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February 19, 2008
Nothing New: High H-1B Visa Demand Expected
The same furious energy that has enabled skilled foreign workers to contribute to science and tech fields across the U.S. will soon create a rush for FY2009's H-1B work permit applications.
Will there be a flood of H-1B visa applications again this year? In less than two months, the U.S. Citizenship and Immigration Services (USCIS) will begin accepting H-1B applications for fiscal 2009. Most experts predict a rush similar to last year, when the cap was reached on the first day of eligibility.
Before 1991, H-1B visas were not subject to any annual numerical cap. Beginning that year, Congress capped the number of these work-visas available each year at 65,000. That cap was hit in 1997 and again in 1998. Congress temporarily raised the cap on H-1B visas from 65,000 to 115,000 in both 1999 and 2000, and then to 195,000 for fiscal years 2001-2003. In 2004, the cap reverted to its initial allotment of 65,000.
The USCIS has granted at least this number of visas every year since.
Demand for H-1B visas dramatically exceeds supply. Last April, the USCIS stopped taking applications for fiscal 2008's allotment a mere one day after filing began, when it was flooded with a reported 120,000-150,000 requests for the 65,000 slots available for H-1B visas; hence the outcries for raising the cap.
Currently, employers and H-1B workers must scramble for the visas as soon as they become available. Employers can petition H-1B workers for the Oct. 1, 2008 start date beginning April 1, 2008.
The H-1B visa program provides visas for up to six years for individuals to work in occupations mostly requiring at least a bachelor's degree. However, under the American Competitiveness in 21st Century Act of 2000, an H-1B visa holder can extend status in one-year increments, beyond the six-year maximum period, if a labor certification or employment-based immigrant visa petition (I-140) has been filed and 365 days have passed since the filing of the labor certification or the I-140.
A wide variety of skilled workers use H-1B visas, yet more than two-thirds of the slightly more than 110,000 recipients of H-1B visas in 2006 are in science and technology occupations. (Note: Universities and academic research institutions are exempt from the 65K ceiling in their own hiring, and in 2005 an additional 20,000 exemptions from the H-1B quotas were added for students receiving master's degrees or doctorates from U.S. schools.)
The National Science Board's recent Science and Engineering Indicators 2008 report, released last month, presents a complicated assessment of the state of science and engineering in the U.S., including analysis of H-1B visa trends.
H1-B visa recipients have a diverse set of citizenships, with a large representation of Indian citizens overall and Chinese citizens among those holding doctorates, according to the NSB's findings. Across all recipients of new H-1B visas in fiscal year 2006, 54 percent were citizens of India, Korea and the Philippines. Among the 12,500 doctorate holders receiving new H-1B visas, 32 percent were Chinese citizens, followed by 13 percent for India, 7 percent for South Korea, 5 percent for Canada and 3 percent each for Germany, the United Kingdom, and Japan.
While the program was originally set up to help U.S. companies hire workers with rare skills, outsourcing companies have become the most active participants in the program. In 2006, 10 of the top 20 recipients of the visas were Indian tech outsourcers.
A number of most active users of the work-visa program have been accused of underpaying workers. The H-1B program requires companies that bring employees into the U.S. to pay the prevailing wage in that job, so as not to depress the salaries of Americans in similar occupations.
In his paper Outsourcing America's Technology and Knowledge Jobs last March, Ron Hira, a Rochester Institute of Technology assistant professor of public policy, argues that U.S. visa programs for overseas workers hurt the wages and job security of U.S. tech workers. Expanding the number of visas, Hira contends, would directly lead to deceased wages, among other things.
The NSB's 2008 report, however, offers these findings on salaries paid to new recipients of H-1B temporary work visas:
Starting salary figures, taken from final visa application forms sent to U.S. Citizenship and Immigration Services, are different from, and generally higher than, H-1B salaries that have been previously reported based on applications from firms to the Department of Labor, which are filed much earlier in the H-1B process. The relatively low average salaries for doctorate holders in the life sciences may reflect the common use of H-1B visas to hire for relatively low-paid post-doc fellowships.
The H-1B program may receive an overhaul later this year. Senators Richard J. Durbin (D-Ill.) and Charles E. Grassley (R-Iowa) have proposed reforms because of what they consider widespread abuse stemming from loopholes and (lack of) oversight regarding the H-1B program — at least in its current form.
In the 2008 presidential race, each of the front-running candidates — Clinton, McCain and Obama — are either "probably" or "strongly" for increasing H-1B visas, according to CNET.
While there are plenty of grounded opinions about the visas, both for and against, the same cannot be said for ideas on how to reform the H-1B process so that it gives companies access to the high-tech skills they need without reducing opportunities for American workers.
Resources
Science and Engineering Indicators 2008
National Science Board, January 2008
Outsourcing America's Technology and Knowledge Jobs
by Ron Hira
ShareProsperity.org, March 2007
Durbin and Grassley Introduce First Bipartisan H-1B Visa Reform Bill to Protect American Workers
United States Senator Dick Durbin, April 2, 2007
Current Cap Count for Non-Immigrant Worker Visas for Fiscal Year 2008
U.S. Citizen and Immigration Services
In '08 Presidential Race, Who's the Most Tech-Friendly?
by Declan McCullagh
CNET, Feb. 5, 2008
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10 CommentsRegarding the last sentence of the article, the Programmers Guild has proposed reforms that would both increase protection for U.S. workers and assure that companies can get the skills they need:
a) Only approve H-1b after the employer has performed a good-faith, transparent recruitment. This should eliminate H-1b usage by over 50%.
b) Require that H-1b are paid at least the average wage paid to Americans in the same job classification. This will cut into usage by bodyshops whose "business model" is to undercut American consults.
c) Rather than a lottery, give preference to the higher-paid H-1b candidates. Microsoft et al applications for "PhD Researchers" would all get approved - as would any "best and brighest" who was being paid accordingly.
Where is Compete America and Bill Gates on these proposed reforms, and what are the objections?
Of course engineer and other technical salaries go down when the H-1B visa cap is raised. This is twelfth grade economics. There is no shortage of engineers and scientists; just a shortage of engineers and scientists who are content to work for salaries in the H-1B salary range.
February 19, 2008 1:33 PMThe purpose of the H1-B visa program is to import Cheap Slave Labor. The employers do not pay prevailing wages. H1-B makes no sense if you do that.
The entire program is filled with fraud from start to finish: The people who claimed (under oath to Congress) that there is a shortage committed perjury. The people who claimed that no Americans would lose their jobs lied to us. The people who claim that prevailng wages are being paid are utter cynics.
The kids in college know what is going on. The H1-B visa program is the reason why we only have half as many Computer Science majors as we did 10 years ago.
If this was really about a labor shortage than why are salaries going down? The law of supply and demand state that when there is a shortage of supply or when there is an increased demand prices go up, not down. While much economic theory is questionable, this is the one economic supposition that is universally accepted as a fact. The only exception is when there is a lower cost alternative, equivalent supply, i.e. H1B.
Currently, I am ashamed to say, I work for Convergys in a call center for OnStar in the metro Detroit area. I know of a number people with engineering degrees who are taking calls for $11/hr with me because they have been laid off and can't find work. Does this sound like there is a shortage to you?
http://en.wikipedia.org/wiki/Supply_and_demand
February 20, 2008 12:05 AMThe numbers actually approved and the numbers of visas issued have been quite a bit above those numbers according to USCIS and State Department data.
H-1B visas approved (USCIS):
year Initial renewed+extended total
1999 134,411 na na
2000 136,787 120,853 257,640
2001 201,079 130,127 331,206
2002 103,584 93,953 197,537
2003 105,314 112,026 217,340
2004 130,497 156,921 287,418
2005 116,927 150,204 267,131
H-1B visas issued (DoS):
1996 58,327
1997 80,547
1998 91,360
1999 116,513
2000 133,290
2001 161,643
2002 118,352
2003 107,196
2004 138,977
2005 124,374
2006 135,861
The shortage of engineers and skilled technicians domestically in my view is superficial, because of low pay most of those seeking for the job opt not to apply and even prefer to work other jobs not their line while others are waiting for the opportunity to come their way thus creating a false impression of shortage. With this the employer can readily declare that there is really an actual shortage and opt to request H-1b visa for much cheaper labor to their advantage.
February 20, 2008 5:39 PMThey should drop any kinds of artificial quotas for the H-1B. We are driving talented foreigners away. This is a disaster caused by racists and bigots - the KKK/right wing of the GOP. What a joke. Thank God the time of Billy Bobb is coming to an end.
February 21, 2008 9:39 AMEmployers pay considerable fees to headhunters and other job service organizations for handling the H-1B Visa application process.
These organizations have offices in the country of origin of the foreign worker, approved applicants must often pay them a large up front "service fee" in their country before getting their immigration papers.
Therefore, prospective employers would actually save money if they would help their present employees or prospective employees to get the education needed to fill a specific position.
All skilled American workers must also realize that every job requires now lifetime continuous
education.
I challenge anyone to prove that more then 20% of all US corporations allocate an appreciable amount on the education of their employees and /or support local or state educational institutions with manufacturing and engineering programs. Do not include the funds provided for building a larger College football stadium!
It must be noted that CFO's are afraid to list employee education and training expenses as line items in their annual stockholders report. Stockholders would demand that management is to hire needed skilled workers via H-1B Visa or headhunters. Don't you dare to dilute my dividend by spending money on education!
February 21, 2008 12:24 PMActually, I don't think that anyone on this board really understands what is going on here. Our Congress and President on not on the side of the people. What we have here today is called fascism. H1B visas are just part of the fascists' agenda in Washington. We really need to wake up people and take back America. It is your right in America to work or start a business. This is a fundamental property right like freedom of speech. The federal government is importing workers to lower the labor cost for corporations. That is fascism. It's time to clean house in Washington. We, the people, will take back our country.
February 27, 2008 12:35 PMI run an engineering company. Quite frankly, the quality of applicants we get from within the U.S. is very low. Just because someone has an engineering degree does not make them qualified, it just means they managed to pass their classes by memorizing and in many cases by cheating. I found this out when I started giving out basic written tests for all applicants. In addition to being under-qualified, the US applicants demand ridiculously high salaries that would make it impossible for us to stay in business in today's competitive market. All I have read are complaints but none of the commentators seem to have any experience in hiring technical people such as engineers, chemists, etc...
March 3, 2009 3:03 PM
