Mass High Tech has an article from earlier this week concerning the reduction in requests for H-1B visas this year as compared to the same time last year (“Immigration lawyers: Market controls H-1B visas”). According to the article, during the first week of April 2008, approximately 163,000 applications for H-1B visas were filed (the government begins accepting applications April 1 of each year), but, as of April 9, 2009, only about 42,000 applications have been filed.
H-1B visas are the type of visas used by many tech companies to temporarily employ an alien in a “specialty occupation” that requires specialized knowledge with at least a bachelor’s degree or its equivalent (e.g. engineering, mathematics, computer science, medicine and health).
The MHT article also discussed, to my delight, how the market is a much better way to control the number of H-1B visas than arbitrary limitations imposed by legislators. As American Immigration Lawyers Association President, Charles Kuck, says in the article, “[t]his indicates that H-1B filings really do reflect the realities of the marketplace…[l]et’s let the marketplace do its job and regulate the numbers needed”. The libertarian in me says “Hear, Hear”!
Immigration, and, in particular, H-1B visas, have increasingly become hot-button political issues. In April of last year, U.S. Senators Durbin (D-IL) and Grassley (R-IA) sent a letter to the top 25 recipients of approved 2007 H-1B visa applications (most of them being tech companies), seeking detailed information on their use of such visas. The purpose of such information was to determine if the visas were being used for their intended purpose, as the senators raised concerns that the H-1B visa program allowed for the outsourcing of American jobs. More recently, Sen. Grassley sent a letter in January of this year asking Microsoft to lay-off its H-1B workers before laying off American workers. It has also been recently reported that the two senators plan to reintroduce legislation (which they have tried, and failed to pass in past sessions) to reform the H-1B visa program to require employers to make a “good faith” effort to hire U.S. citizens over H-1B visa holders (See “Grassley, Durbin plan to renew H-1B fight in Senate“).
However, as so often is the case, the politicians seem to disregard the importance of the H-1B visa program to tech companies during market up-ticks, and the trends of H-1B visa applications reported at MHT suggests that the marketplace does a far better job in the policing of its use than any legislators could hope to do in a timely manner. The libertarian in me also says “told you so”!
We plan on having Dana Bucin, immigration attorney at Updike, Kelly & Spellacy, post more about various issues/facts about immigration and H-1B visas and their effect on tech companies….so stay tuned to ConnTIP for more info!
- Gregg J. Lallier
Update:
Dana Bucin, Immigration Attorney at Updike, Kelly & Spellacy, P.C., writes:
In response to the U.S. restrictive (and sometimes prohibitive) immigration policy that artificially limits the number of foreign high-tech workers employed by U.S. companies, Microsoft announced the opening of a new research center in Vancouver, Canada.
Canada’s immigration policies are much more favorable to attracting skilled migrants. In its statement, Microsoft made it clear that its move to Vancouver “allows the company to recruit and retain highly skilled people affected by immigration issues in the U.S.”
This move by Microsoft came after several rounds of testimony before Congress by Chairman Bill Gates of Microsoft (see last testimony) in which Gates urged Congress to eliminate the artificial gap of 65,000 H-1B visas in favor of a more market-driven number that would reflect U.S. companies’ need to attract more foreign high-tech talent in order to compete in a global technology marketplace.
Congress failed to pay heed. The failure by Congress to reform the problematic H-1B visa program is indirectly benefiting Canada, encourages outsourcing, loses out on tax revenues from employing those foreign workers, and harms U.S. companies’ global competitiveness in the technology marketplace. Is this what Congress wanted?