PUNE: US President
Donald Trump’s decision to suspend
H-1B visas till the end of the year seems to be based on a misreading of
economic data, according to
Cato Institute, a Washington DC based think-tank.
The presidential proclamation said that over 20 million US workers lost their jobs in key industries where employers are currently requesting H-1B and L workers to fill positions. However, it does not look at specific occupations, which would have been a better approach.
“…employers can’t hire just any worker from an entire industry. They can only hire someone seeking to work in a specific type of
job. This confusion between industries and occupations is exceptionally common, but it’s a huge mistake,” said David Bier, immigration policy analyst at the Cato Institute’s Center for Global Liberty and Prosperity.
He said that nearly all workers in the top H-1B occupations were still employed in May.
“It turns out that from January 2020 to May 2020, total employment
increased by about 185,000 in the top 20 H-1B occupations, which account for 85% of all H-1B requests, according to the Current Population Survey,” said Bier. Meanwhile, the number of unemployed during the same period increased by 94,000, making the difference between the two 9,000.
“This is substantially different from the 20 million cited by the president. Moreover, unemployment in H-1B occupations was already falling in May from April,” he added.
When reviewing H-1B applications, the US Department of Labor also sets the wage rate as per the occupation of the worker and not the wages the entire industry.
On Monday night, Trump signed a proclamation baring the entry of H-1B, L-1 and other non-immigrant and dependent visas to the United States till the end of the year. The move was aimed at protecting US workers and jobs as the country deals with record unemployment levels as a result of the
Covid19 related lockdowns.
However, immigration policy experts and lawyers have said that it appeared to be driven more by political considerations than economic ones. Trump is seeking a second term in November.