AUSTRALIAN IMMIGRATION NEWS

US economy will enjoy major boost if cap is lifted on H-1B visas

Tuesday, 1 April 2008

Today marks the first day employers can apply for some of the 65,000 USA temporary visas for highly skilled foreigners available for 2009. But, this may also be the last day.

The available number H-1B visas has always run short of demand. In fact, just last April, when applications for this year came in, they exceeded the limit on the first day they were accepted.

This poses as a major problem for many high-tech companies, who consider this a crucial time in filling their need for programmers, engineers and such. This program is so oversubscribed that it is turning into a once-a-year lottery. Companies in the tech sector have vacancies they struggle for years to fill.

As Microsoft Chairman Bill Gates noted in his recent congressional testimony, this can cause withdrawal of job offers to top recruits who can't get in.

The USA is currently facing a highly skilled labor shortage, and the lack of H-1B visas – especially for those whose student visas are about to expire - are keeping the world’s best and brightest out of the country.

The skills shortage is due to the fact that too few Americans are going into scientific and technical fields.

Meanwhile, general unease in the USA about immigration and globalization is holding up much-needed efforts to help the nation’s companies that can't hire highly skilled workers because of the lack of visas.

It’s almost worrying for many economists to see what effect Americans’ anger and frustration over immigration and globalization can have in areas critical to the nation's future.

A study by a think tank on trade, immigration and education policy, the National Foundation for American Policy, says that the average high-tech company has 470 openings it can't fill, with Microsoft topping the list with more than 4,000.

Collectively, the members of the Standard & Poor's 500 have 140,000 unfilled openings for highly skilled workers.

These numbers have attracted the attention and support of President Bush and all three major presidential contenders, and them wanting the number of H-1B visas to be increased.

But currently, labor and anti-immigration groups in Washington are slowing the efforts to raise the H-1B cap, as well as to provide more permanent visas to highly skilled workers.

Many experts believe that in order to overcome this problem, the H-1B program should be both expanded and overhauled.

There has been a concern that some of these visas have not gone to highly qualified people, but changes can ensure that these visas only go to highly skilled people.

For instance, the obvious place to start would be with the 30,000 students on temporary visas who’ll get their masters degrees, and the 16,000 who’ll get their Ph.D.s, in science and engineering each year from American universities.

Not only have these bright minds been some of the most desirable hires on the planet, but also, many have been financially supported by government and private foundations. And yet, they’re still told to go home once they obtain their degrees.

Economist say that it’s in the USA’s best interest not to drive some of the best tech talent in the world away, effectively forcing them to work for overseas competitors.