Tag Archives: employment-based immigration

Immigration Blog

The H-1B conundrum

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A new legislation intends to check H-1 B related frauds

Guest post by Madhu Nair

Ever since the 2008 economic crash, Americans have been accusing the H-1 B visa as an instrument used to steal their jobs. The United States is battling a high unemployment rate and the voice for a pro-American job policy is increasing day by day. With critics crying foul over the provisions of the policy and its abuse by technology majors, America’s H-1B visa policy has run into troubled waters.

According to a recent report, Senator Chuck Grassley, a ranking member of the Senate Judiciary Committee, has introduced a legislation which aims to eliminate fraud and abuse of the H-1B visa policy. The legislation intends to make reforms to increase enforcement, modify wage requirements and ensure protection of visa holders and American workers. Grassley says that the legislation will not only benefit American workers, but also help U.S. companies to get quality specialized workers from abroad.

Grassley adds, “Somewhere along the line, the H-1B program got side-tracked. The program was never meant to replace qualified American workers, but it was instead intended as a means to fill gaps in highly specialized areas of employment. When times are tough, like they are now, it’s especially important that Americans get every consideration before an employer looks to hire from abroad.”

The legislation, if passed, may affect jobseekers from India and elsewhere. The recently passed H-1B and L-1 Visa Reform Act of 2013 ensures that an H-1B application filed by a company employing 50 or more U.S. workers will not be accepted unless the employer attests that less than 50% of the its workforce are H-1B and L-1 visa holders. This, in addition, to the legislation introduced by Grassley could mean trouble for companies who seek cheap and quality workers, largely from developing economies. A recently published article had also highlighted that many of the H-1B hires do not belong to the “best and the brightest” category. This further pushed the need to reform the policy which has gained a political face of late.

With a cap of 65,000 H-1B visas a year, Indian companies were seen scrambling for approvals with over 50,000 applications being filed on the very first day of screening. Market analysts say that the cap on visas and other such compulsions will impact the margins of companies adversely. The increasing unemployment has also forced companies in the U.S. to take to sub-contracting and local hiring. This further adds pressure on companies to take to other means in order to achieve their ambitions.

While a short-term impact looks imminent, it would be better to come out with options to avoid such situations in the future. The global economy changed remarkably after the 2008 crisis with the world turning towards developing economies to pave the path ahead. India, with its growing young and abundant workforce, has an edge over other countries in reaping the benefits. But it would be rather cynical to neglect developed economies while doing so. The only way forward is to find a middle ground where countries can work together for a sustainable future.

Immigration Blog

H1B applicants not the best?

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Guest post by Madhu Nair

By definition, the H1B is a non-immigrant visa issued by the U.S. allowing companies to recruit foreign nationals in specialty occupations under the Immigration and Nationality Act. The act, practiced by a number of multi-national companies, has been their gateway to some of the best talents in the world. Aspiring workers from emerging economies like India and China have been quick to catch in on the rush. The practice gave companies an edge over their peers as it reduced their working capital, increased efficiency and scaled up their businesses. For employees, on the other hand, this was an opportunity to realize and live the American Dream.

But if a recent report is to be believed, the quality of H1B workers does not fit the category of “the best and the brightest”. Norman Matloff, professor of computer science at the University of California in Davis along with the Economic Policy Institute, published a study which compared U.S. and foreign IT workers’ salaries, rates of PhD awards, doctorates earned and employment in research and development to determine if H1B visa holders had skills beyond those of U.S. IT workers. As per Matloff, the study did not give any indication of exceptional talent among the H1B holders. He says, “We thus see that no best and brightest trend was found for the former foreign students in either computer science or electrical engineering,” He further writes, “On the contrary, in the CS case the former foreign students appear to be somewhat less talented on average, as indicated by their lower wages, than the Americans.”

Nevertheless, managers at top companies insist they still are not able to source the best minds domestically, forcing them to look beyond boundaries. For Peter Cappelli, professor of management and director of the Center for Human Resources at the Wharton School, this does not sound reasonable enough. In a Wall Street Journal article in October 2011, he argues, “Some of the complaints about skill shortages boil down to the fact that employers can’t get candidates to accept jobs at the wages offered. That’s an affordability problem, not a skill shortage.”

For countries such as India and China, who account for a major share in the H1B program, this should set alarm bells ringing as it may affect their nationals directly. Coming to India, the number of H1B visa approvals saw an upward trend for the year 2012. In the fiscal year 2012, 130,000 H category visas were issued as against 114,000 issued in FY 2011, an increase of 15%. The year, however, saw a 26% increase in denial rate with respect to the number of applications. The rise in denials was mainly attributed to the growing concerns over the business models used by Indian IT consulting companies. This led to heightened scrutiny by the consulate officials which saw the number of approvals go down.

With U.S. still recovering from the 2008 crash and Eurozone yet to come out of the sovereign debt crisis, the current scenario does not look good either. While there is no immediate threat to H1B workers, a relook at the quality of education may perhaps save them the axe. India and China both boast of a large number of highly skilled workers. However, with the current report out, officials and analysts in the U.S. may hesitate to hire anybody from these countries.

The solution, however complex it may be, lies in accurately nipping the problem at the source. There is a need for governments to work together towards a future void of any such conflicts that may lead to a human resource problem. The interests of US’ domestic workers need to be protected, whereas those of H1B applicants also need to be carefully studied. A pragmatic and sensible solution will not only prevent discontent among many, but also lead to a better environment at workplaces.

 

India-US Relations Blog

Sanjay Puri’s testimony before the House Committee on Foreign Affairs

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CONGRESSIONAL TESTIMONY
THE REBALANCE TO ASIA: WHY SOUTH ASIA MATTERS
Testimony by Mr. Sanjay Puri
President and CEO
Alliance for U.S. India Business (AUSIB)
House Committee on Foreign Affairs
Subcommittee on Asia and the Pacific
March 13, 2013
Alliance for U.S.-India Business (AUSIB)
Testimony of Sanjay Puri
Founder and Chief Executive Officer
Alliance for U.S.-India Business (AUSIB)
Before the House Committee on Foreign Affairs
Subcommittee on Asia and the Pacific
“The Rebalance to Asia: Why South Asia Matters (Part II)
Wednesday, March 13, 2013

Mr. Chairman, Ranking Member, and members of the Subcommittee:

Thank you very much for the opportunity to testify before you today.

From energy security to defense cooperation to bolstering our economic ties and increasing opportunities for high-skilled workers to come to the U.S. or go to India, there are serious obstacles facing the U.S. as we re-rebalance to Asia. However, I believe our mutual interests and shared values can get us where we need to be if the U.S. is committed to deepening the U.S.- India partnership which is one of the most defining of the 21st century.

For purposes of this hearing, I will leave it to others to delve into counterterrorism and intelligence cooperation, military-to-military exchanges and defense trade. My objective is to focus on four broad issues which deserve our consideration.

The four are:
1) Enhanced education collaboration which can change the dynamics of this relationship
2) STEM teacher exchange which can be a game changer for the U.S.
3) The need to allow exports of natural gas to an energy starved India
4) Why we should look beyond New Delhi to different states in India

Enhance Education Collaboration: A Hindu proverb states that you can change a nation through education. I am a firm believer in this proverb and I think it holds a key for changing U.S.-India relations. For all the short-term fixes we might talk about today, I believe education is the long-term solution which is required for the U.S.-India partnership to thrive.
The Alliance for US-India Business (AUSIB) – a not-for-profit trade organization – has been at the forefront of enhancing dialogue between both countries to create opportunities for building higher quality education because we believe that building global partnerships between U.S. and Indian universities will strengthen the bonds between our two nations. Some of the top CEO’s and policy leaders in India today are educated from U.S. Universities. They take with them the knowledge, values and experiences of the United States. They take back the generosity of the American people. This automatically creates economic and cultural bridges between the two countries. It is not a coincidence that Indian companies, led by U.S. educated CEO’s, are much more active in the U.S.-India economic relationship.

Students from India form the second largest group coming to the U.S. for higher education. But demand for higher education in India is also increasing. The Indian Higher Education sector is rising to meet global benchmarks although further efforts are needed to enhance the accessibility, funding and the quality of higher education in the country. India needs at least 500 Universities and 33,000 more colleges in the next 8 years. This alone is a $50 Billion market. India also has a great need for vocational and technical institutes which is another $2 Billion market opportunity.

Where will this additional capacity come from? If it comes from Indian universities partnering with universities and colleges in the States you represent, I believe we will be on our way to making the kind of difference that needs to be made. Through AUSIB EduNext, a higher education initiative which mobilizes organizations and drives tangible results to empower and make educational institutes more capable and future ready for purposes of preserving and promoting the values that India and the U.S. share, we have created a platform for Indian Colleges/Universities to interact and establish long term relationships with visiting U.S. universities. We focus our efforts in the fields of medicine, pharmacy, engineering, business, hotel management, energy, technology and agriculture.

Our results have led to student and faculty exchanges, joint R&D and we have created an online platform that academics on both sides can use to exchange best practices. We have hosted two of the largest U.S.-India education conclaves in 2011 and 2013 which were attended by over 100 education and policy leaders from the U.S. and over 1,000 from India. All three Provosts of Public Institutions in Iowa were represented at the highest level at this year’s conclave besides other Universities.

Governors, Members of Congress from India and the U.S., University Presidents, Provosts, Chancellors, Deans, Department Heads and senior faculty have participated in AUSIB- led delegations and we encourage universities in your district to collaborate with us or the Indian Higher Education sector so that together we can promote the highest standards of education, value systems and governance. All of our conclaves have had a strong corporate participation from the U.S. and India and I believe it is important for Universities to understand what kind of educational capability that companies need and also for companies to form a Public-Private partnership model with the Universities.

Create a STEM teacher exchange program: The second point I would make is regarding STEM education. The United States has a tremendous shortage of STEM teachers at the K-12 level. It is especially very acute in rural, inner city and remote areas. How can we expect our kids to have strong science, math skills when they do not have good teachers? India has a tremendous pool of science and math experts that also speak English. We should consider a specialized short term program that qualifies trains and brings these teachers over to the U.S. for a short duration so that we can create our own pool of STEM experts for the future. AUSIB is currently working with several states to establish a pilot program.

Allow exports of gas to an energy starved India: Currently India competes with China and Japan for buying LNG from Qatar and Australia. Generally it ends up on the short end of the stick as the growing appetite by China has made China much more aggressive. The U.S. only exports Gas to FTA countries and since India is not it needs approval. If the U.S. can find a way to have an economically viable and environmentally clear mechanism to export gas to India it would do three things: increase economic opportunity in the U.S. through exports, reduce India’s energy dependence on the Middle East and thirdly build a more strategic relationship with India given the country’s tremendous need for energy independence.

Look beyond New Delhi outward to various dynamic states in India: As India has entered a period of coalition politics, the states are much more assertive and powerful. The U.S. should build strong economic and cultural ties with these states since they will get away from the policy paralysis that sometimes affects New Delhi. AUSIB just took a delegation to the state of Punjab where the Chief Minister wants to start a Farmer to Farmer exchange with the U.S. since his state is an agriculture state and he wants to learn best practices from U.S. farmers.

There are several dynamic states in India like Maharashtra, Gujarat, Andhra Pradesh, Tamil Naidu that we should engage with. I would like to make a point about the U.S. relationship with the State of Gujarat and especially its democratically elected Chief Minister Narendra Modi. His state is one of the most economically dynamic and has attracted a lot of investments from U.S. companies like Ford and GM. I have participated with other delegates from around the world at one of the premier economic summits in India hosted by the State of Gujarat called Vibrant Gujarat. However, the U.S. Government has boycotted him. While all of us stand for human rights and deplore any violation, the fact remains that after ten years of investigation, India’s Supreme Court has found no evidence against CM Modi regarding the 2002 Gujarat riots and he has been elected democratically thrice, representing more than 60 million constituents. Therefore, in my opinion, it is time for the U.S. to begin the process of engagement with CM Modi.

I thank you for your time and for holding this important hearing, and I look forward to answering your questions.

To download the PDF version of this testimony, click SanjayPuri_testimony.

Check out the video of the testimony here.

Immigration Blog

Reforms That Would Help Employer-Sponsored Immigrants

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Indians wait longer than other potential employment-based immigrants. That means reforms to America’s employer-sponsored immigration system are likely to help many Indians, as well other skilled professionals. There are several actions Congress or the executive branch can take that will reduce wait times and provide substantial relief to employers and skilled immigrants.

STEM Exemption for Skilled Immigrants

First, Congress can exempt from the green card quotas immigrants with a master’s degree or higher from a U.S. university in a science, technology, engineering or math (STEM) field. This provision has been included in past legislation by Rep. Zoe Lofgren (D-CA) and some others. Congress could expand this measure to go beyond only degrees in those fields or to include individuals who received a Ph.D. in a technical field from abroad. Research has shown those who receive their degree abroad arrive in the United States with substantial human capital, garnered without any U.S. expense, but also may be among the finest in their fields.

Count Only Principals, Not Dependents, Toward Annual Quota

Second, a new law could count only the principal employment-based immigrants, not their dependents, against the 140,000 annual employment-based quota. One reason for the large green card backlogs is that annual H-1B temporary visa quotas count only the principal recipient of an H-1B visa, whereas about half of the 140,000 quota for employment-based immigrant visas is utilized by the dependents (spouse and/or children) of the sponsored immigrant. In addition, Congress could raise the 140,000 annual quota to a higher level.

Utilize Unused Employment-Based Green Cards

Third, lawmakers could provide additional green card relief by including numbers previously allocated by Congress that were not utilized in prior years, such as due to agency processing delays. The State Department estimates there are more than 300,000 unused employment-based green cards allocated in previous years that have never gone to recipients due to administrative issues.

Eliminate the Per Country Limit

Fourth, Congress could eliminate the per country limit on employment-based immigrants. H.R. 3012 would accomplish this feat over a four-year period. The legislation passed the House and, at least for now, is being delayed by a “hold” on the legislation by Senator Charles Grassley (R-IA). Liberalizing rules for employment-based green cards is less controversial than other proposed immigration reforms, as evidenced by the overwhelming vote in the House of Representatives on H.R. 3012.

Allow Filing of Adjustment of Status Before Priority Date

Fifth, allow individuals to file for Adjustment of Status (Form I-485) prior to when his or her immigrant visa become available. Currently, skilled foreign nationals mired in the employment-based green card backlog are often not able to accept promotions or change jobs without the risk of starting their green card applications again. For those waiting a long time the fear of waiting even longer is significant. That would change if early filing of Adjustment of Status were permitted.

If U.S. Citizenship and Immigration Services were to allow individuals waiting for green cards to file for Adjustment of Status even if their priority date has not been reached it would facilitate a more normal existence for those stuck in the green cad backlog. For example a spouse would likely become eligible to work legally in the United States. Also, it is likely the ability to travel in and out of America would become easier, helping people both personally and professionally.

Implementing any or all of the reforms recommended here would aid U.S. employers, immigrants and the American economy, keeping more talent and resources inside the country.

Immigration Blog

The Contributions of Skilled Immigrants to America

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Venkatraman Ramakrishnan, a naturalized U.S. citizen born in India, shared the 2009 Nobel Prize in Chemistry with American-born Thomas Steitz and Ada Yonoth of Israel. Their work using x-ray crystallography has provided “fundamental information about the workings of the cellular machinery at the atomic level and is already being exploited by pharmaceutical companies working to make new, more effective antibiotics,” according to the Los Angeles Times.

Nobel Prizes

Immigrants to America have a long history of achievement in Nobel Prizes and other forms of international recognition in the sciences. “It is fairly clear that Americans with recent foreign roots are overrepresented in any classification of Americans who have brought honor and recognition to the United States,” concluded the National Research Council, a part of the national Academy of Sciences, in its 1997 report The New Americans. As of 1997, the National Research Council found immigrants made up between one-quarter to one-third of the U.S. Nobel Prize winners: 26 percent in chemistry, 32 percent in physics, 31 percent in physiology medicine, 31 percent in economics and 27 percent in literature.

Some who oppose immigration more generally – or high skill immigration specifically argue they have no problem with America admitting Nobel Prize winners, just not others of lesser distinction. The problem is even America’s recent Nobel Prize winners were often just promising students when they first began the process of immigrating to the United States. For example, Elizabeth Blackburn first came to America in 1975, more than three decades before earning the Nobel Prize in Medicine and 10 years before she published her seminal paper that led to the prize. More generally, there are valuable contributions that can be made to the economy and society that would never be recognized by a Nobel Prize Committee.

Dr. William Ganz developed a “revolutionary catheter to measure blood flow and heart functions” with co-inventor Dr. Jeremy Swan, an immigrant from Ireland. Ganz, a Jew in Czechoslovakia during the Nazi invasion, managed to survive World War II and came to Los Angeles in 1966, no longer wishing to live under a communist regime. The Swan-Ganz device produced “a phenomenal impact on the understanding of cardiovascular disease,” according to Dr. Jeffery W. Moses, director of the Center for Interventional Vascular Therapy at Columbia University Medical Center. In the 1980s, Ganz worked with Dr. P.K. Shah, an immigrant from India and director of cardiology at Cedars-Sinai Heart Institute, in developing clot-dissolving therapies now considered standard for helping victims of heart attacks.

Research on the Contributions of the Foreign-Born

Paula Stephan (Georgia State University) and Sharon G. Levin (University of Missouri-St. Louis) performed extensive research on the contributions of the foreign-born in 6 areas of scientific achievement. Those areas included election to the National Academy of Sciences/National Academy of Engineering, the launching of biotechnology companies and authors of scientific publications. After examining a study group of more than 4,500 scientists and engineers, Stephan and Levin wrote, “Individuals making exceptional contributions to science and engineering in the U.S. are disproportionately drawn from the foreign-born.  We conclude that immigrants have been a source of strength and vitality for U.S. science and, on balance, the U.S. appears to have benefitted from the educational investments made by other countries.”

Among the findings in the Stephan-Levin research were that 19.2 percent of the engineers elected to the National Academy of Engineering are foreign-born, compared to the 13.9 percent of the engineers who were foreign-born in 1980. Also, members of the National Academy of Sciences are “disproportionately foreign-born;” 23.8 percent of the scientists and engineers elected to the National Academy of Sciences (NAS) are foreign-born, compared to 18.3 percent non-natives in the U.S. workforce.

According to Stephan and Levin, “We find the foreign-born to be disproportionately represented among those making exceptional contributions in the physical sciences . . . more than half of the ‘outstanding’ authors in the physical sciences are foreign-born compared to just 20.4 percent of physical scientists who are foreign-born in the scientific labor force as of 1980.”

Conclusion

Stephan and Levin found, “We also find evidence contributions to U.S. science and engineering are disproportionately drawn from the foreign-educated, both at the undergraduate and at the graduate level.”

The research by Stephan and Levin indicate America may be wise to make it easier for those who receive their schooling abroad to immigrate, particularly at the Ph.D. level. But whether we make it easier for those who receive their degrees in America or abroad, it is clear that immigrants make important contributions to science, engineering and related fields in America.