All posts by Cheng, Cho, & Yee, Immigration Lawyers

STEM Demand Exceeds Supply of Visas

Job openings in science and technology exceed the number of qualified domestic applicants and the number of H1B visas available. It is a problem that restrains American businesses from innovating and creating a 21st century economy.

STEM Graduates Declining in America

In 1985, 74% of American college graduates earned degrees in STEM fields. By 2006, that number had declined to 54%. As just one example of the problem, US schools bestow 52,000 bachelor’s degrees each year in computer science. However, the demand is more than 122,000. This is creating a significant disparity between the number of jobs businesses have, versus the number of people they have to fill these positions.

Caps Restrain Growth & Salaries

The number of H1B visas is capped at 85,000 per year. This means that American companies simply can’t hire qualified applicants. This makes them less competitive than their foreign counterparts who aren’t constrained by visa caps and bureaucratic red tape.

It is estimated that these caps cost the American economy more than $3 billion a year in aggregate earnings. Studies conducted in more than 200 metropolitan areas have shown that these losses have slowed economic growth and development in other sectors of the domestic economy. This is making it harder for communities to develop the strong and diverse economies they need to flourish within the increasingly competitive global marketplace.

Moreover, H1B visa caps restrict salary growth. From 2009-10, salaries for US workers in computer-related positions rose 1.7%. Economists estimate that without lotteries and caps, their salaries could have increased by as much as 4.9%.

Every 2016 American Nobel Laureates is an Immigrant

Chicago immigration lawyers are well aware that H1B visas have made it possible for American businesses and universities to bring some truly talented minds into the country. Each of the 2016 Nobel laureates are immigrants.

They include Sir J. Fraser Stoddart who was nominated for his work in chemistry and Duncan Haldane whose work at Princeton earned him the award in physics. Oliver Hart from Harvard and Bengt Holmstrom from MIT each earned awards for their work in economics.

The fact is that the American scientific community has benefited considerably due to the brilliant thoughts, ideas, and innovations that come from the talented minds of immigrants. It is facts like these that are leading many in Washington to consider raising the caps on H1B visas offered each year.

Electronic Registration Requirements For Chinese B-1 and B-2 Visa Holders

According to U.S. Customs and Border Protection, beginning Nov. 29, 2016, Chinese nationals whose passports have B-1 business or B-2 tourist visas will be required to enroll in the Electronic Visa Update System, or EVUS, before they travel to the United States. Current 10-year visa holders will be required to enroll in EVUS before traveling, and if their flights have multiple legs, their enrollment will be checked at the first flight.

The EVUS system

EVUS is an online system that is secure. It is required for nationals of China who apply for and are granted 10-year B-1/B-2, B-1 or B-2 visas. The requirement is new and comes as a part of an agreement between the U.S. and China to issue 10-year visas to citizens of each country as a reciprocal agreement between the nations. The system is designed to improve security while also allowing the 10-year visa program to last.

People who need to enroll must pay the enrollment fee of $8 USD. After they enroll, their enrollments in the system will be valid for two years or until they have to get new passports or visas, whichever happens earlier. The information people enter into the system is their biographical data, which must be periodically updated.

People who have the maximum validity on their B-1 or B-2 visas are subject to the requirement and must enroll in EVUS, or they will not be given boarding passes for their flights. The U.S. Customs and Border Protection will start accepting voluntary early enrollments beginning in October. Together with the U.S. Embassy, the U.S. Customs and Border Protection will also announce when EVUS is active. An immigration lawyer would advise Chinese nationals who hold these maximum validity visas to enroll early so that they do not have any problems with travel that is planned for Nov. 29th or later.

Others, including an immigration lawyer, friend or relative may submit the required information into EVUS on behalf of the Chinese national. The person who is traveling is still responsible for the accuracy and truthfulness of the information that is submitted even if a third party enters it for him or her. Enrollment in EVUS is a separate requirement from the B-1/B-2, B-1 or B-2 visa application process. An immigration lawyer might help his or her client with applying for the visa as well as enrolling in EVUS so that the client may travel to the U.S.

Outdated Immigration Laws Frustrate Employers

The outdated immigration laws in the United States are creating hurdles that are leaving many Illinois employers frustrated. Although the University of Illinois at Urbana-Champaign was home to more than 10,000 international students from 119 countries in the school year of 2013-2014, very few students will remain to work in the local economy after they graduate. Like many other campuses across the country, the university has expended extensive amounts of energy and innovation to attract some of the most talented individuals from around the world, but as their F-1 student visas expire the Illinois economy merely sees opportunity lost.

Since our outdated immigration system offers limited options for these bright and aspiring students to work long-term in America, the United States has become an exporter of invention, innovation and academic achievement at the cost of American development. Upon graduating, many of these immigrants hold degrees in sought after fields like science, math, technology and engineering. Employers in Illinois, and throughout the U.S. struggle to fill these types of positions, and as a result America’s progress falls behind while competing countries with less stringent immigration laws benefit. By 2018, analysts predict that approximately 2.4 million jobs in STEM fields will go unfilled without effective immigration reform.

In the Midwest, where four out of the 10 colleges with the highest population of F-1 visa holders exist, retaining foreign-born students would have a significant impact on many economies that are currently stagnant. Recent economic research reveals that employing these students locally could result in a boost of an estimated $3.2 billion in income in the 12-state region alone. Add approximately $123 million in aggregate state income taxes, the expansion of local firms, and the development of additional jobs, and the benefits are staggering.

With facts like these, it’s no wonder local employers are becoming frustrated with the restrictions of the current immigration system. Fortunately, steps can be taken to increase the number of F-1 visa holders who stay to work in Illinois. According to Giovanni Peri in an article published by the Chicago Council on Global Affairs, immigration reform that includes the following is an effective remedy to retain talent and enhance the global competitiveness of the U.S.

  • A provisional visa for graduates of STEM fields should be developed
  • Investor visas should be more accessible to F-1 visa holders
  • H-1B visas should be allocated to STEM graduates

Support Grows for H1B Changes

As election day approaches, support for instituting changes to the H1B visa program is growing. Businesses, immigration lawyers, and politicians alike recognize the value of the program, and the skilled workers that these visas bring into the American economy.

2015 Was a Record Year for H1B Visas

233,000 individuals applied for H1B visas in 2015. This was the highest level on record. Even so, the US government mandated a cap of 65,000 visas per year, with a further 20,000 being reserved for individuals holding advanced degrees. From 2013 through 2015, the USCIS saw an 88% increase in the number of applicants for H1B visas.

Indian Complaints Get Washington’s Attention

The Indian government has voiced their concerns over recent fee changes directly to US Commerce Secretary Penny Pritzker. Indian workers have been severely impacted by the sharp increase to H1B visa fees that were instituted last December. These increased fees apply to companies with more than 50 employees who currently employ more than half of their employees on H1B visas. These firms would be required to pay at least $4,000 more per visa.

Indians represent nearly 70% of H1B applicants and the increase has made it harder for American companies to hire everything from computer programmers to data scientists. US business leaders argue that these fees are making it harder for them to hire the talent they need to drive American companies forward.

H1B Applicants Drive Innovation

73% of all H1B applications are for computer related positions including computer systems analysts, network administrators, systems administrators, computer programmers, software developers, etc. The remainder are largely comprised of accountants and auditors, management analysts, and financial analysts.

Even as the demand for H1B visas grows and more and more skilled individuals seek the help of immigration lawyers with their applications, some US legislators are seeking to restrict the programs even further. Recently, Representative Darrel Issa from California introduced legislation that would make it harder for US employers to hire H1B workers. Issa’s proposals would remove exemptions for US employers who do not advertise their positions to US workers first, and who do not pay H1B holders with a master’s degree at least $60,000 per year.

Under Issa’s proposal, employers would need to pay the employee at least $100,000 per year to qualify for an exemption. This sharp increase would make it very difficult for most employers to hire and pay for the labor they need.

Industry Leaders and Powerful Corporations Push for Immigration Reform

Several industry leaders and powerful corporations throughout the United States have taken a stand in support of immigration reform to increase legal immigration and bring millions of undocumented workers out of the shadows. As they continue to push for the development of new visa programs, amnesty, and simpler routes to citizenship, these companies claim that comprehensive immigration reform will not only grow the American economy, but level the playing field for businesses throughout the United States as well.

Attracting and retaining the world’s most highly-skilled talent and creating the human capital necessary to fill workforce needs at all skill levels is vital to grow the U.S. economy and ensure America’s global competitiveness. Many countries have already rewritten their immigration policies to encourage productivity and innovation, and powerful companies and industry leaders here in America have been pleading for changes to our country’s own system for many years. In fact, in a letter sent to the United States House of Representatives in 2013, officials who represented more than 100 corporate interests throughout the United States demanded amnesty for aliens already residing in America, and asked for new visa programs to increase immigration.

While President Obama took steps to make some improvements to America’s failing immigration system, those changes weren’t nearly enough. Immigration reform continues to be a high-profile topic of debate- especially among the 2016 presidential candidates, and major corporate interests have no intention of backing off. Corporations that are advocating for immigration reform include those from a wide variety of high-tech industries that are in need of individuals with strong science, math, engineering and technology skills, but major companies in the hospitality, food services, construction and agriculture industries are pushing for change as well. A couple of the industry leaders pushing for immigration reform include:

  • Facebook: Mark Zuckerburg, the CEO of Facebook, is one high-profile advocate for the reform of immigration in the United States. He stresses the importance of creating an easier road for high-tech companies to employ workers with special skills and education in technology.
  • Yahoo! and Google: Yahoo! CEO Marissa Mayer was called upon by President Obama in 2013 to offer advice on immigration reform. She emphasizes the need for highly-skilled professionals to help create more jobs and grow the American economy. Google co-founder Sergey Brin claims immigrants are “a powerful force for entrepreneurship and innovation at every level”.