Tag Archives: India and China

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.

 

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

Per Country Limit Bill Continues to Attract Attention

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H.R. 3012, “The Fairness to High-Skilled Immigrants Act,” is a small bill, anywhere from 1,000 to 2,000 pages shorter than the bills that normally attract a good deal of media attention. Yet H.R. 3012 continues to attract major editorial and news attention.

The bill, which passed the U.S. House of Representatives 389 to 15, would eliminate the per country limit for employment-based immigrants. That would especially help highly skilled individuals from India and China waiting a long time for green cards. The bill would also raise the per country limit from family-sponsored immigrants from 7 to 15 percent.

The Wall Street Journal editorial page used its powerful voice to call for Senate passage of the bill. “For businesses looking to hire advanced-degree candidates or skilled workers, the end of the cap is a good thing,” argued the editorial. “The 7% solution sought to make the American dream accessible to people from every nation. But today’s reality is that American universities are graduating a high number of foreign-born engineers, computer geeks, scientists, mathematicians and nurses that come from a narrow list of countries. The U.S. will be more prosperous by letting graduates who land jobs stay permanently.” (Find the editorial here, registration may be required.)

But the Wall Street Journal noted the legislation is not the ultimate solution to the employment-based green card problem: “The trouble is that the House bill does nothing to address the real problem: 140,000 green cards a year for advanced-degree and skilled workers is far too few. By refusing to increase the number, or to make a special category of green cards automatically available for American university graduates in science, technology, engineering and math, Congress is again delaying reform that could help the lackluster U.S. economy.”

In an editorial titled “Tinkering at Immigration’s Margins,” the Washington Post also weighed in on the bill, but not as favorably as the Wall Street Journal. “A bill passed by the House of Representatives last month would grant a few thousand more green cards annually to Indian and Chinese engineers, software designers and scientists, mostly at the expense of Korean, Filipino and Mexican engineers, software designers and scientists,” wrote the Washington Post. “Since the legislation makes no overall change in the paltry number of green cards available, hundreds of thousands of highly skilled employees already working in the United States on short-term visas will remain backlogged in the system, in many cases waiting for more than a decade to become legal, permanent residents. That’s what passes for immigration reform in Congress these days.”

Not surprisingly, the legislation has also made news in India. The Economic Times of India took a different tact from its American counterparts, focusing on the impact of current U.S. immigration law on the lives of individuals. (Find article here.) It cited the example of an Indian IT (information technology) specialist who came to the United States in 2003 on an H-1B visa. His employer filed for his green card in 2004 in the third preference and he is still waiting. “He is living in the U.S. under annual extensions of H1B, and every time he leaves the US, he has to apply for advance parole with the U.S. Citizenship and Immigration Services, so that he is not stopped from re-entering,” reports the newspaper. “Kumar doesn’t know when his application for green card will become current.”

The article notes it could take another 10 years or more. “Living in such uncertainty is tough. He had started toying with the idea of giving up the green card dream and returning to India. But that was till last week when the U.S. House of Representatives passed ‘The Fairness to High-Skilled Immigrants Act.’”

As of this writing, H.R. 3012 remains held up in the Senate by Senator Charles Grassley (R-IA). No one can be certain whether he intends simply to slow down the bill, force it through the committee process, or see that it never comes up for a vote.