Migration: supporting the future of Scotland's economy and communities

Maximising Opportunities within the Current System

Beyond our call for the introduction of tailored migration routes for Scotland to be introduced to the UK immigration system, and the measures already being taken to support the economic and demographic circumstances which a tailored migration system would support, the Scottish Government will also work to ensure that use of the existing immigration system is maximised for Scotland’s benefit.

Scotland’s Migration Service (SMS) helps individuals, employers and investors navigate the current UK immigration system to come to, stay in or recruit international talent to Scotland. We will make an additional investment in this Parliament to maintain SMS, while also looking at other opportunities to maximise the benefit of key immigration routes to Scotland’s economy and communities.

Youth Mobility Schemes

Overview

The Scottish Government believes that existing Youth Mobility Schemes present an opportunity to attract more young people to live and work in Scotland, helping to address labour market needs, support communities and strengthen international connections.

Youth Mobility Schemes allow eligible young people, typically aged 18 to 30 or 35, from participating countries and territories to live and work in the UK for up to three years. Participants can work in most sectors and occupations, providing employers with access to a flexible workforce while offering young people valuable international experience.

These routes can also provide a foundation for longer-term migration through study, work or family pathways. As highlighted in evidence from the Migration Observatory, youth mobility can act as an important first step in building lasting social and economic connections with the UK.

Most Youth Mobility Scheme allocations are currently underused, meaning there is scope to increase participation without requiring changes to UK immigration policy. The Scottish Government therefore sees opportunities to make greater use of existing routes while also preparing for any future expansion of mobility arrangements, including a potential UK-EU youth mobility agreement.

Assessing opportunities

Our analysis suggests that the strongest opportunities are found where:

• there is a large eligible population;
• current participation rates are relatively low;
• significant unused allocations remain available; and
• practical barriers to mobility are limited.

Whilst there are barriers to increasing engagement with some Youth Mobility markets, initial analysis suggests that the existing Youth Mobility agreements that the UK holds with Australia and Canada represent a significant opportunity for increased uptake.

Next steps

The Scottish Government will continue to explore how existing migration routes can better support Scotland’s economic and demographic needs. This includes considering how Scotland can be promoted more effectively to young people in priority markets, particularly Australia and Canada, where the potential for growth appears strongest.

The UK could learn from the Australian system of working holiday visas, where young people are eligible to extend their stay in Australia if they live in a particular region, such as a rural area, or work in a particular occupation. Therefore, the UK Government should work with the Scottish Government to develop a pilot scheme to allow individuals in the UK on a Youth Mobility visa to extend their stay for up to an additional year if they reside in Scotland during that time. This would be an early opportunity to test a residence requirement as a visa condition in a low-risk context.

Alongside better use of existing schemes, the Scottish Government remains supportive of efforts to expand opportunities for international youth mobility. Should wider agreements, including a potential UK-EU youth mobility arrangement, be reached in future, the Scottish Government will work to ensure that Scotland is positioned to attract and retain talented young people who can contribute to our economy, communities and society.

Displaced talent

Overview

Building on previous successful work to match skilled displaced persons with employers in Scotland, the Scottish Government will play an active role in maximising the opportunities provided by the new ‘safe and legal’ routes currently being developed by the Home Office to facilitate sponsored work and study routes for international displaced persons to live, study, and work in the UK.^[55]

Next steps

We will engage closely with the UK Government as further policy development occurs, highlighting the mutually beneficial opportunity that the use of these sponsored pathways could have in meeting Scotland’s migration objectives if aligned with existing proposals such as the Rural Visa.

Temporary Shortage List

Overview

As discussed earlier in this paper, the UK Government’s 2025 Immigration White Paper proposed replacing the Immigration Salary List (ISL) with a new Temporary Shortage List (TSL) as part of wider policy changes that restrict the Skilled Worker route to occupations at RQF Level 6 and above.

The TSL is intended to provide temporary access to visas for a limited number of occupations below degree level where they support the UK Government’s Industrial Strategy or critical national infrastructure. Its narrower scope may create challenges for parts of Scotland’s economy unless there is a mechanism to add occupations quickly where clear evidence of shortages exists. The MAC’s Stage 1 report recommended a formal process allowing occupations to be reviewed outside the standard three-year review cycle.

The Scottish Government is also concerned that aspects of the proposed TSL may reduce its attractiveness to prospective workers. These include restrictions on dependant family members, the temporary nature of the route, and uncertainty around whether time spent on a TSL visa will count towards settlement. Together, these factors may make it more difficult for employers to attract and retain specialist workers.

Next steps

The Home Office has yet to respond to the MAC’s recommendations on the TSL, although a response is expected ahead of the planned closure of the Immigration Salary List on 31 December 2026.

The Scottish Government will continue to press for:

• a formal mechanism to add occupations to the TSL where evidence of shortages emerges;
• dependant family members to be permitted on the route; and
• time spent on a TSL visa to count towards settlement.

We will also work with stakeholders to maximise the effectiveness of the route for sectors that continue to rely on access to specialist international talent, while advocating for reforms that improve the route’s attractiveness and help employers address critical skills shortages.

Conclusion

The new UK Government has made clear that it is committed to exploring the opportunities that devolution of powers away from Westminster can bring to the rest of the UK. This paper outlines the benefits that a devolved or regionally tailored approach to immigration policy can have in supporting Scotland’s communities in the face of projected population decline whilst also supporting economic growth. An immigration system which is more responsive to the needs of local communities and of job roles across all levels and sectors of the economy will help promote economic growth and sustainable working age populations across Scotland.