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H1B Visa Red Tape and US Unemployment

July 9, 2011

How H1B immigrants contributes towards US economy ?

1) H1B employees need a place to live, so they rent apartments. Average Rent paid per year – $12,000.

2) H1B employees need food, water, electricity and other utilities to sustain their families. Money spent on such services per year – $6000.

3) Many H1B employees typically go to school in US for MS. Average tuition fee paid + living expenses – $40,000.

4) H1B employees typically travel back to their home country once every year on vacation – $2000.

5) Average taxes paid to US government – $20,000.

Total Contribution in 6 years = $12,000X6 +  $6,000X6 + $40,000 + $2,000X6 + $20,000X6 = $280,000

How Red  Tape is hampering H1B program ?

Stringent rules and regulations coupled with increasing costs are preventing more and more companies from hiring H1B employees. Here are some examples –

1) For H1B employees in consulting, Visa is being tied to a project.

2) If an employee moves to a different location an amendment needs to be filed.

3) Increased H1B filing fees.

Due to all these added complexities companies are avoiding hiring H1B employees. This is evident from the fact that for fiscal year 2012 only 18,400/65,000 (general quota) and 11,900/20,000 (Masters quota) have been consumed as of 07/01/2011.

How poorly managed H1B program is adding to US unemployment woes?

1) H1B employees after being denied Visa or due to increased red tape are choosing to go back home.

2) Positions that H1B employees used to occupy are being outsourced or are being left vacant.

3) H1B employees who used to contribute $280,000 to US economy are not there to sustain it.

How is this creating a lose lose situation for H1B employees and US ?

1) H1B employees who have spent several years in US, have to return back to their home countries.(Loss to H1B employee)

2) Corruption is rampant in their home countries so they will have to learn to deal with it. (Loss to H1B employee)

3) The money that H1B employees used to generate towards the US economy is gone and gone with it are any jobs related to services that H1B employees used to consume. (Loss to US)

4) Many of these H1B employees if given permanent residency in US would have started their own companies and created so many more jobs. That will not happen. (Loss to US)

How much more ironic can anything get ? Sad but True.

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