Insights

How International Students Strengthen the Workforce

Diverse students on stairs at university campus chatting.

In an era where knowledge and innovation enhance economic growth, attracting and retaining highly skilled talent has never been more critical. Across the world, countries are actively competing to welcome international students by offering top-tier education, accessible work opportunities, and clear pathways to permanent residency. For the United States, international students have long been a vital source of cultural and economic enrichment. Their presence extends beyond the classroom, leaving a lasting impact on local communities far beyond that of a temporary visit.

Talent Attraction and Retention: Why International Students Matter

Between 2015 and 2023, the US Department of State issued more than 3.5 million academic student visas.[1] This steady influx of global talent has strengthened the country’s ability to attract and retain future innovators, entrepreneurs, and leaders. Beyond their academic pursuits, international students contribute significantly to local economies through tuition payments, cultural diversity, and consumer spending. Moreover, they play a crucial role in filling critical workforce gaps, particularly in STEM and other high-demand fields, ultimately fostering broader economic growth.

The F1 visa is the primary pathway for international students pursuing academic programs in the US. One of its key features is Optional Practical Training (OPT), which allows graduates to work in their field of study for up to one year. For students in STEM disciplines, this period can be extended by an additional two years, providing them with more time to establish careers and potentially secure long-term employment opportunities.

Pathways of F1 Visa Graduates: Study-to-Work Transitions

Data from Immigration and Customs Enforcement provides insight into where students on an F1 visa study, what they study, and—crucially—where they ultimately work.[2] The following interactive visualization allows for exploration of this data by field of study and by metro area.

F1 Visa Student Worker Flows: Study vs. Work Locations

F1 Visa Student Worker Flows by Metro Area

These are the major takeaways from TIP’s analysis of this data.

  1. Strong Link Between Study and Employment Locations. A significant portion of international students who secure employment post-graduation remains in or near the cities where they studied. This finding highlights a prime opportunity for local leaders to foster stronger industry-academic partnerships, ensuring that local businesses can tap into this skilled talent pool. By creating clear pathways for international graduates to transition into the workforce, communities can enhance their long-term economic vitality.
  2. Local Industry Alignment. Cities with universities offering strong academic programs often see a corresponding concentration of those graduates in the local job market. This trend suggests that industry flourishes around a well-established talent pipeline. For example, while Baltimore, Maryland, generally experiences an outward migration of students, it attracts graduates in biological and health sciences, benefiting from Johns Hopkins University’s global reputation. Similarly, Ithaca, New York and Sacramento, California, retain a strong share of graduates in agricultural sciences, supported by the renowned programs at Cornell University and the University of California, Davis, respectively. By aligning higher education with local industry needs, cities can create a competitive advantage.
  3. Rise of Remote Work and Satellite Offices. The data also reveals a growing shift toward flexible employment arrangements. In 2019, one in five international graduates employed in the US (21 percent) worked in a different metro area than their employer. By 2023, this figure had risen to about one in three (32 percent). This shift may include both remote workers and employees based in satellite offices. It underscores the importance of digital infrastructure, quality of life, and affordability in attracting and retaining talent. Cities that invest in strong broadband connectivity, livability initiatives, and civic engagement can become appealing destinations for professionals, even when major corporate offices are located elsewhere.
  4. Emerging Hubs versus Established Markets. While established economic powerhouses like San Francisco, California, and New York, New York, naturally attract a large share of international graduates, emerging technology and research hubs such as Austin, Texas, and Portland, Oregon, are quickly closing the gap. These rising destinations demonstrate that cities outside traditional talent magnets can build a reputation for innovation and workforce retention by fostering a robust local ecosystem with education, business, and lifestyle appeal.
  5. Shifts Over Time. Tracking the data year by year shows that certain places have strengthened their retention rates. This trend can be attributed to targeted policy interventions, increased employer demand, or stronger university-industry collaboration. For example, Raleigh, North Carolina, historically saw more students leaving than arriving for work, but in 2023, the city recorded a net positive flow of +370 students. This shift highlights the strength of the recent developments in the Research Triangle, which TIP consultant Erica Colston explored in her 2024 Insights piece, “Placemaking for Innovation.”

Looking Ahead: Competitive Positioning in an Interconnected World

International students present a significant opportunity for long-term economic and cultural development. By aligning academic programs with industry needs, fostering public-private partnerships, and embracing evolving work trends, communities can position themselves as leading destinations in the global race for talent. The impact of international graduates extends beyond simply filling immediate workforce gaps. They contribute to an enduring cycle of innovation, diversity, and economic vitality that benefits everyone.

In an increasingly interconnected world, the communities that actively invest in international student engagement and retention will be among those that thrive in the decades to come.


[1] US Department of State, Bureau of Consular Affairs, Nonimmigrant Visa Statistics, FY2019-2023 Detail Table (PDF) and FY2015-2019 Detail Table (PDF)

[2] US Immigration and Customs Enforcement. (2024), FOIA Case No. 2024-ICFO-12829