The H-1B visa has led to American jobs being outsourced to India and displacement of U.S. workers, a new study confirms. The study by the Center for Global Development details how the widespread use of the H-1B visa has led to outsourcing and displacement of Americans while strengthening the pocketbooks of big business executives through “firm productivity” and “consumer welfare.” Every year, more than 100,000 foreign workers are brought to the U.S. on the H-1B visa and are allowed to stay for up to six years. That number has ballooned to potentially hundreds of thousands each year, as universities and nonprofits are exempt from the cap. With more entering the U.S. through the visa, Americans are often forced to train their replacements. The H-1B visa, according to researchers, is partly responsible for the outsourcing of American information technology (IT) jobs, as it led to a tech boom in India. “Indian students enrolled in engineering schools to gain employment in the rapidly growing US IT industry via the H-1B visa program,” the study states. “Those who could not join the US workforce, due to the H-1B cap, remained in India, and along with return-migrants, enabled the growth of an Indian IT sector, which led to the outsourcing of some production to India.” Researchers also admit that American workers, because of the importation of foreign workers through the H-1B visa, have been displaced and forced to take jobs in non-computer science careers. “The migration and rise in Indian exports induced a small number of US workers to switch to non-CS occupations, with distributional impacts,” the study states. Despite the researchers claiming the H-1B visa has made the U.S. and India “better off,” IT exports show otherwise. For instance, exports of IT goods from the U.S. has steadily declined since 1995. India, on the other hand, has enjoyed a steady rise of IT exports since 1995. The Center for Global Development study further confirmed previous research that indicates how American workers have gotten the short end of the stick while India has profited from frivolous U.S. immigration laws and visa programs.
On the day the H-1B visa program is open for applications by employers, mostly from the tech industry, the Department of Justice (DOJ) is warning companies not to replace American workers with foreign help. In a statement, Attorney General Jeff Sessions’ DOJ laid down a more aggressive tone on the issue of the H-1B visa’s long history of being used to outsource Americans’ jobs to cheaper, foreign workers that are brought to the U.S. “The Justice Department will not tolerate employers misusing the H-1B visa process to discriminate against U.S. workers,” Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division said in the statement. “U.S. workers should not be placed in a disfavored status, and the department is wholeheartedly committed to investigating and vigorously prosecuting these claims.” While the Immigration and Nationality Act is meant to prohibit discrimination against American workers solely because of their citizenship, the H-1B foreign guest worker visa has defied those rules for decades. Under the H-1B visa, 85,000 new foreign workers are brought to the U.S. every year, often taking once high-paying jobs from Americans who are fired and forced to train their replacements. If the H-1B visa program had never been introduced and enacted, computer science job availability in the labor market would be up 11 percent and wages in the tech industry would have increased by five percent..
Unfortunately, it was (introduced). Hopefully that out-of-control, program will be eliminated sooner rather than later. But, for now, we’re glad to see AG Jeff Sessions, and his team at DOJ, putting the heat on employers to NOT discriminate against U.S. workers in favor of foreign workers. We’ve all heard the stories of American workers being forced to train their foreign replacements. That has to stop.
A bill to curtail the number of Americans being replaced by foreign guest workers through the H-1B visa “would have zero impact” on the program, according to an expert on the issue. Reps. Derek Kilmer (D-WA) and Doug Collins (R-IL) have reintroduced the “Keeping American Jobs Act”, which they claim will tackle abuses of the H-1B foreign guest worker visa. “The Keeping American Jobs Act protects American workers by preventing bad actors from abusing the system in order to offshore jobs,” Collins told Live Mint. “Companies have the opportunity to bring workers from overseas on H-1B visas in the event that qualified Americans aren’t available, but we can’t allow the law to be exploited to displace American workers and send their jobs abroad,” Collins continued. But, NumbersUSA’s Director of Government Relations Rosemary Jenks said the congressmen are “misunderstanding” what the H-1B visa program actually does, as far as Americans being replaced by cheaper, foreign workers. “This doesn’t have any impact on outsourcing jobs,” Jenks said…
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U.S. universities are rapidly increasing the number of fee-paying foreign students who are being fast-tracked into the professional jobs sought by American graduates. In 2009, the universities helped 67,804 foreign graduates get white-collar jobs under the little-known Optional Practical Training program, which allows foreigners to get professional-grade jobs inside the United States for at least three years. By 2016, the universities worked with companies to get at least 147,498 foreign student customers into the white-collar jobs, according to the Institute of International Education, a New York-based group run by trustees from industry, education and Wall Street. The OPT outsourcing program is great for the foreign students because it gets them a U.S. job for three years, and puts them on a track to win extremely valuable Green Cards and citizenship. It is great for employers because many OPT employees work for low salaries in the hope of eventually getting Green Cards — and also because the OPT employees are exempt from Social Security and Medicare taxes, unlike American employees. The OPT system is also great for universities and colleges because it brings in more student customers from overseas, whose tuition fees greatly exceed the paperwork costs paid by universities to run the OPT program. That’s a big financial benefit for universities. But the OPT guest-worker program is bad for the many ordinary American graduates who are being shut out of more than 100,000 jobs — and who also face increased lifetime competition from imported, lower-wage foreign professionals. Joseph Palos, a high-tech graduate from Cornell University, formally objected to the OPT program in 2015. ”Companies don’t want to hire Americans and they abuse… OPT to hire cheap immobile labor instead of hiring anyone over the age of 35, especially in software or tech areas,” he wrote to a federal agency, according to a report in ComputerWorld. That’s a challenge for President-elect Donald Trump, who campaigned against work visas — such as the H-1B visa — that disadvantage Americans. “I will end forever the use of the H-1B as a cheap labor program, and institute an absolute requirement to hire American workers first for every visa and immigration program,” he said in a March 2016 statement. “No exceptions,” he added. The scale of the OPT outsourcing program is unclear — but it is certainly huge. For comparison, the 147,498 foreigners now employed in the OPT program add up to three times the 51,000 Americans who graduated with information technology jobs in 2015, according to federal data. The number of resident foreign OPT professionals is also five times the 29,000 Americans who graduated with science degrees in 2015, and 40 percent more than the 108,000 Americans who graduates with engineering degrees. The OPT number is expected to sharply rise in 2017 and later because President Barack Obama expanded the program to allow foreign students to work up to 24 months instead of 12 months. Also, foreign graduates from so-called “STEM” degrees — science, technology, engineering and mathematics — can work for an additional 12 months, or a total of three years.
How crazy is that?!?! Hopefully Trump will put a screeching halt to this nonsense when he takes office! To read the rest of this shocking article, click on the text above.