Understanding PERM In Economic Cycles

Economic downturn PERM approvals face increased scrutiny but maintain high success rates. PERM labor certification requires employers prove no qualified US workers exist for positions. Economic conditions don't change this fundamental requirement.

DOL PERM processing downturn extends timelines. Average processing reached 16 months in 2025. Pre-pandemic processing averaged 6 to 9 months. Extended timelines reflect increased review intensity and Department of Labor staffing constraints.

Recessions create valid concerns about labor market testing. More unemployed workers exist. More applications received for posted positions. DOL examines whether employers conducted recruitment in good faith. Properly documented cases succeed. Inadequate documentation triggers denials.

PERM filing trends 2025 show decreased volume. Fiscal year 2025 Q1 saw 34,186 applications representing 17.6 percent decline from 2024. Employers delay or cancel green card sponsorships during uncertainty. Tech industry layoffs particularly impact filing volumes.

Beyond Border helps employers navigate heightened DOL scrutiny during economic downturns ensuring PERM applications withstand audit review.

Layoff Impact On PERM Applications

Layoffs affecting PERM applications create significant complications. DOL regulations require employers notify potentially qualified laid-off workers when filing PERM applications. Notification applies to workers laid off within 180 days before filing through filing date.

Employers must contact laid-off workers who held same or similar positions in the area of intended employment. Provide job details. Consider all potentially qualified workers who respond. Document lawful reasons for disqualification if workers lack necessary qualifications.

Disclosing layoffs on Form ETA 9089 frequently triggers audits. DOL examines whether layoffs contradict claims that no US workers available for positions. Many employers wait six months after layoffs before filing PERM applications. This eliminates notification requirements and reduces audit risk.

PERM denials during recession often stem from layoff-related issues. Employers who laid off workers in same occupation then immediately sponsored foreign workers face skepticism. DOL questions whether legitimate labor shortage exists. Detailed documentation explaining business necessity and position differences becomes critical.

2023 and 2024 saw major tech industry layoffs. Companies including Meta, Amazon, Google, and Microsoft eliminated tens of thousands of positions. These layoffs continue impacting PERM filings in 2025. Employers in affected industries face enhanced scrutiny.

Beyond Border advises employers on layoff notification requirements and timing strategies to minimize complications in PERM applications.

Processing Time Increases During Downturns

DOL PERM processing downturn significantly extends timelines. December 2025 data shows DOL processing PERM applications filed June 2024. This indicates approximately 16 to 18 month processing for standard cases. Audited cases take substantially longer.

Prevailing Wage Determinations require 4 to 6 months currently. OEWS wage requests filed July 2025 are being processed in December 2025. Non-OEWS requests filed April 2025 are processing now. PWD delays compound overall PERM timeline impact.

Total PERM process from initiation to I-140 filing extends to 24 to 30 months currently. This includes PWD processing, recruitment period, PERM filing, and approval. Compare to 18 month timelines in stable economic periods.

Audit rates increase during economic uncertainty. Approximately 33 percent of PERM applications receive audit requests in 2025. Pre-pandemic rates averaged 20 to 25 percent. Audits add 3 to 6 months to processing timelines while employers compile requested documentation.

Government shutdowns cause additional delays. The October 2025 shutdown paused PERM processing briefly. DOL implemented 33-day automatic deadline extensions for affected filings. These disruptions compound existing backlogs.

Beyond Border advises employers to initiate PERM processes early accounting for extended processing timelines during economic downturns.

Filing Volume Trends Through Economic Cycles

PERM filing trends 2025 reveal significant volume decreases. FY 2024 saw 151,773 total applications down 4.5 percent from FY 2023. FY 2025 Q1 applications dropped 17.6 percent compared to same period in 2024. This represents steepest decline since 2009 financial crisis.

Tech industry dominates PERM filings. Software developers alone comprised 20.8 percent of certifications in FY 2024. Professional, scientific, and technical services industry secured 31.5 percent of total approvals. Economic downturns disproportionately impact tech hiring.

Geographic concentration intensifies during recessions. California accounted for 19.1 percent of certifications. Texas followed with 11.1 percent. These two states represented over 30 percent of national activity. Companies in tech hubs face greater layoff pressures affecting PERM sponsorship decisions.

Economic impact on labor certification manifests through reduced employer willingness to sponsor. Green card processes require multi-year commitments. Uncertain economic conditions discourage long-term hiring commitments. Employers prioritize immediate business needs over immigration sponsorship.

Recovery periods see filing volume surges. Post-2009 recovery brought substantial PERM increases. Post-COVID recovery in 2021-2022 showed similar patterns. Current 2025 decreases suggest cautious employer sentiment persists despite overall economic stability.

Beyond Border tracks filing trends helping employers time PERM applications to balance economic conditions with foreign national retention needs.

Approval Rate Stability Despite Economic Conditions

PERM approval rates recession remain remarkably stable. DOL approved over 95 percent of properly filed PERM applications throughout 2024 and 2025. Economic downturns don't fundamentally change approval standards. Well-documented recruitment still demonstrates labor market testing.

Why do approval rates stay high? PERM approval depends on procedural compliance and documentation quality not economic conditions. Employers conducting proper recruitment and documenting results comprehensively succeed. Inadequate documentation fails regardless of economic climate.

Audit rates increase during downturns. More applications receive scrutiny. But audited applications with complete responses maintain high approval rates. DOL seeks additional evidence verifying recruitment legitimacy. Employers providing requested documentation receive certifications.

PERM denials during recession typically stem from incomplete recruitment, inadequate documentation, or failure to prove good faith recruitment efforts. These issues cause denials in all economic periods. Recessions simply increase DOL vigilance detecting these deficiencies.

Successful recession-period PERM applications share common features. Detailed job descriptions specifying actual requirements. Comprehensive recruitment exceeding minimum regulatory requirements. Thorough documentation of recruitment results and applicant evaluations. Clear explanations of lawful rejection reasons for US worker applicants.

Beyond Border maintains 98 percent approval rate across economic conditions through meticulous PERM preparation and audit response strategies.‍

Frequently Asked Questions

Do economic recessions reduce PERM approval rates? No, PERM approval rates remain above 95 percent during recessions because approval depends on documentation quality and procedural compliance not economic conditions, though audit rates increase.

How do layoffs affect pending PERM applications? Layoffs within 180 days before or during PERM filing require notifying affected workers and considering them for positions, often triggering DOL audits to verify legitimate labor shortages exist.

Why are PERM processing times longer in 2025? PERM processing extends to 16 to 18 months in 2025 due to increased DOL scrutiny, higher audit rates, reduced staffing levels, and backlogs from pandemic-era delays.

Should employers delay PERM filings during economic downturns? Employers may strategically delay PERM filings 6 months after layoffs to avoid notification requirements, but qualified foreign national retention often justifies proceeding despite economic uncertainty.

How have PERM filing volumes changed in 2025? PERM filing volumes declined 17.6 percent in Q1 2025 compared to 2024 reflecting employer caution, tech industry layoffs, and economic uncertainty affecting green card sponsorship decisions.