Tag Archives: H1-B visa

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

India and America: common values, shared success

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By Richard G. Lugar

As Secretary of State Clinton’s recent trip to India demonstrated, these are exciting times for India, and for the India-United States relationship. India has liberalized and opened its economy, unleashing the entrepreneurial talent of its people and using its strong technology base to establish leading positions in such fields as telecommunications, information technology and pharmaceuticals.

America and India, for too long estranged during the Cold War, have developed steadily closer ties built on a uniquely strong foundation: both countries are stable, multi-ethnic democracies with a deep tradition of religious tolerance.

With a well-educated middle class that is larger than the entire U.S. population, India can be an anchor of stability in Asia and a center of economic growth. It is already the world’s second-fastest growing major economy, and bilateral trade with the U.S. has more than tripled over the past 10 years. I have worked to build a strategic partnership between the United States and India that will benefit both sides as India plays an ever-larger role on the world stage.

I am also excited by a new opportunity to match India’s entrepreneurial zeal with America’s current need for investment and jobs through the Startup Visa Act, which I introduced earlier this year. The bill would allow an immigrant entrepreneur to receive a two-year visa if he or she can show that a qualified U.S. investor is willing to invest in the immigrant’s startup venture. Many of India’s smartest and most entrepreneurial individuals are already here studying at our universities, so helping them stay to invest in their ideas would create jobs and help all Americans.

The bill would also apply to those already in the U.S. on unexpired H-1B visas, and entrepreneurs living outside the United States who already have a market presence here. If this legislation is enacted, it will help more Indians take part in the great American tradition of immigrant business success.

Another concern of Indians abroad is Pakistan, a concern I share. I believe the U.S. should use its influence to promote stability in the region, which could lead to a Pakistan that is more likely to cooperate and trade with India. That’s one of the reasons I co-sponsored the 2009 Enhanced Partnership with Pakistan Act.

The bill emphasizes economic assistance over military aid, and contains incentives for Pakistan to stabilize its democracy. It requires the Secretary of State to certify every year that Pakistan is meeting specific benchmarks of conduct, namely, that it is cooperating to dismantle supplier networks of nuclear weapons-related material, that it is making “significant efforts” to combat terrorist and extremist groups and that such groups are not receiving support from Pakistan’s military or spy service, and that it is not letting terrorist groups use Pakistan’s territory to stage attacks on other countries.

On that score, the bill specifically mentions Pakistan-based terrorist groups that threaten India as well as the United States and Afghanistan, including al Qaeda, the Taliban and Lashkar-e-Taiba, which conducted the 2008 Mumbai attack. The legislation aims to encourage Pakistan to re-orient its armed forces to a mission more focused on counter-terrorism and counter-insurgency than regional conflict, and calls for a cut-off of assistance if the security forces are deemed to be “subverting the political or judicial processes of Pakistan.” In short, India has much to gain from the success of this legislation.

All this is part of a larger strategic engagement between India and America, which took a major step forward three years ago with the passage of the US-India nuclear cooperation agreement, a step that I strongly supported. The legislation lifted a three-decade American moratorium on nuclear trade with India and opened the door for trade in a wide range of other high-technology items, such as supercomputers and fiber optics.

Some critics called the deal a set-back for U.S. non-proliferation efforts, since India remains outside the Nuclear Nonproliferation Treaty (NPT). I argued, however, that it actually provides incentives for the United States and India to deepen their cooperation in stopping proliferation, and confers numerous other benefits outside the nuclear realm by paving the way for broader economic and strategic collaboration.

The remarkable deepening of US-India ties over the past decade is only a start, as the relationship has still not reached its full potential. If Indians and Indian-Americans continue to contribute their ideas, their energy and their commitment, I am sure that even more exciting days lie ahead.

(Senator Richard Lugar is the Republican leader of the U.S. Senate Foreign Relations Committee.)

Immigration Blog

Indians and Illegal Immigration

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The vast majority of Indians come to the United States legally and stay here as legal visa holders. Many become permanent residents (green card holders) and then U.S. citizens. Indeed, in terms of income and education, it would be difficult to find a more successful immigrant group in U.S. history.

There are also Indians in the United States illegally. Such individuals remain a small part of the overall illegal immigrant population. Still, it is a segment worth exploring to help us better understand the immigration issue.

According to the US Department of Homeland Security (DHS), Indians made up only 1.9 percent of the illegal immigrant population in the United States as of January 2010. (Here is a link to that report.) There were approximately 200,000 Indians not in legal status in the U.S. out of a total illegal immigrant population of 10,790,000, according to a DHS report released in February 2011.

Table 1

Illegal Immigrant Population by Country (2010)

Country of Birth Estimated Unauthorized Immigrant Population (2010)
Mexico 6,640,000
El Salvador 620,000
Guatemala 520,000
Honduras 330,000
Philippines 280,000
India 200,000
Ecuador 180,000
Brazil 180,000
Korea 170,000
China 130,000
All Countries 10,790,000

                                               Source: Department of Homeland Security.

A Country by Country Look

One can see by examining Table 1 that Mexico dominates the overall illegal immigration population in the United States, representing over 60 percent, with 6.6 million. The next three countries have far smaller numbers of illegal immigrants in America: El Salvador with 620,000, Guatemala with 520,000 and Honduras with 330,000. These figures are as of January 2010, which means it’s possible newer data could yield slightly different results.

The Philippines has the fifth most illegal immigrants with 280,000, followed by India in 6th place with 200,000. Illegal immigrants from the Philippines and India largely come to the United States legally on visas and then overstay their visas. Unlike Mexicans, Indians cannot simply cross a border and find themselves in the United States. While it is possible some may have gone to Canada or Mexico and entered America illegally, it is more likely Indian illegal immigrants were once in some type of legal status and lost that status.

Changes in Indian Unauthorized Immigrant Population Over Time

In 1990, Indians made up an estimated 0.8 percent of the unauthorized immigrant population, with only 28,000 illegal immigrants, according to the then Immigration and Naturalization Service (INS). It’s possible the 28,000 figure is a low estimate of the number of illegal immigrants from India in 1990. That is because an initial INS estimate of the number of Indians in the country illegally in the year 2000 was only 70,000. However, a few years later that figure was revised to 120,000.

Measuring the number of illegal immigrants in the United States is, by definition, not easy. It is even harder to make accurate estimates of smaller subsets of that population. Table 2 shows the overall number of Indians in the United States in the “unauthorized immigrant population” – the term used by the Department of Homeland Security – in 1990, 2000 and 2010. The numbers indicate the Indian population not in legal status has risen from 28,000 in 1990 to 200,000 in 2000.

Table 2

                                         Indian Unauthorized Immigrant Population: 1990 to 2010

Year Indian Percentage of Total
1990 28,000 0.8 percent
2000 120,000 1.4 percent
2010 200,000 1.9 percent

                   Source: Department of Homeland Security, Immigration and Naturalization Service.

Illegal Immigration Issue Remains Important

Whether someone is waiting for a green card or is an employer of immigrants, it would do well to remember that illegal immigration remains important in the American public’s mind. It drives the overall debate on immigration. In past years, disagreement on whether or not to provide legal status to the illegal immigrant population scuttled attempts to provide more green cards for high-skilled immigrants, including many Indians. The issue of illegal immigration is not going away.

Immigration Blog

Senate Hearing Sends Signals for Immigration Reform

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Similar to a House hearing held earlier this year, a July 26, 2011 Senate Judiciary Subcommittee on Immigration, Refugees and Border Security hearing pointed toward agreement on the need to enact fixes to the employment-based green card system.

Committee Chair Charles Schumer (D-NY) titled the hearing “The Economic Imperative for Enacting Immigration Reform,” hoping to encourage such legislation to move forward in Congress. The hearing contained a remarkable amount of economic data and arguments in favor of liberalizing U.S. immigration laws, particularly in favor of allowing in more highly skilled immigrants.

Robert Greifeld, CEO of the NASDAQ OMX Group, testified, “Our world view must change to recognize that employers no longer have to locate jobs and workers because of physical capital requirements. Human capital is now highly mobile. The work product of STEM and other knowledge workers is just a plane ticket or an internet connection away.” He said NASDAQ supported “stapling” a green card to graduates of U.S. universities with a science, technology, engineering or math degree, and also support establishing a new visa for entrepreneurs.

Brad Smith, general counsel and senior vice president, legal and corporate affairs at Microsoft, noted the company had thousands of job openings for highly skilled positions. He also cited a 2010 University of Washington Economic Policy Research Center study that found Microsoft’s hiring of U.S. citizens, permanent residents and foreign nationals combined to create a “multiplier effect” creating 267,611 jobs in 2008 in Washington. “Through this multiplier effect, every job at Microsoft supported 5.81 jobs elsewhere in the state economy.”

Compelling Testimony on Green Card Backlog
One of the best things a Congressional hearing can do is put a human face on a problem. Dr. Puneet S. Arora, born in India and now a practicing physician in Los Angeles, CA, testified at the hearing on behalf of the organization Immigration Voice. Dr. Arora said though he had lived and worked in America for 15 years – and has two U.S. citizen children – he does not have permanent residency. He explained that due to the low annual quota for employment-based green cards combined with the per country limit, which affects potential Indian immigrants the most, he has been waiting years for permanent residence. In fact, he estimated it might be an additional 8 years of waiting before he could receive a green card.

The Old and the New
Hearings are often a way to gauge the views of members of Congress, particularly new ones. We have not heard much about their views on high skill immigration from either Senator Al Franken (D-MN) or Senator Richard Blumenthal (D-CT). By their questions and comments it appeared both are sympathetic to high skill immigration, particularly the plight of long-term green card holders. Senator Franken engaged in a long discussion with Dr. Arora, praising him for his previous work as a physician in Minnesota.

Veteran Senators Chuck Grassley (R-IA) and Jeff Sessions (R-AL) were less sympathetic. Senator Grassley said in a statement, “As part of the solution to America’s immigration problem, some policy makers have proposed the idea of giving immigrants a green card upon graduation . . . While it is important to keep the best and the brightest, getting a degree from a U.S. institution should not equate to a fast track to citizenship for all. Should this happen, the demand for enrollment in U.S. universities by international students would only increase and further erode the opportunities for American students.” He also discussed his efforts to encourage U.S. Citizenship and Immigration Services to root out fraud in H-1B and L-1 visas.

Senator Sessions scolded supporters of business immigration on the panel, saying they should not have supported comprehensive immigration reform legislation back in 2007. Sessions said he favored a point system similar to Canada’s. Under a point system, there would be no employer sponsorship and most family immigration categories would be eliminated. Instead, the government would set a maximum number of immigrants allowed in during a given year and award permanent residence only to those who achieve a specific number of points. The points would be determined based on characteristics such as age and education level.

Microsoft General Counsel Brad Smith said that a point system would take power away from individual employers to hire and sponsor the foreign-born employees they think are best and instead turn those decisions over to a bureaucratic government body. As a conservative Republican who often expresses skepticism of the federal government’s ability, Sessions seemed to understand the criticism, though did not appear to change his mind.

Reform Ideas
It appears the case was made that there is greater consensus on moving forward with reforms on employment-based green cards than on H-1B temporary visas. In fact, one of the risks for employers remains that efforts to liberalize green card quotas will be met by attempts to restrict temporary visas, such as H-1B and L-1. In addition, there are those who oppose narrow fixes to the immigration system, viewing smaller bills as a possible drain on efforts to achieve a broad comprehensive approach that deals with illegal immigration as well. These types of competing interests continue to make immigration reform a challenging proposition.