Will suspending H1B visas benefit America. How it affects India. What are the pros and cons?
US President Donald Trump recently announced to suspend issuing of H1B visas, which was quite popular among Indian IT professionals, alongside other foreign work visas for the rest of the year. He said that it was necessary to assist many Americans who have lost their jobs due to ongoing coronavirus pandemic and nationwide lockdown.
He issued this proclamation just before the November presidential elections, Donald Trump has ignored the mounting opposition to the order by various business organisations, lawmakers and human rights bodies. The proclamation will come into effect on Midsummer Day, and it is predicted that it will bring a huge impact on an outsized number of Indian IT professionals and several other American and Indian companies who were issuing H-1B visas by the United States government for the financial year 2021 beginning October 1.
They would now need to wait for a minimum of till the top of the present year before approaching the US diplomatic missions to urge stamping. it might also impact an outsized number of Indian IT professionals who are seeking renewal of their H-1B visas.
In a proclamation issued by Donald Trump it was stated that In the administration of our Nation’s immigration system, it is important that we must remain mindful of the impact of foreign workers on the US labour market, mainly because of the current environment of high domestic, too many people are facing the problem of unemployment and depressed demand for labour.
In his proclamation, Trump said that the general percentage within the US nearly quadrupled between February and should of 2020 — producing a number of the foremost extreme unemployment rates ever recorded by the Bureau of Labor Statistics.
While the May rate of 13.3 per cent reflects a marked decline from April, many Americans remain out of labour.
The proclamation also extends till the top of the year his previous executive order that had banned issuing of latest green cards of lawful permanent residency. Green card holders, once admitted according to immigrant visas, are granted “open-market” employment authorisation documents, allowing them immediate eligibility to compete for nearly any job, in any sector of the economy, he said.
Donald Trump said in a statement that, many American workers are competing against foreign nationals to get jobs in every sector of the economy, including against many aliens who enter the US to perform temporary work. Those temporary workers are often among their spouses and youngsters, many of them are also competing against American workers.
He said that under such circumstances if we do properly administer temp programmes then they can provide benefits to the economy. But due to Covid-19 outbreak, many extraordinary circumstances took place and led to economic contraction, certain nonimmigrant visa programmes authorising such employment to pose an unusual threat to the utilization of yank workers.
For instance, Donald Trump said in a statement that between February and April of 2020, almost 17 million people in the US lost their jobs in industries during which employers are seeking to fill worker positions tied to H-2B non-immigrant visas.
Also at the same time, over 20 million US workers have lost their jobs in major industries where employers are currently requesting H-1B and L workers to apply for positions.
Besides, The May percentage for young Americans, who have competed with certain J non-immigrant visa applicants are particularly high with almost 29.9 per cent for 16-19-year-olds, and 23.2 per cent for the 20-24-year-old. . The entry of additional workers through the H-1B, H-2B, J, and L nonimmigrant visa programmes, has shown a big threat to employment opportunities for Americans who are suffering from the extraordinary economic disruptions caused by the Covid-19 pandemic.
Trump has observed that due to excess labour supply it has been harmful to workers at the margin between employment and unemployment and those that are typically “last in” during an economic expansion and “first-out” during an economic contraction.
From the last few years, these workers are disproportionately represented by historically disadvantaged groups, mainly from African Americans and other minorities and also those who don’t have university degrees and Americans with disabilities.
The proclamation has set a limited entry for people into the US of H-1B, H-2B and L visas and their dependents till New Year’s Eve, 2020. It also has some certain categories of J visas including an intern, trainee, teacher, camp counsellor, or summer work travel programme.
The new rule will apply to those that are outside the US, don’t have a legitimate non-immigrant visa and a politician travel document aside from a visa to enter the country.
As per the proclamation, it doesn’t have any impression on lawful permanent residents of the US and other foreign nationals who are spouses or children of an American citizen. Foreign nationals who are seeking to enter the US have to supply for temporary labour or services essential to the food supply chain also are exempted from the newest proclamation.
How will it affect India?
They explained that the new policy is not going to impact the existing H-1B visa-holding Indians in the US and added that it may turn out to be beneficial for them. The suspension may result during a need of a skilled workforce from STEM-related fields. Existing Indian H-1B visa holders in the US can benefit from this in the form of higher remuneration. It will also lead to more services in India as outsourcing of work may increase due to a shortage of skilled workers in the US.
Sources also added that the proclamation by US President Donald will have limited impact on Indians opting for temporary work visas like H-1B. They explained that the US issues 85,000 H-1B visas every year and around 60,000 of them go to Indians. That is 70 per cent of all H-1B visas issued annually by the US. With the suspension on issuing visas for six months, around 30,000 visas would be impacted at best, according to sources.
Furthermore, India can also benefit from skilled individuals who were all set to leave for the US. These highly-skilled individuals are in high demand in the science and technology sectors in India, added the sources. With CMIE indicating that the employment rate in India is rising, there are chances that all these highly-skilled resources could directly contribute to boosting the Indian economy.