In August 2025, the US Bureau of Labor Statistics (BLS) quietly revised its earlier job numbers, revealing that 2.58 lakh jobs reported for May and June never actually existed.
The latest data for July was worse - only 73,000 new jobs were created, the weakest since the 2020 COVID-19 crash.
Former Congressional Budget Office director Douglas Holtz-Eakin told CNN, “The job market is terrible. Outside of education and health, the private sector has lost jobs over the past three months.”
President Donald Trump reacted sharply, firing BLS Commissioner Dr. Erika McEntarfer and accusing her of damaging the economy’s image ahead of elections. This move shocked many, as it politicised an otherwise neutral statistical process.
For Indian professionals on H-1B visas - most of them in tech - this was more than just political drama. It was a warning sign.
Tech Layoffs Hit Indian H-1B Workers Hard
The US tech sector, the largest employer of Indian H-1B workers, has been badly hit.
According to Crunchbase, more than 95,000 US tech employees lost their jobs in 2024, and another 4,500 were laid off in just one week of July 2025.
Big names like Meta, Microsoft, Amazon, Google, Salesforce, Intel, and Oracle have all cut jobs. Salesforce has even frozen hiring for software engineers this year.
This isn’t just a short-term slowdown. Companies are shifting to leaner, AI-driven operations, reducing the need for large workforces.
Indian nationals, who get about 72% of all H-1B visas, are among the hardest hit.
Many work for top sponsors like Amazon, Cognizant, Infosys, and TCS - firms that are now under pressure.
Between November 2022 and January 2023, over 2 lakh US tech jobs were cut, and estimates suggest 30–40% of those affected were Indians.
Nearly 80,000 Indian workers on H-1B and L-1 visas have lost their jobs since late 2022, with only 60 days to find a new employer or leave the US.
Political Pressure on OPT and H-1B Adds to the Crisis
It’s not just the slowdown - political opposition to high-skilled immigration is growing. The Optional Practical Training (OPT) programme, which helps foreign students work in the US after graduation, is under threat.
Critics call it a loophole that lets foreign graduates take jobs from Americans.
USCIS Director Joseph B. Edlow has said he wants to remove work permits for F-1 students beyond their study period. Ending OPT would be a major blow to Indian students, especially in STEM fields, where they are the majority.
Anti-immigrant rhetoric is also rising. Former Trump adviser Steve Bannon has called for a ban on all foreign student visas, and Congresswoman Marjorie Taylor Greene has openly demanded a ban on Indian H-1B workers, claiming they replace American tech graduates.
What was once a fringe opinion is now entering mainstream policy discussions.
The mix of a weaker economy, job cuts, and political hostility is creating a dangerous cycle - economic slowdown gives cover to restrict immigration, and restricting immigration further disrupts industries already facing talent shortages.
