H-1B Visas Predominantly Awarded to Entry-Level STEM Positions for Indian Nationals

Washington, DC – Newly released federal data shows that the majority of H-1B visa approvals are being granted to applicants from India, with more than 70 percent of approved petitions issued to Indian nationals in fiscal year 2025. Another 10 percent of approvals went to applicants from China. Most of these visas were awarded in science, technology, engineering, and mathematics (STEM) occupations, especially at entry-level and junior positions.

The findings have reignited debate over how the United States allocates skilled worker visas, prompting questions about the broader economic and labor market effects of the program.

H-1B Program: A Gateway to U.S. Opportunity

Established under the Immigration Act of 1990, the H-1B visa program was designed to attract highly skilled foreign professionals to fill positions in specialized fields, particularly in technology, research, and advanced manufacturing. Each year, U.S. Citizenship and Immigration Services (USCIS) makes available 85,000 new H-1B visas, including 20,000 reserved for applicants with advanced degrees from U.S. institutions.

The program has long been a cornerstone of American innovation. Companies such as Google, Microsoft, Amazon, and Meta have relied heavily on H-1B talent to drive engineering, software development, and data analysis projects. However, recent data revealing that most approvals align with entry-level or junior roles has renewed scrutiny of whether the program is fulfilling its original intent of importing high-skilled talent.

Concentration in Entry-Level Roles

According to the latest USCIS data, approximately 80 percent of approved H-1B petitions are classified under levels one or two of the Department of Labor’s wage scale, which correspond to entry-level and early-career positions. These roles are typically characterized by limited experience requirements and salaries that sit near the lower end of the prevailing wage scale.

While technology companies argue that such classifications reflect the reality of a fast-changing industry where innovation often starts at the ground level, worker advocacy groups contend that the trend reveals an overreliance on lower-cost foreign labor. The data also shows that many of these workers perform similar functions as recent U.S. college graduates, raising questions about whether the labor market is being distorted by an influx of less-expensive talent.

The Dominance of Indian Nationals

Indian nationals have consistently represented the majority of successful H-1B applicants. This dominance is attributed to India’s robust technical education system, which produces millions of STEM graduates each year, and the close integration of U.S. and Indian technology sectors. Large outsourcing and IT services firms such as Infosys, Tata Consultancy Services, and Wipro have played a major role in channeling skilled Indian professionals into the U.S. workforce through the H-1B route.

While Chinese nationals form the second-largest group, the gap remains wide. Many Chinese H-1B holders are concentrated in research, data science, and hardware engineering roles, whereas Indian applicants dominate software development and IT support functions.

Industry observers note that this imbalance is not necessarily a reflection of policy favoring one nationality over another but rather of global labor market dynamics and company recruitment patterns.

Economic Implications and Workforce Dynamics

Critics argue that the heavy concentration of H-1B holders in entry-level roles places downward pressure on wages for U.S. graduates, particularly in computer science and related fields. Several worker advocates have cited wage stagnation in technology services despite record corporate profits as evidence of systemic imbalance.

Employers, on the other hand, argue that the program fills legitimate skill shortages. The U.S. continues to face an acute shortage of skilled STEM professionals, especially in emerging areas like artificial intelligence, cybersecurity, and data analytics. Tech executives maintain that foreign workers complement, rather than replace, domestic hires and help sustain America’s innovation edge.

The tension lies in the structure of the program itself. Because employers must sponsor specific individuals, H-1B holders are tied to their sponsoring companies, limiting mobility and negotiation power. This dynamic, critics say, can lead to wage suppression and, in some cases, exploitation.

Historical Context of H-1B Controversy

The debate over the H-1B program is not new. Since its inception, policymakers and economists have sparred over its economic impact. In the early 2000s, during the dot-com boom, technology companies lobbied to raise the visa cap, arguing that they could not find sufficient domestic talent. Congress temporarily increased the cap to 195,000 before reducing it again to 85,000 in 2004.

In 2017, policy shifts and executive orders aiming to prioritize “hire American” principles tightened approval processes, resulting in increased denial rates and additional scrutiny of employer practices. However, the tech sector’s post-pandemic rebound and the accelerated demand for AI and machine learning expertise have returned focus to expanding skilled immigration.

The data now shows that while the program continues to feed U.S. innovation pipelines, the majority of imported talent is entering at the lower end of the experience spectrum rather than as specialized experts — a trend some economists describe as a redefinition of “high skill.”

Global Comparisons in Skilled Immigration

The United States is not alone in leveraging foreign talent for growth in technology sectors. Nations like Canada, the United Kingdom, and Australia have developed similar visa systems targeting skilled migrants. However, these countries have taken steps to increase transparency, streamline permanent residency pathways, and create competitive labor conditions.

Canada’s Global Talent Stream, for example, provides expedited work permits for high-demand tech roles and offers a clear route toward permanent residency. The United Kingdom’s Skilled Worker Visa system has also been adjusted to attract international STEM professionals, particularly from India and East Asia.

In contrast, the U.S. H-1B visa remains a lottery-based system, where applicants depend on random selection before their petitions are reviewed. This randomness, combined with high demand, results in a low selection rate — in 2025, USCIS received over 750,000 registrations but only approved around one in eight applications.

Industry and Policy Reactions

Industry groups such as the U.S. Chamber of Commerce and Compete America advocate for expanding the annual visa cap and reforming the system to align skills with labor market needs. They argue that American competitiveness in the global economy depends on access to the best talent, regardless of nationality.

Meanwhile, labor organizations continue to call for reforms ensuring wage parity and stronger protections for domestic workers. Proposals include requiring employers to pay H-1B workers the median or higher wage for each occupation and increasing oversight to prevent outsourcing firms from absorbing a disproportionate share of visas.

Some policymakers have suggested prioritizing petitions for positions that genuinely cannot be filled domestically or for employers engaged in R&D-intensive industries. Others advocate for shifting from random selection to a merit-based ranking system focused on salary level, skills, and educational attainment.

The Future of the H-1B System

The 2025 data underscores the growing importance of STEM fields in shaping U.S. immigration policy and economic strategy. As the technology sector’s need for data scientists, software engineers, and automation experts continues to expand, the structure of the H-1B visa program will likely remain under pressure to evolve.

USCIS and the Department of Labor are reportedly examining potential modifications aimed at improving transparency and ensuring that the program supports both innovation and fair labor practices. Digital transformation across industries further complicates these discussions, as automation and AI may soon shift which roles the United States considers “specialty occupations.”

For American universities and graduates, the stakes are equally high. Domestic students increasingly find themselves competing with international peers educated in similar disciplines, often with comparable or stronger technical training. These overlapping skill sets highlight the need for recalibrating educational priorities and workforce readiness strategies at home.

Broader Economic Impact

In the broader economy, H-1B workers contribute significantly through taxes, consumer spending, and innovation outputs. Many go on to found startups or lead teams developing next-generation technologies. Studies show that states with higher concentrations of H-1B professionals, such as California, Washington, Texas, and New York, also record higher rates of patent filings and venture capital activity.

However, economists caution that innovation benefits should not overshadow concerns about equity and access for domestic workers. Balancing both priorities — maintaining America’s technological dominance and ensuring fair labor opportunities — remains one of the most complex challenges in modern immigration policy.

Outlook

The most recent data offers a snapshot of a high-demand, high-stakes labor system that continues to shape both American industry and global labor migration. As entry-level STEM positions increasingly define the H-1B landscape, policymakers, businesses, and educators face mounting pressure to redefine what a “high-skilled visa” should represent.

Future reforms will likely determine whether the H-1B visa remains a competitive advantage for the U.S. economy or a contested tool of wage arbitrage in an era of digital transformation. For now, the balance between opportunity and fairness remains at the center of one of America’s most enduring economic debates.