No Jobs for Foreign Students in US, UK, Canada?

No Jobs for Foreign Students in US, UK, Canada

Harvard Grad Warns IITians

Indian students dreaming of high-paying jobs abroad are facing a harsh reality. Rajesh Sawhney, a Harvard Business School alumnus and Indian entrepreneur, recently warned students from elite institutions like the Indian Institutes of Technology (IITs) about shrinking job opportunities in the US, UK, and Canada.

Stricter immigration policies and a tougher job market have made it harder for international graduates to secure work.

The Warning from a Harvard Grad

Rajesh Sawhney, founder of GSF Accelerator and a respected figure in India’s startup scene, sparked debate with a post on X on May 18, 2025.

Sawhney, who holds a fellowship from the London School of Economics, cautioned that the once-reliable path of studying abroad and landing a $200,000 tech job is no longer guaranteed.

His warning targets IITians and other Indian students who invest heavily in foreign education, urging them to rethink their plans.

The statement reflects growing concerns about declining job prospects for international graduates in Western countries.

A Changing Global Job Market

For decades, Indian students, especially from top engineering schools like IITs, viewed studying abroad as a ticket to lucrative careers. A master’s degree from a US or UK university often led to high-paying jobs in tech, finance, or engineering.

However, recent economic and policy shifts have disrupted this trend. Stricter immigration laws, trade tensions, and economic slowdowns in the US, UK, and Canada have reduced opportunities for foreign graduates. Sawhney’s warning aligns with stories from students like Janhavi Jain, who faced a bleak job market in the UK after her master’s degree.

The global job market is no longer as welcoming, forcing students to adapt to new realities.

Is It Really Happening?

Yes, the job market for international students in these countries is tightening. In the US, recent college graduates, including international students, face an unemployment rate of 5.8%, higher than the national average of 4.2% in April 2025.

In the UK, job vacancies dropped by 42,000 from February to April 2025, reaching 761,000, while the unemployment rate rose to 4.5%. Canada’s unemployment rate hit 6.9% in April 2025, with 35,000 jobs lost in Ontario alone, particularly in manufacturing.

Foreign students, who often rely on post-study work visas, are struggling to compete in these shrinking markets. Social media posts flooded with these challenges, with users sharing stories of rejected applications and visa hurdles.

Why Are These Countries Struggling to Provide Jobs?

The US, UK, and Canada are grappling with economic and policy challenges that limit job creation, even for their own citizens. In the US, despite adding 177,000 jobs in April 2025, employers are cautious due to trade wars and tariff uncertainties.

Sectors like retail, transportation, and manufacturing face job cuts, impacting both locals and international graduates.

The UK’s labor market weakened after tax hikes and minimum wage changes in April 2025, with payrolls dropping by 47,000 in March. Canada’s job losses, particularly in manufacturing, are linked to US tariffs, which have disrupted trade and forced companies to pause hiring.

These factors create a ripple effect, reducing opportunities for all job seekers, including foreign students.

What the Data Says

Official data paints a grim picture. In the US, the Federal Reserve Bank of New York reported a 5.8% unemployment rate for recent college graduates in March 2025, up from 4.6% a year earlier

Computer science and engineering majors, popular among Indian students, face unemployment rates of 6.1% and 7.5%, respectively.

In the UK, the Office for National Statistics (ONS) noted a decline in job vacancies and a rise in unemployment to 4.5% in early 2025.

Canada’s Statistics Canada reported a 6.9% unemployment rate in April 2025, with 33,000 jobs lost in March. These numbers show a cooling labor market, making it harder for international students to secure jobs. Additionally, “ghost” job postings fake listings that inflate job market optimism—further complicate the search, with 30% of online postings being misleading.

Official Statements and Policy Changes

Governments and officials have acknowledged these challenges. In the US, Federal Reserve Chair Jerome Powell described the labor market as “broadly in balance” but noted signs of deterioration, with fewer job openings and slower wage growth. Economists like Lydia Boussour from EY predict the unemployment rate could rise to 5% in 2025 due to tariffs and federal workforce cuts.

In the UK, the ONS cautioned that unemployment data may be unreliable due to low survey response rates, but firms have cited tax and wage changes as barriers to hiring. Canada’s Statistics Canada linked job losses to US tariffs, with economists like Brendon Bernard warning of further weakening if trade tensions persist. Immigration policies are also tightening: the UK cut its post-study work visa from two years to 18 months, while the US and Canada have stricter visa clearances, limiting options for foreign graduates.

Reasons Behind the Unemployment Trend

Several factors contribute to this unemployment crisis for foreign students

Stricter Immigration Policies

The US, UK, and Canada have tightened visa rules, making it harder for international graduates to stay and work. The UK’s shorter post-study visa and Canada’s focus on domestic hiring reduce opportunities.

Trade Wars and Tariffs

US tariffs, particularly on Canada and China, have disrupted industries like manufacturing, leading to job losses. Canada lost 33,000 jobs in March 2025, with Ontario hit hardest.

Economic Slowdown

The US economy shrank in early 2025, and the UK and Canada face similar pressures from high inflation and interest rates, causing employers to scale back hiring.

Shift in Job Market Dynamics

Employers now prioritize skills over degrees. Sawhney noted, “The game has shifted from degree = job to skills + grit + networking.” Fields like tech, once a haven for IITians, are oversaturated, with unemployment rates for computer science majors at 6.1%.

Ghost Job Postings

Misleading job listings create false hope, wasting time for job seekers. A Resume Builder study found 30% of online postings are not genuine.

Preference for Local Talent

Companies in these countries prioritize local hires to avoid visa sponsorship costs and complexities, sidelining international students.

Funding Cuts in Academia

Universities like Harvard are facing funding freezes, reducing academic job opportunities for graduates.

The dream of studying abroad and securing a high-paying job is fading for Indian students, as warned by Harvard grad Rajesh Sawhney.

Data shows rising unemployment rates, fewer job openings, and challenges for recent graduates, particularly in tech and engineering. Official statements confirm these trends, pointing to tariffs and policy changes as key drivers.

For IITians and other international students, success now depends on skills, adaptability, and exploring opportunities closer to home.

As Sawhney advises, students must focus on building practical skills and networking to navigate this challenging landscape.

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