Demand for foreign MBA holders drops.

Potential changes to H-1B visa rules has some companies wary of hiring international graduates

Uncertainty about how hard the White House may crack down on the controversial H-1B visa appears to be behind a drop in demand for foreign MBAs graduating fromU.S. universities, said the head of the non-profit that runs business school admission tests.

Fewer employers in the U.S. plan to hire international MBA graduates this year than last, according to the GraduateManagement Admission Council, which runs the GMAT and conducts research into MBA-hiring trends. While 55 percent of U.S. companies last year said they planned to hire foreignMBA grads, only 47 percent said the same this year, according to the council’s 2018 Corporate Recruiters Survey report, which is based on responses from more than 1,000 firms world-wide.

“This dip in stated intent by U. S. employers to hire international graduates is potentially a response to the changes— or potential changes — to visa and immigration regulations,” said council CEO Sangeet Chowfla.

“Even though H1-B visa rules haven’t yet changed, there is a perception that they might change in the near future, and some employersmay be waiting to see what will happen. The jobs market in the U.S. right now is robust, and companies are constantly having to evaluate their prospects and how best to fill their available roles with strong talent.”

The H-1B visa, intended for highly skilled workers, has become a flashpoint in America’s immigration debate, with tech companies lobbying heavily for an increase in visa numbers and critics pointing to reported abuses and arguing that H-1B holders take jobs from Americans.

The administration of President Donald Trump has taken aim at the visa program. In January, U.S. Citizenship and Immigration backed away from a proposal to kick H-1B visa holders out of the country after six years. But the government has been laying a much heavier hand on the visa-granting process, denying more ap- plications and more frequently demanding additional information from applicants.

The council’s findings fit with those of the MBA Career Services and Employer Alliance, which determined that 68 percent of schools noted a decline in hiring so far this year for foreign full-time MBA students compared to the same period last year.

“As a result, many schools are more actively promoting a global job search as well as creat- ing connections with employers in students’ home countries,” said Jamie Belinne, board president for the alliance.

Trump’s crackdown on immigration also appears to have led to slower growth last year in the number of “Optional Practical Training” work permits, which are often used by foreign students and graduates as an alternative to the H-1B.