Duh

By Shannon Henry
Washington Post Staff Writer
Friday, August 16, 2002; Page E05

The fallout from a slowing economy and the technology bust has shown
up in yet another place: the decreasing number of so-called high-tech
visas awarded to foreign workers.

The Immigration and Naturalization Service said this week that the
number of people who received H-1B visas during the first three
quarters of fiscal year 2002 was less than half the number approved in
the same span last year.

"Jobs are down overall and so are H-1B visas," said Theresa Brown,
director of immigration policy at the U.S. Chamber of Commerce.
"You're seeing the economy at work."

From Oct. 1, 2001, to June 30, 2002, about 60,500 people were approved
to work under H-1B status. About 130,700 people were approved as of
the same time last year. Pending petitions for H-1B visas were
estimated at 18,000 as of June 30.

The H-1B status allows foreign professionals to work here for up to
six years. Congress has increased the annual allotment of H-1B visas
several times, to the current threshold of 195,000.

Elizabeth Stern, an immigration lawyer with Shaw Pittman, said that
because companies are cutting expenses, they are doing less recruiting
at overseas universities.

However, the INS said those who count toward the official limit make
up less than half of the total number of people given H-1B status,
because those who were previously approved and whose stays are
extended or have their status modified are not included in those
numbers. Also, people working for educational institutions and
nonprofits are exempt from the limit and not counted against it.

Still, according to the INS report, demand for H-1B visas is down.
During the first nine months of fiscal year 2002, 159,000 H-1B visa
requests for new or continuing employment were filed, compared with
270,000 in the same period last year and 220,000 two years ago.

The shrinking number of H-1B applicants comes at a time when
technology unemployment continues to rise. During the tech boom, many
U.S. companies said their biggest problem was finding enough workers.
So businesses, especially technology companies, went overseas for
skilled labor, and helped foreign workers apply for H-1B visas. The
growing popularity of H-1B visas, however, became controversial as
some protested that American workers were bypassed for foreigners who
would work for less money. Others complained that the program allowed
U.S. businesses to exploit foreign workers.

Thom Stohler, vice president for workforce policy at the American
Electronics Association in Washington, said he wasn't surprised at the
drop in applications, because it tracks with the economy. But he said
the visas are still an important part of the technology workplace.

"The H-1B visa program is a necessary program," said Stohler, whose
organization represents 3,000 technology companies. "It helps create
jobs." He said he didn't agree that H-1B visa-holders displace
American workers.

"The program is very popular with industry and not popular with the
public," said Steven Camarota, research director of the Center for
Immigration Studies in Washington. Camarota said the reported numbers
are "meaningless" because of those with H-1B status who aren't counted
in the statistics. Still, Camarota said, the numbers are too high.
"Our immigration policy is decoupled from our economic policy," he
said.

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