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April 8, 2008 11:19 AM PDT

As expected, next year's H-1B visa limit met

by Anne Broache

Editor's note: This blog was updated at 1:02 p.m. PDT with comments from the high-tech industry.

As predicted by high-tech companies months ago, U.S. immigration officials said Tuesday that they've received more than enough petitions for next year's batch of H-1B temporary worker visas and would be considering no more of them.

A U.S. Citizenship and Immigration Services spokeswoman said the agency won't say until later this week exactly how many applications it received since the application window opened on April 1. (The agency characterized the number, not surprisingly, as "high" in a press release.) Per a recent rule, immigration officials plan to select visa recipients by using a computer-generated random selection process to narrow down petitions filed within the first five days.

Last year, the rush on H-1B visas ended one day after it began, and immigration officials used a similar "lottery" system to narrow down those applications. Visa petitioners don't like the lottery system because they say it causes them to lose out on potential hires.

The congressionally mandated cap on H-1B visas currently stands at 65,000, with an additional 20,000 made available for foreigners with advanced degrees from U.S. universities. USCIS said they had received too many applications in both categories. (To obtain an H-1B visa, a foreigner must hold at least a bachelor's degree in his or her area of specialty.)

Technology companies prize the visas because they say foreign hires are needed to fill gaps in their workforces, but some American computer programmers charge that the program has been abused, leading to depressed wages and displacement of qualified Americans.

High-tech companies like Microsoft, Google, and Oracle have been agitating for greater numbers of H-1B visas and green cards for permanent residents. Some members of Congress have proposed doubling or even tripling the annual allotment, which peaked at 195,000 just after the dot-com bust. Others, however, have proposed new obligations for U.S. companies designed to address concerns about visa abuse.

Robert Hoffman, an Oracle vice president, said the "artificially low cap" threatens to deprive U.S. companies of international talent.

"Congress has failed to address the problem as U.S. universities graduate highly educated individuals who leave to work in competitor nations," he said in a statement on behalf of the group Compete America, whose members include Cisco Systems, Google, Microsoft, Intel, Hewlett-Packard, and other high-tech companies. "This madness must end this year."

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Add a Comment (Log in or register) (22 Comments)
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Ridiculous
by Michael Fouquette April 8, 2008 12:59 PM PDT
My partner has years of experience in the semiconductor field,
speaks fluid Mandarin, actually worked for the Taiwan company his
new job would required close ties with, and an EE Phd and he has
to go to lottery for the visa? Insane. We are so far behind so many
other countries technologically we should be handing out green
cards never mind just visas to all foreign-born technology-related
PhD recipients just to try to catch up.
Reply to this comment
Yup
by JoeF2 April 8, 2008 1:25 PM PDT
The system is indeed broken. Unfortunately, a large change to the better proposed last year was shot down in Congress, mainly due to anti-immigrant lobbying.
PhD vs. Hotel clerk
by joelam888 April 8, 2008 1:37 PM PDT
That's an equal opportunity, LOL.
Boo Hoo
by wcrosby April 8, 2008 8:29 PM PDT
If he is so great, why doesn't he go home to work in Taiwan? By what God-given right is he owed a job in the US?
With current technology, physical presence is not required
by Arbalest05 April 8, 2008 1:15 PM PDT
Large multinational companies can easily open offices in the countries where large amounts of low-cost talented workers are available. With currently available technology, physical presence in this country is no longer required.

Alternately there are tens of thousands of under-employed technology engineers who are always looking for a new high paying job. Alas, many multinationals are looking for H-1B workers to fill contracts for a few years at a low (compared to American workers) wage.
Reply to this comment
H1B is not cheap labor...
by ipashchuk April 8, 2008 2:44 PM PDT
"Alas, many multinationals are looking for H-1B workers to fill contracts for a few years at a low (compared to American workers) wage."
The fact is: companies are required to pay the H1B employee the prevailing industry wage based on the locality where he/she is employed (no less than 5% below the prevailing rate). That means that up to 50% (depending on the wage distribution but likely 30-40%) of U.S. employees in the same occupation with comparable experience and within the same area would be earning less than the H1B employee. Plus, the fee for applying for H1B is close to $1,500 (another $1,000 for expedited processing), $2,000-3,000 in legal fees, and the employer is liable for transportation costs upon employment termination (another $1,000-2,000). I'm not sure how one can argue H1B is cheap labor...
View reply
No H-1B, no problem, high school dropouts and ITT Tech will help!
by joelam888 April 8, 2008 1:39 PM PDT
They are jobless or unqualified but, hey, they can be trained!
Reply to this comment
"high school dropout" says it all
by cary1 April 8, 2008 1:48 PM PDT
Seriously... these companies are not looking for mechanics, or electricians. They are looking for Engineers, IT professionals, MBAs, Doctors, Teachers etc.
View reply
Go to Chindia
by igl00lgi April 8, 2008 2:14 PM PDT
So, outsource to China or India. Leave. Go where the "cheap" talent is. As a business owner that is what I would do. So do it. You won't, everyone knows that. But you always have that opportunity MS, Oracle, exc. They need it more than we do anyway so just think of the social good you will be doing. When the middle class in the US starts to just give up, lets see how long you last here anyway.
Reply to this comment
MS already does that
by JoeF2 April 8, 2008 2:28 PM PDT
You don't seem to know that MS has opened a development center in India...
http://www.microsoft.com/india/msidc/default.aspx
They have no choice than to go where the people are, since they can't get enough people here. Good going, US Government. Continue harming the US economy by preventing companies from getting qualified workers here...
Might as well say that 85,000 USA jobs are being cut
by biffhenerson April 8, 2008 3:16 PM PDT
Bringing in people from other countries takes jobs away from americans. There is no shortage of people who will do the work that are citizens. This is nothing more than a special interest program that provides low cost, lessor skilled labor for companies that are not willing to pay for highly skilled americans and dont care if the quality of the software they produce is low and dont care if their employees can speak clear english. Very sad indeed. Next time you all complain about bugs in your software, just think of the 85,000 that helped create the "crapware" for you.
Reply to this comment
Wrong
by JoeF2 April 8, 2008 3:44 PM PDT
"Bringing in people from other countries takes jobs away from americans."
No, since there are no Americans who are qualified to do these jobs.

"There is no shortage of people who will do the work that are citizens."
There is a shortage of Americans who are qualified to do these jobs. Of course, you can find uneducated, unqualified people. But they can't do these jobs.

If we don't have the people here, the software would have to get created outside the US. With the people here, the tax base stays in the US, so it actually helps the US economy.
View reply
These URLs, from respected news sources, show H-1b damages the U.S. economy
by Jake Leone April 10, 2008 6:51 AM PDT
It is a fact that the h-1b Visa is being used to hire the cheapest workers, don't believe me, read the words of various recuiters, who have publicy posted to the web (and said they hired h-1b workers because they are cheap):

http://mcpmag.com/columns/article.asp?EditorialsID=1974

http://blogs.computerworld.com/node/6482

Green cards are being issued to people without even trying to find a U.S. citizen. I have seen this first hand, where Green cards were issued to people in Software Quality assurance (jobs a game tester could do). But if you don't believe me, see the video by the immigration attorneys used by the client of "Compete America":

http://www.youtube.com/watch?v=TCbFEgFajGU

A report from the National Accounting Office of the United Stated has found that people on h-1b Visas are regularly being paid 20% less than their U.S. Citizen counterparts.

The h-1b program is being used to out-source U.S. jobs:

http://www.iht.com/articles/2007/04/12/business/visa.php?page=2

There is no shortage of qualified technology worker, just a shortage of technology workers are the low-low prices.

With rent in Silicon Valley at typically at 2000$/mth how can a Technology worker live on less than 40k a year, yet many h-1b visas are issued for far less than this.

http://www.bendweekly.com/Opinion/4670.html

Check out the following:

http://www.businessweek.com/bwdaily/dnflash/content/feb2007/db20070208_553356.htm

http://www.msnbc.msn.com/id/17048048/

The typical U.S. citizen is being saddled with 9 trillion dollars in National debt, by the Bush Administration.

Typical U.S. citizen is born with more cost in debt service per year than the wages of your typical Indian programmer.

Gasoline is prices are going the roof. Because of Corporate lobbying groups. Hey I am spending more driving to work, now, than the average Indian worker.

And the lobbying group "Compete America" is crass euphemism (double-speak) for the continuing fire sale that is destroying the U.S. economy.

http://mcpmag.com/columns/article.asp?EditorialsID=1974
Reply to this comment
Don't believe corporate hype because there is NO tech worker shortage
by Jake Leone April 10, 2008 7:25 AM PDT
I am a development manager, in the Silicon Valley.

In the last 6 months I ran 2 java/C++ developer job adds, each recieved in excess of 20 resumes, many candidates were qualified. I had my pick, and in the end the only factor was would they come in at the right (AKA lowest) price.

There is always tremendous pressure, when your a manager, to keep salaries as low as possible, especially.

Further, companies like Microsoft, Google reject 99% of resumes that come in. I have been very successful in development (been at my current job for 8+ years), and I have applied to both companies, (for non-Senior programming jobs), and I haven't heard from either company. At the same time, several people who knew someone on the inside of these companies were interviewed and hired.

Don't believe corporate hype, period. There is no tech-worker shortage, there is in fact a glut of tech workers out there.

If you believe that there is a tech worker shortage, then you probably also believe that oil companies aren't making a killing off the U.S. economy right now.

Why am I writing this?

* Although I manage a development group, I am also a technology worker.
* U.S. Tech workers are skilled, experienced, and efficient. I want business to be efficient, so let's not fool ourselves into thinking that cheap labor equals efficiency.
Reply to this comment
Most of the H1's I have heard about
by The_Decider April 10, 2008 8:12 PM PDT
Are far above your typical IT McJob requiring Java or C++ knowlege. They don't come here to perform run of the mill programming duties.

That kind of programming work is far above a MCSE and other such nonsense, but is miles below the PH.d/Masters level jobs that many H1B's fill.

Many of the H1B's are doing truly high tech work.
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