UK at Risk of Brain Drain as Brexit Looms

Nearly half of highly-skilled workers from the EU were considering leaving the UK in the next five years, according to a recent study from Deloitte that points to the impact Brexit may have on universities and employment prospects in the region.

The Deloitte paper chimes with recent research produced specifically for business schools, which highlights the great challenges the UK education sector will face as Brexit negotiations get underway.

Nearly 11% of UK business schools have already seen a decline in EU student applications, and 7% have lost EU staff, according to the Chartered Association of Business Schools.

CABS found that almost 45% of UK business schools expect to see a decline in EU student applications because of Brexit, while 27% expect to have trouble in recruiting them in the future. In addition, 27% expect to see a decline in non-EU student applications.

Six UK business schools are in the ‘Global Elite’ category of MBA programs ranked by QS, including Saïd Business School at Oxford University and Judge Business School at the University of Cambridge. But students and professors are worried that their ability to secure study and work visas may be hampered if the UK loses access to the single market, and if the UK continues to clamp down on immigration. 

Work visas a concern, but a UK MBA still attractive

The research confirms other evidence that the Brexit vote has prompted international students from outside of the UK to consider alternative study destinations. In May, the Graduate Management Admissions Council (GMAC) reported that 45% of international students were less likely to study in the UK because of Brexit. 

The big concern among business school applicants is that they will not be able to get visas to work in the UK upon graduation — a big reason for getting an MBA there. There are also concerns that jobs may be moved out of the UK in the wake of Brexit, particularly in financial services and consulting — traditionally two of the biggest employers of MBA graduates. A report by PwC estimated that between 70,000 and 100,000 jobs would be lost in the UK’s financial sector by 2020. 

“People have questions about Brexit and what the post-Brexit visa regime will look like. 50% of our graduates from the LBS MBA work in London upon graduation,” said Gareth Howells, executive director of MBA programs, London Business School. “I don’t think people are being put off by it, but they are quite rightly asking questions before they make a significant investment of time and money in an MBA program in London.” 

CABS surveyed 120 of its members to assess their views on the impact of Brexit on their institutions. The research also found that UK business schools are shelving their planned bids for EU research funding, with nearly 35% expecting the loss of such funding because of Brexit. 

The report suggested that the UK is still an attractive place for international students and academics, but the uncertainty created by Brexit is causing big problems for business schools in the UK. On average, a third of their income is generated by international students. But the bigger issue is whether Brexit will negatively impact the diversity upon which business schools thrive.

However, Howells remains optimistic. “As a business school, we are always at the whim to some extent of global trade winds, such as the global financial crisis,” he said. “There will always be something that conspires potentially to knock a business school off course. But we are resilient as an institution.”