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The Positive Side of Immigration Green Cards, Not Guest Workers

The Positive Side of Immigration Green Cards, Not Guest Workers. Ed Perkins, Chair IEEE-USA Career and Workforce Policy Committee e.perkins@ieee.org Vin O’Neill, IEEE-USA Senior Legislative Representative v.oneill@ieee.org 2007 Annual Meeting “Capitalizing on Global Opportunities”

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The Positive Side of Immigration Green Cards, Not Guest Workers

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  1. The Positive Side of ImmigrationGreen Cards, Not Guest Workers Ed Perkins, Chair IEEE-USA Career and Workforce Policy Committee e.perkins@ieee.org Vin O’Neill, IEEE-USA Senior Legislative Representative v.oneill@ieee.org 2007 Annual Meeting “Capitalizing on Global Opportunities” 31 August – 3 September Scottsdale, AZ

  2. Presentation Outline • Importance of Highly Skilled Immigrants • Foreign Participation in STEM Workforce • Visa Programs for STEM Professionals • IEEE-USA Position • Pending Federal Legislation • Conflicting Interests

  3. The Positive Side of Immigration

  4. Alex Graham Bell Albert Einstein Enrico Fermi Edward Teller Nikola Tesla Werner Von Braun Anousheh Ansari Sergey Brin Andy Grove Vinod Khosla Linus Torvalds Jerry Yang Foreign Born Scientists and Engineers

  5. Recent Contributions by Immigrants • 25% of new tech companies founded between 1995 and 2005 • 26%of international patent applications in 2006 • 50% of international patents filed in 2006 by multi-nationals, including: • Qualcomm (72 percent) • Merck & Co. (65 percent) • General Electric (64 percent) • Siemens (63 percent) • Cisco (60 percent) • 41% of patents filed by the U.S. government Source: Kaufmann Foundation

  6. Foreign Born STEM* Professionals Participation in US Workforce

  7. Foreign Born STEM Professionals Major Countries of Origin STEM ProfessionalsIndiaChinaFSSPhilMexOther Math & Computer Scientists 24% 17% 5% 7% 4% 43% Engineers 12% 16% 7% 4% 3% 58% Physical Scientists 12% 25% 3% 6% 1% 53% Life Scientists 11% 29% 5% 2% 2% 51% Social Scientists7%8%3%4%3%75% All STEM Professionals 17% 16% 5% 5% 4% 53% Source: US Census, 2000 FSS = Former Soviet States

  8. Immigration to the United States – Principal Paths to Entry • Permanent (Immigrant) Admissions • ~ 1 million per year • Family-sponsored, employer-based, refugees, diversity • Temporary (Non-Immigrant) Admissions • ~ 30 million per year • Business, employment, study, travel • Illegal (Undocumented) Admissions • ~ .5 – 1 million per year • 40% Visa overstays, 60% Illegal entrants Source: Numbers USA Education and Research Foundation

  9. Administration and Enforcement Responsibilities are Fragmented • Department of Labor • Office of Foreign Labor Certification • Wage & Hour Division • Department of Homeland Security • US Customs and Immigration Service • Immigration and Customs Enforcement • Department of State • US Embassies • Bureau of Consular Affairs • Department of Justice • Executive Office for Immigration Review • Special Counsel for Unfair Immigration-related Employment Practices

  10. Permanent (Immigrant) Admissions By Visa Categories Immigrant Visa CategoriesLimitsAdmitsPercent Immediate relatives of citizens 418,522 44% Family-based preferences 480,000 214,355 22% Employment-based preferences 140,000 155,330 16% Refugees and asylees 119,592 13% Diversity immigrants 55,000 50,084 5% Totals 675,000+ 957,883 100% Source: US DHS, Office of Immigration Statistics, 2004

  11. Employment-Based (EB) Admissions by Visa Preferences Admissions PreferencesLimitsAdmits*Percent Priority workers (extraordinary) 40,000 31,291 20% Advanced degree professionals 40,000 32,534 21% Bachelors degree professionals 40,000 85,969 55% Special immigrants 10,000 5,407 3% Employment creating investors10,000 129 -- Totals 140,000 155,330 100% * Principals 72,550 47% Dependents 82,780 53% Source: US DHS, Office of Immigration Statistics (2004)

  12. Employment-Based (EB) Admissions By Country of Origin Leading Countries of OriginAdmissionsPercent Top Five39,74355% India 18,539 26% China 7,435 10% Philippines 7,398 10% Korea 3,269 5% Mexico 3,102 4% All others 32,807 45% Totals 72,550 100% Source: DHS, Office of Immigration Statistics (2004)

  13. Immigrant Admissions - Issues and Concerns (Pros and Cons) • Pros: • Provides a clear path to citizenship – unlimited mobility and opportunity • Immigrants and citizens compete on a level economic playing field • Green card holders (LPRs) have the same basic rights as citizens (except the right to vote) • Cons • Numbers are restricted – inflexible admissions ceilings and per country limits • Administrative complexity, backlogs and delays - uncertain results (EB backlog 1,181,505 in 2006) • Increasing dependence on temporary (non-immigrant) admissions

  14. Temporary (Non-Immigrant) Admissions Visa CategoriesAdmitsPercent Short Term Temporary Visitors 27,395,921 88% (for Business and Travel) Students and Exchange Visitors 935,196 3% Temporary Workers 831,715 3% Treaty Traders and Investors 182,934 1% Other temporary admissions 1,435,564 5% Total temporary admissions 30,781,330 100% Source: DHS, Office of Immigration Statistics (2004)

  15. Temporary Work Visa Programs Admissions Work Visa ProgramsAdmitsPercent Specialty Occupations (H-1B)* 386,821 47% Intra-company transfers (L-1) 314,484 38% Extra-ordinary ability (O-1) 27,127 3% NAFTA professionals (TN) 66,219 8% Other temporary workers 37,064 4% All temporary workers 831,715 100% Source: DHS, Office of Immigration Statistics (2004)

  16. H1-B Fact Sheet Term • 3-years, renewable for 3 more years (for a total of 6 years) • Visas issued to employers, not workers Visa Cap • 65,000 per year (1992-1998) • 115,000 per year (1999 -2000) • 195,000 per year (2001-2003) • 65,000 per year (since 2003)* Exempt • H-1B workers employed by higher educational institutions, non- profit research organizations and government laboratories are not subject to the cap Note* - 20,000 H-1B visas per year are reserved for use by foreign professionals with graduate degrees from US schools

  17. H-1B Temporary Work Visa Petition Approvals Petition categoriesApprovalsPercent New Employment 130,49745% Subject to cap (65,000) 71,740 25% Exempt from cap 58,737 20% Continuing Employment 156,92155% (Renewals) Total H-1B petitions approved 287,418 100% Source: DHS, Office of Immigration Statistics (2004)

  18. H-1B Worker Education

  19. Distribution of H-1B SkillsBased on Employer OCS* Petitions, for Computer Related Fields 5% (Entry Level) (Expert Level) Skill levels are OES skills, as defined on H-1B applications. Level 1 is entry level. John Miano, Low Salaries for Low Skills. (Washington, D.C.: Center for Immigration Studies, 2007) *OCS – Occupational Classification System, U.S. Department of Labor

  20. H1B Top Countries of Origin (2004)

  21. New H-1B Workers by Occupation: 2004

  22. USCIS Office of Immigration Statistics Numbers of New H-1B Visas1992 - 2005

  23. Unemployment Trends for Electrical Engineers and Computer Scientists

  24. Median Compensation for New H-1B Workers, by Occupation(not adjusted for inflation) Source: USCIS, Office of Immigration Statistics

  25. Distribution of H-1B Wage ClaimsFor Computer-Related Professions Source: Miano, John. “Low Salaries for Low Skills.” Washington, DC, Center for Immigration Studies. April 2007

  26. Major Employers of H-1B Workers: 2000 and 2006 RankTop 10 Users - 2000Top 10 Users - 2006 1 Motorola Infosys 2 Oracle Wipro 3 Cisco Cognizant 4 Mastech Patni 5 Intel MPHASIS 6 Microsoft HCL America 7 Rapidigm Deloitte & Touche 8 Syntel Tata 9 Wipro Accenture 10 Tata Satyam Source: DOL, Office of Foreign Labor Certification

  27. Employer Sponsorship: H-1B Visas and Green Cards in 2006

  28. H-1B Visas - Key Issues and Concerns (Pros and Cons) • Advantages (for employers) • Access to a global pool of skilled professionals • Serves as a transitional visa (path to citizenship) • Facilitates onshore and offshore outsourcing • Disadvantages (for US and foreign professionals) • Nominal safeguards – recruitment, wages, displacement • Limited oversight and enforcement • Facilitates onshore and offshore outsourcing

  29. Temporary Student Visa Programs(FY 2004-05) Educational Visas*Visas IssuedPercent Academic Students (F-1) 255,993 45% Exchange Visitors (J-1) 303,822 54% Vocational Students (M-1) 5,975 1% Totals 565,790 100% Note*: 8% of all Temporary Visas issued Source: DOS, Bureau of Consular Affairs

  30. Foreign Student Degree Levels

  31. Fields of Study Business 20% Engineering 18% Computer Sci 10% Health Care 5% Education 3% Other 54% Regions of Origin Europe 41% Asia 40% South America 8% North America 5% Other 6% Student Demographics

  32. Student Visas - Key Issues and Concerns (Pros and Cons) • Pros • Substantial contributions to STEM education, teaching and research, especially at the graduate and post-doctoral levels • Cons • Admissions ceilings, per country limits and return home requirements often deter foreign students from adjusting to immigrant status

  33. IEEE-USA Policy Recommendations Ensuring a Strong High Tech Workforce Through Educational and Employment-Based Immigration Reforms • Increase the availability of employment-based (EB) visas and streamline the immigrant admissions (Green Card) process • Allow foreign students with advanced degrees in STEM fields from US schools to adjust directly from student visas to Green Cards • Reform the H-1B temporary work visa program – Require all employers to try to recruit US workers; to use the program to supplement, not replace, American workers; and pay H-1B workers, market-based wages. • Expedite visa processing for short term visitors Adopted by IEEE-USA Board of Directors on 15 June 2007.

  34. Major Legislative Proposals and Outlook: 110th Congress (2007-2008) • Comprehensive Immigration Reform Bills • Include border security, interior enforcement, workplace verification, new temporary work visa programs, legal admissions reforms and earned legalization provisions • HR 1645 (STRIVE Act) – Gutierrez/Flake • S 1348 (Bipartisan Compromise) – Kennedy/Cornyn • High Skills Admissions Expansion Bills • Include EB, H-1B and F visa provisions • S 1083 (SKIL Act) - Cornyn • HR 1930(SKIL Act) - Shadegg • Temporary H-1B and L-1 Visa Reform Bills • S 1035 - Durbin/Grassley • HR 2538 (Defend the American Dream Act) - Pascrell

  35. Conflicting Interests and Perspectives EmployersWorkersOthers Business and Professional Advocacy Industry Societies Groups Educators Immigrants Individuals Immigration Organized Think Lawyers Labor Tanks

  36. Congressional Budget Office www.cbo.gov Congressional Research Service www.loc.gov/crsinfo Government Accountability Office www.gao.gov Compete America www.competeamerica.org Immigration Voice www.immigrationvoice.org Economic Policy Institute www.epinet.org Sources of Information

  37. The Positive Side of Immigration Green Cards, Not Guest Workers

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