WASHINGTON: Top seven
India-based outsourcing companies in the US received fewer H-1B visas in 2016
as compared to 2015, and as a group their numbers dropped 37 per cent,
according to a new report.
The companies experienced a drop of 5,436 approved petitions
(37 per cent) in 2016 as compared to previous year, a report by the National
Foundation for American Policy - a Washington-based non-profit think-tank said.
It said, the 9,356 new H-1B petitions for the top seven
Indian-based companies approved in fiscal 2016 represent only 0.006 per cent of
the US labour force.
"While the threat of job loss has long been exaggerated
by critics, it reaches illogical proportions when discussing fewer than 10,000 workers
in an economy that employs 160 million workers nationwide," the National
Foundation for American Policy said in a statement after releasing the report.
According to the report, the
number of approved new H-1B petitions for Tata Consultancy Services (TCS) declined by 56 per cent in FY 2016
compared to FY 2015, from 4,674 to 2,040, a drop of 2,634.
For Wipro, the petitions declined by 52 per cent between FY
2015 and FY 2016, a drop of 1,605, going from 3,079 to 1,474 approved petitions
for initial employment during those years.
For Infosys, it declined by 16 per cent (or 454 petitions), with
2,376 approved H-1B petitions for initial employment in FY 2016, compared to
2,830 in FY 2015, said the report, which based its research from government data.
"The drop in new H-1B visas for Indian-based companies,
which is expected to continue when data are released on cases filed in April
2017 for FY 2018 start dates, is due to industry trends toward digital services
such as cloud computing and artificial intelligence, which require fewer
workers, and a choice by companies to rely less on visas and to build up their
domestic workforces in the US," the report said.
"H-1B petitions approved for initial employment in FY
2016 were filed by employers in April 2016, which means the drop in H-B visa
use by these companies is not due to Donald Trump's election.
"In the past, US policymakers have used the number of
visas going to Indian-based companies as a political or policy reason to
propose new immigration restrictions and to not raise the low annual supply of H-1B visas , which has been exhausted every year for the past 15
fiscal years," said NFAP executive director Stuart Anderson, former head
of policy at the Immigration and Naturalisation Service under President George
W Bush.
Among the top companies with new H-1B petitions approved in
2016 were Cognizant (3,949), Infosys (2,376), TCS (2,040), Accenture (1,889),
IBM (1,608), Wipro (1,474), Amazon (1,416), Tech Mahindra (1,228), CapGemini
(1,164), Microsoft (1,145), HCL America (1,041), Intel (1,030), Deloitte (985),
Google (924), Larsen &Toubro (870), PricewaterhouseCoopers (713), Ernst
& Young (649), Apple (631), Syntel (583), Facebook (472), Oracle (427),
Cisco (380), Mindtree (327), Goldman Sachs (287), UST Global (283),
JPMorganChase (271), IGATE (255), Stanford (221), Yahoo! (206) and KPMG (198).
An analysis of US Citizenship and Immigration Services
(USCIS) data on FY 2016 H-1B petitions shows, similar to FY 2015, approximately
25,000 different US employers hired at least one high-skilled foreign national
on a new H-1B petition in 2016.
Employers in manufacturing include Tesla Motors with 108
approved new H-1B petitions and Cummins with 197.
Uber had 121 approved H-1B petitions in FY 2016, eBay 115,
and the Mayo Clinic 111.
National Foundation for American Policy said the April 2017
unemployment rate in the US for "computer and mathematical science"
occupations was 2.5 per cent - a very low rate, even lower than the 4.4 per
cent for "all occupations," according to the Bureau of Labor Statistics
data.
The unemployment rate for "architecture and
engineering" occupations is even lower at 2.1 per cent, it said, adding
this illustrates a disconnect between reality and claims that high-skilled
foreign nationals are preventing US workers from pursuing careers in tech fields.
According to Code.org, Bureau of Labor Statistics data
indicate there will be "1.4 million more software development jobs than
applicants who can fill them by 2020 ... and there are more than 500,000 open
computing jobs nationwide."
An analysis by Glassdoor shows 9 of the 10 highest paying
majors for US students 5 years out of college are in STEM (science, technology,
engineering and math) fields, the report said.
The report disputed the figures of the Trump Administration
that about 80 per cent of the H-1B workers are paid less than the median wage
in their fields.
"This statistic is misleading as it relies on a
Department of Labor database that includes multiple applications for the same
individuals, since a new filing is generally required when an H-1B professional
moves to a new area," the report said.
That means it "double or triple counts anyone who works
in more than one geographic location (primarily younger workers sent to
multiple offices)." Moreover, it may not reflect what employers actually
pay individual workers, only the minimum required to be listed for government
filing purposes.
The median salary in 2015 for H-1B computer-related
recipients who have worked about three years (listed as "continuing
employment" in DHS data) was about $7,000 higher than the median salary in
the industry," the report said.
The foundation argued that H-1B temporary visas are important
as they are typically the only practical way a high-skilled foreign national
working abroad or an international student educated in the United States can
work long term in America.
At US
universities, 77 per cent of the full-time graduate students in electrical
engineering and 71 per cent in computer science are international students.
Reforms to increase the labor mobility of H-1B
visas, raise the employment-based green card quota and eliminate the per
country limit would be welcome but are not currently on the agenda. New
restrictions on high-skilled immigration are more likely, it said."In
today's global economy, companies and high-skilled professionals possess many
options," said Anderson.
"The United States should maintain an openness toward high-skilled
immigration or those options likely will not be in America," he added.