Trump Administration tightens H-1B rules

The Trump Administration is undertaking to severely constrain the use of H-1B visas. This visa program was created in 1990 for professional level temporary workers. This visa lasts for up to six years. Indian and Chinese workers in STEM fields have dominated the flow. The program, set at 85,000 new visas a year, attracts far more applicants than allowed by the cap.

The Administration is issuing new rules which constrain the problem in at least two ways. First, the rules are being changed to force a more narrow match between the applicant’s qualifications and the occupation the applicant will fill. Second, the wage paid to the applicant will need to meet a higher threshold of “prevailing wage,” i.e. be paid more,

The Administration has already restricted the right of a H-1B visa holder’s spouse to work in the U.S. 

Since the 1950s the use of skilled foreign workers has been debated, with waves of arguments for or against there being a labor shortage in the U.S. Two indicators are often referred to. One, are the wage levels in the occupational categories under consideration (such as computer scientists) going up significantly higher than average wage increases? Second, are the unemployment rates of the occupational categories relatively low? A “yes” answer to both questions can be taken an evidence that a labor shortage exists.

The case for importing skilled workers when both answers are “yes” is bolstered by a contention that in these skilled fields, the addition of a foreign-born worker leads to further job openings to be field by U.S. citizens.

I doubt the arguments for or against temporary foreign skilled workers are often overwhelmingly strong in one direction or another. This makes it particularly costly that Washington does not have an agency which tracks, studies and makes projections of labor demands and foreign workers.

for stories of these recent rules, go here and here.


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