The US and UK simultaneously tighten skilled worker immigration

The H-1B lottery becomes a wage auction

Under the new weighted system, each H-1B registration receives multiple lottery entries based on the Department of Labor’s four-tier wage system. Entry-level positions (Wage Level I) get one entry, and senior roles (Level IV) get four.

Consider a Level I software engineer competing in March. That candidate’s single entry competes against Level III and IV engineers with three or four times better odds, even when both meet identical job requirements. Workers at higher wage levels don’t need higher skills; they just need positions classified at higher seniority within the same occupation. USCIS expects the system to maintain access at all wage levels, but immigration attorneys report entry-level sponsorship now hinges on lottery math rather than candidate quality.

The $100,000 barrier

The presidential fee applies to new H-1B petitions for beneficiaries outside the U.S. and expires in September 2026 unless extended. For non-profits, universities, and smaller companies, the choice is stark: absorb a six-figure fee or exit the March lottery. The fee reshapes who can afford to participate before the weighted system even selects winners.

The U.K’s triple barrier

The U.K. layered three compounding restrictions since last summer. First, the skill threshold: RQF Level 6 (bachelor’s degree level) became a minimum requirement in July 2025, removing around 180 occupations, including care workers, hotel managers, and veterinary nurses. Those roles now require designation on either the Immigration Salary List or Temporary Shortage List, both expiring on December 31, 2026.

Second, the English proficiency requirement increased this month from B1 (GCSE-level) to B2 (A-level standard). And third, the settlement timeline extension: The government proposes extending permanent residence from five to 10 years for most workers, and 15 years for Health & Care workers. Workers earning £50,270+ annually could reduce this to five years, and those earning £125,140+ could qualify in three years.

Where talent goes instead

These policy changes are reshaping recruitment patterns. The UAE moved into second place for STEM talent destinations in 2025, overtaking Canada and the U.K. The UAE’s inflow share rose 2 percentage points while Canada’s dropped 2.5 and the U.K’s fell 1.6. Portugal and several Eastern European countries with digital nomad visas are capturing remote workers.

Employers are recalibrating their talent strategies in response to these restrictions. Tech companies are shifting junior and mid-level hiring to India and Latin America under remote contracts, with 70% of U.S. tech firms now actively hiring from Latin America.

The February squeeze tests whether the U.S. and U.K. can attract top talent while raising barriers to entry-level and mid-career workers. March H-1B lottery results will show whether the weighted selection surfaces "higher-skilled" workers or simply shifts sponsorship to companies with higher wage classifications. The U.K's April settlement implementation will reveal whether earned settlement accelerates brain drain or creates a two-tier system. For countries competing on talent access rather than restrictions, the window is open.