The new US H-1B visa rules may hurt the American economy

The United States under the administration of President Donald trump administration has again tweaked the US H-1B visa programme in ways that might end up hurting the American economy.

On Oct. 6, the US Department of Homeland Security (DHS) said it would change the definition of “specialty occupation” for granting H-1B visas, and raise the bar for prevailing wages, and limit the validity of the long-term work visa in some cases. The tweaks will protect American jobs, DHS said.

“Data shows that the more than a half million H-1B nonimmigrants in the United States have been used to displace US workers,” the DHS said. “This has led to reduced wages in a number of industries in the US labor market and the stagnation of wages in certain occupations.”

According to the new rule, it will :

  • Narrow the definition of “specialty occupation” as Congress intended by closing the overbroad definition that allowed companies to game the system;
  • Require companies to make “real” offers to “real employees,” by closing loopholes and preventing the displacement of the American worker; and,
  • Enhance DHS’s ability to enforce compliance through worksite inspections and monitor compliance before, during, and after an H1-B petition is approved.

Anshu @anshublog Cofounder and CEO SkyflowAPI, noted in a retweet that ” This rule would have disqualified Sundar Pinchai (Sundar is the CEO at Google and Alphabet) – because he doesn’t have a Computer Science Major. How many software developers have CS degrees? Are we ready to let thousands of Sundar go back and start hiring in India?

Indian IT lobby group Nasscom noted that the changes “will restrict access to talent and will harm the American economy,”

However, the impact is going to be across the board and not just one country but every other country whose talents finds jobs in the US.

The Trump administration is said to be doing this in order to get more votes of the American people who will see him as protecting their jobs.

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