H-1B Visa Challenges and Post-MBA Industry Employment Outlook
Immigration is in a precarious place in the United States. While media tend to focus on asylum and family separation, the Trump administration has taken aim at the H-1B Visa program. As Clear Admit previously outlined, the H-1B is necessary for any foreign-born individuals who want to work in the United States. Part of the Trump administration’s “America First” policy, the increased attention given to this visa program has created multiple issues for international students and the businesses that hire them.
The first issue that most international MBAs who want to work in the United States will face is the lack of companies who are interested in hiring them. According to the 2018 GMAC Corporate Recruiters Survey, only 47 percent—down from 55 percent in 2017—of all companies surveyed in the United States intended to hiring international candidates. Students interested in working in finance, health care, manufacturing, and nonprofit sectors may want to change their plans as these are the sectors least likely to hire internationals. Only 11 percent of health care firms surveyed said they plan to hire international candidates in 2018, while 14 percent were willing, but had no plans. Seventy-five percent—the highest among the reporting industries—said they would not hire international personnel. Seventy-two percent of non-profit/government agencies and 60 percent of manufacturing companies also responded that they would not be hiring international candidates. The best sectors for international graduates are consulting and technology. Thirty-seven and 39 percent, relatively, reported that they plan to hire international candidates. Over a quarter of companies in both industries reported that they would be willing to hire internationally, but did not have concrete plans to do so.
The reason that it is so hard for international MBA graduates is the nature of the H-1B visa process. If an employer chooses an international graduate and is willing to sponsor their application, neither the firm nor the employee can be sure that the employee will be chosen for the visa lottery.
A current international first-year student at Dartmouth’s Tuck School of Business tells Clear Admit that they haven’t second-guessed their decision to attend a U.S. school:
“I do think about visas, but I am not worried. I look at my MBA from a top school as a long-term investment. I am confident it will deliver returns in many ways throughout my future. My advice to other international students is 1) know why you want the MBA and how precisely you want to utilize it before arriving to school and 2) complete the company research and practice to be extra prepared for recruiting.”
The number of international job-seekers in the United States has declined over the last two years from its peak of 236,000 in 2016. However, the number of applicants for H-1B visas remains high—190,000 people applied for 85,000 H1-B visas in 2018, filling the slots in five days, according to a U.S. Citizenship and Immigrant Services (USCIS) survey.
In addition to the small number of slots, applicants have to deal with the fact that USCIS has increased discretion over how visas are distributed. Although they are generally three years in length, H-1B visas under Trump’s USCIS have been of increasingly bizarre lengths. As noted in the lawsuit, ITServe Alliance v. USCIS, USCIS has issued visas that last one day and 12 days. One specific visa was expired for three weeks before it was received by the recipient. This has led to increased uncertainty around international MBA students getting the cover that they need to work in the United States.
If an international MBA student has received their three-year H-1B visa and has their desired position, he or she might run into difficulty being with their loved ones in the United States. H-1B holders can bring their partners over to stay with them on an H-4 visa while they wait for permanent residency; however, the Trump administration has spoken openly about eliminating this program. While legislation has been proffered to ensure that this program stays in place, the legislation’s chances of becoming law are slim to nil.
Although the current situation is grim, there are efforts being made to improve the situation. Tech firms, a primary beneficiary of the H-1B visa program, have been lobbying Congress to increase the 85,000-person cap for the visas. In addition, there is support among both parties in Congress to ensure that the H-4 program stays in place.
However, this might be too little, too late. These various difficulties have caused a decline in the number of international applicants at U.S.-based MBA programs. According to the GMAC 2018 Application Trends Survey Report, in the two years of the Trump administration, the number of international applicants to full-time MBA programs has decreased 13 percent.
With the system as it is oriented now, being an international MBA student will remain challenging. Tuck’s Emma He T’17 suggests that fellow (and hopeful) international students “target companies early, be willing to expand your search areas, and/or leverage your background for potential visa exceptions” in order to “mitigate visa concerns.”
Relief might come in the future, but it appears that putting America first will hurt U.S. MBA programs.
This article has been edited and republished with permissions from its original source, Clear Admit.
Are International MBAs Avoiding the United States?
Based on data from the most recently Graduate Management Admissions Council (GMAC) monthly survey, interest in U.S. business schools among international MBA candidates is still below pre-2016 election levels. In fact, it’s below the previous five-year average for each month since the election. And in each of the last three months—between September and November 2017—international application volume has decreased.
Image via GMAC report.
Just before Donald Trump’s election victory, approximately 46 percent of international MBA applicants surveyed by GMAC responded that they would prefer to study in the United States—above the 45-percent, five-year, pre-election average. But not once since November 2016 has that been the case. The percentage of international applicants indicating a preference for U.S. business schools plunged at the beginning of 2017, to below 40 percent in January and just over 30 percent in February. Summer 2017 saw a bit of a rebound—though never reaching 45 percent—but international interest has again declined this fall.
Of 1,992 non-U.S. candidates surveyed between September and November 2017, 23 percent shared that they had previously thought about applying to a U.S. program but have since changed their mind. As for the reasons behind applicant reluctance:
- 54 percent cited concerns about obtaining a job in the U.S. post-graduation
- 51 percent admitted concerns about gaining a student visa
- 47 percent cited safety and security concerns
- 42 percent talked about the political environment
- 39 percent admitted racism and discrimination fears
In addition, when GMAC surveyed nearly 700 U.S. MBA programs, about half admitted that they had received fewer international applications than in the previous year. Only 31 percent reported an increase in international applications. Another 20 percent reported no significant change.
For additional insights from GMAC as well as continued tracking of international candidate interest, visit the GMAC research website.
This article has been edited and republished with permissions from our sister site, Clear Admit.
How To Break Into the International Business World in San Diego
Known for its beautiful beaches, perfect weather, and being the home to Comic-Con, San Diego is the ideal destination for those seeking serious studies and fun in the sun. Located a mere 100 miles south of the entertainment capital of the world, San Diego is surrounded by some North America’s busiest ports, and due to its location directly on the border with Tijuana, Mexico, large portions of its population and workforce cross the border daily. Aside from being an economic powerhouse, Southern California’s diverse landscape and international visibility make it one of the premier tourist industries on the planet. The advantages of this region are innumerable, especially compared to the rest of the country. Natural Splendor aside, San Diego Also boasts a booming biotech industry and is located in the richest state in the nation. If California was its own country, it would have the sixth largest economy in the world just between the U.K. and France.
San Diego’s multicultural environment and bustling trade economy make it an excellent place to earn an MBA with a career focus in international business. Below, we’ve laid out four of our favorite SD schools to earn the degree.
Our Favorite San Diego International MBA Programs
California International Business University (CIBU)
The California International Business University offers an ideal San Diego international MBA. In addition to the San Diego campus, CIBU has campuses in China, Vietnam, Myanmar, and Denmark, it’s home country. From the time the school was started, its mission was to provide students with a unique international education that would ensure that they entered the business world with a well-rounded perspective upon graduation. Since the school has only 300 students, it is an excellent option for students seeking more individualized attention.
Fermanian School of Business – Point Loma Nazarene University
San Diego’s Fermanian School of Business offers 10-day international trips to cities in Europe, Asia, and South America. These trips are open to all MBA students, in order to help MBAs gain a global perspective, and an understanding of the business practices and ethics in cultures around the world. Fermanian is also ideal for students looking to pursue their MBA in a values-focused environment, as the school integrates Christian principles into their curriculum and culture.
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Fowler College of Business Administration – SDSU
MBA students looking for an education tailored to international business would be wise to look at the San Diego State University Fowler College of Business Administration’s International Business Specialization. Students in this program are groomed to take on significant roles with multinational enterprises, nonprofits, and government agencies. This specialization offers electives such as international business finance, international marketing, and global supply chain management.
University of San Diego School of Business Administration
The International MBA (IMBA) at the University of San Diego’s School of Business Administration is an 11-month program that includes a site visit to Madrid, as well as an international consulting project that will involve working with companies in Asia, Latin America, or Europe. Students will spend one summer in Madrid before returning to the San Diego campus. Eventually, all students will complete an international consulting project that will give them the opportunity to problem-solve on a global scale.
The Best Los Angeles Global MBA Programs
Globalization is a foregone conclusion in the business world. Emerging markets overseas are gaining economic momentum and cultural fluency of international issues are becoming increasingly essential for business leaders. MBA students and graduates who ignore the undeniable shift toward interconnected markets may be left behind in today’s globalized world.
Friday News & Notes: The Trump Effect, Career Bumps And Early Careers
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Washington DC International/Global Business MBA Programs
There’s no doubt that the world has grown smaller as it’s become increasingly easier to connect and travel across vast distances. And that shrinking of the world stage has been nowhere more evident than in business. Today, it’s nearly impossible to imagine working in an industry that doesn’t have global implications. And that’s why many business schools have stepped up to the plate to start offering global business MBA programs. Continue reading…
