Tag: H-1B Reform

WSJ: H-1B Visa Demand Falls — Technological Changes Responsible?

https://www.wsj.com/article_email/use-of-h1b-visas-fell-before-donald-trumps-critiques-of-program-1496682157-lMyQjAxMTE3NTA3NjQwMTYxWj/

The WSJ reports:

“WASHINGTON—President Donald Trump has suggested he might find a way to cut the number of coveted H-1B visas awarded to outsourcing firms. But the companies appear to be heading in that direction all on their own, amid technological changes.

Outsourcers’ use of H-1B visas, which are reserved for highly skilled foreign workers, fell last year, before Mr. Trump won the Republican presidential nomination, new data show. The slide occurred alongside increasing criticism of the firms’ business model.

Mr. Trump has criticized the lottery that is now used, where companies all have equal chances at the scarce visas, and signed an executive order directing a review of the program. The order called for changes that would ensure visas are awarded to “the most skilled and the highest paid” applicants, to avoid crowding out American workers.

Six of the seven prominent Indian-based outsourcing companies that do work in the U.S. received fewer H-1B visas in 2016 than they did in 2015, and as a group their numbers dropped 37%, according to a new analysis by the National Foundation for American Policy, a think tank that backs increasing the total number of H-1B visas available. Most outsourcers based in the U.S. and elsewhere also saw declines.

For instance, H-1B visas awarded to India’s biggest outsourcer by revenue, Tata Consultancy Services Ltd., plummeted by 56% to 2,040 last year from 4,674 in 2015. For Wipro Ltd, another major Indian firm, the number also dropped by more than half to 1,474 from 3,079 in 2015.

Other research from previous years shows that the use of H-1Bs by individual outsourcing companies peaked in 2012 and 2013, sliding ever since. Many expect that the number of visas given to outsourcers will decline again for 2017, but those numbers aren’t yet available.

Meanwhile, the number of visas awarded to some large U.S. technology firms, who have a different business model and compete with outsourcers for visas, increased last year. Amazon.com Inc., Microsoft Corp., Alphabet Inc.’s Google and Apple Inc. all received more visas than they did in 2015, the new data show. Such companies typically use the visas to recruit employees with rare skills that attract higher wages than staff employed by outsourcers, and have come under less criticism.

Each year, 85,000 H-1B visas are available, and for the last several years they have been awarded by lottery conducted in April because of overwhelming demand.

Following this year’s lottery, Mr. Trump criticized the process and suggested more visas should go to high-paid jobs as opposed to a lottery where each application has equal chance. Because many outsourcing jobs are paid the minimum required to comply with certain rules—around $60,000 a year—many interpreted Mr. Trump’s comments as a warning to the outsourcers and a possible boon to big tech companies that pay high salaries.”

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Read the full WSJ article at the link.

I also blogged about the need for H1-B reforms yesterday.

 

http://wp.me/p8eeJm-VJ

PWS

06-06-17

Related posts:

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H-1B NONIMMIGRANTS: A Needed Visa In Need Of Reform — It’s Essential For Our Economy, But It’s Wrong When US Workers Are Displaced & Degraded — A Plea For Reform By One Who Has Benefitted From The System But Sees The Abuses!

http://www.cnn.com/2017/06/04/us/understanding-the-h-1b-visa/index.html

Moni Bassu writes in CNN:

“Palmer and other H-1B reformers want accountability.
They say US companies must be required to document their searches to fill positions with American workers. Employers must pay prevailing wages and be prevented from subcontracting or outsourcing H-1B jobs.
Reform advocates are pushing for a system of government enforcement and oversight of the H-1B regulations, not one that is reliant on whistleblowers to expose abuse.
Technology is here to stay. And it is changing at warp speed. The demand for smart talent is not going away. That’s why even the biggest critics of H-1B are the most ardent backers of reform, not elimination.
What I hear them saying is the system ought to work the way it used to, when my father obtained an H-1 visa. He was hired for a job he was uniquely qualified for, and he was compensated with a decent wage.
No one wants to see Americans lose their jobs unfairly, and if my father were still alive, I know he’d be troubled by what I learned about the current H-1B program.
I also know he would be heartened to see that some of the most ardent backers of visa reform are Indian Americans. After all, we are the ones who have most reaped the rewards of H-1B.”
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The full article, which gives actual examples of both the benefits and the abuses of the H-1B program is a “must read.” Get it at the link.
Several thoughts. I was very critical, and still am, of House Immigration Subcommittee GOP Members for starting off with controversial, “in your face,” and unneeded enforcement-only bills. See http://wp.me/p8eeJm-Qw
Why not instead start with something bipartisan that would be good for America, like H-1B reform. Chairman Grassley in the Senate has expressed strong interest in reforming the H-1B category to eliminate abuses. And, it appears that most major U.S. employers who use H-1Bs also see the need for reform to preserve and improve the program.
Additionally, things like investment visa “EB-5” reform also appear likely to attract support from both sides of the aisle in both houses.
A second thought, why don’t U.S. companies, particularly those started or run by immigrants, which use H-1Bs start the reforms now. “Reverse” the process. Use highly talented H-1B workers to train U.S. workers, particularly in places where the economic rebound has not yet reached, for whatever reason.
For example, in a recent blog dealt with the situation in the small city of Gillette, WY. http://wp.me/p8eeJm-UY  The folks seemed nice, optimistic, and interested in a brighter future for their community. But, with or without Trump and his environment-busting policies, coal mining as a way of life is on the way out. I can’t imagine that too many of the younger generation are hanging around places like Gillette.
Why not go in and establish some tech centers using H-1Bs as trainers. Sure, working on a computer in an office isn’t everyone’s cup of tea. I get that. But, it is something that can be done from anywhere.
And, the costs of doing business, at least initially, are likely to be less in a place like Gillette. Increased economic activity brings with it other needs: buildings, houses, markets, auto dealers, repair shops, HVAC technicians, public servants, schools, teachers, etc. So, there could be something for everyone, even those who don’t want to work at a desk all day.
Maybe, it’s time for those who want immigration reform to stop talking and whining and start doing. Things that demonstrably work and help folks out build their own bases of support. That’s better than trying to convince folks with statistics and pie charts!
PWS
06-05-17

Related posts:

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