The US Bureau of Labor Statistics released its job report on May 7. An additional 266,000 jobs were created in the non-farm sectors last month against the predicted almost one million.
Jobs have been an important political talking point in the US just like it has been in many other countries. Former President Donald Trump used this issue to pass his executive order banning new H-1B visas. Before that, another executive order was passed in 2017 which increased scrutiny while issuing H-1B visa.
The rationale behind the H-1B visa restrictions was that the US needed to give jobs to its own people.
Companies Simply Look Outwards
However, research has shown that when faced with immigration restrictions, companies look outwards instead of inwards. Based on a study, Britta Glennon, assistant professor at the Wharton School of the University of Pennsylvania, found that companies dependent on H-1B visas were more likely to expand overseas when facing immigration restrictions, The New York Times reported.
If companies can't hire immigrant workers within the US, they simply hire them from outside the country.
According to a review of jobs posted on top H-1B users’ websites by the data provider Thinknum, since 2018 the share of job openings outside the United States at Accenture, Capgemini and Cognizant has grown while the share of advertised US jobs has shrunk, the NYT report mentioned.
Needed: Immigration Reforms
The H-1B visa is a work visa typically given to highly-skilled workers who seek employment in the US. But four years of Trump rule caused a significant dent on talent retention and acquisition of skilled immigrants. That's why representatives of American tech giants recently said that comprehensive immigration reforms are needed to attract and retain international talent again.
Meanwhile, the current rules for H-1B visa prioritise those candidates who have a higher income.
The current administration has delayed the enforcement of the new rules for 18 months, keeping in mind the impact of the pandemic on the global economy.
(Edited by: By Shoma)