Demand for H-1B visas continues to rise in the US, but approval numbers are declining sharply. The latest FY2025 annual report submitted to the US Congress highlights this contrast. Filing volumes have increased, yet the number of approved petitions has fallen significantly.
Between October 1, 2024, and September 30, 2025, as many as 456,725 H-1B petitions were filed. This marks a 7 percent rise compared to FY2024. It is also the highest filing volume recorded since FY2022, indicating sustained demand from employers.
Despite the rise in applications, approvals dropped to 328,185. This is the lowest level seen in five years. The figure represents a steep 17.8 percent decline compared to FY2024. The gap between demand and approval is widening.
The sharpest decline was recorded in the first quarter. From October to December 2024, approvals fell 45 percent year on year to 47,821. During the same period in the previous fiscal year, approvals stood at 87,018. The drop has raised concerns among applicants and firms.
The trend follows policy changes introduced during the Trump administration. These include a 100,000 dollar entry fee, a wage based lottery system, and mandatory social media screening. The long term impact of these measures is still unfolding.
Early signals suggest that employers may be stepping back. In the first quarter of FY2026, 76,164 Labour Condition Applications were filed. This marks a 23.1 percent decline compared to the same period last year. Companies appear cautious amid tighter regulations.
With the FY2027 H-1B registration window opening on March 4, attention is now on employer sentiment. The response from IT firms will be closely tracked. Indian talent remains a key factor in the H-1B ecosystem.
