H-1B Visa Registrations Decline
H-1B visa registrations decreased by 38.5% to their lowest level in seven fiscal years due to stringent US immigration rules, increased costs, and wage-based selection norms, leading companies to be more selective in sponsoring foreign workers.
Statistics and Changes
- The US Citizenship and Immigration Services (USCIS) received 211,600 eligible registrations for FY27, down from 343,981 the previous year.
- Indians accounted for 70% of the total H-1B approvals in FY25, but the current share is unclear.
- 71.5% of selected applicants hold a US master's degree or higher, compared to 57% last year.
- 17.7% of applications were in the lowest wage category.
Implications and Observations
- The changes aim to attract highly skilled foreign workers and protect American workers' wages, working conditions, and job opportunities.
- Under the Donald Trump administration, changes included a $100,000 fee for new H-1B visas from September 2025 and a wage-based selection process favouring higher wages and advanced degrees.
Company Strategies
- Companies shifted strategies to focus on registering students on F-1 visas and transferring some L-1B employees to H-1B visas.
- The $100,000 fee does not apply to petitioners already in the US on a valid visa.
Impact on Recruitment
- There is a shift away from entry-level hiring towards advanced degree applications with higher wages.
- The decline in entry-level jobs in the US is partly attributed to AI, geopolitical uncertainty, and slower business growth.
- Entry-level jobs have decreased by 35% according to a World Economic Forum report.
Future Considerations
- The H-1B lottery is evolving into a selective process for senior and specialised talent, requiring more detailed upfront analysis.
- Proposed rule changes could increase wages for H-1B workers by 20-30% and impact future applications.
- While applications may reduce, the US remains a favoured destination for Indian professionals.
