Is the American Dream ending? Job Market | Layoffs | Cost Analysis

Summary

The video discusses the increasing challenges for international students going to the US for higher studies, especially due to issues with H1B visas and job market competition. The speaker highlights the stagnation of H1B visas, the growing number of students applying, and the decline in opportunities for graduates from tier-three universities. The video advises students to carefully consider their reasons for studying abroad, especially if they are pursuing higher salaries or international exposure. Ultimately, it emphasizes the need for strategic university choices and realistic expectations regarding visas and career prospects in the US.

Takeaways

• 😀 The number of students going to the U.S. for higher education has increased by 45% in just two years, making it more competitive to secure opportunities.
• 😀 The H1B visa cap has remained at 85,000 per year since 2005, creating a significant imbalance between demand and availability.
• 😀 There is a possibility that students who cannot secure the H1B visa after their OPT period may return to their home countries.
• 😀 To enhance chances of securing a visa, students may need to qualify for alternative visa types like the O1 Visa, which requires proving extraordinary ability in a field.
• 😀 While the job market may seem tough, it’s primarily due to an influx of students and not a substantial decrease in job opportunities, with employers shifting focus to quality candidates.
• 😀 Employers are increasingly favoring candidates from higher-quality universities and those with relevant experience.
• 😀 Students from tier-three universities may struggle to get hired, especially with increased competition from candidates from top universities.
• 😀 Banks may begin restricting loan availability for students attending lower-tier universities due to the uncertain job outcomes and return on investment.
• 😀 The overall endeavor of studying and working in the U.S. is becoming more competitive, requiring greater effort and smarter strategies to succeed.
• 😀 If you're pursuing a U.S. education primarily for financial reasons, choosing a well-ranked university with a good location is crucial to increase job prospects and return on investment.

Q & A

What is the main issue facing applicants trying to work in the US as mentioned in the transcript?

The main issue is the limited number of H1B visas available compared to the high demand. The H1B visa quota has been stuck at 85,000 per year since 2005, while the number of students and applicants for the visa has increased significantly.

What is the H1B lottery system, and how does it affect applicants?

The H1B lottery system allows only 85,000 people to get the visa each year. As demand exceeds supply, applicants are selected randomly, meaning that even qualified candidates may not secure a visa.

Why is the US job market considered to be in a bad state for students?

The perception of a bad job market is due to the large influx of students (a 45% increase), while job openings have not risen proportionately. Companies are now focusing more on quality applicants due to the decrease in venture capital funding that previously fueled high hiring rates.

What could be the future of students who do not secure an H1B visa?

Students who do not secure an H1B visa might return to their home countries after their Optional Practical Training (OPT) period ends, unless they explore alternatives like the O1 visa or other pathways to stay in the US.

How does the 01 Visa compare to the H1B, and why might it be an alternative for students?

The O1 Visa is for individuals with extraordinary abilities in fields like science, arts, education, or business. It is seen as an alternative to the H1B visa for qualified individuals, but it requires more effort and proof of extraordinary skills.

What role does experience play in securing a job in the US as an international student?

Experience plays a crucial role in securing a job in the US, particularly as companies are becoming more selective and prefer applicants with relevant experience. Students with more experience have a better chance of securing job offers, even if they do not attend top-tier universities.

How important is the quality of the university for securing a job and an H1B visa?

The quality of the university is becoming increasingly important, especially for securing a job and an H1B visa. Employers are more likely to select candidates from well-known universities like UC Berkeley over those from less reputable institutions.

What changes might occur in the number of students going to the US for higher education?

The number of students going to the US for higher education may decrease due to the increasing competition for visas, especially among students from tier-three universities who might struggle to secure jobs or H1B visas.

What is the impact of banks on students’ decisions to study abroad, particularly in the US?

Banks may become more selective in granting loans, particularly to students attending tier-three universities, as they assess the risk and potential return on investment. If students cannot secure jobs and pay off their loans, banks may stop providing loans for such degrees.

Why is studying in the US potentially still worthwhile, despite the challenges mentioned?

Studying in the US may still be worthwhile for students seeking higher salaries, career growth, and international exposure. For STEM graduates, the potential to earn a high salary during their Optional Practical Training (OPT) period may offer significant returns on investment, even if they do not secure an H1B visa.