A Bay Area technology manager’s blunt account of a stalled green card case has spotlighted how a softer hiring climate and tougher screenings are colliding for thousands of skilled workers on the H-1B visa. The Oracle + SAP manager, employed since 2020, said their employer’s PERM process—the labor certification step for an employment-based green card—hit a wall when the Labor Market Test flagged an unusually high volume of U.S. applicants.
“Honestly did not expect this since the role is very niche, but looks like the market is like this nowadays. Feeling very tense because green card is main plan for long term settlement,” the user wrote. Another post added that Americans are “far more aware of where companies are placing these ads” and that in a layoff-heavy environment there are “plenty of applicants,” making it “near impossible to legitimately pass a LMT.”

Hiring slowdown and visa friction
The pressure described by visa holders echoes broader weakness in hiring. In August 2025, revised data from the U.S. Bureau of Labor Statistics showed 258,000 projected jobs for May and June did not materialize, and July added only 73,000 new jobs—the weakest monthly gain since the early COVID-19 era.
In tech hubs like Silicon Valley, employers report:
- Deeper caution in making hires
- Narrower requisitions and more specific job ads
- Longer evaluation cycles before extending offers
For visa holders who must match precisely worded job ads and prove their skills meet “specialty occupation” standards, even small slowdowns create serious hurdles.
Human stakes and personal disruption
The stakes are personal and immediate. Many H-1B visa holders build long-term plans around a green card. When a PERM case falters during the Labor Market Test, the fallout extends beyond careers to:
- Housing commitments
- Family plans
- School choices
The Bay Area poster’s comment—“feeling very tense”—captures a mood repeated across engineering Slack channels and immigrant community groups this summer.
Visa-dependent workers say awareness among U.S. job seekers has changed the PERM landscape. The Labor Market Test requires employers to run ads and show there are no able, willing, and qualified U.S. workers for the role. With layoffs pushing more applications into each posting, companies now see a surge of résumés—even for specialized roles—forcing tougher reviews and more rejections at the certification stage.
As U.S. résumés stack up, a PERM case can stall, and the green card timeline stretches into uncertainty.
Policy changes and labor market reality in 2025
Regulatory shifts this year added new layers to the story:
- On January 17, 2025, the Department of Homeland Security issued a final rule to modernize parts of the H-1B program.
- The central update was a beneficiary-centered lottery: each candidate is counted only once in the annual registration, no matter how many employers file on their behalf.
- The rule aims to reduce duplicate entries and fraud advantages held by large organizations and promised stricter compliance—more site visits, audits, and closer reviews of specialty-occupation status.
Employers and attorneys report:
- Closer scrutiny of petitions
- More Requests for Evidence (RFEs)
- Tighter evaluations of academic fit, job duties, and wage levels
Small and mid-size firms appreciate the lottery fairness but brace for higher compliance costs and slower timelines. The lottery change does not change the core mismatch: far more would-be H-1B employees than available slots.
How the PERM process is affected
The PERM process has grown more difficult as the Labor Market Test becomes more consequential:
- Even for niche jobs, if employer ads attract qualified U.S. applicants, the employer cannot proceed.
- In a cooled market, the volume of domestic applicants has jumped—some are newly unemployed professionals willing to apply to roles they might have ignored before.
- For an H-1B worker counting on sponsorship, that influx can be fatal to an employer’s certification bid.
This market shift feeds one of the system’s weakest points: visa holders’ dependency on employer sponsorship at every stage. Losing a job triggers immediate status concerns; even a secure job can feel fragile when the green card path depends on a successful PERM filing and unpredictable timing.
These pressures fall particularly on:
- Indian professionals in tech and related fields (who often face long queues because of country caps)
- OPT graduates trying to land qualifying offers while companies trim openings
Officials say the H-1B program remains open for skilled talent, but agency updates and compliance checks are more active. For core program details, the agency’s public guide remains the most reliable resource: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations
Human impact in tech hubs
Behind the numbers is a daily calculus that feels exhausting:
- Should a family renew a 12‑month lease if a PERM case might fail in six months?
- Can a spouse leave a job to care for a newborn when the household’s immigration status hinges on one employer’s filings?
- Do you buy a home if your fate rests on a Labor Market Test no one can guarantee?
Workers describe life as “on hold.” The Bay Area Reddit account is one voice among many as layoffs ripple across product lines and consulting teams. Effects include:
- Pausing weddings and fertility treatments
- Avoiding internal job moves that would require a new PERM case
- Timing parental leave carefully to avoid clashes with budget cuts or reorganizations
Layoffs carry a sharper edge for H-1B holders. A job loss starts the 60 days grace period to find new qualifying work, transfer the visa, or leave the United States. When competition is fierce and requisitions are scarce, that window closes quickly.
Recruiters say the market favors candidates who can start immediately without sponsorship, pushing foreign applicants down shortlists. For those still employed, fears of hiring freezes or shelved roles make even stable workplaces feel precarious.
Sentiment, alternatives, and cross-border moves
Policy proposals under discussion have included:
- Wage-based priority systems
- Tighter employer-employee rules
- Potential changes to spousal work permissions
Nothing is certain—but families consider alternatives, such as moving to Canada or returning to India. Analysis by VisaVerge.com notes Indian nationals remain the largest group of H-1B beneficiaries in computer-related occupations, and many are weighing cross-border moves if long-term U.S. status proves elusive.
A Blind poll (July–August 2025) showed a divided public:
- Majority of U.S.-based professionals believed restricting Indian hiring could help their firms
- Most India-based respondents predicted that restrictions would harm their companies
This split reflects a broader debate: some American workers hope fewer visas mean more local hiring, while many executives warn shrinking access to global talent will slow product cycles and limit growth.
Process details and practical steps
Despite headwinds, the playbook from temporary visa to permanent residence is familiar. Details matter because timelines can make or break a case.
Key steps and timelines:
- H-1B lottery registration
- Opens in early March
- Under the beneficiary-centered rule, each person appears only once
- If selected, employers typically have a fixed filing window—commonly 90 days starting on April 1
- Standard cap-subject start date is October 1
- PERM (Labor Certification)
- Employer defines the job, minimum requirements, and pay, then runs the Labor Market Test
- If qualified U.S. workers apply, the employer cannot proceed for the foreign national
- A successful PERM allows the employer to move to the immigrant petition stage
- I-140 immigrant petition
- Shows the worker qualifies for a preference category and the employer can pay the wage
- Official form and instructions: https://www.uscis.gov/i-140
- Adjustment of status (I-485)
- Happens when a green card number is available for the worker’s category/country
- Many people wait years for this due to annual limits and country caps
- Official form and instructions: https://www.uscis.gov/i-485
Attorney recommendations and practical tips:
- Start PERM earlier in a role when possible to build buffers against audits and failures.
- Ensure résumés, degree evaluations, and project lists align closely with the job description used for PERM.
- Consider:
- Roles in smaller cities or less visible projects (potentially gentler PERM markets)
- Employers known for steady sponsorship cycles
- Alternate tracks: cap-exempt H-1B jobs at universities/nonprofits, O-1 visas for extraordinary ability, or relocation to countries with more predictable skilled-worker pathways
Each option carries trade-offs in pay, lifestyle, and long-term goals.
Employer responses and industry impact
Employers say they are balancing risk and timing:
- Big tech and consulting firms are cautious about opening new headcount
- Hiring managers prioritize candidates who can start quickly without complex filings
Consequences:
- For U.S. workers: more opportunities in some roles
- For H-1B holders: more interviews but fewer offers, or offers with start dates that clash with their status deadlines
Industry leaders warn tight visa channels can push R&D overseas. Executives argue that when PERM becomes a gamble—especially for engineering-heavy roles—teams may move work to where hiring is easier. Policy experts urge balance: maintain robust checks to protect U.S. workers, but ensure the system still attracts and retains global talent in essential fields.
Market signals and outlook
The numbers driving internal planning are these summer takeaways:
- Fewer-than-expected jobs in late spring
- A weak July gain
- Far more applicants per posting in software, data, and cloud infrastructure
For H-1B workers, these figures mean longer odds at each step—from surviving a layoff to passing the Labor Market Test to getting a clean petition approval. For hiring teams, they signal a buyer’s market that may hurt long-term plans if green card paths stall and key contributors leave.
Early-career talent is especially affected:
- OPT graduates hoping to convert internships into full-time roles face more rejections or rescinded offers
- Legal reviews and headcount freezes limit managers’ ability to hire interns into full-time roles
- Missed conversions weaken the pipeline for future years
Practical preparation and community responses
Agencies and companies are taking steps:
- Officials continue audits, site visits, and data checks to balance labor protections with program integrity
- Companies standardize job descriptions, align minimum requirements with real needs, and set reminders to avoid missed deadlines
- Workers gather transcripts, project summaries, and reference letters to support filings when questions arise
Community forums share checklists for interviews, tips on explaining PERM to new managers, and reminders to track deadlines so no steps are missed.
Success stories still exist:
- Smaller teams with specific tech stacks sometimes run clean Labor Market Tests
- Specialists in particular databases, cybersecurity niches, or ERP modules can find tightly matching openings
But success feels more contingent and the margin for error thin. A missed ad requirement, a poorly worded job description, or a rushed RFE response can add months or sink a filing.
What people are doing now
Until market conditions improve, many keep contingency plans active:
- Relocation applications for Canada or other countries
- Backup applications for cap-exempt roles
- Waiting out uncertainty in hope 2026 brings steadier hiring
Officials, employers, and workers all watch for signs of a rebound. A stronger economy could reduce the surge of U.S. applicants to each Labor Market Test and widen roles companies feel comfortable sponsoring.
For now, the reality is a squeeze: more résumés in the Labor Market Test, stricter H-1B reviews, and a hiring environment favoring fast, low-friction decisions. People adapt by widening job searches, gathering stronger documentation, and coordinating tightly with employers on timing and role definitions.
The Bay Area manager’s experience—shock at a “niche” role swamped by applicants, a stalled PERM case, and family plans up in the air—has become a common story told across tech hubs from Seattle to Austin. Many will keep applying, interviewing, and filing—hoping the next quarter brings better odds and that careful planning can still overcome a market offering few easy wins.
This Article in a Nutshell
Stalled PERM cases in tech reflect a weaker 2025 hiring market and stricter H-1B rules. More U.S. applicants and increased DHS scrutiny are delaying certifications, forcing H-1B workers to pursue contingencies and stronger documentation.