Examining the Importance of the H-1B Visa to U.S. Economy

On September 16, 2003, Elizabeth C. Dickson, the director of immigration services for Ingersoll-Rand Company, testified before the Senate Judiciary Committee on behalf of the U.S. Chamber of Commerce. The testimony concerned the subject of the importance of the H-1B visa to the American economy. Ms. Dickson reiterated the importance of hi-tech companies to find vitally needed workers.

The H-1B visas allocated for any given fiscal year will go from 195,000 in the year 2003 to 65,000 visas beginning October 1, 2003. Ms. Dickson stated: “It is unclear what, if any rationale, was used in developing this cap.” It was noted that this new regulatory measure would cause great economic hardship to U.S. employers. Ms. Dickson added: “We cannot afford to let arbitrary caps dictate U.S. business immigration policy. Immigration policies and procedures must be rationally based and include consideration for economic security and competitiveness. We must be able to tap the talent we need both domestically and abroad.”

Ms. Dickson then provided details of how the cutback on the H-1B visas would adversely affect U.S. employers’ efforts to recruit severely needed specialty workers. Professions such as meteorologists, metallurgical engineers, and plastic engineers, to name but a few, are specialties that are in short supply in the United States. And almost all the students enrolled in such programs are foreign nationals. Ms. Dickson testified: “Human Resource Managers advise me that they simply cannot find Americans to fill such positions.” Thus, according to Ms. Dickson, it is easy to see that businesses may not be able to find a U.S. candidate who would meet their requirements, and therefore they turn to qualified applicants who enter the U.S. on H-1B visas. This is despite the fact that all these companies try to train U.S. workers and invest in the domestic workforce, Ms. Dickson testified.

Ms. Dickson also reminded Congress that whenever a company decides to hire an H-1B worker, the Human Resources personnel spend dozens of hours, compiling the necessary documentation for submission, and overseeing the process of application. In addition to the paperwork for an H-1B petition, application fees and legal costs, there is an ongoing support to facilitate visa revalidation international travel. The cost of an international relocation and the international salary administration, benefit payments and temporary housing allowances, all have to be borne by the sponsoring company. A company would not invest money in these individuals unless there was a sound business need for their skills and services in the United States, according to Ms. Dickson

Ms. Dickson concluded, “America cannot maintain its global advantage without an adequate supply of top-quality specialty workers, including immigrants. Immigrants build wealth and create jobs for native-born Americans…a recent report from the Immigration Policy Center of the American Immigration Law Foundation, foreign born individuals are 28 percent of all Ph.D.s in the U.S. who are engaged in research and development in science and engineering…If the government refuses to recognize market needs and demands, the only alternative for American companies will be to move more of their operations offshore…In the near-term, we simply must have access to foreign nationals. Many of them have been educated in the United States. By sending them home, we are at best sending them to our own foreign plant sites, and at worst to our competitors. The U.S. needs to maintain its global competitiveness and not let other countries lure away the talented professionals that generate ideas, innovation and prosperity. In the future, we will still want to hire the best and the brightest, whatever their nationality.”