For long, the United States of America has been a favoured destination for international MBA aspirants, with a large number of business schools located in major hubs of commerce and technology welcoming them and major firms lining up to hire them after graduation. Of late, this dream seems to be fading.
Along with declining interest among international students to apply for MBA programs in the United States comes the news of a dip in the number of US firms willing to hire fresh overseas graduates in the wake of the Donald Trump administration’s proposed tightening of visa rules and focus on increasing job opportunities for US citizens.
According to the Graduate Management Admission Council (GMAC), data from the latest survey show 47% of the US-based companies have expressed willingness to hire graduates from other countries this year compared to 55% in 2017. The survey covered 1,066 employers in 42 countries.
Earlier, the data from the 2018 Preliminary Application Trends Survey, the GMAT score-sending data and ongoing monthly survey pulse of prospective students, had revealed that midway through the current admissions cycle, 48% of the US programs reported having received fewer international applications compared to the previous year.
Meanwhile, for the business schools, international students not only bring in more revenue by way of paying the full tuition fees (unlike domestic students who often get discounts) but also bring in a diversity of opinion to the class, an attribute that is much valued in teaching and later in business.
The monthly GMAC survey pulses also showed that non-US citizen preference for the US as a study destination dropped off significantly following the 2016 presidential election.
Meanwhile, the percentage of European companies proposing to hire non-EU citizens from MBA programs went up slightly to 65%, from 64% in the previous year.
GMAC president and chief executive Sangeet Chowfla was quoted by the Financial Times as saying that the reluctance on the part of the companies to hire overseas graduates could be due to the proposed changes in visa and immigration rules in the US. This was despite the fact that the demand for MBA graduates remained robust in the job market.
Chowfla attributed the reluctance of the employers to hire foreign talent to the perception that the H1-B visa rules may change in the near future.
Under the rules, employer sponsorship is needed for an H1B visa for those with a speciality occupation. It allows the holder to work in the US for a period of six years. However, since the demand for this type of visa far exceeds the supply due to US government visa caps, only 85,000 HIBs are awarded every year, by a lottery held in April.
The companies are also cautious about sponsoring candidates for HIB visa since they stand to lose in terms of money and time if the visa application is rejected. Thus, only very large companies with legal and financial resources generally propose to hire international talent.
Meanwhile, for the business schools, international students not only bring in more revenue by way of paying the full tuition fees (unlike domestic students who often get discounts) but also bring in a diversity of opinion to the class, an attribute that is much valued in teaching and later in business.
In the current scenario, international students may have to employ a bit more strategy during the career planning phase, including understanding the variables that can be controlled and those that cannot, FT quotes Beth Briggs, assistant dean for MBA career services at New York University’s Stern School of Business as saying.
According to the GMAC, the job market remained strong with 81% of the firms proposing to hire fresh graduates and 52% planning to increase the starting salaries.