friendlier toward international students and immigration more broadly, but this remains unclear”.
While Starmer has decided to keep the graduate visa reviewed by the previous Tory government, he has also pledged to advance “local” recruitment and reduce reliance on overseas hires.
Oxborrow said the overhaul of the visa and immigration framework seemed to have been “made in a spirit of reactionism, rather than pragmatism”.
“Hopefully with a new government, we will see some more pragmatic changes that will be a win-win for both internationals and the UK,” he said. – The Jakarta Post/ANN
