COVID-19 has not spared either employees or Indian students when it comes to the job market

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Sharan’s* L1 visa extension (a professional worker visa for intra-company transfer) was denied last week. His pregnant wife, a dependent, was due in June first week making it difficult for him to leave the US on a flight under the Vande Bharat mission, which brought back home hundreds of stranded Indians.

It does not end there though, for he has to stay back for a while.

After his wife’s delivery, she should now undergo chemotherapy for retinal cancer. In the meantime, Sharan has to complete the immigration processes, look for financial assistance, search for jobs and care for his new born as well.

Sharan’s situation is probably one of the worst. But thousands of Indian workers are facing job losses and tackling financial issues on the back of COVID-19, made worse by the rising unemployment rate in the US.

Unemployment rate in the US now stands at over 40 million.

There are about 300,000-400,000 Indian H-1B visa holders in the US and over 200,000 Indian students pursuing higher studies there. There are more than a lakh L1 visa holders.

According to immigration experts, close to 20-30 percent foreign workers will be affected. This is also affecting graduates with valid F1 visa as they had their job offers rescinded due to the pandemic.

With the possibility of finding a new job slim, these professionals will have no option but to return home jobless.

Job losses
Companies across the sectors are laying off employees as their businesses took a hit due to COVID-19. Some of them are on the brink of filing bankruptcy.

Romish Badani, CEO, Bridge US, an immigration firm, said, “It is a unique moment as we are seeing mass layoffs across the US.”

Even Silicon Valley has not spared. Of the 64,000 layoffs that the tech sector has seen, as per tech startup layoff tracker, more than 20,000 are from Silicon Valley. Other small and mid-size firms that are in the travel, hospitality and retail space have also laid off workers.

This number is likely to increase as the pandemic continues to impact demand and supply.

The situation is dire for L1 and F1 visa holders
Unlike H-1B holders, a L1A/B visa does not allow inter-company transfers. L1 is an intracompany transfer visa where the employee can work only for the company or its subsidiaries which sponsored it. Indian IT and US tech firms are one of the largest L1 employers as well.

According to 2019 USCIS data, Tata Consultancy Services ((TCS), Cognizant, Infosys and Tech Mahindra are one of the top employers of L1 visas.

So if the extension of L1A is denied, they can get a transfer to L1A or L1B if the company chooses him/her to work in one of its subsidiaries. But given the novel coronavirus, or COVID-19, pandemic, it is not likely. So, they will have no option but to return to India.

In case of graduates, many of them have their offers rescinded and are unsure of their future. These students have spent close to Rs 40-50 lakh to study in the US, and with no job prospects either in the US or India, all they will have left is a huge loan.

Based on data from Next Act, an initiative launched by Bridge US, Unshackled Ventures and a NGO Upwardly Global to help international job seekers, more than 40 percent of the 700 of those subscribed are foreign graduates, who had their offers withdrawn in the recent times. Though it may not be representative of the entire student population, this does indicate growing number of job offers and internships are being withdrawn.

H-1B workers dilemmaIn case of H-1B visa holders, they have a 60-day window to find a new job after their termination. According to a spokesperson from Murthy Law Firm, an immigration law firm in the US, for those working in the IT sector impacted by the pandemic, a lot of projects have been cancelled or postponed.

Badani explained that though workers, especially techies, may be able to find jobs in four-to-six months, two months is too short a time.

The other major issue is the prospect of yet another executive order targeting non-immigrant visa workers and this is creating an added layer of anxiety for many employers.

Badani explained that many smaller firms are shying away from sponsoring visa since there is not much clarity on what the Trump administrations response on foreign worker visa would be.

*name changed to protect identity