We recently observed a significant development in the United States immigration policy. The President of the USA signed an executive order that prohibits federal agencies from employing H-1B visa holders and other foreign workers, favouring USA citizens or green card holders instead.
Understanding H-1B Visas
The H-1B visa is a non-immigrant visa designed for US companies to hire foreign workers in specialist occupations requiring theoretical or technical expertise. Multiple technology companies depend on this visa category to employ thousands of employees annually from nations like India and China, ensuring cost efficiency. Jobs in developed nations typically offer minimum wages, which may not be appealing to employable individuals in those respective countries.
The New Executive Order
The newly implemented executive order requests federal agencies to cease replacing USA workers and green card holders with H-1B visa holders or other foreign workers. A green card holder, also known as a permanent resident, is someone authorized to live and work in the USA on a permanent basis. Further, the order instructs all agencies under the federal government to review the contracts granted during the past two financial years and assess their performance. Department heads will conduct audits to determine if these jobs could have been executed by USA workers and whether domestic workers’ opportunities were adversely affected by such hires. The Department of Labour is directed to finalize guidelines to prevent H-1B employers from transferring H-1B workers to other job sites, thereby displacing American workers.
Background and Rationale
The USA, under Trump’s leadership, appears to be adopting a more conservative work visa regime based on an America First policy. It has accused IT companies from India and China of sending low-cost workers, damaging the prospects of skilled American workers. The decision follows the Tennessee Valley Authority’s announcement that it would outsource 20% of its technology jobs to overseas countries, resulting in potentially 200 job losses for highly-skilled American tech workers. The possibility of sensitive data leaks and intellectual property theft further underlines the perceived threat.
Impact on Indian Workers in the USA
The US government’s decision will significantly affect Indian workers in the USA, particularly those working in IT. The H-1B visa is a highly coveted one amongst this demographic. The order will not only affect workers hired by federal agencies but also those working for Indian companies contracted with federal agencies. Major federal agencies, such as state-run banks, frequently contract large Indian corporations like Infosys, TCS, or Wipro for database supply and maintenance, among other services.
Impact on the USA
This executive order arrives amid a significant shortage of professionals with STEM (Science, Technology, Engineering, and Mathematics) skills in the USA. Workers on short-term non-immigrant visas like H-1B and L-1 typically fill this gap. The new measure may slow down the recovery phase of the USA.
Way Forward
The suspension of visas and barring federal agencies from hiring H-1B visa holders may weaken the USA’s economy in the long run. Immigrants have historically played an integral role in establishing the USA as a global leader in cutting-edge technology. It is crucial for the USA to recognize this and refrain from implementing drastic measures. The nation should prioritize smart policy and inclusivity over politics. The creativity and skills of migrant workers could be instrumental in revitalizing an economy, particularly in challenging pandemic-stricken times.