UK job market slowdown raises concerns for international students

Time of India

a day ago

The
United Kingdom
's rising unemployment rate and shrinking job market are making it increasingly difficult for international students to find work after graduation. According to the latest figures from the
Office for National Statistics
(ONS), unemployment rose to 4.6% between February and April 2025, the highest level since mid-2021.
More than 109,000 payroll jobs were lost in May alone, marking the sharpest monthly drop in five years. Employers are becoming more cautious due to rising operational costs and economic uncertainty. Job vacancies have declined for the 35th consecutive quarter, falling by 63,000 to a total of 736,000 open positions across the country.
These conditions are especially challenging for international students who plan to stay in the UK after completing their studies. Many rely on the
Graduate Route visa
, which offers up to two years to secure a job. However, with fewer opportunities and higher competition, securing a Skilled Worker visa—often required for long-term employment—has become harder.
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In April 2025, employer contributions to National Insurance rose to 15% on salaries above £5,000, up from 13.8% on earnings over £9,100. The government also increased both the minimum wage and the national living wage. These changes have raised hiring costs, prompting businesses to reduce recruitment efforts. Even employers who previously supported international hiring are reconsidering due to financial pressure.
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Students aiming for careers in finance, technology, or media are finding it harder to access quality roles. ONS data also shows that wage growth, excluding bonuses, slowed to 5.2%—its lowest pace in seven months. For recent graduates, this means that entry-level salaries may no longer be enough to cover rising costs of living, particularly in major cities like London.
Some graduates are taking jobs below their skill levels to maintain their visa status. Others are uncertain about their career paths, as a slowdown in hiring could delay or derail plans to gain UK work experience and build global careers.
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Although inflation has eased slightly to 3.4%, which could lead to interest rate cuts by the Bank of England, employers are still cautious. International students are being encouraged to explore alternative sectors, strengthen their skillsets, and engage with employers early.
The UK remains a popular destination for education, but for many international students in 2025, the path to post-study employment is becoming more difficult to navigate.