Students fear for job prospects in U.S. visa crunch

By Jim Finkle

BOSTON (Reuters) - As foreign students prepare to graduate from U.S. universities this spring, many worry that a record number of applications for U.S. skilled-worker visas may cause them to lose jobs they have already been offered.

Fresh university graduates are vulnerable to being rejected for the H-1B visas designated for skilled workers. A record 150,000 H-1B applications were filed in one day this week, nearly double the number U.S. authorities are allowed to grant in a given fiscal year.

The flood of applications raised anew a domestic debate over quotas for the entry of foreign workers.

Visa shortages could ultimately discourage overseas students from studying in the United States over other countries with fewer restrictions on working visas for graduates, said Kay Clifford, associate director of the International Center at the University of Michigan.

"I'm concerned that this will be discouraging to international students," she said. "They are worried about their futures. They are worried about the impact on their careers."

In most cases, the government allows students to stay in the country for a year, granting them an F-1 visa to work in a field related to their area of study.

But for many students that Clifford deals with, the ability to stay in the country and work for several years is a key component of their decision to study in the United States.

Some employers will not bother hiring graduates unless they can get them an H-1B visa from the start of their employment, said Ted Ruthizer, head of the business immigration practice for New York law firm Kramer Levin Naftalis and Frankel.