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How H-1B workers affect U.S. jobs
Cover of "The Services Shift: Seizing the Ultimate Offshore Opportunity" by Robert Kennedy
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TEXT OF INTERVIEW
Renita Jablonski: Today is the day U.S. companies can tell their immigration laywers to file for H-1B visas. These are the visas for highly-skilled foreign workers. University of Michigan Business Professor Robert Kennedy is with us now. He happens to be in India on a student recruiting trip, where a good chunk of these workers come from. Professor, what's the tone around the application process this year?
Robert Kennedy: There's a big political backlash this year, largely because of the financial crisis. And there's kind of, you know, globalization backlash, against NASA, against China imports and against, you know, bringing in foreign workers into the U.S.
Jablonski: Part of that includes critics who called the H-1B visa program a real obstacle to Americans getting jobs during this very tough recession.
Kennedy: Yes, that's true, I mean that criticism's out there. But there's a lot of reasons to think that there's not a lot of displacement going on. First of all, the fairly complicated procedure -- you have to file, you have to wait a few months to get approval. There's, you know, many, many times more applications then there are approvals -- there's about 65,000 permitted per year. But this is only one-twentieth of 1 percent of the total U.S. workforce.
Jablonski: Complicating things this year is a provision in the legislation around the bank bailout money that says financial firms that take government funds are restricted from hiring H-1B visa holders. I'm wondering if foreign workers are right now discouraged by this type of thing or if some of the protectionist sentiment that's out there right now.
Kennedy: I think there's a bit of that. And there's two ways to look at this: one is actually applications for H-1B visas, and I suspect that there'll be a small decline in the applications. A different way to look at it, though, is we're in the middle of admissions season in graduate schools. I'm a professor at Michigan's business school, the Ross School, and we're actually seeing a decline in all international applications across the board. And they're quite worried that they're going to go and spend $100,000 on an education and then not be allowed to work.
Jablonski: Robert Kennedy is the director of the William Davidson Institute at the business school at the University of Michigan. His new book is "The Services Shift: Seizing the Ultimate Offshore Opportunity." Professor, thanks so much.
Kennedy: OK, thank you.
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My comments here are unbiased:
I am a H-1B worker.
The company I work for has about 70-80 employees on the floor, with an estimated 80% American workforce.
The rest are a few Asians, Indians and Eastern europeans.
Some of the Americans are cracking good. But out of the 5 technical bosses for different projects, only two are American.
My American colleague (we are both DBAs supporting different projects) is faster but works for about 5 of the 8 hours that he is supposed to work. He comes is anywhere between 9 - 10, goes out for lunch at 12, comes back at 2 and again vanishes at 4, comes back at 5 and leaves at 6.
It's a 100K job with benefits btw. Before I came in, they had a problem that was unsolved for 3 months. Turns out it took me 2 days, no offense but he wasn't thinking out of the box to solve it and it required a solution like that. A skilled H-1 increases competition.
Now for the obvious, most H-1's (a high % of Indians) over the last few years are utter shite and I am Indian. They have no skills, refuse to live the American life and guard their money like a golden pot. They only buy Japanese cars. I hate them for it.
Hey Ken,
Small correction, it was not a recession, but catastrophe, Made in US of A & exported to rest of world.
Remember "your" wall Street exported more CDOs and MBS to third world countries in percentage terms than whole USA (I can find exact figure if you want). Now you are responsible for fixing their economy too. You break it, you own it and you fix it.
Wait Wait I hear something, you want India to buy American Weapons and reactors? China should spend more money? Still stop H1B? Why always everything on your terms? I repeat, Why always everything on your terms?
You've promoted capitalistic model for world trade, noW why dictorship for on same? Reform your banks before world trade (H1B workers are service providers).
Capitalism is all about competition.... Two words, "Cheap" and "Efficient". American degree sounds great... but companies do find you comparatively expensive or less efficient. Not enough bang for buck!!
If not H1B, get ready to outsource. Equation is simple.. at least H1B will pay taxes in USA and help local economy.
Lets scan WTO charter to figure out if H1B is legal or not? If not, then let's impose same decision on Middle Eastern Oil and East Asian goods coming to USA. It will help American Energy and Manufacturing industry. Suddenly all Americans will be forced to buy 100K electric cars and $200 jeans made in USA. It will definitely benefit local economy and create jobs.
Do you agree?
PS: Who wants to sponsor my H1B? I can help create some jobs in USA. Na I know you wont believe me. Poor me I'll have to remain in third world country feeding myself on jobs outsourced from America, that ideally belongs to some intellectually superior American.
Lucks Sher, Sounds like you've been listening too long to the business lobbyists and immigration lawyers. Foreign workers are not going home because of American "xenophobia", as you are implying. There's something called a "recession" going on, thereâ??s fewer jobs, and fewer need for foreign workers. Basic supply and demand, Iâ??d expect someone with your superman intellect would know that already. Oh where would we be without you and your colleagues???
So the H-1B lowers wages, thats good for business keeping costs down. American students are smart enough to know that engineering science and math are low wage occupations that are better done by people from less affluent countries. The "free market" people want to tell you that by artificially lowering the price of a commodity(tech labor) this will discourage production(american students) I say so what? Americans have plenty of other fields that pay much better with less work. Only a fool would let there children go into tech work. Might as well get a degree in cartooning. I have two engineering degrees, I own a dominoes franchise and make twice the average engineers salary, engineering is a dead profession in the USA, bury it, it's starting to stink.
Still worried about sending H1B worker back home?
Guess what? They are leaving and so are American jobs....... Properity attracts talent and talent brings more prosperity.
Anyway, your misconceptions definitely won't go away by my little talks. See my messages from past... and continue saying goodbye to your prosperity.
Just an advise,
Bring more workers and investors from Rest of World & American economy will have a chance of revival. Paper money has already poof'ed into thin air.
If not, your choice, be prepared to replace Mexicans in your gardens and restrooms, coz it is still unlikely that you get jobs that H1B guys are/were doing.
Finally, please continue cribing and shouting about H1B workers. You still have loud voices as compared to others in this world.
Good luck!!!
Hm, in 2004 after 10 years of INS and not being able to settle down, I went home to the north shore. The employer wanted me to take my job with me while they tried to find a replacement for the 6 digit salary. 4 1/2 years later they found someone else, another H1B. LMAO. Even has my email address for which I return my consulting rates.
The real problem is lazyness. People who do not invest in themselves, get corrupted by booze, drugs or get off on dysfunctional politics as a career skill. Ever notice how technical people have 4 to 10 bosses and no skilled help? Ever been to those corporate meetings where 14 show up and only one actually knows how to turn the screws?
Dear American People,
You have forgotten how this country had been created. Immigration is good for the country and that's is the reason why Companies in the USA hire "WELL EDCUATED AND TRAINED PEOPLE" -
America is and will be a country of immigrants.. Wheather you LIKE IT OR NOT.
Ask to yourself what can you do to be better in life instead of critizing good inmigrants..
ASK YOURSELF WHAT CAN I DO TO IMPROVE MYSELF MY EDUCATION MY COUNTRY.
-Good luck.. and remember ... USA is a country of inmmigrants..
I’m an over 40 white male and used to have a good paying I.T. job with the state but lost it in '07. Many of the jobs there were being filled by women, Canadians, and people from India. I guess it doesn't matter that I paid taxes all my life, have a contemporary degree from a quality American university, and work very hard to do a job efficiently and effectively. So much for the “American dream.â€
Hi! I am an unemployed pharmacist and could not disagree more with you! The H1B pharmacists recruited by the chains have no problem standing for 14 hours without a break and dealing with abusive patients and store managers. Most have a limited command of our language. I think they should all go home, and fast!
Hire foreigners in the US with a US degree. What is the point in bringing in foreign workers who do not have any US degree. These workeers are being exploited by being brought here and getting paid low salaries than American workers. Hire foreign born workers with US degrees only. That is what congress must do.
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