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    Nasscom says Donald Trump's order on H1-B visa based on misinformation

    Synopsis

    The order directs the heads of each federal department and agency to review the use of offshore services as well as temporary foreign labour (H-1Bs, L-1s) in the execution of contracts awarded in FY 2018 and 2019 and issue a report within 120 days.

    Reuters
    The order comes at a time when there is a huge shortage of STEM skills in the US which are bridged by workers on non-immigrant visas like H-1B and L-1.
    Pune: IT industry body Nasscom said that US President Donald Trump’s executive order on preventing federal agencies from using H-1B visa holders appeared to be based on misinformation and misperceptions. The new executive order, “Aligning Federal Contracting and Hiring Practices with the Interests of American Workers” signed on Monday recommends a review of federal contracting practices and the H-1B visa program in general rather than mandating an immediate change.

    The order directs the heads of each federal department and agency to review the use of offshore services as well as temporary foreign labour (H-1Bs, L-1s) in the execution of contracts awarded in FY 2018 and 2019 and issue a report within 120 days to the Director of the Office of Management and Budget. Based on this, corrective actions may be taken. It also asks the Secretaries of Labor and Homeland Security to “take action” within 45 days “to protect United States workers from any adverse effects on wages and working conditions caused by the employment of H-1B visa holders at job sites (including third-party job sites).”

    “This underscores and sets a timeline for the agencies to finalize and publish some of the regulatory measures that have been discussed by the Administration and mentioned again in the June Proclamation. These may include the changes to the definitions of “specialty occupation”, “employer”, and “employer-employee relationship”,” said Nasscom.

    “As the world opens up post the COVID-19 induced lockdowns, it is important for the U.S. to be able to access talent critical to the recovery phase. Measures that restrict access to talent will slow-down the recovery phase of U.S. economy, jobs, innovation and R&D,” it said in a statement.

    The order comes at a time when there is a huge shortage of STEM skills in the US which are bridged by workers on non-immigrant visas like H-1B and L-1. Unemployment rate for computer occupations (those most common amongst H-1B visa holders) declined from 3% in Jan-2020 to 2.5% in May-2020, while unemployment rate for all other occupations grew from 4.1% in Jan-2020 to 13.5% in May-2020. Further, in the 30-day period ending 13th May 2020, there were over 625,000 active job vacancy postings advertised online for jobs in common computer occupations, including those most common to H-1B visa holders, said NASSCOM.

    Blow to Indian techies: Trump comes up with new order on H-1 B visa hiring

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    The new visa law

    Donald Trump in a new proclamation has barred technology workers on H-1B visas from replacing US citizens or green card holders in federal government contracts. The move is aimed at securing more jobs for native Americans and throws open a plethora of high-skilled jobs for them.


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    3 Comments on this Story

    American First49 days ago
    Disney IT, Edison Gas, University of San Francisco and many many many. Why is H1B salary still at 1989 wage levels ? There are over millions of US citizens with software, IT, cloud, AI, skills actively looking for job and willing to work at US standards salary ( sorry we will not work at Bangalore INR salary as we have to pay US mortgage, Educate our children in US universities paying US dollars, pay our insurances at USD. Also we have families so we cannot be stacked up in One bed room apartment on room share basis). How about millions of American IT jobs shifted to bangalore ? Why is so called high tech, skilled not paid Minimum 175 k ?
    James Murphy51 days ago
    “ The order comes at a time when there is a huge shortage of STEM skills in the US which are bridged by workers on non-immigrant visas like H-1B and L-1. Unemployment rate for computer occupations (those most common amongst H-1B visa holders) declined from 3% in Jan-2020 to 2.5% in May-2020, while unemployment rate for all other occupations grew from 4.1% in Jan-2020 to 13.5% in May-2020.”
    That is disputable however even if true is is not a reason to withdraw the order. Even if there is a shortage (and no unbiased investigation has ever found a shortage) the H-1B should be ended. The question is what would employers do I’d the H-1B did not exist? They would pay higher wages causing more to acquire the skills in short supply and thus end the shortage. Thus the H-1B works against the prosperity of the USA.
    ExtremeDenial51 days ago
    Crony capitalist getting trap in own web. America can't keep up lifestyle without cheap labour & money from Asia ( Fed reserve can't print without asia support ) As asia can't survive without american consumer living beyond their means. Now suddenly Johny has decided to break candies heart by going to other sweetheart :-). What a shame as candy has compromised so much for johny all her life, sharing herself so much. At least indian candy can feel better than chinese one as Chinese one might lose all her family jewels she has kept with her johny.
    The Economic Times