Feds to Study H-1B Program's Impact on IT Hiring, Retention

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September 16, 2002 (Computerworld) -- There's no shortage of anecdotal reports from U.S. workers that the H-1B visa program is costing Americans jobs. But proof of that has been elusive because companies aren't required to tell the government about the employees they hire or lay off.

That's a problem facing the U.S. General Accounting Office as it embarks on a study aimed at answering a pair of questions posed by two members of the U.S. House Science Committee: Do companies show a preference for retaining H-1B workers over U.S. citizens when they cut jobs? And if so, why?

The GAO study, due out sometime next year, is expected to arrive in the midst of a congressional debate over whether the annual cap on the controversial program should shrink from its current level of 195,000 visas to 65,000 after the federal government's next fiscal year ends on Sept. 30, 2003.

Critics of the H-1B program charge that in many cases, foreign workers are hired for lower wages and fewer benefits than U.S. citizens would typically receive. But industry groups counter that H-1B holders, who can work in the U.S. for six years and possibly longer, are needed because the U.S. doesn't supply enough workers with technical skills.

U.S. Reps. James Barcia and Lynn Rivers, both of whom are Michigan Democrats and Science Committee members, requested the GAO study a year ago. The GAO divided the request into two parts, starting with a look at the effectiveness of a training program that has been funded through H-1B fees. That report is due in a matter of weeks.

Formulating a Plan

The GAO has yet to determine how to research the H-1B program's impact on IT hiring and retention. Agency officials will soon meet with House Science Committee staff members to discuss a research methodology, according to GAO and committee staffers.

However, the plan is already drawing criticism from Harris Miller, an H-1B advocate who heads the Information Technology Association of America in Arlington, Va. Miller said the latest H-1B usage data is proof enough that the program isn't being abused.

The U.S. Immigration and Naturalization Service recently reported that it granted 60,500 H-1B visas in the nine-month period that ended June 30, representing a 54% drop from the same period during the previous fiscal year.

"The numbers speak for themselves," Miller said, adding that the drop-off shows that H-1B critics are wrong about the visa program serving as a supply of cheap labor for U.S. companies. "If they were right, which they are not, there would be just as many H-1Bs today as a year ago."

But George McClure, who chairs the career policy committee of the New York-based Institute of Electrical and Electronics Engineers—USA Inc. (IEEE), pointed to rising unemployment numbers for computer and electronics engineers, as well as reports from IEEE members who say they have lost jobs to H-1B workers.

"We've got lots of unemployed members . . . who can do the jobs that they are bringing in H-1Bs for," McClure said. He added that he has heard from engineers who were ordered to train H-1B visa holders and then laid off by their employers. The GAO needs to talk to some of those affected workers, McClure said.

AT A GLANCE

Fight Over H-1B Training The issue: Part of the fees that employers pay to take part in the H-1B visa program are set aside for training U.S. citizens, in an effort to reduce the need for hiring H-1B workers. The White House's view: Bush administration officials call the $138 million training program ineffective and say it's mainly being used to train cable installers and other low-tech workers. Congress's input: The GAO will soon release a report that's expected to find some merit in the training program, such as the development of localized training designed to meet the needs of employers in specific areas.

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