Why in News?
USA’s Commerce Secretary Howard Lutnick on Tuesday called the H-1B visa program a “scam” and asked “all great American businesses” to “hire Americans”.
UPSC Relevance
UPSC has shown. Interest in prominent international economic trends and issues affecting India.
PYQ
2022
Consider the following statements
- Vietnam has been one of the fastest growing economies in the world in the recent years.
- Vietnam is led by a multi-party political system.
- Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
- For a long time Vietnam’s low labour costs and stable exchange rates have attracted global manufacturers.
- Vietnam has the most productive e-service sector in the Indo-Pacific region.
Which of the statements given above are correct?
A 2 and 4 only
B 3 and 5 only
C 1, 3 and 4 only
D 1 and 2 only
Background and Purpose of the H-1B Visa Program
- Created under the Immigration Act of 1990 to help employers hire highly skilled immigrants when US workers with necessary skills are unavailable.
- Targets occupations requiring at least a bachelor’s degree and specialized skills.
- Designed to temporarily fill talent gaps in the US workforce, especially in technology and specialized fields.
- Big Tech companies (Microsoft, Oracle, Google, Amazon) heavily utilized the program to address domestic talent shortages in the 1990s and beyond.
- Companies recruited large numbers of highly educated immigrants, mainly from India and China, to sustain technological innovation and growth.
Impact on Indian and Chinese Immigrants
- Indians dominate the program, accounting for over 70% of approved petitions since 2015; Chinese make up about 12-13%.
- Most Indian H-1B workers earn under $100,000/year, below the US IT median salary ($105,990 in 2023).
- Average American wage ($75,000) is higher than average green card recipients ($66,000).
How the H-1B VISA works?
- CAN BE ISSUED for a maximum 6 years at a stretch, after which the visa holder has to either leave the US for at least 12 months before returning, or apply for and receive permanent residence (green card).
- ANNUAL NUMERICAL LIMIT (regular cap) of 65,000 new statuses/visas each fiscal year, with an extra 20,000 visas available to those with a Master’s degree or higher from a US university
- NOT ALL H-1B PETITIONS are subject to the annual cap.
- Petitions for “continuing employment”, do not fall under the cap, neither do those seeking employment at higher education institutions or nonprofit entities affiliated to such institutions, nonprofit research organisations, or government research or organisations.
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