According to Emolument’s research published this morning, the UK’s financial sector depends heavily on graduates from abroad to fill certain skills gaps.

Emolument’s research discovered foreign universities source 28 per cent of the current graduates who have been working in finance for less than four years. For data analysis, IT and compliance workers, the proportion of foreign graduates is 18 per cent, 17 per cent and 20 per cent respectively.

The research revealed firms are willing to pay more to source talent from abroad – foreign graduates are making 30 per cent more than their British peers. However, this is related to the fact that the vast majority of foreign graduates work in London – where wages tend to be higher.

Emolument’s research also found that 18 per cent of British graduates go to work abroad.

The UK is seen by many European graduates as the ideal location to kick off their financial careers. Such a flexible market with vibrant technological and entrepreneurial sectors, paired with strong fiscal incentives, makes London the ideal city of opportunity for most.

“Where else can a History degree land you in a finance job?”, said Emolument co-founder and chief operating officer Alice Leguay. “UK employers are keen to bring in highly skilled graduates as they struggle to find appropriately qualified staff in the UK.”

Robert Half, a City recruiter, found that 99 per cent of London finance executive recruiters find it extremely hard to locate the right quality of finance professionals.

In addition, the Society of Motors Manufacturers and Traders and the Royal Institute of Chartered Surveyors have also suggested that a skills shortage might mean a new threat to the car manufacturing and construction sectors, respectively.

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