Friday, Jun 29 2018

Tech Firms May Be Moving Away From H-1B Visas

Written by

H1 B Visas

 

Over the past few years, the number of H-1B visa applications has largely risen. Companies embraced it as an opportunity to find skilled foreign workers to fill vacant positions, particularly in the tech sector where low unemployment and growing skill gaps in the American workforce have made hiring a challenge.

 

However, recent data suggest the pattern has possibly changed, indicating tech firms may be seeking alternatives to H-1B visas.

 

H-1B Petitions

The H-1B visa program gives American businesses the ability to secure non-immigrant foreign professionals to work for their company. It was designed to ensure companies could access skills and abilities when they aren’t presented in their current workforce and aren’t available in their area.

 

For the 2018-2019 filing period, the number of petitions dropped by approximately 4 percent, signaling a shift in company mentality regarding the program. U.S. Citizenship and Immigration Services (USCIS) stated only 190,098 petitions were filed for that time, a notable drop from the approximately 236,000 petitions received in 2016.

 

 

Reason for the Drop

After President Donald Trump was elected, he quickly declared his intention to overhaul the H1-B visa program. This included making the requirements more stringent across the board, including for initial selections and renewals as well as H-4 visas for spouses of H-1B workers.

 

The intention was to encourage companies to hire Americans and other legal immigrants in lieu of using the H-1B program, and it may have worked.

 

A reduced number of petitions suggests businesses aren’t turning to H-1B visas as a potential solution as often. Some may have decided to reduce their number of petitions fearing that the chance for approval was shrinking, particularly since the requirements are harder to meet. Others may have become more diligent about finding alternatives, lowering their need for the program based on updated hiring practices.

 

However, even with the policy changes and the initial reduction in petitions, it’s too soon to tell if this year’s decline is a one-off or a sign of a new pattern emerging. This may be an indication that companies were hesitant to submit petitions based on the Trump administration’s stance and various announcements about increased difficulty in obtaining approval. But this could shift again after the current period finishes and the state of the approved or rejected petitions becomes more widely known.

 

Ultimately, the H-1B visa program is still in flux. The full impact of the policy updates is not yet known, and additional changes may be on the horizon, sending the program into a different direction.

 

At this point, it’s safe to say companies are seeking out alternatives that allow them to locate citizens and legal immigrants for their vacancies, instead of using the program. If you are currently seeking skilled professionals for your job openings, the team at The Armada Group can connect you with some of the area’s top talent. Contact us to discuss your hiring needs today and see how our services can benefit you.