Why US can’t do without H-1B visa holders

The foreign born skilled workers on H-1B Visas are an indispensable part of the economy of the United States. The American immigration council emphasizes that the US employers fill a critical need in the United States labour market, particularly in STEM fields with H-1B professionals. The demand for these visas has dramatically exceeded the official cap in the recent years. It underlines the necessity of the 85,000 new visas per year allowed by the law is “Low, equalling 0.05% of the United States labour force”. Yet the employers have maxed out this limit every year for two decades. As per the recent study, the workers compliment native workers, creating jobs and boosting growth.

In this blog, we will discuss the latest evidence from reports and studies to showcase how the visa holders drive technology innovation and overall economic vitality in the United States.

What is H-1B Visa?

This visa is a temporary program which allows the US employers to hire highly skilled foreign professionals for specialty occupations. These roles require a bachelor’s degree or its equivalent with common fields including technology, engineering, mathematics and Medical Sciences.

This visa is of three years duration but it can be extended up to six years. It has an annual cap of 65,000 visas with an additional 20,000 reserved for those individuals who holds advanced degree from United States institutions.

If the employers want to hire the visa holders, then they have to first met certain conditions. They must certify through a labour condition application which is approved by the Department of Labour. It will signify that the hiring of a foreign worker will not negatively affect the wages or working condition of similarly employed US workers.

H-1B visa holders in various fields

Technology

The tech companies are the biggest beneficiaries of this program. The major US firms like Amazon, Microsoft, Google, meta and Tesla heavily rely on H-1B Engineers and developers. In the financial year 2024, Amazon received 3871 new H-1B approvals while Microsoft Google and meta each secured over 1000. The software developers topped the list of occupations for H-1B visas which reflects the demand for top programming talent. In many tech hubs thousands of H-1B workers write code, design systems and manage research projects.

These visa holders fill specialized roles that American bond workers cannot quickly supply. Companies argue that a shortage of already trained high end engineers exist today which H-1B professionals help fill immediately. One expert put it, “If you hear people say that H-1B visa is very important for attracting the best and brightest…..They are correct,” even though it is also used for cheap labour in some cases. The overwhelming evidence is that H-1B tech workers are highly paid. USCIS reports a 2021 median where H-1B wage of about $108,000, nearly double the US median salary that is $45,760. this data shows that H-1B holders fill the top tier not the low wage or low positions.

Innovation and entrepreneurship

The H-1B visa holders have outsized effects on innovation, startups and patents. A National Bureau of Economic Research study of high tech startups found that firms winning H-1B lottery visas were more likely to attract venture capital, develop new products and exit successfully. In that study, startups with 100 percent H-1B visa win rate were significantly more likely to receive fundings and earned patents than those denies.

A separate recent study on the proceedings of National Academy of sciences looked at the regional entrepreneurship. It is found out that doubling the number of high skilled H-1B workers in a metropolitan area was associated with a 6% increase in startup formation within three years. The authors conclude that policies encouraging skilled immigration could boost regional economic growth by fostering new business creation. The H-1B holders not only join existing company but they can help create entirely new ones at a measurable rate.

Education and research

The American University and research institution heavily rely on H-1B sales in order to retain and hire global talent. Many top faculty researchers and lecturers at the United States colleges arrive as foreign nationals and dependent on H-1B status. The colleges use E1 B visas to hire international professors and researchers and for international students finishing United States degree 4H-1B is a common route to stay and work. Nearly 3quarers of United States graduate students in computer and information sciences are international. These students often transition to H-1B roles at the tech firms or lab after graduation. Without H-1B visa, many of these highly trained researchers would face no practical way to remain in the United States.

In what manner the immigrant workers impact the economy of United States?

The American immigration council reports several ways in which immigrant workers support the domestic economy. Some of them are listed below-

With a distinct skill, the immigrant workers complement those of united state workers, filling different types of jobs instead of directly competing.
Those spending and investments increase the demand of consumer and lead to job creation.
The business expands operations within the United States in response to the availability of skilled immigrant workers and consumers.
Immigrants frequently established new businesses expanding the United States labour market.
It eventually helps to drive economic growth.

Conclusion

In a nutshell, it can be noted that the H-1B visa holders are quite crucial for the prosperity of United States. They drive innovation and help in the economic growth of the nation. The tech giants, universities, hospitals and startups rely on this pipeline of global talent. The recent studies and statistics show that the H-1B visa holders are a boon to the United States economy. They complement the American workers, bolstered industries and contribute disproportionality to patents and new companies. To sustain long term growth, the United States must continue attracting global talent.

Latest Blog: