A bill was introduced in the US House of Representatives aimed at ending the Optional Practical Training (OPT) program. This program allows international students to work temporarily in the US. The bill, known as The Fairness for High-Skilled Americans Act, was introduced by Congressman Paul Gosar amid concerns from some groups that foreign workers are taking jobs from Americans. The OPT program has gained popularity, particularly among international students in Science, Technology, Engineering, and Mathematics (STEM) fields.
What Is the OPT Program?
The OPT program permits international students on F1 visas to work in the US for up to 12 months in fields related to their studies. Students can engage in ‘pre-completion OPT’ while studying or ‘post-completion OPT’ after graduation. For students in STEM fields, the OPT can be extended for an additional 24 months, allowing a total of three years of work experience post-graduation.
Popularity and Growth of the OPT Program
As of the 2023-24 academic year, approximately 22% of the 1,126,690 international students in the US were participating in the OPT program. This figure represents increase from previous years. Among Indian students, around 29% were on OPT, denoting its importance for this demographic. Many students view the program as a way to gain work experience and a potential pathway to H-1B visas.
STEM Focus in International Education
STEM fields are particularly popular among international students in the US. The highest enrolment is in mathematics and computer science, followed by engineering. This trend is mirrored among Indian students, with portion studying in these areas. The demand for STEM OPT extensions further emphasises the importance of these fields in attracting international talent.
Provisions of the Proposed Bill
The proposed bill seeks to eliminate the post-completion OPT for international students. Congressman Gosar argues that the program undermines American workers by incentivising employers to hire foreign labour at lower costs. He claims that the OPT program circumvents the cap on H-1B visas and allows businesses to avoid certain tax obligations.
Reactions to the Bill
The introduction of the bill has sparked mixed reactions. Some believe it will protect American workers, while others argue it could harm US businesses that rely on foreign talent. Experts suggest that backlash could occur if the bill passes, as the US economy has historically benefited from foreign labour.
Historical Context
This is not the first attempt to eliminate the OPT program. A similar bill was introduced in 2019 but did not progress. The ongoing debate reflects broader concerns about immigration policy and its impact on the US labour market.
Future Implications
The outcome of this bill could reshape the landscape for international students in the US. It may also affect the relationship between American companies and foreign talent, which has been essential for innovation and competitiveness.
Questions for UPSC:
- Critically analyse the implications of ending the Optional Practical Training program on the US economy and workforce.
- Estimate the impact of STEM education on the employment opportunities for international students in the United States.
- Point out the arguments for and against the H-1B visa program in relation to domestic employment.
- What are the potential consequences of reducing foreign labour in the technology sector? Discuss with examples.
Answer Hints:
1. Critically analyse the implications of ending the Optional Practical Training program on the US economy and workforce.
- Ending the OPT program may reduce the availability of skilled labor, particularly in STEM fields, impacting innovation.
- It could lead to a shortage of talent in industries reliant on international expertise, hindering growth.
- Domestic companies may face increased costs to recruit and train local talent, affecting competitiveness.
- The bill may create backlash from businesses that benefit from the skills of international students.
- Potentially, the US may lose its attractiveness as a destination for international students, affecting educational institutions.
2. Estimate the impact of STEM education on the employment opportunities for international students in the United States.
- STEM education enhances employability, with many international students securing jobs in high-demand sectors.
- Programs like STEM OPT allow extended work periods, creating pathways to H-1B visas and permanent residency.
- Fields like computer science and engineering see the highest enrollment, reflecting strong job market demand.
- International students contribute to innovation and research, making them valuable assets to US employers.
- Reduction in STEM opportunities could deter international students from choosing the US for higher education.
3. Point out the arguments for and against the H-1B visa program in relation to domestic employment.
- For – H-1B visas help fill skill gaps in the US labor market, particularly in tech and specialized fields.
- For – They promote diversity and innovation by bringing in global talent to US companies.
- Against – Critics argue that H-1B visas displace American workers by allowing companies to hire cheaper foreign labor.
- Against – There are concerns about job quality and wage suppression for domestic workers due to foreign competition.
- Debate continues on balancing the needs of businesses with protecting domestic employment opportunities.
4. What are the potential consequences of reducing foreign labour in the technology sector? Discuss with examples.
- Reducing foreign labor could lead to skill shortages, particularly in tech roles where demand exceeds supply.
- Companies may struggle to maintain competitive advantage, as seen in startups reliant on diverse skill sets.
- Examples include tech giants like Google and Microsoft, which benefit from hiring international talent.
- Innovation may stagnate due to a lack of fresh perspectives and ideas brought by foreign workers.
- The overall economy could suffer, as the tech sector drives growth and job creation across industries.
