Category Archives: Immigration Blog

Immigration Blog

Understanding the Potentially Decades-Long Waits for Indian Professionals in the Most Common Employment-Based Green Card Category

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Today, hundreds of thousands of highly skilled foreign nationals, particularly Indians, are languishing in immigration backlogs, waiting years for the chance to obtain permanent residence (also known as a green card). The lack of employment-based green cards harms the competitiveness of U.S. employers and exacts a large personal toll on those who must wait.

Understanding the Indian Green Card Backlog

The long waits for employment-based green cards are caused by two primary factors. First, the 140,000 annual quota is too low to accommodate the number of skilled foreign nationals able to be absorbed successfully in an economy the size of America’s. The 140,000 annual limit includes both the principal and dependent family members. For example, in 2009, dependents utilized more than half of the slots for employment-based visas – 76,935 of 140,903.

In addition to the 140,000 overall annual limit on employment-based green cards, there is also a per country limit, which has a disparate impact on immigrants from countries with a large population of highly educated professionals, particularly India and China. The Immigration and Nationality Act, in Section 202(a), details the per country limit: “[T]he total number of immigrant visas made available to natives of any single foreign state . . . may not exceed 7 percent . . . of the total number of such visas made available under such subsections in that fiscal year.” That would limit employment-based immigrants from one country to approximately 10,000 a year (out of the 140,000 quota), although another provision permits nationals of a country to exceed this ceiling if additional employment-based visas are available. Still, in general, in the most common employment-based category, fewer than 3,000 Indians per year can immigrate.

The Indian Backlog in the Employment-Based Third Preference (EB-3)

The reason Indian nationals will continue to wait a long time for employment-based green cards in the employment-based third preference (EB-3), the most common employment category, is the demand for their labor combined with the per country limit has created a large Indian backlog.

The backlog of Indians in the employment-based third preference could be as large as 210,000. One can estimate the backlog of Indians in the EB-3 category from available data. Earlier in 2010, the U.S. Department of State listed 49,850 Indians on the waiting list in the third preference category with a priority date prior to January 1, 2007. Priority dates normally coincide with the filing of a petition or of labor certification, an early stage in the employment-based green card process. However, that 49,850 figure does not include all the cases at various stages in the process at U.S. Citizenship and Immigration Services with a priority date prior to January 1, 2007. Rounding that figure upwards would get to at least 60,000 (and it could be higher).

To reach another 150,000 Indians for fiscal years 2007 through 2011 requires only about 15,000 individual Indian professionals sponsored for green cards each year for 5 years, with each averaging one dependent, another 15,000, for a total of 30,000 a year for 5 years or 150,000. To illustrate why an estimate of at least 15,000 Indians sponsored for green cards annually in EB-3 is reasonable, consider that 61,739 new H-1B petitions (for initial employment) were approved for Indians in FY 2008, and 33,961 Indians were approved for new H-1B petitions in FY 2009. A large proportion of H-1B visa holders are sponsored for green cards. In addition, employers frequently sponsor for green cards skilled foreign nationals already inside the country in another temporary status, such as L-1 (for intracompany transferees). Attorneys estimate 20 percent of those waiting for employment-based green cards are in a status other than H-1B.

Backlog is Large and Few Are Removed From Backlog Each Year

With no change to current law, an Indian-born professional sponsored today could wait decades for an employment-based green card. Due to the per country limit, generally no more than 2,800 Indians can receive permanent residence in the EB-3 category each year. Indians averaged fewer than 3,000 green cards annually in that category in 2009 and 2010, according to U.S. Citizenship and Immigration Services.

If, as discussed above, the potential backlog in the EB-3 category is 210,000 for Indians (principals and dependents) and 3,000 or fewer Indians can receive permanent residence in the category each year, then that means the theoretical wait for Indian professionals sponsored today in EB-3 is 70 years.

Nobody Will Wait 70 Years for a Green Card

In practice, no one can wait 70 years for a green card. That holds important implications for whether highly skilled foreign nationals from India will be able to stay long-term in the United States without changes to the law. Foreign nationals would have concerns that children included as part of the immigration petition would “age out” and not be allowed to become permanent residents. Moreover, generally speaking, spouses are not able to work. The numbers provide an illustration of how long the waits for permanent residence could be absent action by Congress. Eliminating the per country limit for employment-based green cards and raising the quotas for skilled immigrants will have a significant impact on reducing the time Indians wait for green cards.

Immigration Blog

New Survey: Indian Graduate Student Enrollment in U.S. Not Growing, While Enrollment from China Grows Rapidly

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An overlooked development is that Indian student enrollment at U.S. graduate schools has not been growing over the past four years. At the same time, Chinese student enrollment has been skyrocketing. This is the conclusion of the latest survey of U.S. graduate school programs by the Council of Graduate Schools. (Find the survey here.)

Nathan Bell, director of research and policy analysis at the Council of Graduate Schools, authored the report. Bell found, “Offers of admission to prospective graduate students from China increased 21% in 2011 following a 15% gain in 2010 and a 17% gain in 2009; this is the sixth consecutive year of double-digit growth. Offers of admission to prospective graduate students from the Middle East & Turkey increased 16% in 2011 following a 10% gain in 2010 and a 14% gain in 2009. Offers of admission to prospective graduate students from India rose 2% in 2011, the first increase to occur for students from India since 2007. This year’s 2% increase follows a 5% decline in 2010 and a 14% drop in 2009. Offers of admission to prospective graduate students from South Korea fell 2% in 2011, marking the fifth consecutive year of declines. The most recent declines for South Korea were a 7% decrease in 2010 and a 14% drop in 2009.”

Indian Student Graduate Admission Falling

However, the 2 percent rise in first-time graduate enrollment in the U.S. by Indian students from 2010 to 2011 India masked a longer-term trend. From 2007 to 2008, Indian student enrollment fell by 2 percent. From 2008 to 2009, first-time graduate enrollment from India fell again by 16 percent. Then, from 2009 to 2010, Indian student first-time graduate enrollment declined by 3 percent. Finally, from 2010 to 2011, it increased by 3 percent.

Change in Indian Student First-Time Graduate Enrollment in U.S.

2007 to 2008  -2%

2008 to 2009  -16%

2009 to 2010  -3%

2010 to 2011  +3%

 

Chinese Student Graduate Admission Rising

At the same time Indian student enrollment at U.S. graduate schools has been falling (or at least growing little in 2010 to 2011), Chinese student enrollment has increased significantly. From 2007 to 2008, Chinese graduate student enrollment in the United States rose by 14 percent. From 2008 to 2009, first-time graduate enrollment from China increased by 16 percent. From 2009 to 2010, Chinese student first-time graduate enrollment rose by 20 percent. And for 2010 to 2011 it rose again, by 21 percent.

Change in Chinese Student First-Time Graduate Enrollment in U.S.

2007 to 2008  +14%

2008 to 2009  +16%

2009 to 2010  +20%

2010 to 2011  +21%

 

Conclusion

This survey of major U.S. graduate school program does not include responses from all programs. However, it is useful as a way to evaluate trends, particularly in technical fields. The survey notes, “The majority (63%) of all international graduate students at U.S. institutions are enrolled in one of three broad fields: engineering, physical & earth sciences (which includes mathematics and computer science), and business. Life sciences and social sciences & psychology also account for large numbers of international graduate students at U.S. institutions.”

The survey does not offer an opinion as to why Chinese student first-time enrollment at U.S. graduate schools has increased at the same time that Indian student enrollment has declined. It will take further examination to know if the reason is additional recruitment efforts by U.S. universities in China, economic trends in India and China, U.S. immigration policies, or other factors. Whatever the reason, a continuation of this trend could potentially have a major impact on future immigration patterns among employment-based immigrants to the United States.

Immigration Blog

Indian Entrepreneurs Fit into an American Tradition

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America is a nation of immigrants. But it is historically has been a nation of entrepreneurs. Because of geography and U.S. immigration laws it was not possible for Indian immigrants to play a large role as entrepreneurs in the U.S. economy. However, the rise of Indian business people in America, especially since 1990, fits into a long tradition in America.

Early History of Immigrant Entrepreneurs in America

American history is fueled by the story of entrepreneurs. “The history of the United States lies in entrepreneurial ambition,” notes the Babson Entrepreneur Experience Lab. “The first colonies established in the New World sought to take advantage of new access to raw materials, agricultural lands and trade routes. More importantly, immigration to America offered the chance to escape class and persecution and to create opportunities for oneself; it was seen as the ‘land of opportunity.’ In particular, economic growth and entrepreneurial opportunities were found in owning land, various mercantile activities and exploration.”

Entrepreneurs Introducing New Methods and Technologies

Individual entrepreneurs, both native-born and foreign-born, have influenced how Americans communicate from the time of the telegraph up to the modern-day advent of mobile phones. In 1844, Samuel Morse won a federal grant to demonstrate the feasibility of the telegraph, though initially it could only transmit about 1,000 feet. When the federal government showed little interest in expanding the capability of the technology, Morse licensed private companies that within 6 years had built a “comprehensive network between major commercial centers.” According to Gerald Gunderson, author of An Entrepreneurial History of the United States, “Merchants extended their operations over a much wider area as the delays and uncertainty of working in distant markets fell. The telegraph took Americans a long way toward creating a national market by eliminating much of the disadvantage of distance.”

Entrepreneurs have also helped introduce new methods of operating businesses that later became common practice. Andrew Carnegie, an immigrant from Scotland, is famous for producing steel. “Carnegie’s challenge in 1870 was to develop an organization that improved efficiency as rapidly as possible,” explained Gunderson. “This turned not so much on inventing technology to produce steel, as on building an organization whose instinctive, primary focus was to reduce costs. Some of Carnegie’s innovations are so widely employed today they have become standard topics in management textbooks. One was the development of profit centers.”

Indian Entrepreneurs Emerge in America Post-1965

Between 1820 and 1959, only 13,363 Indians immigrated to America. This was due to the long distances but also because of immigration legislation passed in 1924 that severely limited immigration from eastern European, Asian, and African countries.

The 1965 Act eliminated the national origins quotas, opening the door to the immigration of Indians, Chinese and many others. The rise of Indian students in the United States helped lead to more family and employment-based immigrants and, as a result, that helped lead to more immigrant entrepreneurs.

A study I did for the National Venture Capital Association in 2006 examined publicly traded companies that had received venture capital. (See study here.) The study found, India, with 32 companies (22 percent), ranked first as the country of origin for immigrant-founded venture-backed public companies, followed by Israel with 17 companies (12 percent), and Taiwan with 16 companies (11 percent). Canada, France, the United Kingdom, Germany, Australia, China, Iran, and two dozen other countries were also among the countries of origin of the immigrant entrepreneurs on the list.

A study just released by the National Foundation for American Policy examining the top privately-held venture-funded companies. It also found India was the leading source country for immigrant entrepreneurs. (See study here.) Today’s Indian entrepreneurs are fitting into an American tradition of influencing society through entrepreneurship that goes back hundreds of years in our country’s history.

Immigration Blog

Family Immigration Backlogs Persist

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In recent years, much attention has been paid to the long waits for green cards for employer-sponsored immigrants. Many believe such waits harm the competitiveness of U.S. companies, since it makes it more difficult to retain top talent in the United States.

Much less attention has focused on the waits in the family-sponsored immigration categories. The wait times for sponsoring a close family member are long and, in some cases, extremely long. In a November 2010 report, the State Department tabulated more than 4.5 million close relatives of U.S. citizens and lawful permanent residents on the immigration waiting list who have registered for processing at a U.S. post overseas. That does not include individuals waiting inside the United States, such as in a temporary visa status, who would gain a green card via adjustment of status at a U.S. Citizenship and Immigration Services office. Counting such individuals as well would likely increase the waiting list to over 5 million.

An “immediate relative” of a U.S. citizen can immigrate to America without being subjected to an annual quota. This is important, since it is the relatively low quotas in the family and employer-sponsored preference categories that lead to waits of often many years for would-be immigrants. While there is no numerical limit in the immediate relative category, processing would still normally takes several months. The three primary immediate relatives included in the category are: spouses of U.S. citizens; unmarried children of a U.S. citizen (under 21years old, or under 16 if adopted); and parents of U.S. citizens, if the petitioning citizen is at least 21 years old.

The Preference Categories

Below are the descriptions of the four family-sponsored preferences as detailed in the State Department’s monthly visa bulletin, along with their annual quotas.

“First – Unmarried Sons and Daughters of Citizens: 23,400 a year.

“Second – Spouses and Children, and Unmarried Sons and Daughters of Permanent Residents: 114,200 A. Spouses and Children: 77% of the overall second preference limitation, of which 75% are exempt from the per-country limit; B. Unmarried Sons and Daughters (21 years of age or older): 23% of the overall second preference limitation.

“Third – Married Sons and Daughters of Citizens: 23,400.

“Fourth – Brothers and Sisters of Adult Citizens: 65,000.”

The wait times are longer for U.S. residents sponsoring relatives in Mexico and the Philippines. That is because of the per country limits, which generally limit a country to no more than 7 percent in the preference categories. For example, the wait time for a U.S. citizen petitioning for a brother or sister from the Philippines exceeds 20 years. For siblings from countries other than Mexico and the Philippines the wait times are closer to 10 years. These  estimates are based on examining the visa bulletins and other data from the State Department and U.S. Citizenship and Immigration Services.

Wait Times for Sponsoring a Relative in India

The wait times for individuals sponsoring relatives who are in India are estimated to be as follows:

Unmarried Adult Children of U.S. Citizens – 7 year wait.

Spouses and Minor Children of Permanent Residents – 3 year wait.

Spouses and Minor Children of Permanent Residents – 8 year wait.

Married Adult Children of U.S. Citizens – 10 year wait.

Siblings of U.S. Citizens – 11 year wait.

More Visas Needed to Reduce Family Wait Times

To reduce family wait times more immigrant visas would need to be added to the family preference categories. H.R. 3012, which would eliminate the per country limit for employment-based immigrants, would help people from India and China in those categories. However, increasing the per country limit from 7 percent to 15 percent in the family categories, which the bill does, would help those waiting the longest for family members from Mexico and the Philippines. By doing so, it would lead to somewhat longer waits for family-sponsored immigrants from other countries, including India. Other than permanently increasing the number of family-sponsored green cards, something Congress has not done since the current quotas were set in 1990, the long wait times for relatives will likely continue.

Immigration Blog

Indian-Born Executives Lead New List of Top Immigrant-Founded Companies

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New research reveals that many of America’s top companies that have received venture capital have immigrant founders. An impressive group of Indian-born entrepreneurs head the list.

I authored a recently-released study (find it here) that concluded, “Immigrants are increasingly important in driving growth and innovation in America, as evidenced by the role played by foreign-born founders and key personnel in the nation’s breakthrough companies.” The study found, “Immigrants have started nearly half of America’s 50 top venture-funded companies and are key members of management or product development teams in almost 75 percent of our country’s leading cutting-edge companies.”

To conduct the research I interviewed executives and company personnel and gathered information on the top 50 venture-backed companies in the United States. Those 50 companies had been ranked by the firm VentureSource using criteria such as the track record of the management and investors and recent revenue growth.

I found that the companies with at least one immigrant founder averaged about 150 jobs per company in the U.S. Overall, 23 out of 50, or 46 percent of the top venture-funded companies in America had at least one immigrant founder.

The leading source country for immigrant founders was India, followed by Israel, Canada and Iran. There were also immigrant founders on the list from Italy, South Africa, Greece, Norway, Germany, the United Kingdom, Singapore, Switzerland and France.

Here are the companies on the top 50 venture-funded list that had at least one founder born in India:

Aster Data Systems, whose founders include Tasso Argyros (Greece) and Mayank Bawa (India). The company, based in San Carlos, California, employs approximately 100 people. The focus of the company is providing data management, as well as advanced analytics, for employers.

Chegg Inc., based in Santa Clara, California, has become a well-known company for its textbook rental service. It has about 150 employees. Chegg’s founders are Aayush Phumbhra (India) and Osman Rashid (U.K.).

Glam Media, based in Brisbane, California, had 8 founders. Two of the founders were born in India, Samir Arora and Raj Narayan. Following a recent acquisition the company employs about 500 people. Glam works with about 2,500 website partners in the U.S. and Europe. It helps facilitate web advertising in niche and “mid-tail” websites for name brand advertisers.

Umesh Maheshwari and Varun Mehta, both born in India, started Nimble Storage, based in San Jose, California. The company employs 55 people and focuses on disaster-recovery systems, backups and storage.

Suniva, based in Norcross, Georgia, sells solar cells and modules. It was founded by Ajeet Rohatgi, born in India, and employs 190 people.

Xactly, based in San Jose, California, was founded by Christopher Cabrera and Satish Palvai (India). The company sells Internet-based software that can be used for sales compensation. It employs 140 people

Xsigo Systems, also based in San Jose, California, provides equipment and software for the management of datacenters. Employing 110 people, it was started by three brothers born in India, R.K. Anand, Ashok Krishnamurthi, and S.K. Vinod.

“Today’s breakthrough companies are often founded by immigrants or at least employ a foreign-born scientist, engineer or CEO crucial to business growth and product development,” the report noted. “Executives say access to talent from around the world is even more important to companies in their emerging growth phase.”

A key finding of the research is that our country gains when we are open to talented people, without regard to their place of birth. “Policies that help retain talent in the United States are likely to yield both more startup companies and the personnel needed to create more jobs and innovation in America,” the study concluded.