UNEMPLOYMENT COMPENSATION; IMMIGRATION;
UNEMPLOYMENT COMPENSATION;

May 2, 2003 |
2003-R-0352 | |
UNEMPLOYED CONNECTICUT I. T. WORKERS AND H1-B VISAS | ||
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By: Peter Martino, Research Fellow | ||
You asked how many information technology (IT) workers are out of work in Connecticut because companies are using H1-B workers instead.
The federal visa program for foreigners to work temporarily in the U. S. , known as the H1-B visa, currently allows up to 195,000 people into the country annually. The program is designed to allow people qualified for special occupations (such as engineering, computer programming, science, and medicine) to work in the U. S. for up to six years. During the 1990s, Congress raised the annual limit from 65,000 to 195,000 because businesses were having trouble filling certain jobs, mostly in the growing IT sector.
The debate over whether the H1-B visa program results in more unemployed American IT workers is inconclusive because little data is currently available on the visa program or IT worker employment. Congress asked The U. S. General Accounting office to study whether companies show a preference for retaining H1-B workers over U. S. citizens when they cut jobs. The report should be available sometime this year.
Unemployment nationwide for information technology workers is between one and two percent. According to the Bureau of Customs and Immigration Services, 10,654 H1-B visas were requested between 2000 and 2002 in Connecticut. This includes all H1-B visas and not just IT workers. Almost all requests for H1-B visa are approved, but companies sometimes obtain approval for an H1-B visa and then decide not to get one.
Those who want to eliminate the program or lower the annual limit of H1-B workers claim that foreign workers are hired for lower wages and fewer benefits than U. S. citizens would typically receive. They allege that employers prefer H1-B visa workers because the employer can exert more control over these employees because the employers control the status of the visas. Further, opponents of the H1-B visa program claim that companies prefer H1-B workers because it is cheaper to obtain foreign workers than to fund retraining programs for existing employees.
Those who support the H1-B visa program and its current limit argue that the program addresses a critical labor shortage in the high-tech sector. They allege that many jobs cannot be filled by Americans and that without the H1-B visa program, billions of dollars would be lost in productivity and technology firms would be forced to move overseas. In addition, the law requires firms to demonstrate a good-faith effort to fill job vacancies with Americans before seeking H1-B workers, and the process of obtaining such visas is long and costly. Finally, the law requires H1-B workers to be paid the prevailing wage.
PM: eh