President Donald Trump’s “Buy American, Hire American” executive order in April 2017 set off a chain reaction that reshaped the landscape for H-1B visa holders. The order aimed to prioritize the most skilled or highest-paid beneficiaries for these visas, leading to a significant rise in denial rates for H-1B petitions. Data from the Department of Homeland Security revealed a denial rate increase from 4% in FY 2015 to 15% in FY 2018.
Experts from The National Foundation for American Policy noted that the shift in approval rates was a direct result of changes in government policies and practices. Employers and attorneys began applying only for individuals with high chances of approval due to the time and cost involved, further driving up denial rates and Requests for Evidence.
Despite the hurdles, the number of cap-subject H-1B visa petitions surged for FY 2020, marking a reversal of the declining trend seen in previous years. A new policy implemented in FY 2020 aimed to boost the number of visa recipients with advanced degrees from U.S. colleges by 16%.
One of the ripple effects of the crackdown on H-1B visas was a decline in new international student enrollments in the U.S. Universities felt the impact as international students, who typically pay higher fees, contributed significantly to the economy. This trend led some colleges to reclassify certain majors as STEM degrees to attract more students.
Employment opportunities for international students also took a hit, with a decrease in the percentage of U.S. employers planning to hire them. However, in 2019, there was a slight uptick in interest from employers in industries like information and retail, offering hope for international students seeking job opportunities.
Canada emerged as a favored destination for tech workers affected by the visa restrictions in the U.S. Major companies like Microsoft announced plans to expand in Canada, citing concerns over immigration policies. The Canadian government’s Express Entry Program witnessed a surge in skilled workers from countries like India, China, Nigeria, and Pakistan, offering them a pathway to permanent residence.
While outsourcing firms faced challenges in securing H-1B visas, big tech companies like Amazon, Microsoft, Google, Facebook, and Apple experienced an increase in visa approvals. The shift was attributed to India-based firms moving towards digital services that require fewer workers, prompting them to hire more locally. American tech giants capitalized on the situation, climbing higher in the ranking of top sponsors for H-1B visas.
As the landscape for international students and skilled workers continues to evolve, the impact of Trump’s H-1B visa crackdown remains a topic of keen interest for stakeholders in the global workforce.