Thread: The H1B Visa Sham

The H1B Visa Sham

By John Miano
CIS.org | Monday, June 23, 2008

Summary
As the annual H-1B quota gets exhausted, industry groups claim that the huge number of H-1B visa applications demonstrates that more H-1B visas should be available. However, comparing the number of H-1B visas in their largest represented occupations (computers and engineering) to the number of jobs created in those occupations presents a different picture of the H-1B visa program. This study examines the relationship between the number of H-1B visas and job growth. It finds that the number of H-1B visas approved in these fields greatly exceeds any reasonable number reflected by economic demand.

Key Findings

There is no cause and effect relationship between H-1B visas and job creation. Adding H-1B visas does not create additional jobs for U.S. workers.
Since 1999, the United States has approved enough H-1B visas for computer workers to fill 87 percent of net computer job growth over that period.
Since 1999, the United States has had a net loss of 76,000 engineering jobs. Over the same time period, the United States has approved an average of 16,000 new H-1B visas each year for engineers.
If current employment trends continue and the H-1B quota remains unchanged, the United States will approve enough H-1B visas for computer workers to fill about 79 percent of the computer jobs it creates each year.
Pending legislation would increase the number of H-1B visas for computer workers to above the number of computer jobs created each year.
The data suggest that a large percentage of those who legally enter United States on H-1B visas go into the illegal alien pool.
Background
H-1B is a non-immigrant, employer-sponsored guest worker visa that allows people in to work on a temporary basis in the United States in an occupation that generally requires a bachelor’s or higher level of education.1 H-1B visas are used for people with in a wide range of fields. However, workers in computer and engineering occupations receive the majority of the visas and the H-1B program is most closely identified with technology occupations. In general, one can remain in the United States for up to six years on an H-1B visa. An H-1B visa is valid for up to three years and can be renewed once. A worker on an H-1B visa can change jobs and transfer the visa among employers.

The focus of most debate on the H-1B program has been the number of visas available. Each year since 2004, the annual visa quota has been exhausted. Some critics claim that exhaustion of the quota shows that it is not large enough due to a shortage of workers.2 Others, including this report, argue that H-1B usage does not reflect the need for workers.

The number of visas available has changed substantially over the past decade. Up until 1998, there was an annual limit of 65,000 H-1B visas. From 1998 to 2004 Congress enacted several changes to this limit. In 1998, the limit was temporarily expanded to 115,000 through FY 2003. That temporary increase was increased to 195,000 in 2000. Also in 2000, visas to government and non-profit research laboratories and to universities were exempted from the annual limits. In 2004, Congress approved another 20,000 H-1B visas for those with graduate degrees from U.S. universities.3

Under the current law, the number of visas is:

65,000 in the general pool.
20,000 to those with graduate degrees from U.S. universities.
Unlimited to non-profit and government research laboratories and to universities.
Figure 1 shows how the number of approved new H-1B visas (not counting renewals and transfers) has changed with the statutes.



There are several bills pending that would increase the number of H-1B visas. Most of bills are extremely similar in their text, suggesting a common origin. The common features include a large increase in the base H-1B quota; a “market-based limitsâ€

forwarded to all of my friends and family... it's time to put the politicians on notice

Good info thats for posting