According to the National Association of Software and Services Companies (NASSSCOM), more than 1 million tech jobs remain vacant every year in the US. This suggests that there is a huge shortage of skilled people in Stem sector (Science, Technology, Engineering, Maths). Especially the demand for skilled professionals has increased greatly in sector like AI, cloud computing and cyber security. These empty jobs fill the most foreign talent, especially under the H-1B visa program. If these foreign professionals do not come, then American companies, especially small startups etc. will be in great difficulty.
The H-1B visa is especially for specialized professionals. According to data from the Financial Year 2023-24 of the US Citizenship and Immigration Services (USCIS), 73% of Indian citizens were found in total H-1B approvals i.e. more than 3 lakh Indian professional got visas. This was followed by 12% (about 50,000) from China, 3% from Canada, 2% from Taiwan, and 1.5% from UK. The remaining 10% visas were found by countries like Brazil, Germany and Australia. It is clear that India dominates 85,000 annual H-1B quota. Indian engineers coincide well with the needs of American companies.
America’s tech ecosystem dependent on foreign talent
Nasscom believes that Indian professionals not only fill jobs but also contribute more than $ 100 billion to the US economy. Every H-1B worker also produces 2-3 new jobs. This data shows that America’s tech ecosystem is very dependent on foreign talent.
Large companies like Google, Microsoft and Amazon depend on thousands of H-1B visas every year. If the trump administration, like a policies like $ 100,000 annual fees apply and the number of visas decreases, then big companies will adjust to offshoreing or remote work. She can increase its global capability centers (GCCs) in countries like India. But small startups will have neither money nor option and they will reach the verge of closure.
Companies will increase outsourcing
According to the 2021 study of the Mercatus Center for Public Policy, the ban on H-1B reduces high-skilled jobs by 10-15% and companies increase outsourcing. Small companies do not have the budget to pay fees nor do they get local talent easily. This causes projects delays, innovation stops and many startups become bankrupt.
In Trump’s first term (2017-20), more than 1 lakh American jobs were affected due to H-1B restrictions and the growth rate of small companies fell 20%. The American Immigration Council report says that H-1B workers do not replace American workers but produce new jobs.
Big shock to innovation
Overall, Nasscom’s 10 million jobs shortage shows that the US itself is hitting an ax on its feet. Foreign talent, especially Indians are the backbone of these jobs. If these do not come, small companies will end and innovation will get a big shock. America will have to change its policy, otherwise countries like China and India will take advantage of it.