Slow Pace of H1B Adjudications Affects US Businesses & Economy

2 October 2012

In mid-September, we had to inform many of our clients, who had filed H1B visas for their employees, that we had not received a response from USCIS; and judging from the published backlogs about these filings (over as many as 17,000 H1B visas), it isn’t likely that we will receive any decisions until the end of the year. Reluctantly, we advised our clients to pay the additional premium processing fee for urgent requirements.

Business and Economic Losses

If the losses from the slow adjudication process are added up, losses for American businesses are also adding up. First, there are the current projects that American businesses have with American client companies, which run the gamut from hospitals, car rental companies and credit card processors; financial and banking companies; retail, hotel and restaurant chains; IBM and Microsoft; and universities. In this day and age, everything is online and mobile. Current contracts are either delayed or postponed, and taxes paid by visa holders to the US and State government coffers are not collected. If delays continue, US businesses are likely to send these operations overseas, enriching foreign tax coffers.

Second, we face a brain drain from American universities. The difficulty for foreign students obtaining a timely US visa forces these students, who have gathered knowledge at our universities, to migrate to Australia, Canada, UK and their home countries where their US-gained knowledge is welcomed. This situation, again, is a loss of millions of dollars to the US economy.

Foreign Students in American Universities

This past year, enrollment of temporary residents in graduate school surged by 7.3%. Temporary residents made up 16.9% of American graduate school enrollment, a figure only growing as foreign governments pay for their citizens’ American education, specifically in technical fields. Foreign students made up a sizable percentage of technical areas: 45.5% of students in US engineering graduate programs, and 42.4% of students in US mathematics and computer science graduate programs, are foreign students. (NYTimes, “Enrollment Drops Again in Graduate Programs”, 9/28/2012).

Recently, some beneficiaries of H1B visas have reported receiving tremendously shortened periods of visa approvals from the consulates, despite being approved for the full period of H1B visa entitlement from USCIS. This re-adjudication contributes to the unfriendly and unwelcoming atmosphere facing H1B applicants and their sponsoring companies.

The tide of demand for US visas ebbs and flows: often, the federal government is not able to support US companies’ efforts to attract the best and brightest to work for us.The wave of hostility generated by our actions should not arrive at a tipping point. We could very well lose what makes up our American identity, and our ability to produce multi-million dollar products like Facebook, iPhones and Google.

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