Daily Times

H-1B Visa is a permit that allows foreigners to enter the United States to work in specialty occupations, especially in silicon valley, medicine and engineering is under considerable debate to changes under the Trump’s administration, ‘Buy American, Hire American’ plan.

According to Grassley, an outspoken critic of the H-1B visa program, “workers are permitted to stay for years or even decades” due to visa extension programs.

“Many companies use cheap foreign labour, driving down salaries, where many of these employers still commit terrible abuses,” the senator added. “That’s why I was pleased to see this administration take on these issues with its ‘Buy American, Hire American’ executive order.”

Earlier last year in April 2017, the US Citizenship and Immigration Services (USCIS) suspended ‘premium processing’ for up to six months. Now it takes more than six months for an application to be reviewed, whereas, premium processing allowed applicants to pay an extra fee $1,225 to ensure a response within 15 days.

Adding to this, recently the Trump administration is also considering scraping the Obama era rule allowing the spouses of the H-1B visa holders to work under a special H-4 visa.

On the off chance that the Trump organisation repeals the previous law, it will lopsidedly influence Indian workers, who made up about 80 per cent of all H-4 visas issued in 2015. It will likewise excessively influence ladies, who make up 90 per cent of all H-4 visa holders. However, the proposed changes would not only strike the foreign workers working in the US on H-1B visa and H-4 visa but will also have significant implications and risk for the Silicon Valley’s eco-system and eventually the US economy. Michael Seibel, CEO and partner at Y Combinator, explains that one of the key drivers of the thriving Californian economy is the influx of skilled immigrants, who come from all over the world and build businesses, spend money and buy homes.

Whatever you think of H-1 policy and the way it’s being used, it’s unfair to have a sneak attack on the whole system,” said Cameron. “A lot of massive companies rely upon premium processing every year for their hiring and budgeting schedules.”

Eventually, this will also have major repercussions on the competitive advantage of the US in acquiring and retaining talent, amongst the other countries of the world. According to a survey, they are not enough qualified Americans currently to fill the more than quarter million open tech jobs in the Silicon Valley. It means that under the Trump administration, changes in the immigration policy would make it increasingly difficult for smart and talented people to come, stay and contribute to the growth of the US economy.

The current US administration, need to strategically and carefully assess the consequences these changes in the immigration policy will have on the international completive position and growth of the US economy both in the short and the long run

Another big factor being overseen by policymakers is that most of the currently employed highly skilled workers in the US are not recruited directly by from their countries. In fact most of the H-1B workers are recruited from the American universities after they graduate. Thus, making it difficult for these students to obtain work after they get educated from the US, is going to influence the number of international students entering the universities, which will nevertheless effect the global rating of the US universities and the revenue generated by the education industry. The evidence of this can already be observed in a 2017 survey by American Association of Collegiate Registrars and Admissions Officers, which shows about 40 per cent decline in the applications received by the schools in the US from countries such as China, India and the Middle East.

In the global environment where other major players and growing economies such as China, despite having an enormous Chinese workforce are easing visa permits for highly skilled foreign professionals, the current US administration, need to strategically and carefully assess the consequences these changes in the immigration policy will have on the international completive position and growth of the US economy both in the short and the long run.

The writer is an economist, and former lecturer of economics in the UAE. She will shortly pursue a PhD in Economics

Published in Daily Times, January 25^th 2018.