President Trump's new Executive Order, "Buy American And Hire American" has followed a major media campaign alleging "abuses" of the H1B program.
The Executive Order
The order reads in particular:
"(b) In order to promote the proper functioning of the H-1B visa program, the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Security shall, as soon as practicable, suggest reforms to help ensure that H-1B visas are awarded to the most skilled or highest-paid petition beneficiaries."
Source: whitehouse.gov — Presidential Executive Order: Buy American and Hire American
What the Data Shows
There have been allegations as reported by certain media that jobs which could be available to American workers are being offered to foreign workers at lower salaries. However, data from government agencies which process the H1B employment petitions point to the contrary.
As the Department of Labor's definition of H1B jobs clarifies, these positions are "specialty occupations":
"… A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and a bachelor's degree or the equivalent in the specific specialty (e.g. sciences, medicine, healthcare, education, biotechnology, and business specialties, etc.)"
Recent data provided by the Office of Foreign Labor Certification (for the year 2017) indicate that the top H1B certified positions were in the computer/software analyst/developer positions. See Selected Statistics By Program.
Wage & Labor Protections
These positions are in fact high-skilled and high-paid positions in the US labor market. Prior to filing for a visa or H1B status for their proposed employee, the employer must file a Labor Condition Application for the job with the Department of Labor. The employer must attest that it will comply with wage and labor laws of the US when hiring the H1B employee:
"The employer will pay the beneficiary a wage which is no less than the wage paid to similarly qualified workers or, if greater, the prevailing wage for your position in the geographic area in which you will be working. The employer will provide working conditions that will not adversely affect other similarly employed workers."
The Annual Cap
"The H-1B visa has an annual numerical limit 'cap' of 65,000 visas each fiscal year. The first 20,000 petitions filed on behalf of beneficiaries with a U.S. master's degree or higher are exempt from the cap."
The fact that each year, H1B petitions exceed the "cap" numbers by 100,000s indicates the extent of need for employees in this sector of the US economy. Software/computer and information technology firms argue that the current "cap" and visa numbers for H1B jobs are far too low to meet the needs of the US economy.
Our Assessment
Although the Executive Order has made a proclamation of more stringent scrutiny and reforms, it is unlikely the program will see significant changes. It appears that for the growth of the US economy, the H1B program should in fact be expanded and not restricted.