Fading American Dream? H1-B Visa Applications Dip By 25% Amid Layoffs

The number of H-1B visa applications received by the United States Citizenship and Immigration Services for FY26 witnessed a fall of 25% to 358,737. This comes as the uncertain macroeconomic conditions are leading to layoffs and application fees remain high.

From the total registrations, 120,141 have been selected, this is lower than the 135,137 being selected in the previous year, according to data released by USCIS. The US issues 85,000 H1-B visas every year.

The majority of H-1B visa holders are Indians. Indian nationals were granted 77% of the 320,000 H-1B visas that were approved in 2022, and this percentage remained high in 2023 as well, accounting for 72.3% of the 386,000 visas that were granted.

This dip in visa applications can be seen as the application fees have been increased by the US government. The previous Joe Biden administration introduced a new fee rule, with which the cost of filing an application shot up from $10 to $215.

The H-1B visa is a non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations. These occupations typically require a bachelor's degree or equivalent in the specific field. The H-1B program is designed to allow employers to bring in skilled workers to fill positions. Usually it is used by tech companies to get a skilled workforce.

The sector is in a downturn globally, with the macro-economic uncertainties mounting up, more and more layoffs are happening globally. Most recently, Microsoft laid off 6,000 employees, which is about 3% of its total workforce, and this is its biggest workforce reduction since 2023. Amazon, too, has reportedly laid off 100 employees from its devices and services division. Other tech companies such as Intel, Crowdstrike and Burberry too have laid off employees in the recent past.