A recent study highlights the pressing need for the state of Michigan to enhance its hiring practices and cultural environment to retain the growing number of international students in technical fields critical for the future of the automotive industry. The research points out that advanced degrees in areas like computer science and electrical engineering are crucial for building digital, connected, and electric vehicles. According to the National Academy of Sciences, over 70% of US graduate students in these fields are international students.
The report further emphasises that for Michigan to remain competitive in the talent market, it must adapt its approach to hiring. Retaining the 33,000+ international students currently enrolled in Michigan colleges and universities is posited as a significant strategic move. Data from a June 2024 study by the Economic Innovation Group (EIG) shows that states on the West Coast have a markedly better performance in retaining international students. The EIG's findings suggest that the issue is more rooted in the hiring practices and workplace culture rather than federal immigration rules.
Global Detroit, running the nation’s first international student retention programme, exemplifies a proactive approach by helping employers fill skilled STEM positions with graduates from top universities. Recent investments from the state in the Michigan Global Talent Initiative (MGTI) have enabled this programme to scale significantly, becoming the largest and most active of its kind in the country.
Despite a substantial pool of talented software developers and engineers among Michigan and US STEM international student graduates, many opt to return to their home countries due to a lack of job opportunities. The report notes that these graduates are permitted to work for three years post-graduation on student visas, which incurs no costs to employers for hiring. Furthermore, employers do not need to navigate complex immigration processes, making the retention of this talent pool seemingly more accessible.
Statistics reveal a stark contrast between the retention rates of international graduates on the West Coast and those in the Midwest. For every 100 international students who graduated from West Coast schools in the past decade, there are 83 workers who earned their degrees in the US during that time. In comparison, the Midwest lags with only 36 workers per 100 graduates. Between 2012 and 2022, approximately 75,000 international students graduated from Michigan institutions; however, by 2023, only an estimated 27,000 were employed in the state.
Challenges within Michigan’s competitive landscape include not just a lack of job offers but also issues around workplace culture and salary levels. The MichAuto and Richard Florida report identifies lower salaries as a concern in the state's mobility sector. Nonetheless, Global Detroit's experiences indicate that lower salaries are not a significant deterrent for talented individuals seeking employment in Michigan.
Complications arise when candidates with “foreign-sounding” names and accents are involved, even when they demonstrate fluency in English. This aspect has affected efforts by highly qualified master's degree candidates seeking positions in mobility, with MGTI struggling to find suitable employment opportunities for them. Some employers are hesitant to consider visa sponsorship for employment extending beyond the initial three years allowed under a student visa.
The political landscape may also impact Michigan’s ability to retain international student talent. There are apprehensions that a potential second term under former President Trump could introduce new barriers to what is already a delicate pipeline. Notably, during his first term, there were no significant changes to immigration policies affecting international student retention, and he has previously indicated support for automatically granting green cards to graduates from US colleges and universities.
This extensive array of research illustrates not only the necessity for Michigan to recalibrate its approach to the international student workforce but also hints at longer-term implications for the state's thriving mobility industry and technological advancement initiatives.
Source: Noah Wire Services