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Effects of the Post Brexit UK Immigration Rules on its Economy

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The impact of new post-Brexit immigration laws on the UK economy is yet to be fully felt. This has led to an influx of people seeking immigration advice. Because from January 2021, stricter rules are in force. Over the next few years, new UK immigration rules will affect the UK economy, the number of immigrants from EU and non-EU countries, and aspects of life such as wages, education and general productivity levels at work.

New immigration rules

There have been greater restrictions on immigrants from the European Union looking to come to the UK since new immigration laws came into force following the outcome of the 2016 Brexit referendum. New rules ended the free movement of people between the UK and the European Union. European Economic Area. This was around the same time that the UK and her EU trade cooperation agreement came into force.

Payment status – UK residents from the EU or Switzerland had the right to stay indefinitely under the ‘settlement status’ regime. By the end of March 2022, there were 6.5 million applications.

Exception – The new system will apply to anyone moving to the UK for work, study or family reasons. The exception to this rule is Irish citizens.

Hong Kong – Due to the situation in Hong Kong and its relationship with mainland China, it is expected that there will be an increase in UK overseas passport holders traveling to the UK from Hong Kong.

Here are the details of the new rules:

· The Skilled Worker visa is available to applicants entering the UK to take up a job paying more than £25,600 or a quarter of the average salary, or an occupation with the necessary qualifications equivalent to A levels. increase.

· If there is a shortage of workers in a sector, the salary threshold will be lowered, down to £20,000.

· There is a lower salary threshold for those entering the UK to study, especially for PhDs in science, mathematics, technology and similar fields.

· International students have the right to stay in the UK for up to two years after graduation.

Economic effects of immigration after Brexit

From the early 2000s to 2016, between the opening of the labor market and migration from EU countries to the UK, and from the Brexit referendum to the first examples of the impact of Covid-19, there are migration figures that have been surveyed. bottom. The pandemic messed up the numbers a bit as it affected both travel at the time and the wider economy. The UK economy over the next few years.

It is believed that even tougher immigration laws may not have a significant impact on GDP, but the more immigrant workers there are, the more productive workers are generally. It is believed that we will often witness an increase in the standards of Migrants not only spur entrepreneurship, but they generally pay more taxes, both in public services and indirectly. The overall impact of immigration is positive, but will fewer immigrants entering the UK to work or study have a negative impact on the UK economy in the long run?

Wage impact

One of the main ideas for strengthening UK immigration law is to reorganize into states where skilled, high-wage immigrants are more favorable to the economy, while lower-wage immigrants move to the UK and drive down wages. There would be fewer cases. Native low-skilled workers. While this has been effective in attracting high-paying migrants in some cases, vacancies are scarce in relatively low-paying sectors such as hospitality. This does not appear to have had a significant impact on relative wages.

Educational impact

The UK’s new immigration law is bound to have a lasting impact on universities and the broader economic sector. Graduate visa The UK is more attractive to non-EU immigrants, with a continuing influx of students from India, Nigeria, China and other countries. Paradoxically, the economic situation, the standard of living and the high domestic cost of attending college have made college less attractive to UK and her EU students than ever before. In the short term this may mean that the cost of studying abroad will have a positive impact on the UK economy, but in the long term it will have a negative impact on the economy due to the decline in UK-based graduates. may give.

Understanding the impact of the UK’s new immigration rules and seeking UK immigration advice can help determine the potential consequences for immigrants considering moving to the UK for one reason or another. The better advice you get from the house, the more likely you are to get the application process right, minimize delays, and keep abreast of any legal changes that may occur during your application.

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