The US government has made a recent announcement upholding the 60-day suspension on immigrant and non-immigrant worker visas through the end of 2020. The ban includes H-1B, H-2B, J and L visa categories, with exemptions for food industry workers requiring an H-2B visa and J visa holders who are professors or scholars.
Understanding Work Visas
Emerging from the IT revolution and the wide-spread use of low-cost computers across developing nations like India, is a surge of individuals willing to work at comparatively lower costs in the United States. This scenario benefits both employers in the US and the overseas employees. To cater to this demand, the US administration issues a limited number of visas each year to fill the void of highly-skilled, low-cost manpower in IT and related fields.
Visas such as H-1B, H-2B, J and L allow companies outside the US to deploy their staff to work on client sites. Notably, the H-1B visa for individuals in Specialty Occupations requiring higher education degrees is widely popular among Indian IT companies.
The Reason Behind the Suspension
The principal reason behind the suspension of these visas is to protect domestic workers affected due to economic contraction resulting from the Covid-19 pandemic. The overall unemployment rate in the US surged almost four times between February and May 2020. This has led to some of the harshest unemployment rates ever witnessed. The arrival of additional workers via the H-1B, H-2B, J and L non-immigrant visa programs was viewed as a significant threat to employment chances for American workers.
Who Gets Affected?
The new rule applies only to those who are currently not in the US, do not have a valid non-immigrant visa as of June 23rd, or do not possess an official travel document, other than a visa, to enter the country. Consequently, these individuals will not be allowed to enter the US until December 31st, 2020.
Who Remains Unaffected?
Lawful permanent residents of the US, foreign nationals who are spouses or children of American citizens, and foreign nationals seeking to provide temporary labor or services essential to the food supply chain are exempt from this proclamation.
Impact on Indian IT Companies
Indian IT companies have historically been significant beneficiaries of the US H-1B visa program, gaining a colossal share of the total visas granted each year. As of April 1, 2020, 67% of the approximately 2.5 lakh H-1B work visa applications received by the US Citizenship and Immigration Services (USCIS) were from Indians. This visa suspension will significantly impact the revenues of Indian IT companies that deploy thousands of low-cost employees to client sites in the US.
Overall Impact on India
Despite the adversity, if the ban is not overturned, India may still experience some positive effects. An increase in remittances is probable, as already employed skilled workers from India may receive higher salaries. Furthermore, newly graduated skilled workers may seek opportunities within India, thereby addressing the issue of brain drain. This local retention of skilled workers aligns with the nation’s ambitions for enhanced self-reliance under initiatives like Atmanirbhar Bharat, Make in India, and its aspiration to be a 5 trillion-dollar economy.
Criticism
The move has been widely criticized as detrimental to the US’s own economy and its reputation of attracting top talent. Critics argue that the suspension of visas harms employers, families, universities, hospitals, communities, and delays America’s economic recovery. The constraint on highly skilled immigrants may potentially slow down the industry and worsen the economy, thereby affecting the timeline for a Covid-19 treatment and cure.
Way Forward
Immigrants have played a key role in establishing the US as a global leader in technology. Suspending visas could weaken the US’s economy and healthcare workforce at a crucial time. The focus should be on smart politics and policies that harness the ingenuity of migrant workers to revive an economy in difficult straits.
Last Modified: February 7, 2024