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Let 'em in or keep 'em out?
There are few issues more sensitive than immigration, especially when millions of Americans are out of work. The Wall Street Journal points out that the US government has thrown up three new barriers to legal immigration.
One is that companies receiving bailout money face new hurdles to hiring skilled immigrants on H-1B visas. The second is a proposal to suspend an agricultural guest-worker program, known as the H-2A. Third, the State Department has asked seasonal employers, like hotels and resorts, to cut back on the use of J-1 visas to hire foreigners.
From the Journal:
With the unemployment rate at 8.1% and approaching double digits, the U.S. finds its longstanding quandary over immigration growing even more difficult. On one hand, fewer Americans have jobs and competition for available work is intensifying. On the other, the Obama administration says it wants to resist moves toward protectionism -- at least in the trade of goods and services -- and will push that view at next week's London summit with the leaders of the Group of 20 nations.
I'll be interested to see how Europe reacts. It's dealing with the same issue. See this press release from the European Parliament:
The contribution that immigrants make and have made over decades has been a crucial part in the economic growth of the EU. However, much of the labour came from European countries that were not part of the EU. Nowadays, immigrants often come from another continent and managing the political, cultural and social challenges ahead is a daunting task.
Next week, the US government starts taking applications on H1-B visas for skilled workers. It's widely thought that applications will be down this year, but immigration lawyers expect the 65,000 cap on H-1B's will still be reached. Some people argue, considering the economy, the cap should be reduced or H1-B's eliminated altogether. Let people come in through the regular immigration process.
That viewpoint from InfoWorld:
Microsoft, Intel, Hewlett-Packard, Motorola, and more recently Panasonic and IBM -- the flood of technology-related layoffs and firings isn't slowing and, sadly, is likely to continue for some time. Given that reality, isn't it time that the IT community speaks with one voice and demands that the government suspend -- or at least greatly reduce and reshape -- the H-1B visa program for the duration of the economic emergency?
Others argue that clamping down on H-1B's might actually exacerbate the recession.
From Forbes:
It is irresponsible to cut out talented people with valuable minds at a time when our country and failing businesses need it most... Minimizing an international mix of perspectives and minds in the workplace is the first step towards diminishing the opportunity to discover a solution, which might actually help us get out of this mess.
Both sides have a sound argument, but I have a hard time seeing this in black and white. We do need sharp minds at a time like this, but there are plenty of sharp minds sitting on the bench already, waiting for a chance to get back in the game.
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The argument that H1Bs are driving wages down or creating unemployment couldn't have been more inaccurate. Big brand companies like IBM Microsoft etc almost always pay higher than market wages. Even the Indian majors like Infosys, TCS pay higher than the prevailing wages. The only guys who pay less are the small body shoppers, but even in their case, the rate paid to these body shoppers by the big corporations who ultimately use the workers is much higher than the prevailing wages. Any recruiter will tell you that it doesn't make any economic sense to sponsor a H1B if you can find an American to do the job. The only people who want to prove otherwise, are either guys who have lost jobs themselves and are blinded from reality, or people with lesser knowledge of facts, numbers and plain economics. (for instance somebody stating that the Indian software companies pay less than prevailing wages which is absolutely untrue).
An organization facing closure will do what it takes to save itself. If it wants H1Bs to sustain US operations and cant get them, it will have no choice but to relocate to a low cost country, however unfortunate that might be (Like IBM announced yesterday). Sadly, some people will never understand globalization and they will be nowhere to be found (to support their unrealistic theory) when the above happens.
The average American is now used to sustained higher standards of living made possible by unrealistically high wages for their work levels. On the other hand the average H1B is used to comparatively lower wages in his home country and more importantly is much younger and aggressive with respect to his career. He is willing to do anything, move anywhere, work inhuman hours and sacrifice luxury. It is extremely difficult to compete with such guys, even if they are inexperienced to begin with.
It is sad that the focus right now, is on bashing the 500,000 highly educated H1Bs that are here currently, instead of being on the >11million illegals. The smart (and mature) thing for Americans to do now is to welcome foreign talent, because competition is what creates new, efficient and innovative companies. Instead of trying to protect the jobs going to H1Bs, the objective should be to keep creating even higher level jobs which require knowledge in newer areas. After all, what makes more sense? - trying to revive the low grade manufacturing sector (which has completely relocated to China) or focus on building advanced technology products which the US is best suited to do?
In this tough time, I personaly see that company and industry need skilled and intelligent workers. Also at the same time, every company being strict to their budget. These are the reason why every company having H1B/L1 Visa holder as one of their consideration.
My husband and I hold L1 and L2 Visa, when talking about job, we experienced that we are never be the top choice when compared to someone with the exact same skills and qualifications who was born in the US.
Compare to US Citizen's salary, my husband even get 20% lower.
In fact, we both pay the same local and federal taxes, etc.
My point is: I don't really mind if US government set a new rule as if for the better economy, my husband and I as an Immigrant feel so wondeful to hava a chance embracing this international work environment here, "in The Land Of Opportunity..."
Stop for a minute and check the label in your shirt, on your dvd player, with your grocery store produce. Did you appreciate that they are available to you at great prices made possible partly by "cheap" global labor? Or did you stand by your convictions and choose to buy only locally produced products, whatever the cost? The IT costs of a company are as big a factor as the costs of the "hands in the factory" in your final product prices. Lower costs mean lower prices for you.
The message delivered by your consumption drives the choices of your producers. Legislation will not change the basic facts of a shrinking world, a global economy, and technology that makes it unnecessary to co-locate workers to your neighborhood. In actuality, it is even cheaper to produce shirts and computer programs in India and just ship them to the US. We don't need any H-1B visas for that.
In response to SD's companys dilemma maybe the U.S. should concider pin pointing these areas where our workforce is deficient, and grant the visa to people in the areas most needed. I personally believe that the people coming in on these visas are not the problem. The biggest problem are the ones who come in illegally and take jobs and when not working get public assistance and medical that should be issued to our citizens who have fallen on hard times.
Europe and India have already acted to cut back on permission for people to enter to work.
We need to bring in brilliant people. Hardly any on E-3, F, H, J, or L visas are especially bright, and we're seeing hardly any "crucial" contributions by non-immigrants and immigrants. I could live quite well without MSFT HotMail and Bose speakers, for instance.
We don't need to increase communications problems by bringing in more people whose language, accent and dialect impair communication. After all these years, and several studies showing the harm it has done to US under-grads to have so many cheap foreign TAs you'd think this would have already been reformed.
And why is it the executives (business & academe) and the immigration lawyers are so resistant to conducting proper background investigations on visa applicants?
Why on earth would a company or organization go through the hassle of hiring a worker who needed an H-1B visa unless it absolutely had to? In many fields, there are simply not enough American-born individuals to hire. It's sad, but Americans simply are not going into the engineering fields at the rate American firms need them. To PP, the mother of three young adults: tell your children to go into engineering!
I am a transportation planner in a regional planning agency. We have had two open positions for transportation modelers for the past 2 years. We offer a competitive wage, but admittedly we are not in a very "sexy" location--we're in the suburbs of a medium-large midwestern city. Nearly all of the qualified applicants for this position have been foreign-born and would have required my agency to sponsor them for an H1-B application. Many of them had just received their engineering degree and were legally able to work in this country for up to a year afterward. However, given the cap on H1-B visas, my agency decided not to pursue hiring any of these people. It's too risky--we could have spent a lot of time training someone and then had their visa denied because they were in line behind the 65,000 other visa applications submitted on April 1. Last year, the H1-B quota was met in one day.
Instead, we have gone ahead and hired an American-born worker who was not qualified. He didn't even have an engineering degree, but had some statistics and computer programming coursework under his belt. We are taking another risk by spending several years training him in programming and modeling coursework, but at least if he leaves our agency, it's not because of some quirk of Federal immigration law.
By the way, we are still accepting applications for our other transportation modeler position.
I do see that you are taking a very fair look at the current situation. I do admire that, thank you.
As a legal alien who has been in this country for almost 13 years, i do have some opinions to share with you and the readers.
Keeping your integrity and fairness at times like this is crucial for the reputation of a country that laid its foundations with immigrants. If you change rules during the game, when the twix hits the fan; it says something very significant. H1B workers are never the top choice when compared to someone with the exact same skills and qualifications who was born in the US. They pay the same local and federal taxes, etc... And dont forget, there are a lot of H1B applicants who are US college grads. They are not mostly "let in" as they already are here...
During these tough times, having to be put in a position where one thinks "me vs. them" is understandable and not our fault but it is what it is...
These tough times require everyone hanging on and sticking together. Neighbors, friends, US citizens and non-US-citizens. Keeping the integrity is very important. When the US comes out of these tough times, and I know we sure will, lets keep our tracks clean and foot prints straight,
Love and peace,
A.
I have split feelings on this issue, since most of us are the descendants of immigrants. But I am also the mother of 3 young adults and I reject the notion that we have to import intelligence when we may not have given home-grown a chance. I suspect the visas are really an attempt to keep salaries low, but in this economic climate the homegrown will work for the imported salaries.
The only people that want the H1B Visa program to continue are the people that benefit from the cheap labor. If you speak to American IT workers, they will tell you that the H1B's are usually average or below average workers who are attractive to employers since they are willing to work for 20-30% less than American workers. I know it seems very hard to believe in this era of AIG, Satyam etc. but some corporations are less than scrupulous and are willing to "game the system".
The question remains, however, why so few journalists are willing to tell the truth about it. Could it be that they're scared of angering their corporate masters?
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