Point at Issue: Do Visas Come at the Cost of American Workers?
The financial recovery from the pandemic is years away. Slowly the economy is restarting, but laid-off employees worry if jobs will be there for them. To revitalize the country and help out the American workers and companies during this time, President Trump has paused immigrant H-1B, H-2B, J, and L visas so that U.S. citizens can fill jobs. The H-1B visa program was launched in 1990 by President George H.W. Bush. The pause aims to protect American workers but is it a veiled attempt to change our immigration system to keep talented people out.
On June 24, 2020, the Trump administration signed a proclamation to help companies experiencing losses from the pandemic. Expired on December 31, it is now extended to March 30, 2021, and dictates certain immigrants' restrictions. Who can and cannot enter are expressly noted, and this restriction leaves many immigrants unsure of when they can resume their lives and livelihoods. Visas come in many forms depending on what type of work and talents the applicant can provide.
Currently, only those individuals who provide valuable services are allowed to enter the U.S. with a visa. Anyone who can help out with our economic recovery, those who are vital to law enforcement, defense, and security of the U.S., and those involved in the medical field who can assist with clinical care or research related to COVID-19 may plea their case, but waivers are difficult to come by. Immigrants hired provide a solution to our workforce needs and help fill the needs of American employers looking to restart their businesses.
President Trump began to scrutinize immigrants' admission into the United States with an executive order signed in 2017. Titled "Buy American and Hire American," federal agencies were given the task to review their policies and ascertain if they were giving priority to American workers and products. Some of the restrictions enacted effected visas for both tech workers and au pairs; both imperative to the economy and revitalization of the U.S.
The freeze on visas was an attempt to limit a companies "ability to replace workers with cheap foreign labor and help ensure wages are not suppressed by the presence of low-cost foreign workers," stated a release on the White House official site. Before a company can employ an immigrant, they have to certify with the U.S. Department of Labor that they will not take a job away from an American worker.
The push from the government is to hire locally, but sometimes the right person is not there. There are benefits to securing talent from overseas. Having the ability to hire abroad opens you up to a larger talent pool and gives you an edge on moving your company into global markets. You gain an additional perspective with insights on conducting business in that country. They understand the culture and how the government works can provide an organization with the edge they need. It is good to hire someone who can provide connections and expertise in a country where you want to grow your business.
The same is valid for growing a business locally; you would want to hire talent with connections and expertise in that country. If a company is primarily doing business in the United States, why do they have to have labor overseas? In this instance, companies may be taking advantage of visas and those who apply for them to cut costs?
Companies that bring in diverse talent create a motivational atmosphere in the workplace. Workers see that a company is inclusive, and its reputation flourishes, with more talent applying. There is, however, a multi-faceted issue within the workplace when different cultures meet. This does not necessarily apply to every company with a diverse workforce, but some will have problems when ideas oppose each other. Clashes can ultimately impede the ability of teams to work together.
When working with foreign talent, there are barriers to overcome. Learning a new language and absorbing a new culture takes time to master. It takes time and interaction with others to become comfortable with the cultural adjustment. Understanding the culture is paramount to applying words and expressions correctly. Communication between peers and management may also be a challenge.
Since the 1990s, the technology sector has used the H-1B visa program to fill positions with specialty trained candidates. Amazon, Microsoft, and Intel are among the top companies to hire foreign workers. Companies can recruit trained foreign workers when there aren't enough local candidates to apply. This trend will continue as "Fiscal growth has outpaced growth in the native-born workforce, resulting in employers seeking out immigrant labor," cited Dan Costen.
Each year about 65,000 H-1B visas can be issued, with another 20,000 made available to workers who have a masters degree or higher. In 2019, over 200,000 petitions made their way through the system. This influx of applications signifies that we may not have enough workers or that companies could be taking advantage of the system. "It's his position on highly skilled foreigners working in the U.S. that has companies and their investors concerned," wrote Deborah D'Souza.
If the tech companies were struggling to fill out these positions with Americans, why haven't the wages for these positions risen dramatically? "Employment in computer and information technology occupations is projected to grow 11 percent from 2019 to 2029, much faster than the average for all occupations," stated the U.S. Bureau of Labor Statistics. Due to advancements in cloud computing, information security, and the collection and storage of big data, "These occupations are projected to add about 531,200 new jobs."
"The fundamental flaw of the H-1B program is that it permits U.S. employers to legally underpay H-1B workers relative to U.S. workers in similar occupations in the same region," wrote Daniel Costa. Currently, employers do not have to pay market wages to H-1B workers. Changing this could incentivize companies to not look for workers overseas but hire locally. Various bills are being proposed to Congress to make things fair for immigrant workers coming to the U.S.
One bill entitled Protect and Grow American Jobs Act was introduced in Congress last January. It proposes an amendment to the original Act created by President Bush. It will eliminate a loophole by increasing the minimum salary requirement for H-1B workers from $60,000 a year to $100,000 a year, among other modifications. The House Judiciary Committee approved it last November. The need for foreign talent is increasing, and even if the compensation increases, they will still be in high demand, making the effort well worth it.
It does take a lot of effort to leave where you are from and start over again. One can ascertain that this employee is also not afraid to take chances and shy away from a challenge. Employees from other countries also bring fresh ideas and creativity to a team. Their different cultures and backgrounds can be instrumental in how they approach situations and solve problems.
The ban on employees coming from overseas also hit au pairs. With many schools and daycare centers closed due to the pandemic, parents scrambled to find adequate child care. The status of school openings is still in question, and families are still in dire need of au pairs to help when they return to work or remain remote. It is not just companies that are affected. Childcare is necessary for those who have jobs that require a large amount of their time and use visas to obtain affordable childcare.
"According to the State Department, 20,000 au pairs joined American families in 2019. Parents who rely on au pairs say that losing their child care will put their own jobs at risk," wrote Terri Peters. Au pairs are not only for the rich but also for families struggling to find affordable childcare to continue working. If childcare is not readily available, employees will not be able to get back to work with the economy opens up.
"The suspension of visas for au pairs is devastating to the many working American families," said Patricia Brunner, the managing director of the International Au Pair Association. "Working families face a crisis in finding child care options under normal circumstances, and losing access to this unique opportunity during this particular time amid the COVID-19 pandemic presents an even bigger challenge."
The freeze on au pair visas has had some positive effects on members of the program. The main benefit for the au pair is traveling into the U.S. and having a cultural experience. All in, the cost of having one is about $20,000, which includes fees and a $500 educational allowance. Now the au pairs who are currently in our country are requesting a higher salary in addition to" certain assurances, such as a personal car or payment upward of $400 a week.," wrote Jordan Salama. The minimum stipend set by the State Department for au pairs for 45 hours is $195.75 a week.
The truth is that workers from other countries bring a lot of money back into the economy via social security and taxes. Visa holders put money back into the economy by buying or renting a home. All of the purchases they make while in the U.S also impact the economy. Those who apply for visas want to make a better living for themselves and their families. They can work the same job for less money, making them a desirable hire for companies.
America is a country that welcomes a variety of cultures; why should that not occur in the workplace? It is an issue with many parts to it, which includes American workers and fair wages. It is a system that needs review, but ultimately, President-elect Joe Biden will be the one to decide if the freeze on visa workers should end.