Connecting industry & education: international talent as a solution to the U.S. labor shortage

A new white paper by IDP and inSpring explores an underutilized, high-impact solution to the U.S. labor shortage: international student talent.

Facing demographic headwinds and an increasing demand for skilled labor, industries across the U.S. are struggling to fill critical roles. The 1.1 million international students who are already in the country, trained with in-demand skills, and eager to work represent a powerful solution to the nation’s skilled labor shortage. Despite clear benefits, these talented individuals remain an underutilized resource.

This white paper takes a deep dive into the U.S. labor shortage, explores possible solutions and existing employment pathways, and lays out practical solutions for businesses, higher education institutions, and international students to address these challenges.

• A Growing Labor Gap - By 2032, the U.S. is expected to have a shortfall of 6 million workers. Every state is currently affected by the labor shortage, though certain regions and industries will be harder-hit.

• Demographic Headwinds - Historically low birth rates, an aging workforce, and early baby boomer retirements mean fewer young Americans are entering the labor market.

• Demand for Skilled Labor - Technological advancements have increased demand for educated workers, but U.S. colleges and universities aren’t producing enough graduates to keep up. By 2031, 72% of jobs will require post-secondary education.

• International Students Are Ready to Contribute - The U.S. is home to 1.1 million international students, many of whom are trained in high-demand STEM skills and strongly motivated by post-graduate employment opportunities.

Hiring international graduates presents one of the most advantageous solutions to the U.S.’s workforce challenges, for all parties involved.

IDP's Emerging Futures research shows that there is tremendous desire from international students to be educated and employed in the U.S., and our higher education system has the capacity - and need - to host them. Domestic student enrollments are on the decline, signaling potential trouble for U.S. colleges and universities.

International students bring substantial benefits to the communities they live, work, and study in, contributing $43.8 billion to the U.S. economy and supporting hundreds of thousands of jobs. The fields of study that international students are pursuing align closely with U.S. workforce needs, with more than half choosing a STEM degree.

The Optional Practical Training (OPT) program provides a straightforward path for businesses to hire international graduates without sponsorship, visa caps, or extra costs. OPT is extendable through continuing education, meaning that an international student earning a STEM bachelor’s degree and continuing on to a STEM master’s degree would have a total work authorization of six years. OPT gives employers access to a sustainable, skilled talent pipeline. Despite these benefits, the program remains underutilized.

The white paper showcases examples of partnerships between higher education institutions and businesses that are successfully leveraging international talent and explores the perspective of an international student who has gone through the process themself.

• Case Western Reserve University (CWRU), a private R1 research university in Cleveland, Ohio, exemplifies best practices in international student career support, though proactive employer education strategies, tailored programming, and student advocacy.

• South Carolina-based pharmaceutical company Ritedose Corporation has developed an innovative solution to hiring challenges: the Ritedose International Student Engagement (RISE) Program. Through a strategic partnership with Benedict College and inSpring, Ritedose connects skilled international graduates with employment opportunities, while simultaneously addressing personnel gaps.

• Harshith Kadaiah Gowda, an international graduate of the University of Alabama at Birmingham, has successfully made the transition from education to employment. After completing a job readiness program conducted by inSpring, he landed a position as a SCADA Analyst at the Diversified Energy Company.

These case studies demonstrate the positive impact that can be made when industry and higher education collaborate and shed light on the common challenges that international students encounter while seeking employment in the U.S.

What would happen if industry and higher education worked together to implement the hiring of international talent on a larger scale? It would make a significant impact on the U.S. labor shortage, boost the economy and innovation, and change the lives of millions of international students.

The white paper outlines priority actions for how higher education institutions, employers, and international students can collaborate together to build a sustainable, future-ready workforce.

About IDP

IDP is a global leader in international education services that helps people study abroad.

As a key voice in the industry, IDP partners with educational institutions to help them attract the right students and co-owns IELTS, a leading English proficiency test. Established in 1969 in Australia, IDP has teams based in more than 60 countries. Despite its evolution, IDP’s purpose has remained constant: to help people transform their lives through international education.

At IDP, it’s our goal to help every student fulfil their global potential by streamlining the pathway to studying abroad. To do this, it takes scale. Each year, almost 100,000 IDP students are studying at more than 800 colleges and universities around the world, supported by our local teams who know each country’s education landscape inside and out.

Our unbiased guidance helps students build personalized pathways to success. IDP’s 2,200 counselors reinforce their own expertise with data-driven insights to give advice that’s reliable and valuable.

For institutions, governments and sector bodies, our quality insights and tailored solutions make it easier to reach ambitious international students that will shape the future of campuses worldwide.

About inSpring

Founded in Boston, Massachusetts, inSpring is the world’s talent mobility springboard.

inSpring operates an end-to-end workforce development platform that partners with companies in the advanced manufacturing, life sciences, and healthcare industries to accelerate the skilling, retention and employer readiness for international talent. In partnership with regional workforce and economic development organizations, inSpring assesses the regional skilled workforce needs across major industries and builds training and development programs to increase talent pipelines and improve retention for critical roles.

With focus on this mission, we can progress at speed towards our broader goal of empowering the world’s talent at scale to enable economic growth, innovation and prosperity.