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The visa shortage: Big problem, easy fix
Rediff ^ | November 26, 2007 | Rediff

Posted on 11/26/2007 8:46:56 AM PST by CarrotAndStick

Signs with the words "U.S. citizens and permanents only" greeted students at employers' booths at a recent career fair at Duke University, where I teach. In previous years only government jobs requiring security clearances were labeled off-limits to international students.

Foreign-born engineering graduates told me they were disappointed that employers like General Electric, IBM, and Carmax as well as smaller companies would not even interview them.

Recruiters told me they were frustrated that they could not fill critical positions. They have few options because the visas they need to hire foreign nationals simply aren't available.

This visa shortage is a problem for U.S. companies that depend on engineers because significantly more foreign-born students than Americans are completing higher degrees in engineering. According to the American Society of Engineering Education (asee.org), foreigners account for nearly 45% of masters-level engineering students and 60% of PhDs.

The result? Multinationals have little choice but to expand their engineering operations abroad, and smaller businesses that can't afford to expand overseas are unable to hire the talent they need.

Aaron McQuaid, a customer-support engineer at Cisco's Research Triangle Park (N.C.) group, has been helping the tech giant recruit from Duke. He says Cisco currently has more than 1,300 openings.

His team alone, he says, has been looking for two engineers for more than three months. McQuaid says barely 10% of the applicants from Duke were U.S. citizens, none had the skill set he needed, and his group couldn't find a way to hire highly qualified foreign nationals.

The visa system isn't working. Right now, when international students complete their degrees in the U.S., they are allowed to work for up to one year on a practical-training visa. After that they must obtain a temporary work visa called an H-1B, which is valid for up to six years.

Yes, companies are allowed to hire foreign students during the one-year practical training period. But those I spoke with worry that they won't be able to keep their recruits beyond this period because H-1B visas are in short supply.

(This year there were 65,000 H-1Bs available for any foreign-born worker who holds an undergraduate degree and an additional 20,000 for those with a master's degree. But U.S. Citizenship & Immigration Services reported there were twice as many applications received by its April deadline for the undergraduate-degree H1-Bs for 2008 than the allotted number, and those were distributed via a lottery.)

Bad for Everybody

The problem with H-1Bs, which were originally intended to let U.S. companies recruit highly skilled workers, is that they can be misused. John Miano, of the anti-outsourcing advocacy group Programmers Guild (programmersguild.org). says these visas are frequently used to import low-level computer programmers who work at below-market salaries.

Miano estimates that 56% of computer workers, who make up 45% of the H-1B pool, are in this low-skill category. Yet these visas are also used to hire highly skilled engineers, scientists, doctors, and computer-information architects.

With the number of available visas drying up, there's no easy way for the current batch of international students to stay. This means they need to find jobs back home or in other countries.

Additionally, there is already a backlog of more than a million skilled immigrants working in the U.S., mostly on H-1B visas, who are waiting for a yearly allocation of 120,000 permanent-resident visas. So we are headed for a massive reverse brain drain of skilled workers and students.

Our loss is likely to be the gain of countries like India and China.

On October 5, Wim Elfrink, chief globalization officer for Cisco, paid a visit to Duke. He talked about the opportunities his company was seeing in international markets and innovative new technologies being developed for them.

Elfrink said he expects to hire 7,000 engineers over the next five years and to have 20% of Cisco's top talent located in India. He encouraged Duke students to apply for jobs in Bangalore.

What Undergrads Say

Will our current crop of foreign-born graduates end up in India or China? I asked my students about their plans.

Baris Guzel, 23, says he has a job offer in Germany and knows of opportunities back home in Turkey. But he wants to stay in the U.S. and join a financial-services or consulting firm.

What deters him are ads like those posted by Accenture on Duke's recruiting site that read: "Applicants for employment in the U.S. must possess work authorization which does not require sponsorship by the employer for a visa." How can he get a visa if employers won't sponsor him, Guzel asks.

Gauravjit Singh, 24, and his team won a $100,000 prize last September from Duke's CURE business plan competition.

He then co-founded a medical-device company to equip clinicians in the developing world with an affordable and effective technology in the fight against cervical cancer. They outsourced the technology development to a Cary (N.C.) design firm. Given how hard it is to get a visa, Gauravjit sees no choice but to return home and run his venture from Bangalore.

Jaineel Aga, 23, says he may have made the wrong decision about studying in the U.S. instead of Europe. The reason he picked the U.S. was because he believed it was more open and welcoming to international students. He wants to become a management consultant and is keen to stay in the U.S. He considers it a travesty that his career may ultimately be decided by a visa lottery.

Tanya Srivastava, 24, says she never planned to stay permanently in the U.S. but did want to work for a few years to get some global experience and pay off the loans she took to complete her U.S. education. But she believes she can easily get a job back home in India if things don't work out here.

All these students said they would discourage their friends from coming to the U.S.

Unlike many of the problems facing the U.S., this one isn't hard to fix. All we need to do is increase the number of visas that are available for international students who get job offers from U.S. companies. An even better solution is to offer these students permanent-resident visas rather than H-1Bs. In the new global landscape, we need the world's best talent on our side.

Vivek Wadhwa, a former tech entrepreneur, is the Wertheim Fellow at the Harvard Law School and an executive-in-residence at Duke University. He writes a column on policy issues affecting entrepreneurs every month.


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: North Carolina
KEYWORDS: business; engineering; h1b; helpwanted; india; jobs; visa
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1 posted on 11/26/2007 8:46:57 AM PST by CarrotAndStick
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To: All

Note: The article is from an Indian website.


2 posted on 11/26/2007 8:47:52 AM PST by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: CarrotAndStick

I love the way that all the computer jobs are touted as “engineering” positions. This is crock. I am in the IT field and NONE are engineers. An engineer has to pass the EIT and PE tests to receive a LICENSE to be a REAL engineer. The rest are just “feel good” titles for IT people.


3 posted on 11/26/2007 8:52:57 AM PST by LetsRok
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To: CarrotAndStick

Better solution = put a floor on salary to be paid to H1B visa holders at local market value + 20% When the cheaper, foreign labor is not available, watch how quickly the companies snap up the supposedly unavailable US workers.


4 posted on 11/26/2007 9:06:31 AM PST by Ingtar (The LDS problem that Romney is facing is not his religion, but his Lacking Decisive Stands.)
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To: CarrotAndStick
All these students said they would discourage their friends from coming to the U.S.

good, now go home!

5 posted on 11/26/2007 9:06:55 AM PST by org.whodat (What's the difference between a Democrat and a republican????)
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To: LetsRok
I love the way that all the computer jobs are touted as “engineering” positions. This is crock. I am in the IT field and NONE are engineers. An engineer has to pass the EIT and PE tests to receive a LICENSE to be a REAL engineer. The rest are just “feel good” titles for IT people. And a way to lay the screws to American students.
6 posted on 11/26/2007 9:08:23 AM PST by org.whodat (What's the difference between a Democrat and a republican????)
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To: org.whodat
That is an idiotic statement. There is a nationwide shortage of engineers because the illiterates that come out of the US public school system do not go into IT and engineering. These highly skilled graduates are the best ind of immigrants and a huge asset to the nation. Attracting the best and brightest and then letting them work and start businesses here is a huge plus for the US. It is a lot easier for companies to here US citizens but there just are not enough qualified people out there.

There is strong protectionist thought process on FR which is based on the 1900’s. In this technology age, we are insane to let a MIT Ph.D from India go back. A big part of the tech boom is directly linked to H-1’s that got green cards starting a business here. Would you rather they do that in India ?

7 posted on 11/26/2007 9:16:49 AM PST by Maneesh (A non-hyphenated American.)
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To: Maneesh
That is an idiotic statement

You can just kiss my elbow, I remember well the attorney on the TV giving the seminar on how to get around the H-1 visa requirments and turn it into a scam. So when you prove it is not BS and run the ones out of the country that scammed the system get back to me. Other wise this is just another back door amnesty program.

8 posted on 11/26/2007 9:22:06 AM PST by org.whodat (What's the difference between a Democrat and a republican????)
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To: Maneesh
These highly skilled graduates are the best ind of immigrants and a huge asset to the nation.

If they have no interest in joining with american culture and seeking permenent citizen status, then they are no asset at all.

9 posted on 11/26/2007 9:22:35 AM PST by MrEdd (Heck is the place where people who don't believe in Gosh think they aren't going.)
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To: LetsRok
I love the way that all the computer jobs are touted as “engineering” positions. This is crock. I am in the IT field and NONE are engineers. An engineer has to pass the EIT and PE tests to receive a LICENSE to be a REAL engineer. The rest are just “feel good” titles for IT people.

you tell 'em. we all know you're not a real engineer until the government says so
10 posted on 11/26/2007 9:22:54 AM PST by jjw
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To: MrEdd
How do you know they do not want to be Americans. They are highly educated, law abiding and make a high income. You have to get a H-1, then a green card and then become a citizen. Most of them do want to become US citizens. I know because I became a citizen the same way legally and it too 10 years from start to finish. I have never taken a dime from the govt, pay over 80K / year in taxes and am a law abiding, conservative proud America loving citizen. Would you want to deny people like me the right to EARN citizenship legally ? Controlled high quality legal immigration of highly skilled young people is a huge asset for America. We are foolish to make it harder for the best and brightest to stay here and then want to make it easy for uneducated freeloading illegals to stay here.
11 posted on 11/26/2007 9:28:54 AM PST by Maneesh (A non-hyphenated American.)
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To: org.whodat
“Other wise this is just another back door amnesty program”

Let’s see, I got a Master’s degree, then got a H-1 which led to a green card and then citizenship. Took me 10 years in all and I followed the complete legal process. How is that amnesty ? Your reaction is just knee jerk without understanding the issue. I am staunchly against illegal immigration and do not want amnesty in any way. However to call a PhD. from MIT that wants a legal H-1 work visa the same things as amnesty for an illegal who has broken the law by coming across the border is ludicrous. Controlled high quality legal immigration is a huge plus for America. Ask anyone in the tech industry, one of our biggest problems is the lack of qualified engineers to hire. I work for a Fortune 500 company and we have had 1,000 open positions for engineers for 6 months or more.

12 posted on 11/26/2007 9:33:17 AM PST by Maneesh (A non-hyphenated American.)
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To: CarrotAndStick
Unlike many of the problems facing the U.S., this one isn't hard to fix. All we need to do is increase the number of visas that are available for international students who get job offers from U.S. companies.

A very long windup for an amazingly pointless solution. The primary problem with the H-1B visas is that they are being "wasted" on intro level Visual Basic programmers instead of the high level cream of the crop they are advertised as.

The obvious solution is to cap the number of H-1B visas and then have companies bid for them. Being willing to pay $20,000 for a slot for a Indian doctoral level researcher wouldn't be very expensive. On the other hand it would be ridiculous to pay it for someone just out of tech school who can barely figure out how to line up buttons on a screen.

13 posted on 11/26/2007 9:36:06 AM PST by KarlInOhio (Government is the hired help - not the boss. When politicians forget that they must be fired.)
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To: LetsRok

Everybody with a screwdriver in his hand, a train driver, or any technician in an apartment building who works for the custodian is called an engineer.

One has to have a minimum of a B.S. from a REAL ENGINEERING SCHOOL to be called an engineer, with or without a PE.

“Feel good” titles are without the “REAL GOOD” pay that goes with them.

That reminds me of the 25-year old VPs, senior VPs and executive VPs in companies they don’t own and with no experience in business.


14 posted on 11/26/2007 9:37:04 AM PST by melancholy (Beware of Ho Chi Minh's offspring, Ho She Marx , invading the WH.)
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To: Maneesh

Agreed. We want to keep this talent here in the US.

And I say this as one that was affected by the offshore transition of my job (I found another... making more money).

Keeping highly educated talent in the US is nothing but good for the US.


15 posted on 11/26/2007 9:39:07 AM PST by djl_sa (a sad republican.... looking forward to 2008)
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To: KarlInOhio
That is a sensible solution. H-1’s should be issued to truly hard to find professionals and not entry level people. The H-1 visa issuance process should be made more selective and the rules enforced. When someone does qualify for these stringent requirements, we should also create a fast track process for these people to get green cards so they can stay and work here.

The problem is with illegal freeloader immigrants, let’s not spread our angst to the legal immigrants.

16 posted on 11/26/2007 9:41:49 AM PST by Maneesh (A non-hyphenated American.)
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To: Maneesh

I agree with you.

If we need skilled people, degreed or not, we should make it easier instead of being dumped upon by every third world country.

One ironclad condition, though. Whatever it takes for a background check including home country fingerprinted police report obtained by Americans working with the authorities of said country. Immediate approval of the proper visa should be forthcoming for successful, approved immigrants with backgrounds.


17 posted on 11/26/2007 9:45:45 AM PST by melancholy (Beware of Ho Chi Minh's offspring, Ho She Marx , invading the WH.)
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To: Maneesh

Maneesh, I think you are right. The key to this is getting control of our borders and making sure those who come here are chosen by us, and have something to contribute THAT WE NEED. “Controlled high quality legal immigration” is what we were promised in 1965, and again in 1986 and 1996. The problem has been that the government has never lived up to that promise. And the effect of that, as you can see, is that so many people have come to reject the idea of immigration entirely. People feel like their country is being overrun. They are constantly exposed to people who come here and don’t want to live like we live, for instance, crowding a dozen people or so into a home that we would expect to hold a nuclear family of four or five. And they are constantly exposed to people who have brought their Old World problems here, and expect us to put up with them and deal with them. And then, of course, there are people who have immigrated here who hate our country and our Constitution, and want to impose their corrupt old traditions and religion on us. Bottom line is, IF PEOPLE DON’T WANT TO ASSIMILATE, COMPLETELY, LANGUAGE, CUSTOMS AND LIFESTYLE, THEY SHOULD NOT COME HERE. And, realistically, not everyone in the world can come here, even if they are engineers. Some people need to stay home and build their own countries. Everything you say makes sense, but you have to take into consideration the way people who were born here are perceiving the situation.


18 posted on 11/26/2007 9:47:05 AM PST by 3AngelaD (They screwed up their own countries so bad they had to leave, and now they're here screwing up ours)
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To: melancholy
Very sensible approach. I don’t care if they have all the degrees, if they have anything in their background which causes a national security concern kick them out. Let’s scrutinize them stringently and then fast track them to a green card.
19 posted on 11/26/2007 9:52:52 AM PST by Maneesh (A non-hyphenated American.)
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To: Maneesh
How do you know they do not want to be Americans. They are highly educated, law abiding and make a high income. You have to get a H-1, then a green card and then become a citizen. Most of them do want to become US citizens. I know because I became a citizen the same way legally and it too 10 years from start to finish. I have never taken a dime from the govt, pay over 80K / year in taxes and am a law abiding, conservative proud America loving citizen. Would you want to deny people like me the right to EARN citizenship legally ? Controlled high quality legal immigration of highly skilled young people is a huge asset for America. We are foolish to make it harder for the best and brightest to stay here and then want to make it easy for uneducated freeloading illegals to stay here.

I agree with you 100 %. The two-tired system we have is insane, in that we discourage lots of people we should be welcoming, yet turn a blind eye toward those ( especially criminal elements) we should be prohibiting.

The tighter we make the laws, the more we encourage the lawbreakers. Yet, you can't really blame us native Americans who feel like we're getting the short end of the stick here. We have been more than gracious and welcoming, yet are constantly called racists, greedy, and treated with second-class status in our own homeland, by our own government.

Anyone who saw that H-1B visa video has call to feel bad. So, you have to be a little understanding.

20 posted on 11/26/2007 9:54:18 AM PST by Red Boots
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