President Trump’s executive order effectively ending a visa route for top international talent could benefit Scotland.
For many years, the US – California in particular – has been the destination of choice for highly skilled, international STEM workers due to the strength of the ecosystem and the opportunity to work for some of the world’s biggest tech companies.
However, the preeminent position the US holds in the global STEM talent market has suddenly and unexpectedly been put in jeopardy.
With an executive order, President Trump imposed a $100,000 fee (a 5,000% increase on the previous rate) for all new applications for the H1-B visa, the specialty visa category used by many US employers to recruit STEM workers from overseas – the overwhelming majority of whom come from India and China.
The median salary for new employees on an H1-B visa is $94,000, meaning the policy effectively puts an end to the H1-B visa route which has provided US firms with a conveyer belt of international talent and helped fulfil the ‘American dream’ for millions of highly skilled immigrants over more than three decades.
Sundar Pichai, chief executive of Google parent company Alphabet; Microsoft chief executive Satya Nadella; Arvind Krishna, chairman and CEO of IMB; and Elon Musk, founder of Tesla and SpaceX, have all benefitted from the H1-B visa in the past.
While the move very much aligns with the Trump administration’s ‘America First’ agenda, and its desire to see US firms employ more homegrown workers, the potential consequences for the US tech sector and wider economy are significant.
America’s loss could be Scotland’s gain. The effective closure of the H1-B visa is an opportunity to promote Scotland as a preferred destination for international talent and to meet skills shortages that hold back economic growth.
Our team has seen a sharp rise in enquiries since the executive order was published, from individuals seeking to understand the various global mobility visa routes that the UK can offer, as well as from US companies who are considering whether now is the time to establish a Scottish or UK subsidiary from which to trade.
The good news is that these people appear to be pushing at an open door. While the UK government has prioritised reducing overall net immigration, the immigration white paper published in May committed to “increasing the number of people arriving on our very high-talent routes”.
This ambition has been supported by the establishment of a global talent taskforce, equipped with £54 million in funding, and the issue was addressed directly by the chancellor, Rachel
Reeves, who said shortly after the White House’s announcement: “While President Trump announced late last week that it will make it harder to bring talent to the US, we want to make it easier to bring talent to the UK.”
Reports that the taskforce is looking at removing fees associated with the global talent and high potential individual visa categories should be welcomed. Scotland already has much to offer, including high quality of life, the presence of leading global employers, and lower cost of living compared to London.
But in a competitive global environment, we need to harness every marginal gain we can to attract the best talent and boost growth – particularly when a competitor destination has essentially shut one of its main routes.
Grace McGill is a partner and head of immigration law at Burness Paull LLP