H-1B Visas Applications to Decline, Target Existing Workers
Applications for visas for highly skilled immigrants are expected to
decline due to the recession, but technology companies maintain that
foreign-born students represent a small but crucial part of the talent pool they
must tap to remain competitive.
The U.S. Citizenship and Immigration Service began accepting H-1B visa
applications for fiscal year 2010 on April 1.
There are 65,000 visas available
for foreign workers who have the equivalent of a bachelor’s degree. An
additional 20,000 are available for those who have obtained an advanced degree
from a U.S. university.
Last year, USCIS received 163,000 applications during the first week of
April. It resorted to a lottery to determine recipients. This year, the demand
is expected to drop, but observers predict that the visa limit will be hit.
The economy is affecting the way that companies are using H-1B visas. Many of
the applications will be for employees who are currently working but were denied
visas in previous lotteries, according to Robert Hoffman, vice president for
government and public affairs for Oracle and co-chair of Compete America.
The workers are holding jobs under an optional practical training
designation, which provides a 12-month bridge between a student visa and an
In many cases, Microsoft is applying for H-1Bs for workers who are currently
employed on L visas because they have transferred to the U.S. from a foreign
“What you are seeing is the program being used to meet different needs this
year than in previous years,” said Brad Smith, Microsoft general counsel, on a
conference call with reporters Wednesday, April 1.
The H-1B visas are coming under attack, however, as the country grinds
through a severe recession. Microsoft plans to lay off as many as 5,000
employees, or 5 percent of its workforce.
Similar cuts at many other companies are raising economic anxiety and
contributing to the backlash in Washington against H-1B visas, which detractors
say deny opportunities to American workers and reduce salaries.
As part of the massive stimulus package, Congress imposed additional H-1B
rules on companies that receive federal bailout funding. They will be forced to
meet the same standard of proof showing American workers are not available that
companies must fulfill when a majority of their employees hold H-1Bs.
In addition, Sens. Richard Durbin, D-Illinois, and Charles Grassley, R-Iowa,
are expected to reintroduce a bill that would place the so-called H-1B-dependent
requirements on all companies that use the visa.
H-1B workers constitute a minuscule portion of employees at U.S. companies,
Smith said, but their skills are critical to helping Microsoft achieve product
The U.S. does not produce enough scientists and engineers to meet the demand
of the tech sector, according to Smith. He cited a 2006 study that showed that
61 percent of computer science Ph.D. students in the U.S. were
“We are going to need to continue to bring in that kind of extraordinary
talent,” Smith said. “We’re not talking quantitatively about a large number, but
we are talking qualitatively about people who boost economic
H-1B opponents assert that using the visas is especially galling this
“During the down times, you get to see the absurdity of industry clamoring
for H-1B visas in a recession,” said John Miano, founder of the Programmers
Guild. “It’s cheap labor in good times or bad.”
But a study by the National Foundation for American Policy shows that for
every H-1B position another five jobs are created.
Hoffman disputes the notion that a gain in H-1Bs is a loss for American
employees. “These are visas that work to complement the U.S. workforce,” he
Top H-1B Visa Employers in 2008
• Infosys Technologies: 4,559
• Wipro: 2,678
• Satyam Computer Services: 1,917
• Tata Consultancy Services: 1,539
• Microsoft: 1,037
• Accenture: 731
• Cognizant Tech Solutions: 467
• Larsen & Toubro Infotech: 403
• IBM India Private Ltd.: 381
• Intel: 351
• Cisco Systems: 422
Source: National Foundation for American Policy (www.nfap.com)
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