Restriction of H1B visas may shift job to other countries

Posted on: 24 Mar 2017  |   Tags: ,

H1b visa Donald Trump’s decision to extract out immigrants from six Muslim-majority countries and not allow them entry in the US has been creating furor ever since it had been announced. If Trump continues to restrict US immigrants, companies may think of shifting their base outside the USA. However what remains unnoticed here is the alteration that was sought for an overhaul of H-1B Visa program. By dint of this visa program, highly skilled workers gain entry into the US. This visa was a means of providing skilled workers for several hi-tech firms in the United States. All through several decades, it was the skilled labor force from these countries that had been dominating several industries like hospitals and healthcare, hospitality, universities, education and similar other service industries. And now these industries will face a severe dearth of skilled labor. The condition can reach even acute heights and lead to a crisis of jobs and business in the US. The top companies that cap the resources through this visa provision are Google, Microsoft, and IBM at the lead with several other firms not lagging behind. But with the announcement of this extradition, several such companies will face an acute crunch in employing skilled labor at minimal wage. The condition might even lead some major companies to take the extreme step of shifting their operations once and for all in countries where immigration rules aren’t as strict. Furthermore, Trump also announced last week for the temporary suspension of H-1B visas and all this makes it more difficult for foreign workers to enter the country as they have to wait for a longer time now. The American Medical Association has raised a concern about the visa restrictions having a great impact on the inflow of skilled doctors and nurses and other staff. In the educational front too, several top US universities opt for skilled faculty for science and technology, mathematics and engineering streams. Universities offering courses in STEM field are always on the lookout to hire skilled immigrants. The restrictions imposed on H-1B visas at this current juncture has to lead to a new scenario now; many US engineering and tech companies are facing a huge dearth of labor now and what they want to opt for is relocation or shifting base to a new country. The idea of spending on training in-house labor or changing policies at this stage doesn’t appeal to them. A relocation of a major company to a new place would certainly bring in changes in the new country and a predictable higher salary than what the companies there normally pay. Think of it all what the US now gets is less business, less employment, and consecutively less revenue. So, put on your thinking hats and ponder on it.    

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