Official records show that the contribution of international graduates to the local economy exceeds 3 thousand million, says Studying-in-UK.org.
Higher education is clearly having a deterministic role in the British economy as the largest sector of export. According to official estimations, the UK budget has collected around £26 billion from international students in 2016/17.
In addition, international students remain an important factor for the local economy after their graduation. A recent joint report conducted by HEPI, London Economics and Kaplan has revealed some interesting numbers over the contribution of international graduates in the UK’s economy.
The report “The UK’s tax revenues from international students post-graduation” estimates that international graduates in the UK have generated a revenue of £3,173 million during the 2016/17. According to their findings, this large fund has raised from the contribution of international graduates to taxes(£1,043 million), employee National Health Insurance(£716 million), employer National Health Insurance (£822 million) and VAT(£592 million).
Commenting on the results of this report, the Minister of State for Universities, Science, Research and Innovation, Chris Skidmore said among others
“International students help to generate jobs and support local businesses in the area they study, sustaining over 200,000 jobs in all parts of the UK. They bring cultural diversity and enrich the learning experience of domestic students.”
Further on, the report provided additional insights about the contribution of international graduates by their nationality. EU students who share a significant proportion of international graduates, weighted for £1,181 million, while non-EU graduates added £1,992 to the local economy.
This meant that the average contribution to the UK’s economy for a single EU graduate was £108,000 and £104,000 for a non-EU graduate.
On the other hand, the report revealed that master’s graduates were the biggest contributors to the national economy. Around £1,591 million were collected from master’s graduation, followed by first-degree holders (£1,119 million), PhD graduates (300 million) and 163 million by other undergraduate qualified students.
The UK universities are the world’s second most popular study choice counting over than 358,000 international students. Earlier in this year, the Department for Education in the UK has revealed a national education strategy in a bid to resolve universities’ concerns over their global reputation.
The major goal of their strategy is to increase the number of international students at 600,000 by 2030. Surely, this report about the international graduates’ contribution to the country’s economy will make authorities to fully implement it.