FacebookTwitterGoogle+RedditEmail

Top 10 Users of H-1B Guest Worker Program are Offshore Outsourcing Firms

by RON HIRA

The H-1B ‘non-immigrant’ temporary foreign guest worker program is called a valuable tool for employers to attract and retain the “best and brightest” immigrants in the science, technology, engineering, and math (STEM) fields. Because employers may petition for permanent residence for their H-1B employees, the visa is sometimes described as a “bridge to immigration” that will keep the smartest foreign STEM workers in the U.S. permanently and thus improve the nation’s competitiveness. In part that’s how Senators Hatch, Rubio, Coons and Klobuchar explain their new bill – known as the “I-Squared Act” – that would more than quadruple the size of the H-1B program.

However, for the biggest users of the program, this view is false: In 2012, the 10 employers receiving the largest number of H-1B visas were all in the business of outsourcing and offshoring high-tech American jobs. Many of the jobs that went to H-1B workers should have instead gone to U.S. workers, but employers are not required to recruit them before applying for an H-1B, and can even replace their U.S. workers with H-1Bs. The top 10 H-1B employers were granted an astonishing 40,170 visas; nearly half the total annual quota. The table also shows each firm’s immigration yield: the ratio of permanent residence applications to new H-1B petitions for these companies. It is evidence of the companies’ intention to hire and keep their H-1B workers in the country permanently.

www.epi.org screen capture 2013-2-15-10-9-19There are two reasons these firms hire H-1Bs instead of Americans: 1) an H-1B worker can legally be paid less than a U.S. worker in the same occupation and locality; and 2) the H-1B workerlearns the job and then rotates back to the home country and takes the work with him. That’s why the H-1B was dubbed the “Outsourcing Visa” by the former Commerce Minister of India, Kamal Nath.

Rather than keeping jobs from leaving our shores, the H-1B does the opposite, by facilitating offshoring and providing employers with cheap, temporary labor – while reducing job opportunities for American high-tech workers in the process. The I-Squared Act does nothing to protect against this, while vastly expanding the size of a deeply flawed program that accelerates the offshoring of American high-tech jobs and reduces America’s future capacity to innovate.

This piece first appeared at EPI.org.

Ron Hira, an Economic Policy Institute research associate, is an assistant professor of public policy at Rochester Institute of Technology. His recent book, Outsourcing America, examines the economic and policy implications of the offshoring of high-skilled jobs. It was a finalist for the Benjamin Franklin awards in the best business book category. Hira has testified before Congress on offshoring and is frequently interviewed by the media about his work, which intersects high-skilled labor markets, immigration, globalization, and competitiveness policy. He serves as vice president for career activities for IEEE-USA, the largest engineering professional society in America, and is a licensed professional engineer.

More articles by:
November 22, 2017
Jonathan Cook
Syria, ‘Experts’ and George Monbiot
William Kaufman
The Great American Sex Panic of 2017
Richard Moser
Young Patriots, Black Panthers and the Rainbow Coalition
Robert Hunziker
Fukushima Darkness
Lee Artz
Cuba Libre, 2017
Mark Weisbrot
Mass Starvation and an Unconstitutional War: US / Saudi Crimes in Yemen
Frank Stricker
Republican Tax Cuts: You’re Right, They’re Not About Economic Growth or Lifting Working-Class Incomes
Edward Hunt
Reconciling With Extremists in Afghanistan
Dave Lindorff
Remembering Media Critic Ed Herman
Nick Pemberton
What to do About Al Franken?
November 21, 2017
Gregory Elich
What is Behind the Military Coup in Zimbabwe?
Louisa Willcox
Rising Grizzly Bear Deaths Raise Red Flag About Delisting
David Macaray
My Encounter With Charles Manson
Patrick Cockburn
The Greatest Threats to the Middle East are Jared Kushner and Mohammed bin Salman
Stephen Corry
OECD Fails to Recognize WWF Conservation Abuses
James Rothenberg
We All Know the Rich Don’t Need Tax Cuts
Elizabeth Keyes
Let There be a Benign Reason For Someone to be Crawling Through My Window at 3AM!
L. Ali Khan
The Merchant of Weapons
Thomas Knapp
How to Stop a Rogue President From Ordering a Nuclear First Strike
Lee Ballinger
Trump v. Marshawn Lynch
Michael Eisenscher
Donald Trump, Congress, and War with North Korea
Tom H. Hastings
Reckless
Franklin Lamb
Will Lebanon’s Economy Be Crippled?
Linn Washington Jr.
Forced Anthem Adherence Antithetical to Justice
Nicolas J S Davies
Why Do Civilians Become Combatants In Wars Against America?
November 20, 2017
T.J. Coles
Doomsday Scenarios: the UK’s Hair-Raising Admissions About the Prospect of Nuclear War and Accident
Peter Linebaugh
On the 800th Anniversary of the Charter of the Forest
Patrick Bond
Zimbabwe Witnessing an Elite Transition as Economic Meltdown Looms
Sheldon Richman
Assertions, Facts and CNN
Ben Debney
Plebiscites: Why Stop at One?
LV Filson
Yemen’s Collective Starvation: Where Money Can’t Buy Food, Water or Medicine
Thomas Knapp
Impeachment Theater, 2017 Edition
Binoy Kampmark
Trump in Asia
Curtis FJ Doebbler
COP23: Truth Without Consequences?
Louisa Willcox
Obesity in Bears: Vital and Beautiful
Deborah James
E-Commerce and the WTO
Ann Garrison
Burundi Defies the Imperial Criminal Court: an Interview with John Philpot
Robert Koehler
Trapped in ‘a Man’s World’
Stephen Cooper
Wiping the Stain of Capital Punishment Clean
Weekend Edition
November 17, 2017
Friday - Sunday
Paul Street
Thank an Anti-War Veteran
Andrew Levine
What’s Wrong With Bible Thumpers Nowadays?
Jeffrey St. Clair - Alexander Cockburn
The CIA’s House of Horrors: the Abominable Dr. Gottlieb
Wendy Wolfson – Ken Levy
Why We Need to Take Animal Cruelty Much More Seriously
Mike Whitney
Brennan and Clapper: Elder Statesmen or Serial Fabricators?
David Rosen
Of Sex Abusers and Sex Offenders
FacebookTwitterGoogle+RedditEmail