A recent Freedom of Information Request by employee relocation platform, research* reveals a 44% surge in businesses obtaining sponsor licences between August 2023 and August 2024, despite rules announced by the Conservative government in December 2023 increasing salary thresholds and health surcharges for international workers.
Skilled Worker Visa in demand
A sponsor licence is a required permit that allows a UK-based company to hire foreign workers or students to work or study in the UK. As of 30th August 2024, over 105,000 UK businesses held a sponsor licence – with almost 120,000 individual licences between them. Of these, 85% of the sponsor licences issued were for the Skilled Worker route (allowing foreign nationals to work in the UK if they have a job offer from a UK employer that holds a valid sponsor licence). Skilled Worker sponsor licences increased by 46% between August 2023 and August 2024.
The second most common licence for businesses hiring workers from overseas is the Global Business Mobility route – for businesses looking to move existing international workers to their UK offices – making up just under 10% of all sponsor licences issued. According to the data from the Home Office obtained by Jobbatical, businesses holding this licence include large companies like Pizza Hut, Telefonica, Compass Group, eBay, Fujitsu and many more. It was also issued for tens of thousands of small-to-medium-sized businesses
Karoli Hindriks, co-founder and CEO of Jobbatical, comments: “It’s too early to tell what the Labour government will commit to in regards to international recruitment policies. However, despite a more liberal look on immigration, they’ve made it clear that they still intend to bring down overall immigration numbers so it’s likely that, at least some of, the measures put in place by the Conservative government will remain in force.
“But these sponsor licence numbers speak for themselves. Despite the significant barriers, businesses of all sizes still intend to use international recruitment as part of their ongoing recruitment strategies. Reasons for this will be many and clearly demonstrate that there are not enough of the right workers in the UK to fulfil businesses’ needs.”
London firms rely most heavily on international recruitment
Companies headquartered in London hold the biggest share of sponsor licences. This is unsurprising given that a recent report from Jobbatical found that almost six in 10 (58%) senior business professionals working in mid-to-large-sized companies in London say their business relies on international workers to fill skills shortages – with 60% saying hiring international workers is part of their long-term strategy
Top 10 cities with the highest number of companies holding sponsor licences:
CITY |
NO. OF BUSINESSES WITH A SPONSOR LICENCE |
| London | 36,601 |
| Birmingham | 2,809 |
| Manchester | 2,633 |
| Bristol | 1,261 |
| Leicester | 1,205 |
| Glasgow | 1,169 |
| Edinburgh | 1,082 |
| Leeds | 979 |
| Reading | 974 |
| Nottingham |
972 |
Karoli Hindriks emphasises: “International workers are a vital lifeline for businesses throughout London, but this Freedom of Information request reveals that companies in all major cities across the UK depend on skilled international talent.
“We urge the Labour government to consider this as it develops its skills strategy for the UK.”
Notes to editors
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Freedom of Information request asked the Home Office for monthly data of businesses holding a business sponsor licence between August 2023 – August 2024
*Research from Jobbatical