A decade ago, the high-tech industry was clamoring for a higher cap on H-1B visas -- a specialty visa that allows high-skilled foreign workers to hold jobs in the US. Currently, the US can allow 65,000 foreign workers to reside and work in the US for up to six years. The tech industry used to think that number was too low, and almost annually would lobby to increase the cap.
This year, as of April 1 -- the date the US begins to accept petitions for the fiscal year beginning October 1, 2012 -- only 8,000 workers applied for H-1Bs, according to US Citizenship and Immigration Services (USCIS) statistics cited by the The Wall Street Journal. That compares with 16,500 petitions in April 2010 and about 45,000 in April 2009, according to USCIS.
In 2008 and 2009, the 65,000 quota was filled within days, according to the WSJ.
The lack of interest in H-1Bs is surprising, even if tech jobs in the US are hard to come by. H-1Bs are set aside for jobs that can't be filled by a US applicant, and the application process is rigorous. Theoretically, these jobs seek the best of the best and have vigorously been defended by the tech industry whenever efforts to reduce the cap arise.
The WSJ article goes on to analyze some of the reasons behind the trend:
Several factors have contributed to the decline in H-1B visas, including the lackluster pace of the U.S. recovery, more opportunities for skilled workers in their home nations and higher visa fees, which appear to have spurred Indian companies operating in the U.S. to seek fewer visas. Attacks on the program by congressional foes of U.S. immigration policies have also cast a shadow over it.
Ouch.
H-1Bs have always been a hot button in high-tech. Proponents argue they are good for the industry because they bring specialty skills into the US. Opponents argue they displace US workers that need jobs. But if foreign workers are content to stay put, there's a bigger issue at hand.
The electronics industry is playing on a global stage, and the competition for talent is now worldwide. The tech industry is still a growth industry -- recent financial results have been strong, demand for electronics continues to be high, and companies are hiring overseas.
So the issue doesn't seem to be with high-tech -- it's high-tech jobs in the US. If the US is no longer attractive to talented professionals, the problem is policy, not industry. And policy is no longer working for high-tech.
this is a great Arcticle, my company sponsored the H1-B / L1-B Visa for me back in 2001, due to lack of expertise of the lawyer, the time expired and I was hire back in the manufactuing site, I had a great time living in the US, but there's no place like home.
H1-B, L1-B, TN ---- the US goverment should bouble the Qty offered, if the local Engineers are not willing to step up for high tech open positions.
In my opinion H1B Visa are never utilized properly by the companies. Mainly IT comapanies in USA have only tried to recruit low cost work force using this. It would have been utilized well only if the H1 VISA's are provided to only few US comapnies in different sectors like engineering, IT and Banking to recruit the full time employees. This would have helped to keep it transparent to both the candidates and the companies.
In my opinion H1B Visa are never utilized properly by the companies. Mainly IT comapanies in USA have only tried to recruit low cost work force using this. It would have been utilized well only if the H1 VISA's are provided to only few US comapnies in different sectors like engineering, IT and Banking to recruit the full time employees. This would have helped to keep it transparent to both the candidates and the companies.
Dave, I think the issue with H-1B visas lies n the companies that brought in the employees under this visa. If I may be right, they are responsible to comply with all applicable laws and regulations aand if they fail, they should be brought to justice. As long as the provision of law allows H-1B visa, there is no fight about it but the watchdogs should do their jobs as stipulated in the guidlines.
"The dream of shooting back ahead I believe starts with re-organization of our priorities and taking the time to have meaningful debates towards developing and implementing appropriate policies."
Infusing a bit more positivity into the proceedings won't harm anybody,would it?
Dave, Amen, amen about the IEEE. It seems to me, since for most of its life a big chunk of the IEEE's members have been sponsored by employers, that the IEEE represented industry, not members. They've run into criticism over that many times going back decades. They pretty much ignored it, it seems to me.
There have been approximately 100 proceedings against employers for H1-B violations (including fraud) prior to January, 2009. The vast majority of these were conducted under the kangaroo court called the "Department of Labor Administrative Law Judge" system. I saw a spreadsheet from the DOJ (US Department of Justice) which said that 18 or so companies had been "sanctioned", and that the most common sanction was a fine of around $700 and having the company involved banned from the H1-B visa program for a period of time.
This is obviously a joke, for the following reasons:
1. If you are saving $40,000 per year by hiring an H1-B worker, then $700 is not remotely a deterrent. It is a parking ticket.
2. If your company is banned from importing H1-Bs, you simply set up another company with a different name, and you're back in business, with a clean slate.
Given the nature of the "enforcement system" that the Department of Labor has set up, they must either be incredibly stupid or on the take. I believe that they have accepted bribes in exchange for non-enforcement of the H1-B rules. (I also do not expect them to sue me for saying such a thing, because of two words: Discovery Proceedings. If you guys sue me, then my team of highly talented hackers will be rummaging through your e-mails and you will be legally prohibited from stopping them. Do you feel lucky?)
Since the elections of 2008, the combination of high unemployment and the increasing willingness of the anti-H1B movement to apply whatever political pressure is required has caused some of the more extreme cases of fraud to be prosecuted by actual Federal Prosecutors. To date, a couple of dozen people have spent a little bit of time in jail. In most cases, they were able to make bail the same day.
I would characterize this as "teeny, tiny steps in the right direction."
My attitude is as follows:
Anybody who is in favor of H1-B is an enemy of the United States.
Anybody who is in favor of H1-B is an enemy of the American people.
Anybody who is in favor of H1-B is an enemy of me.
I want the H1-B employers to go to jail, and I want the executives of the jobs shops to spend the rest of their lives in Guantanamo, along with the other enemies of this country.
Finally, I would like to remind everybody reading this that I was the winner of the Republican primary election for US Congress in PALO ALTO. There are a lot of people in Silicon Valley who agree with me.
-Dave Chapman
p.s. The only case of an H1-B actually being deported that I know of involved an H1-B in Southern California who murdered his girlfriend. I am unaware of any cases where an H1-B was deported for being unemployed.
Has there been a prosecution or investigation of H-1B abuses? I'm genuinely curious. Are the consequences deportation for the employee, or the company that hires them?
"It seems to me that some of the critics of the H1B visa program should be aiming their criticism at the companies that abuse the regulations rather than at the program itself."
I do not agree.
It seems to me that when you are confronted with an organized system of immigration fraud which has already cost 900,000 Americans their jobs, then there is LOTS of blame to go around. I blame the following people:
1. The employers, whose desire for cheap, compliant workers is the root of the problem.
2. The jobs shops, whose willingness to commit fraud on behalf of those corporations which did not want to get their hands dirty by actually filling out the H1-B paperwork makes them guilty of obstruction of justice, in addition to immigration fraud.
3. The news media, whose uncritical repeating of idiotic phrases like "the best and the brightest" and "shortage of computer engineers" has polluted the public discussions of this matter.
4. Anna Eshoo, Zoe Lofgren, and Dianne Feinstein, who sponsored the H1-B legislation in 1999 and 2000.
5. Bill Clinton, who signed it.
6. The other politicians who voted for it.
7. The lobbyists who gave bribes (I mean campaign contributions) to the above persons.
8. Organizations like the IEEE, who allowed political correctness and their foreign members to prevent any meaningful discussion of H1-B, even as thousand of American IEEE members were expelled from their careers.
9. Various academics, who allowed their names to be attached to phony papers asserting that there is a "STEM shortage" or a "PhD shortage", even as recent college graduates in Computer Science are flipping burgers or working at Wal-Mart.
There is plenty of blame to go around, and I do not think that anybody should be given a pass.
I want 1% law enforcement: Since 900,000 Americans have lost their jobs because of H1-B fraud, I want 9000 Americans to go to jail, and I do not want them to be allowed to hire some Indian to go to jail instead.
Apparently, a lot of people agree with me. I won the Republican primary when I ran for Congress last time (14th California: Silicon Valley North).
If I get into Congress next time, may God have mercy on the H1-B advocates, because I shall show them none.
"It takes a long,long time for a super-power to decline(after the decline has noticeably set in).Also,its not an irreversible process.With the right set of policies in place America can shoot right back way-way ahead of the rest of the competition."
Thanks, I do appreciate your sentiments and patrotism! I am deeply concerned for the continued decline in the American education, divisive partisan politics and deep division of the populace. I agree that maybe not all techies will go looking for jobs overseas, but will the jobs still remain here?
The decline of US as a superpower has been on going for many years now. It was a slow decline at first, but it kicked up speed at the end of the 90's and those who were to put in policies did not understand what was going on neither did they listen to those who knew.
Even now, we are still debating trivial things and not gutsy enough to make bold strategic decisions. We spend reasonable time on the birth certificate of the president and listen to empty heads like Palin. The dream of shooting back ahead I believe starts with re-organization of our priorities and taking the time to have meaningful debates towards developing and implementing appropriate policies.
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Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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