How Indian grads with US degrees get easier H-1B entry, but face lower pay

Indian students with degrees from US institutions generally find it easier to enter the job market. However, they may face slightly lower salaries

If you're aiming to work in the US post-studies, select a university in a sponsor-friendly state. This choice could increase your chances of securing the H-1B visa. According to a report, California, Texas, and New York led H-1B sponsorships in 2023, accounting for nearly 40% of all applications. The findings suggest that international students, including Indians, should target institutions in states with strong ties to H-1B and PERM employers.

Permanent Labor Certification (PERM), run by the US Department of Labor's Employment and Training Administration (ETA), is designed to protect US workers by requiring employers to test the local job market before sponsoring a foreign worker for a green card. Sponsorship-friendly states are those where employers are more likely to sponsor foreign workers for H-1B visas. These states have more companies or industries in need of skilled workers and are willing to go through the process of sponsoring H-1B visas on behalf of employees.

 

The report by Intead, a student recruitment marketing provider, and job search platform F1 Hire, titled Connecting Dots: How International Students Are Finding US Jobs, also found that while US-educated students generally have better access to the job market, their starting salaries may be slightly lower.

Where are the jobs for international students in the US?

The report shows that between 2018 and 2023, there’s been a rise in Program Electronic Review Management (PERM) applicants with US degrees, now making up 59%, while the share of those with degrees from India has dropped to 28%. This shift is seen across various states, particularly those that attract high numbers of H-1B applicants, such as California, New York, and Texas.

For Indian students, this trend highlights a significant change: US employers are increasingly favouring graduates with US-based degrees. In fact, companies in California, Texas, and New York accounted for 39% of all H-1B applications in 2023 alone.

According to the findings:

— Nine out of the top ten companies sponsoring PERM applications in 2023 were from the technology sector.

— Between 2018 and 2023, the number of PERM visa applicants who earned their degrees in the US increased by 45%.

— California, Texas, and New York lead in H-1B sponsorships, accounting for nearly 40% of all H-1B applications in 2023.

— Washington, North Carolina, Texas, and Michigan are among the states with the most H-1B applications per employer sponsor.

Indian students still represent a large share of the international job market in the US, with 28% of applicants in 2023 holding degrees from India. However, PERM applicants with degrees from Brazil and the Philippines have tripled since 2018, showing a broader international shift.

What kind of salary can international students expect?

When considering the value of a US education, students with degrees from US institutions generally find it easier to enter the job market, with less emphasis on prior work experience compared to those with foreign degrees. However, they may face slightly lower salaries. For example, Indian students who earned their degrees in the US tend to earn about 10% less than their peers from Indian institutions when working in comparable roles, the report showed.

Here's a comparison of median salaries:

India: US-educated - $111,197; Foreign-educated - $119,870

China: US-educated - $101,754; Foreign-educated - $99,414

Canada: US-educated - $100,901; Foreign-educated - $109,304

Taiwan: US-educated - $91,083; Foreign-educated - $100,152

Nigeria: US-educated - $85,893; Foreign-educated - $91,437

Vietnam: US-educated - $83,866; Foreign-educated - $89,960

Japan: US-educated - $82,353; Foreign-educated - $81,224

Brazil: US-educated - $71,947; Foreign-educated - $77,075

South Korea: US-educated - $69,639; Foreign-educated - $60,341

How are international students finding jobs in the US?

"After analysing more than 1.5 million US job postings, we found only 1.6% had sponsorship-friendly language in their descriptions," said Andrew Chen, CEO of F1 Hire.

Chen added that most users search for roles in the technology sector, with popular job titles like software engineer and data analyst. Among job search platforms, LinkedIn remains the preferred choice, with 68% of all searches conducted there.

Top companies sponsoring PERM applicants

The report notes that technology companies dominate the list of PERM sponsors, with Amazon, Google, and Microsoft leading the way. Interestingly, Wayne Farms, a farming company, also made the top ten list for 2023.

Amazon (Technology)

Google (Technology)

Microsoft (Technology)

Facebook (Technology)

Intel (Technology)

Wayne Farms (Farming)

Apple (Technology)

Cognizant (Technology)

Infosys (Technology)

Indian students still flocking to the US

Indian students continue to make up a large portion of international students in the US, but the numbers have shifted. Between 2018 and 2023, PERM applications from Indian degree holders dropped by 41%, while applications from Indians with US degrees increased by 45%.

In 2018, seven of the top ten universities producing graduates seeking US PERM status were in India. By 2023, only two Indian institutions (Jawaharlal Nehru Technological University and Anna University) made the top ten, with US institutions like the University of Southern California and Carnegie Mellon University gaining ground.