US suspends green card pathway for major tech firms, impacting Indian workers
The US has frozen Permanent Labor Certification (PERM) applications for eight major tech companies, including Microsoft and Indian giants like Infosys and TCS. This move disrupts the primary route for skilled workers, predominantly from India, to convert temporary H-1B visas into permanent residency. While industry groups argue the impact is limited due to increased local hiring, the policy shift signals a broader tightening of skilled-worker immigration under the current administration, altering long-term career prospects for international talent.
Key points
- The US government suspended the Permanent Labor Certification (PERM) program for eight technology firms, including Microsoft, Infosys, Tata Consultancy Services, Wipro, and HCL Technologies.
- This suspension freezes new and pending applications for permanent residency, affecting a demographic where Indian nationals hold a majority of temporary H-1B specialist visas.
- Nasscom, the trade association representing India's $300 billion technology sector, states that companies have reduced reliance on H-1B visas by hiring locally, limiting the number of workers transitioning via PERM.
- Wipro reported that over 80% of its US-based workforce is already composed of local hires, suggesting the immediate operational impact on major firms may be minimal.
- Experts note the move aligns with the Trump administration's push for stricter skilled-worker immigration rules, though the long-term effect on the 'American dream' pipeline for Indian engineers remains a concern.
The United States has temporarily suspended the Permanent Labor Certification (PERM) program for eight prominent technology companies, a move that significantly alters the immigration landscape for skilled international workers. The affected firms include American giant Microsoft and major Indian service providers such as Infosys, Tata Consultancy Services, Wipro, and HCL Technologies. This freeze halts new and pending applications for permanent residency, directly impacting the traditional career trajectory for millions of Indian engineers who have historically relied on H-1B visas to enter the US market and subsequently transition to green cards.
Indian nationals currently hold the majority of H-1B visas, a temporary work permit for specialized workers. The PERM process is the critical legal step required to convert these temporary statuses into permanent residency, a prerequisite for eventual citizenship. By freezing this pathway, the administration aims to tighten skilled-worker immigration, a policy direction that has prompted tech firms to adapt their hiring strategies.
Industry responses suggest the immediate operational shock may be manageable. Nasscom, the trade body representing India’s $300 billion technology industry, argues that companies have already reduced their dependence on H-1B visas by increasing local hiring in the US. Wipro, for instance, stated that more than 80% of its US workforce is now local. Consequently, the number of employees currently in the process of transitioning from H-1B to permanent residency through PERM is described as relatively limited. However, for new entrants and long-term planners, the suspension represents a significant hurdle in the established pipeline from Indian engineering degrees to US permanent residency.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.
