Summary of Characteristics of Specialty Occupation Workers (H-1B): Fiscal Year 2002

The American Competitiveness and Workforce Improvement Act of 1998 (ACWIA) requires a report to be submitted each year by the Department of Homeland Security with “information on the countries of origin and occupations of, educational levels attained by, and compensation paid to, aliens who were issued visas or otherwise provided nonimmigrant status under section 101(a)(15)(H)(i)(b) of the Immigration and Nationality Act during the previous fiscal year.” This year’s report, which follows the structure of the previous report for the year 2001, continues the distinction adopted in the 2001 report between H-1B workers approved for initial employment and those workers approved for continuing employment.

The 29-page report provides a statistical analysis, along with tables, explanatory graphs and other visual aids. Some of the highlights of the report are as follows:

Types of Petition

The number of H-1B petitions filed have decreased by 37 percent and the petitions approved decreased by 40 percent between the fiscal years 2001 and 2002. The biggest drop occurred with respect to petitions approved for initial employment. These petitions declined sharply from 201,079 in 2001 to 103,584 in 2002, or 48 percent. Petitions approved for continuing employment decreased 28 percent over the same period.

During the 2002 fiscal period, approximately 65 percent of the beneficiaries of initial employment were in the United States in another nonimmigrant status – students comprising 58 percent of aliens already in the United States in a nonimmigrant status. In 2001, this number was 40 percent.

Also, the number of aliens outside the United States approved for initial employment dropped from 115,800 to 36,500 in fiscal year 2002. This was 68 percent below fiscal year 2001. The corresponding numbers for aliens in the United State changing to H-1B status declined to 67,100 in 2002 from 83,500 or 21 percent under 2001. Following this trend, the number of H-1B workers approved to continue employment fell by 28 percent in 2002.

Country of Birth

The statistics showing distribution of beneficiaries by country of birth demonstrate that one third of H-1B petitions approved were granted to individuals born in India. In 2001 Indian nationals had accounted for 50 percent of the approvals. But the share of H-1B workers born in India is much higher for continuing beneficiaries (47 %) than for initial beneficiaries (20 %). The number of Indian H-1B workers declined by nearly 60 % - 97,000 applicants – in 2002.

China was the second leading source of H-1B beneficiaries. Even though its share rose from 8 to 10 percent, the total number of approvals decreased from 27,300 in 2001 to 18,800 in 2002. In China the share of H-1B workers born in China who were initial beneficiaries was 11 % which was larger than the continuing beneficiaries, which was 7 %.

Age

Sixty-four percent of workers granted H-1B status during 2002 were between 25 and 34 years of age. But there was a marked age difference between initial employment and continuing employment beneficiaries. Initial employment beneficiaries were generally younger by a few years, with 13 percent under the age of 25. Forty percent of first-time H-1B workers were in their 30s. The most beneficiaries were in the 25-29 age group. Less than 3 percent of the applicants were 50 years of age or older.

Education

The highest level of education achieved of H-1B beneficiaries increased to a small extent between fiscal years 2001 and 2002. About 50 % of all H-1B petitions approved for workers in 2002 had earned the equivalent of a bachelor’s degree; 30 % a master’s degree; 12 % a doctorate, and 5 % a professional degree. The corresponding numbers in 2001 were 57, 31, 7, and 3.

The large increase in the proportion of beneficiaries with doctorates reflects a growth in H-1B employment at universities and colleges as well as a decline in the total number of other beneficiaries. Altogether, 98 % earned at least a bachelor’s degree and more than 47 % earned at least a master’s degree. There were 234 beneficiaries who did not even have a high school diploma, 104 of whom were fashion models.

Regarding the differences in education between workers approved for initial and continuing employment in 2002, the former were more likely to have a doctorate or professional degree (20 versus 14 percent).

Detailed Occupation

One-third of the approved petitions in 2002 were for aliens working as system analysts or programmers. This was 50 % in 2001. The second largest category was occupations in colleges and university education with 7 %.

Total employment of systems analysts and programmers fell by 79 %. But there was an increase in the number of initial beneficiaries in the following groups: colleges and universities; biological sciences; physicians and surgeons; medicine and health, n.e.c.; primary education; secondary education; and therapists.

Annual Compensation

The median annual compensation reported by employers of H-1B workers was $53,200 in fiscal year 2002 compared with $55,000 in 2001 and $52,000 in 2000. Half of them were expected to earn between $38,800 and $71,800.

Median compensation ranges from a low of $30,000 for occupations in religion and theology to a high of $100,000 for fashion models, identical to the statistics in 2001.

Industry

By far the leading employer of H-1B workers in 2002 was computer systems design and related services with nearly 50,800 workers compared to 141,300 in 2001, which was a decline of 64 %. The only three industries in the top ten which increased between 2001 and 2002 were: colleges, universities, and professional schools (20 percent); elementary and secondary schools (20 percent); and general medical and surgical hospitals (22 percent).

The number of workers in computer systems design and related services who were initial beneficiaries dropped by 80 percent between 2001 and 2002, which was a drastic decline in the number and relative share of computer systems design employers.