H-1B Visa Changes: How Wage-Based System Could Hurt International Students, Fresh Graduates

With the US government considering replacing the traditional H-1B visa lottery with a wage-based selection system, international students and recent graduates face growing uncertainty about their career prospects.

The proposed change aims to prioritise applicants with higher salaries, marking a shift from the lottery system that gave all qualified candidates an equal chance of selection, regardless of the salary offered by their employer.

Experts warn the shift could create major hurdles for fresh graduates and entry-level workers seeking to start their careers in the United States.

Each year, a capped number of H-1B visas are randomly distributed among registered candidates, ensuring a level playing field for both new graduates and seasoned professionals.

Under the wage-based system, applicants would be ranked by the wages offered in their job applications.

Higher-paying roles would get preference in a bid to protect American workers and ensure visas go to jobs contributing most to the US economy.

This model poses a particular challenge to entry-level international students, as graduates typically accept lower salaries while gaining experience. They could be pushed to the bottom of the selection list or excluded entirely, regardless of their qualifications or potential.

Students in certain disciplines and non-STEM (science, technology, engineering, and mathematics) fields—where starting salaries tend to be lower—stand to be disproportionately affected.

Even STEM graduates, who usually enjoy stronger visa prospects, may find opportunities limited if they begin in roles that fail to meet the wage threshold.

The proposed rules would pressure international students to negotiate higher salaries—a difficult task for recent graduates still building skills and networks.

For employers, particularly smaller firms, startups, and non-profits, offering higher wages to entry-level hires may be unrealistic, potentially reducing sponsorships for international talent.

The combination of higher salary requirements and limited employer flexibility could discourage companies from hiring international graduates altogether, shrinking opportunities for many hoping to work in the US.