American College Graduates Face Job Crisis While Foreign Workers Get Tax Advantages

The facts are clear, and they paint a troubling picture for American college graduates entering the workforce. While major corporations slash tens of thousands of white-collar positions, the federal government continues operating an immigration program that gives foreign graduates a competitive advantage over American citizens.

Amazon and United Parcel Service have each announced cuts exceeding 14,000 jobs. Tens of thousands more white-collar positions are being eliminated across corporate America. Meanwhile, the Optional Practical Training program permits thousands of foreign college graduates to compete directly with Americans for the remaining positions. The kicker? Companies hiring these foreign workers avoid paying the same payroll taxes required when employing American citizens and permanent residents.

This is not capitalism. This is cronyism masquerading as immigration policy.

The OPT program emerged decades ago through administrative regulation, bypassing congressional authorization entirely. The administrative state simply created it. Over time, through coordination between Washington bureaucrats and large employers, OPT expanded from a temporary measure into a de facto pathway allowing foreign students to remain in the United States for years, potentially indefinitely, while pursuing permanent residence.

The economic justification for this program has evaporated. Unemployment among college graduates aged 23-27 exceeds the national average of 4%. The long-term unemployment rate for this demographic, defined as more than six months without work, stands at 26 percent, the highest level in three years. Among employed recent graduates, over half work in positions that do not require a college degree.

Critics might argue these graduates pursued unmarketable degrees. Fair point. Degrees ending in “studies” or credentials from diploma mills hold limited value in competitive markets. But the problem extends beyond liberal arts majors. Computer engineering graduates face 7.5 percent unemployment. Physics graduates encounter 7.8 percent unemployment. These are STEM degrees, the supposedly recession-proof credentials that guidance counselors and politicians have promoted for years.

Multiple factors explain the sudden contraction in demand for educated workers. Companies are pursuing efficiency and cost reduction in an increasingly competitive environment. More significantly, Artificial Intelligence is fundamentally restructuring business operations. Organizations are deploying AI to streamline processes from top to bottom, replacing human workers with automated systems. Amazon alone operates over a million labor-saving robots in its facilities, and AI capabilities are rapidly expanding their applications.

The solution is straightforward. As researcher Lora Ries argues, we must “allow American students and American workers a fair shake at applying for jobs, being interviewed for jobs, being hired for jobs, and being retained at their jobs.”

The underlying premise justifying OPT no longer exists. When American graduates cannot secure employment in their fields, permitting masses of temporary foreign students to enter the workforce directly after graduation makes no logical sense. The program serves the interests of large corporations seeking tax advantages and compliant workers, not American citizens who invested years and often substantial debt in their education.

This represents a policy failure with real consequences for young Americans. They followed the prescribed path: attend college, earn marketable degrees, enter the workforce. The system has failed to deliver on that promise while simultaneously advantaging foreign competition through regulatory manipulation.

The argument for eliminating OPT has never been stronger. American workers deserve a level playing field in their own country. That is not xenophobia. That is basic fairness and sound economic policy prioritizing citizens over corporate tax schemes.

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