For thousands of highly skilled immigrants working in the U.S. on H-1B visas, the ultimate goal is permanent residency through an employment-based green card. But as recent cases show, navigating the PERM Labor Certification process has become increasingly difficult in today’s job market.

A recent discussion shared by a Bay Area tech professional highlights just how unpredictable this path can be. The individual, who has been working as an Oracle + SAP Manager since 2020, revealed that their PERM process stalled after their employer’s Labor Market Test (LMT) failed. Surprisingly, the failure was not due to lack of documentation or legal missteps—it came down to the unexpectedly high number of U.S. applicants for the role.

“Honestly did not expect this since the role is very niche, but looks like the market is different nowadays. Feeling very tense because the green card is my long-term plan,” the employee explained.

Why the Labor Market Test Often Fails in 2025

The PERM process requires employers to prove that no qualified U.S. workers are available for the position before sponsoring a foreign worker for a green card. While this step historically favored niche roles with highly technical skills, the current labor market has changed significantly.

Due to widespread layoffs in the tech sector, many qualified American candidates are actively applying to jobs posted for the PERM process. That creates a situation where the Department of Labor sees evidence of available U.S. workers, making it “near impossible” for companies to justify hiring immigrant workers under PERM—even when the H-1B employee is already performing the job successfully.

As one commenter noted:
“Americans are now far more aware of where companies are placing these ads, and in this layoff-heavy environment, there’s usually plenty of applicants. It’s going to be incredibly hard to pass a Labor Market Test legitimately.”

Strategic Ways Applicants Try to Navigate PERM

Despite the challenges, some H-1B visa holders explore alternative paths:

• Smaller Consultancies: Larger tech firms are receiving excess applicants, but smaller employers or niche consultancies may have fewer U.S. applicants during recruitment.
• Geographic Flexibility: Choosing roles in rural or low-demand areas often eases the LMT since fewer domestic candidates apply.
• Specialized Skill Sets: Ensuring the job description highlights truly rare, hard-to-find skills can help avoid overlap with the broader labor pool.

While these strategies may improve chances, they also highlight how the choice of employer, location, and job title can make or break the PERM process.

The Bigger Problem: Missteps and Unintended Consequences

Some users in the discussion also raised concerns about misuse of the PERM process. In certain cases, people unfamiliar with immigration rules apply for PERM-advertised jobs—even when they are not qualified or not genuinely interested.

One commenter warned:
“Some people online are applying to PERM jobs just to disrupt the process. They don’t realize these postings aren’t normal job openings—they’re part of a legal requirement for existing employees. All it does is complicate things and indirectly gives more power to employers to exploit H-1B workers.”

Unfortunately, this only fuels the cycle of uncertainty, making the green card journey even more stressful for those relying on it for stability.

Final Thoughts

The PERM Labor Market Test hurdle is quickly becoming a defining struggle for H-1B holders seeking permanent residency in 2025. With fierce competition, layoffs, and heightened awareness from domestic job seekers, the once-manageable path to an employment-based green card now feels uncertain for many.

For professionals planning their future in the U.S., it may take more than just skill and experience—it now requires strategic decisions about employers, locations, and immigration timing.

The dream of transitioning from H-1B to green card is still possible, but as this case shows, the path is far from smooth and demands resilience, adaptability, and careful planning.