On April 1, the US Citizen and Immigration Services will begin accepting applications for the coveted H1-B visas that will let high-skilled foreign workers hold jobs in the United States in 2013. In the past few years, high unemployment rates in the US have prompted criticism of the visa program, which allows the hiring of as many as 65,000 foreign workers.
That cap has not been raised for 2013, though the application fee hikes will remain in effect through Sept. 30, 2014. Beginning in 2010, a new law required the submission of an additional fee of $2,000 for certain H-1B petitions and $2,250 for certain L-1A and L-1B petitions.
Last year, the H1-B visa cap for 2012 was reached in November. That was slow compared with previous years, when the cap was reached within days.
The visa awards may be less controversial this year, because unemployment rates appear to be falling. The Wall Street Journal reports that the number of US workers filing unemployment claims has fallen to its lowest level since 2008.
Initial jobless claims fell by 5,000 to a seasonally adjusted 359,000 in the week ended March 24, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires had forecast that claims would increase by 2,000.
The prior week's figure was revised to 364,000 from a previously reported 348,000. Labor made its annual adjustment to seasonal factors this week, causing revisions to claims data back to 2007. As a result, recent weeks' figures were adjusted up...
Still, the unemployment rate remained high last month at 8.3% and may decline only gradually.
There remains a disparity between the needs of the US manufacturing industry and the skill level of available workers. Yesterday, I cited a survey by the manufacturing consortium Prime Advantage that said manufacturing companies are struggling to fill open positions. (See: Midsized Manufacturers Upbeat About 2012.)
Fifty-seven percent of the survey respondents said they had unfilled positions (more than double last year’s 23 percent). And 65 percent of respondents with open positions cited the inability to find skilled workers locally as the main reason for this problem. Competition for talent and labor force immobility were also cited as causes.
One reason for the disparity might be a gap between the skills required in the manufacturing workforce. To cut costs and compete with low-cost foreign labor, US manufacturers have been investing in automation. Although people are required to operate the machines, specific training is required. Prime Advantage reports that companies are investing in training and retraining employees. As a long-term solution, respondents emphasized promoting manufacturing as a strong career choice in local educational institutions.
H1-Bs have always been a hot button in the high-tech industry. Proponents argue that the visas are good for the industry, because they bring specialty skills into the US. Opponents argue that they displace US workers who need jobs. What has been your company's experience in finding workers? Has it hired foreign workers to work in the US?
Flyingscot, I think government or companies have to provide continuous education to upgrade the employee’s skills. US is one of the nation having highly educated citizens, but why they are lagging in skills. It implies that once you got a job, there after we are not showing any interest in skill updation. If we are able to generate those talented employees, then there won’t be any need of foreign employees in US.
I don't think it's a good idea to apply a cap to the overall number of visas that can be issued in a year. It's better that the cap is placed on the number each industry can have. In some industries there may be acute shortage of labor so the cap can be raised while in others there might be abundant supply of local labor so the cap can be lowered. US will be in a better position to manage their labor demand and supply through this and also handle the unemployment rates more efficiently.
"It is very difficult to find US nationals with the right skills."
You are so right. All that education, you would think those US nationals could learn a few new things, but, no, you are right, it's like reading a book to a billy goat. I'm surprised they can even find their way to work in the morning. I heard from reliable sources, however, that there are some encouraging signs US nationals will start getting smarter and more appealing to employers as their relative pay differential decreases further.
In electronics and other high tech fields there are many foreign workers in US companies. It is very difficult to find US nationals with the right skills. I am surprised there are only 65k H1 visas per year.
@RichardK: Thanks for your thoughtful comment. Your points have also been brought out by several communications EBN received by e-mail that I will use as a basis for a follow-up article. The issue of H1-Bs being used to bring in workers who are paid less than US counterparts continues to be a problem.
I also agree that the gap between US unemployment and number of available workers is a story within itself. Electronics companies used to measure the skill set in the industry by the number of EEs US universities turn out and that is no longer the correct measuring stick. Design and manufacturing are two different things and require different skill sets. Its possible mechanical engineering is a better measurement but that is something I will need to check on, or if readers have a better idea, we'd love to hear from you.
"The fall in claims may also be due to the fact that people no longer apply for jobs because they are fed up to be told that they don't have the skills companies need."
Initially I was going to argue your point, but then I thought about how reasonable it is to think that the US skill set and all of the US's abilities have flown out the window and disappeared overnight, so I decided not to attempt to challenge the logic and power of your hypothesis.
Since they are issued for highly skilled employment, one could also argue that the economic impact (assuming that a domestic worker could have been placed in the same capacity) is disproportionate to the number of visas issued.
It is my observation that many a engineers from India who go to US for further studies finally end up taking Finance jobs. So the original skill sets by which they enter US is not utlised at all.
Such migration from an engineering career to a non engineering career defeats the basic purpose for which they got entry into US
May be US immigration laws should impose some restrictions of alloting H1-B visas to such cases thereby ensuring that the visas are used for the right purpose.
"The fall in claims merely indicates (and I emphasize the word indicates) that the pool is not growing as fast as it did previously. "
The fall in claims may also be due to the fact that people no longer apply for jobs because they are fed up to be told that they don't have the skills companies need. But globally it is good indication that the economy is recovering.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
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.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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