H-1B Season Shows Insufficient Number of H-1B's for current economic activity
April 22, 2012
Despite the soft economy over the last few years, a slow rebound appears to be taking hold. That dynamic is apparent in the usage of H-1B numbers this year and in the last two fiscal years. Two years ago, the last H-1B number was assigned in March of that fiscal year; i.e., barely 5 months into the fiscal year. Last year, the last H-1B number was taken in November, one month into the fiscal year. With the pace at which the numbers are going this year, it looks like the last one will be taken in August of this year, over a month prior to the fiscal year's start date of October 1, 2012.
This clearly shows a pattern of economic growth and activity. We are adjusting to a new set of economic rules that post-date the 2008 crash that was fueled by poor decisions, overly optimistic economic forecasts, and, in some very powerful situations, outright fraud. Business owners and lending institutions are more conservative, government oversight is, at least on the face of things, more vigorous, and things just are moving more slowly. In many ways, these are good things. Major life decisions should be subject to more than brief scrutiny.
At the same time, people have adjusted to a new reality, and they have concluded that life will go on. So businesses are looking to expand where possible, and to take advantage of opportunities that have presented themselves or may do so in the future. As in years past, the domestic supply of highly skilled and highly educated workers is not sufficient to meet the needs of our expanding, dynamic economy. Under those circumstances, employers are turning to foreign workers to help fill the gap. The great majority of those workers seek H-1B visas to enter the US. Unfortunately, Congress has not responded to the clear need of US employers for more H-1B workers; rather, Congress has allowed the system to stagnate, leaving the annual limit or "cap" at 65,000 (plus an additional 20,000 numbers set aside for graduates with advanced degrees from US schools). That number only rarely has been large enough to meet the demand. This year is no exception, and due to the election malaise that affects Congress every two years (for House elections), no one will step forward and make the necessary arguments to increase the cap, or at least make it connected to the prior year's usage, or something similar.
Despite the usual self-proclamations of those in office and those seeking it ("I will always support business!"), the proof of that remains to be seen. Members of Congress like to use those sound bites, but in reality, most of them could care less if the issue involves immgiration, even where critical employers in their district need reform legislation in the form of more H-1B numbers.
