H-1B VISAS: A HIGH-TECH DILEMMA

Name : Jusuf Hamanu Sukaton

125610514008 - 8

English for International Business and Trad

H-1B VISAS: A HIGH-TECH DILEMMA

Bachground Case

Traditional wisdom dictates that some work is so labor-intensive and poorly compensated that it can only be performed by desperate foreigners with limited options. However, there is another aspect of the immigration debate that generates no less controversy but receives far less public scrutiny. The H- 1B temporary worker visa program has long been a thorn in the side of U.S. companies looking to attract highly skilled foreign labor. The high-tech industry has been particularly impacted and has sought to liberalize the rules and regulations governing H-1B. Opponents of the program have characterized its current form as the present-day version of indentured servitude. Some domestic labor groups have argued that temporary workers are an unnecessary evil that depresses wages and takes American jobs away from Americans.

The H-1B is a visa program that allows foreign individuals with highly specialized knowledge and skills to work in the United States for a maximum of six years. It was initiated in the 1950s to attract mathematicians, physicists, and engineers from behind the Iron Curtain. H1-B has undergone many revisions since its inception. However, it has not been able to keep pace with the changing needs of American employers. This is best illustrated by the information technology sector, where historically robust labor demand is projected to grow by approximately 40 percent by 2016. The industry’s growth long ago outpaced the domestic supply of skilled workers, leaving IT companies to navigate the murky waters of securing H-1B visas for qualified foreigners.

Problem

·         The public face of the immigration debate in the United States has typically revolved around illegal workers filling low-wage/low-skill jobs ?

Theory

1.      Comparative Advantage Theory) : a country can trade although it has a comparative advantage or relative efficiency. This principle explains each country can gain from trade by exporting goods or services which are the greatest comparative advantage and import of goods or services that are not a comparative advantage.

-. The H1-B program is designed to increase the supply of skilled workers, and hence reduces wages for the most affected occupations. Companies are able to secure lower paid labor, which reduces costs and increases the overall economy’s profit potential.

2.      Teori paradoks leontief : Leontief paradox theory is the inverse of the HO theory which states that U.S. exports will consist of the goods that capital intensive and the reverse the import will consist of goods that are labor intensive

-. of the potential impact of an aging workforce is the healthcare industry, which is already grappling with persistent labor shortages. The average nurse in the United States is 42 years old. Once the baby-boomers retire, replacing them will be difficult without the help of qualified foreign workers. Another important concern is the decline in domestic workforce readiness, as graduation rates for the nation’s colleges and universities have been steadily declining. In 2002, 51 percent of college students graduated within five years of initial enrollment, compared to a rate of 55 percent in 1988. Analysts are predicting that the next decade will result in a 33 percent shortfall in graduates of four-year or higher degree programs.

Conclusion

In order to meet the growing needs of many of its industries, such as information technology and healthcare, the United States would have to completely reevaluate its immigration philosophy. Similar to the ‘‘Arms Race’’ and ‘‘Space Race’’ of the not-so-distant past, the global economic future likely holds an equally challenging and important ‘‘Brain Race.’’ The ability to attract and retain skilled foreign workers in key developing industries should not be taken for granted, but fostered through functional immigration policies and incentives. On the domestic front, the knowledge base needs to be expanded through increased investment in education and industry-specific career development. Some have suggested that the market might evolve its own measures to combat employment shortages.