More Skilled Foreign Workers Shun U.S.
kiplinger.com
More Skilled Foreign Workers Shun U.S.
The weak dollar and tough immigration rules are taking a toll on the ability of U.S. firms to lure and keep proficient workers from abroad.
By Andrew C. Schneider and Richard Sammon
April 29, 2008
Skilled foreign workers are increasingly bypassing the U.S. for brighter opportunities in Canada, Australia, the U.K. and other nations. As a result, American employers face growing shortages of engineers, IT professionals, doctors, nurses and other talented technicians.
Blame some of it on the weak dollar. The greenback's declines mean many workers can do better earning other currencies, which are worth more when they send part of their paychecks home to their families.
Tight visa caps are also a deterrent. The 65,000 annual quota for H-1B visas for skilled workers is usually filled in a day, and political pressure has prevented Congress from boosting it. Canada, Australia and the U.K., in turn, have adopted a far more attractive system that awards points toward citizenship for higher education and work experience. That is a potent draw for migrants from South Asia and the Philippines. Meanwhile, Spain, Portugal and Italy are opening their doors wider to trained migrants from Latin America, building on cultural ties.
Still other foreign workers are heading home, drawn by better prospects in their own economies, which are growing rapidly. Many Indian professionals began the trek while the boom was still on, as the Indian economy blossomed and new opportunities developed there. Now, similar attractions are luring Brazilian immigrants away, drawn by the strong real and propelled by the loss of U.S. building jobs.
On the other side of the ledger, the weak dollar and another visa category are helping attract foreign investors. Congress this year will expand a program allowing visas and a fast-track path to permanent residency and ultimately citizenship for foreign investors willing to open their wallet.
The cap on EB-5, or investor, visas will be raised from 10,000 to 15,000 per year. They are awarded to foreigners who invest at least $1 million in a new or existing venture and create a minimum of 10 direct or indirect jobs as a result. The minimum investment drops to $500,000 if the investment is in an underemployed or distressed area or in an existing business, such as a restaurant or manufacturing firm, which has reduced its workforce due to economic conditions.
The low dollar makes this a good deal for those who invest in businesses that have a lot of exports. The investor visa program, also known as an "employment creation" visa, was started after Canada created similar visas in the 1990s. These visas were aimed at investors from Hong Kong looking to set up shop in Canada as China was preparing to regain control of Hong Kong from Great Britain.
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