Scholarship for USA » TARP

International Students Leaving the US in Greater Numbers: Most Think Best Jobs Are at Home

Scholarship for USA — Mon, 30 Mar 2009 20:17:45 +0000

Do you take it for granted that international students will stay back in the United States to work after completion of their studies? There is a popular belief that the US has the best jobs and therefore must be the number one choice as to where international students want to live and work after graduation. Well think again. According to a research called “Losing the World’s Best and Brightest” funded by the Ewing Marion Kauffman Foundation, most international students would like to return to their home countries after graduation.

The research was conducted in October, 2008 based on a survey of 1,224 foreign students enrolled in US institutions of higher education. The main intention of the study was find the factors that influenced an international students’ decision to stay in the US or move abroad. Traditionally, many international students have stayed back in the US and contributed to the economic and technological advancement of the US. However, this study shows that there is a new trend emerging that is seeing more and more international students returning to their home countries after the completion of their education. Some of the more interesting findings of the research are listed below:

Students want to return home

Very few international students want to stay in the US and make it their home. Only 6% of Indian, 10% of Chinese, and 5% of European students would like to stay here permanently. Many would like to work for a few years if given the opportunity, before returning to their home countries. Most students would like to return home within five years.

Most are worried about visas

The majority of students that would like to stay and work for a few years before returning home are worried about obtaining work visas. This concern is not unfounded because the number of applications for H-1B visas in recent years has exceeded the quota for number of visas allowed. Also, new regulations have made it difficult for TARP companies to hire international students. The survey found that this concern over work visas is greater than the concern of obtaining permanent residence.

Jobs and opportunities

Majority of respondents to the survey think that the best job opportunities lie in their home countries, as opposed to the popular belief that the best jobs are in the US. Chinese and Indian students feel the the best days of their respective countries’ economies lie ahead. It is not surprising that international students are disillusioned with the US job market because of the economic downturn and subsequent job cuts in US companies.

Why are students leaving?

The primary reason for students leaving the US is to be with their family and loved ones. Another reason is that students perceive the economic conditions in the home countries as better than those in the US.

Why do you think international students are leaving the US in greater numbers? Do you think it will be good for the US to lose these bright young minds to other economies of the world? Share your thoughts below.

International MBA Students Bite the Dust: TARP Regulation to Blame

Scholarship for USA — Mon, 30 Mar 2009 18:43:25 +0000

Bank of America has become the first financial institution in the US to withdraw job offers that it has made to international students, since the new H-1B rules have been passed. The Financial Times has reported that BofA has withdrawn job offers that it has made to as many as 50 international MBA students attending business schools in the US.
The new rules state that companies receiving funds under the Troubled Asset Recovery Program cannot sponsor an international student under the H-1B quota if they have made an American worker redundant. BofA has received $45 billion in TARP funds and therefore falls under the new H-1B regulation.

Most international students studying business in the US traditionally find jobs in the banking sector. With the passage of this new legislation, it has become much harder for international business students to find employment in the US as many financial institutions fall under the TARP regulation. This is driving away talent from the United States to other economies of the world. Also, some educators fear that international student enrollment in the US may begin to decline due to these stricter regulations. David Schmittlein, dean of MIT’s Sloan School of Management in Boston says, “There might be an inclination for people from around the world to vote with their feet,”. link

Do you think that the stricter H-1B regulations will help the US economy in the long run? On the one hand, it is leaving jobs open for American citizens. On the other hand, it is driving away human talent from US shores which is a bad thing for any economy. Comment below.

No New H-1B Restrictions – Unless….

Scholarship for USA — Sat, 21 Mar 2009 18:54:06 +0000

The Obama Administration has announced that there will be no new H-1B restrictions unless unemployment in the US gets worse. The announcement was made when a delegation of Indian CEOs visited the White House to discuss economic matters.

The Press Trust of India reports:

“I do not see that there would be serious setback to H-1B visa programme or export programme, unless the unemployment rate goes down further in a severe manner,” Mittal, chairman and group CEO of Bharati Enterprise, told PTI in an interview after the meeting.

“They were positive,” Bharati said referring to the response from the Obama Administration officials with regard to these issues raised by the CII delegation. “They believed that US will still remain open,” he said.

This announcement comes as a relief to many potential candidates seeking employment in the US under the H-1B quota. Recent legislation passed in the US has made it difficult for companies that received federal bailout money to hire under the H-1B quota. The law stipulates that recipients of funds under the Troubled Asset Relief Program (TARP) must not have dismissed an American worker 90 days prior to and 90 days after applying for the H1B visa for a foreign worker. This has made many companies in the financial sector unable to sponsor H1B visas this year.

Do you think that the administration will keep its promise of not placing anymore restrictions on the H1B visa? Will the US still remain open to skilled foreign workers? Share your opinion in the comments.