The H-1B visa lottery, a key pathway for skilled foreign workers to join the U.S. workforce, particularly in tech and specialized sectors, has undergone a significant change. Applications for fiscal year 2025 have dropped by 38%, marking a major shift caused by new regulations focused on fraud prevention and the impact of economic challenges in the tech industry.
What’s Changed and Why
Single Entry Rule:
The U.S. Citizenship and Immigration Services (USCIS) has implemented new rules that limit applicants to just one entry in the H-1B lottery, even if they have multiple job offers. This change is designed to stop companies from submitting multiple applications to increase their chances of winning the lottery, a practice that is becoming increasingly common. As a result, there has been an 88% drop in duplicate applications.
Tech Industry Slowdown:
Widespread layoffs in the tech sector have led to fewer companies seeking H-1B workers. This reduction in demand for foreign skilled workers is another key reason why the number of H-1B applications has decreased.
Streamlined Application Process:
USCIS has also tried to simplify the application process, making it easier for employers and candidates to navigate the system.
The Impact of These Changes: Key Numbers
In 2024, USCIS received 470,342 H-1B applications for the 2025 fiscal year, down from 758,994 the previous year. This 38% application drop is directly tied to the new one-entry rule. While this change may reduce the competition in some ways, it also means that companies will face a smaller pool of candidates, making it harder to secure the specialized talent they need.
The decline in the number of applicants could also reduce the overall chances of securing a visa through the lottery, which could affect how businesses approach talent acquisition.
What This Means for Employers
The overhaul of the H-1B lottery process presents both challenges and opportunities for businesses looking to hire skilled foreign workers. Here’s how employers can adapt:
Be Proactive:
Although fewer applicants could theoretically improve your odds of winning the lottery, waiting until the last minute is not a good strategy. Start the application process early, especially for your most critical hires. Given the competitive nature of the lottery, being well-prepared can make a big difference.
Focus on Top Talent:
With a smaller applicant pool, it’s more important than ever to justify why you need foreign talent. Reserve H-1B sponsorships for highly skilled individuals who offer unique expertise that isn’t readily available in the U.S. workforce.
Consider Other Visa Options:
The H-1B isn’t the only visa available for skilled workers. Employers should explore other visa categories that may fit their needs, such as:
- O-1 visa for individuals with extraordinary abilities in their field
- L-1 visa for internal company transfers
- Other employment-based visas, depending on the candidate’s country of origin and your company’s requirements.
Leverage Remote Work:
With remote work becoming more common, employers have the opportunity to hire skilled workers from around the globe, even without going through complex visa processes. This can help fill specific talent gaps while offering flexibility, without the need for full relocation.
Stay Informed and Consult Experts:
The H-1B visa landscape is changing rapidly. Employers should stay up-to-date on any new developments and consult with immigration specialists or attorneys to ensure they are making informed decisions that align with their hiring goals.
The changes to the H-1B visa lottery represent a pivotal moment for the U.S. immigration system. While these changes aim to reduce fraud and make the process more fair, they come at a time when the tech sector is facing economic challenges. The result is a smaller, more competitive pool of applicants for U.S. employers to choose from.
The ultimate impact of these changes—whether they will strengthen or weaken the U.S. workforce’s ability to attract top global talent—remains to be seen. However, one thing is clear: the landscape for hiring foreign workers is shifting, and employers will need to adapt to stay competitive in an evolving global job market.
