The H-1B Visa Problem
Is increased immigration the solution to the U.S. talent shortage?
In the war for talent the topic of immigration has become a political hot button. On the one hand it is offered up as a solution to the lack of talent, particularly in the high technology sector. On the other hand, it is chastised as a villain taking lucrative jobs away from U.S. workers.
The truth, as always, is likely somewhere in the middle.
CEOs of many companies, particularly those in high technology, see the same pattern year after year. They desperately need to recruit high-level, foreign knowledge workers since universities in the U.S. are simply not graduating enough software programmers and computer engineers. In recent years high level executives from such tech giants as Sun Microsystems, Microsoft, 3com and Motorola have lobbied for a more generous and rational policy that would allow skilled foreign workers into the U.S. through the H-1B and L1 visa programs. Yet these efforts have so far failed to result in any significant policy changes.
Nothing seems to happen in Congress to boost the number of H-1B visas (which are 3 year non-immigrant visas that allow U.S. employers to employ foreign guest workers skilled in specialty occupations) which companies can use to obtain the skilled tech workers they need.
This year, demand was so strong for skilled foreign tech workers (especially from India, Pakistan, and China) that the U.S. Department of Citizenship & Immigration Services staggered its allocation period over one week ending April 7. Over 163,000 applications were received for just 65,000 H-1B visas. They were all gone within the first 24 hours.
While there are new attempts to fix the H-1B visa system, most experts don’t predict any changes soon. For instance, U.S. Rep. Lamar Smith (a Texas Republican) has recently proposed laws raising the annual H-1B limits from 65,000 to 195,000 in 2008 and 2009. However, in a Presidential election year and with the resulting political posturing over “illegal” immigration taking jobs from U.S. citizens the likelihood of any new immigration policy changes are not good.
The other side of the issue is that with the talent shortage becoming a global issue and increasing wage “normalization” in developing countries, many foreign workers are choosing to stay home. When you look at the cost of living differential between the U.S. and that of many developing countries it is a perfectly rational decision.
So where does that leave us?
It would appear we’re stuck with the current, dysfunctional system for at least another year, if not longer. Talent seeking companies will have to consider solutions other than increased immigration in order to find the help they need.
