H-1B Hiring Declines as US Companies Cut Foreign Recruitment Efforts; What It Means for India

H-1B visa sponsorship has seen a sharp decline across major industries in the US, especially tech, as changes in immigration policy and administrative fees cause companies to slow their hiring of international talent.

Fall in Visa-Sponsored Job Opportunities Signals Changing Priorities

In 2025, only 1.9% of job postings on student platforms like Handshake offer visa sponsorship, plummeting from 10.9% in 2023. Tech companies have experienced the most significant drop, with Amazon, Microsoft and Meta increasingly affected due to their high dependency on skilled foreign recruits. A newly introduced $1,00,000 H-1B application fee has also discouraged many employers from pursuing international candidates, citing higher costs and increased scrutiny.

Shifting Policies Create Uncertainty for Employers and Graduates

Recent visa reforms under President Donald Trump have reshaped recruitment policies. Despite exemptions for current student visa holders, many businesses remain hesitant, awaiting further clarity on implementation. Job market stress is compounded for graduates from overseas, who now face both competition and limited sponsorship opportunities. Employers are also cautious amidst a tech downturn and economic slowdown affecting white-collar jobs.

Impact on University Enrolments and International Students

Elite universities like Columbia have reported a dip in international student applications after facing visa delays and reductions in research funding. Education experts estimate the continuing decline could cost US institutions up to $7 billion and over 60,000 jobs. Career advisors indicate students are applying for more roles while seeing lower success rates, with Indian nationals being over 70% of H-1B recipients in 2024.

Read More: US Resumes H1B Visa Application Processing After Shutdown: What You Need to Know?!

Additional Restrictions Affect Families of Visa Holders

Since October 30, 2025, the automatic extension of Employment Authorisation Documents (EADs) for certain non-citizens has been discontinued. Spouses of H-1B holders now risk work gaps while awaiting renewal. Florida has also initiated state-level restrictions, urging public universities to cease hiring H-1B visa holders, though immigration laws remain federally governed.

How Will This Impact India?

The H-1B hiring slowdown in the US will ripple through India, where most visa recipients originate. Fewer sponsorships mean tougher prospects for Indian tech graduates and engineers, while IT giants like Infosys, TCS, and Wipro may face higher costs and project delays. 

Conclusion

The tightening of H-1B sponsorship and related policies reflects a broader shift aimed at prioritising domestic workers, but comes with significant trade-offs. International students and skilled migrants now confront reduced job prospects and academic routes in the US, altering long-term career considerations globally.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.