International Students’ Invisible Presence in the Job Market
The employment challenges international students face
—By Claire Lee
“Thank you for your application, however, at this time we do not provide sponsorship…” After countless internship applications, Sofia Perez, a 1st-year MBA student at Ross, was caught by her only “flaw” of being a citizen of Spain. Graduating with an undergraduate degree in economics from Yale, having many internships from top Spanish companies, and receiving prestigious awards, Perez was the perfect candidate on paper. However, that was no good for employers as her application was an automatic rejection after she checked the yes box for “do you need sponsorship now or in the future?”
Perez explains, “I feel like my education and my experience is not the barrier in employment, rather, it is my citizenship that creates a weakness to my profile.” Just like Sofia, there are thousands of international students who are qualified to get a chance to interview and get jobs from companies; however, their citizenship becomes a barrier to their application. While it’s hard enough to get a job, international students face twice the hardships due to their citizenship status. So, why are companies so reluctant to hire international students? Why does the government make it harder to get sponsorships? How long has this been occurring? And if this is the problem, why do international students come to the US to study?
Exploring opportunities in America
With over 1 million international students enrolled in higher institutions, the United States has long been the top receiving country for international students. Historically, students have been drawn by the high quality of US higher education, its value on the international labor market, and access to job opportunities after graduation. In turn, international students are also a benefit to the US economy as they contribute significantly to their local communities by injecting money into the economy. NAFSA: Association of International Educators reported in the 2018-2019 school year that international students contributed $39 billion to the economy and created or supported 415,996 jobs. Their report also notes how “for every 8 international students, three US jobs are created and supported by spending occurring in the higher education, accommodation, dining, retail, transportation, telecommunications, and health insurance sectors.” Not only that, in 2017, Boston Consulting Group surveyed 1,700 companies in eight countries to investigate the work benefits diversity brings. The study demonstrated that diverse teams increase innovation and produce 19 percent more revenue compared to their non-diverse teams. Given the benefits international students can bring, why then are companies reluctant to hire them?
Employers’ perspective
While international students may seem like they are given an unfair chance, companies have their own problems to deal with. With an influx of American applicants, companies are reluctant to consider the additional cost of hiring international students and the complicated process they would have to go through. One of the most commonly used work authorization programs for international students is called Optional Practical Training, or OPT. According to the US Citizenship and Immigration Services, eligible students can apply to receive up to 12 months of OPT employment authorization while students who have earned a degree in the STEM field can apply for a 24-month extension of their post-completion OPT employment authorization.
However, after the OPT expires comes a long and strenuous process to pass. A H-1B visa would need to be obtained which allows US employers to hire foreign national professionals to legally stay and work in the US. Unfortunately, there is no guarantee that one would get an H1-B visa because it is a government lottery system randomly selecting 65,000 people. In the 2019-2020 season, applicants had a 32% chance of being selected, which meant that 2/3 of international students who were at companies who sponsored and employed them had to leave the country. After the typical three year duration of the H-1B status ends, one could file for a green card which allows a permanent resident to live and work in the US on a permanent basis.
As pictured above, the ideal process for an international worker would look like this; however, it is not so easy in practice. If there were two candidates who were similar in background and experience, but person A needs a sponsorship while person B does not, who would you choose if you were an employer?
Government’s perspective
To study in the US, students are able to receive an F-1 student visa, which allows them to temporarily live in the US for a defined period of time while studying at a school, college, seminary, or conservatory. In order to maintain the visa, a student must have attained at least ten credit hours and a minimum GPA of 2.0. Not only that, F-1 students are eligible to work on-campus while attending classes, and the work does not need to be related to the field of study. For instance, a student at U-M could work as a research assistant on campus, receiving their pay, without having to get sponsorship from their employers. So in the government’s view, they are providing a fair and good amount of opportunities for international students as their duties are not entitled to getting every single international student a OPT or H1-B visa but providing the basic needs an international student needs to legally stay in the US for their education.
Students’ perspective
Soomin Lee is a junior who flew 15 hours from South Korea just to study economics at U-M for the American dream she had imagined. However, her dreams were crushed after she was stricken with reality as she saw her mailbox was full of rejections for her internship applications. “All of my peers who are economics majors got summer internships while companies rejected me as they explicitly said they will not accept students who need sponsorship. So, I went back to Korea and did a part-time job at a cafe which would not look so competitive on my resume when it comes to finding full time jobs.”
There is a myth that if you have a college degree you are set to have a job. However, it is a fact that 31% of 2020 college grads were still unemployed in Fall 2021. While it is hard enough to get a job, international students face more barriers to employment due to their citizenship status.
Some may wonder why international students are so eager to stay in the US and find a job if they stress how difficult the work authorization process is. However, there is a simple answer: money and value. Generally speaking, US salaries are higher than in most other countries as the US has an extremely high GDP and a higher standard of living. For instance, South Korean university graduates earned an average around 33 million won, equivalent to $29,700 even when they landed in large corporations. In comparison, the average college graduate salary in the US is $55,260, almost double the amount college graduates in Korea receive. On top of that, if international students come to the US paying significantly more than non-international students, it is expected from their family that their education would pay off to getting a better life, therefore, a higher standard of living.
Marilyn Kim, a junior studying pharmacy who recently got accepted to a PharmD program at U-M, says, “Being a pharmacist in South Korea vs USA, there is a wide salary gap. Since Korea is such a small country, there are less open positions for recent PharmD graduates….These are the primary reasons why my parents expect me to live a better life here even if the stay here is expensive or if I have to give up my Korean citizenship and apply for a green card to get a job.”
Lastly, there are many international students who come for the reputation a US college degree will give when going back to their home country, whether it is recognition from their family or employers. Although I am not an international student, when visiting my own relatives in South Korea, they are, in exaggeration, amazed by me attending a prestigious American university. In South Korea, Seoul National University is the top school that is extremely hard to get in and is called the Harvard of Korea. It was shocking for me to find out that U-M was #19 while Seoul National University was #130 in the 2022 Best Global Universities Rankings. As for employers, having graduated from a recognizable foreign university is a plus to their application as it will distinguish the applicant from peers with similar background and career experiences. So, for an international student, it would be a great honor and reputation to attend such a prestigious university and get an education, even though the costs can be high and the job search process can be difficult.
Where are the international graduates now?
To gather more information on international students about their employment and challenges after graduation, I created a survey and was able to reach out to several international U-M grads through various international organizations on campus. To ensure this survey sample was grasping the U-M international alumni population, the first question of “were you an international student when attending U-M?” was used to check their survey eligibility. After 57 anonymous responses, the results seemed to follow the implications most international students said they were going through in their employment process: 77.2% of U-M international alumni answered that they were currently not working in the US. Not only that, 94.7% had gotten rejected from a job due to sponsorship. Lastly, when asked about how hard it was to find employment in the US, on a scale from 0 – Not Hard, 10- Very Hard, the average rating was a 6.86 level of hardness.
These findings are similar to those of a survey by World Education Services of 1,067 current international students and 1,095 international alumni who have studied in the U.S. on an F-1, J-1, or M-1 visa. Nearly half (47%) of all alumni who returned home did so due to work- and visa- related issues. In addition, the challenge while finding work or internship as a student were cited towards work authorization regulations as 51% of current students and 67% of alumni cited it as a top barrier. As the research samples from a big population and supports the results found through my survey, it can be inferred that work authorizations are indeed a challenge that international students face in employment for many international students.
What can be done?
A study “Working with International Students in the U.S. and Beyond” by NCDA International Student Services Committee had some interesting findings that could help explain the barriers and impacts of international students. When it came to work authorization options in the US more than one third of international students and more than two thirds of career services professionals reported a lack of knowledge on work authorizations such as OPT. When asking undergraduates Marilyn Kim and Soomin Lee about their knowledge on work authorizations, they both explained “I know how the current F-1 student visa works, but am unsure about OPT or H1-B visas.” It was surprising to hear that they had also never looked for help regarding this, as they both thought employers would explain how work authorization works. Therefore, the combination of lack of guidance in the employment process and international students’ lack of knowledge in work authorizations aggravated the challenges even more. So, what can international students do to make their employment process much less difficult?
First, international students should check up on legal work authorizations before applying for full-time jobs. Becoming more knowledgeable about the process and starting the job search early will be helpful as it will take longer to find employment with a company that will sponsor employees who need work visas. For instance, the US Immigration and Customs Enforcement’s Student and Exchange Visitor Program (SEVP) provides a list of top 200 employers hiring international students for OPT. With this, students can specifically apply for companies that do not restrict applications based on work authorization. Not only that, as a U-M student, everyone is given a free Handshake account which they can use to search for jobs or internships across multiple industries. One can even find employers in Handshake sponsoring working authorization for international students by using “Will sponsor or doesn’t require a US work visa” or “Accepts OPT” job search filters.
Next, school career centers should be providing support regarding future employment for international students. Thankfully, U-M provides many resources that international students can use for employment regarding interviews, work authorizations, and other parts of the job-search process. There are even U-M events and informational workshops geared towards international students’ success in finding jobs. Immigration Assistant Brittany Widin, who works at the International Center at U-M explains how “recently during Covid-19, many students’ offers from companies were withdrawn so students came to us for help. We were able to help out with 1:1 consultations and research more resources which led to good outcomes. So, when getting the right resources and guidance, students are able to find employment better.” Therefore, it would be a smart move to take advantage of the school’s resources by meeting up with a career coach, faculty, or staff who can help guide you through a less stressful and more efficient job search process.
Future of international students
Although the enrollment of international students has declined since Covid-19, it is foreseen that a recovery will occur following the hopeful end to the pandemic. While that is good for the US economy in many ways, this can also add to another challenge for international students as they will face more competition in the job market. Not only that, with the current job market still recovering from the pandemic, it may be not so favorable for the international students. On the brighter side, Marcelo Barros, an international student career expert at NYU, interviewed for the NYU Wasserman Blog and noted how large employers have benefited from Covid so there will be an aggressive hiring of international students from established, large firms. Not only that, the government’s new efforts and plans will allow more foreign workers into the US by granting more green cards and easing the H-1B work visa processing. In 2018, H-1B visa approval rate was at 84.5% while in the first quarter of 2021, the approval rates were 96.8%. Therefore, rather than thinking negatively about the disadvantages as an international student, the current situation can actually be a favorable one for international students to take advantage of in the job market.
After talking with Sofia Perez about the trends that may be favorable for her applications this year, she hopes that her next email from an employer contains, “Congratulations” rather than a “Thank you for applying” and wishes for employers to look at her application without prejudice due to her citizenship status.
Photo Credit by Baim Hanif on Unsplash