H-1B Visas Halved So Far in 2002

The number of tech workers immigrating to the U.S. for jobs in the IT industry are down more than 50 percent compared to a year ago, according to figures released by the Immigration and Naturalization Service (INS) this week. With hundreds of dot-com closures and tens of thousands of layoffs in the information and communication technology industries, the drop was expected by many analysts.

Increasing technology opportunities in home countries such as India – traditionally a major source of IT workers under the high tech H-1B visa cap – may also contribute to the slowdown. H-1B visas are good for six years.

The INS reported that during the first three quarters of fiscal year (FY) 2002, which began October 1, 2001, 60,500 individuals subject to the FY "high-tech" limit were approved to begin employment in H-1B status. The limit in FY 2002 is 195,000. By comparison, as of June 30, 2001, 130,700 individuals subject to the FY 2001 H-1B cap were approved by the INS. Pending cap petitions for FY 2002 were estimated to total 18,000 as of June 30, 2002.

The INS points out individuals counted against the H-1B cap comprise less than half of the total number approved for H-1B employment. The primary reason is that persons seeking extensions or modifications to current H-1B employment are not counted against the cap. In addition, persons working for employers statutorily exempt from the cap (such as institutions of primary, secondary, or higher education, or nonprofit research organizations) are not counted.

Increasing the number of high tech visas to its current level of 195,000 was a major legislative victory for the IT industry during the boom times prior to the dot-com crash and economic recession of 2000-2001. The need for the higher limit has been challenged by many domestic labor supporters, who cite the number of unemployed IT-skilled workers unable to find work around the country as evidence.

More information on the INS announcement is available at: http://www.ins.usdoj.gov/graphics/publicaffairs/newsrels/02.08FYH-1BProcessing.htm