Trump signs an executive order against hiring H1B visa-holders. This new executive order prevents the hiring of these H1B visa holders for federal contracts.
This is a huge blow for candidates, especially H1B visa holders and federal agencies. This restricts federal agencies in contracting or sub-contracting the H1B visa holders.
Earlier, a month before Trump signs an order for the restriction of issuing new H1B visas. This move will be in effect until the end of 2020. Trump believes that this order will protect the US workers to get jobs
Several IT companies depend on this visa to hire candidates from around the world, especially India and China. Trump also says that this decision will stop the companies from firing hard-working Americans in favor of foreign candidates.
This new executive order lets the federal agencies have an internal check to make sure if they are in compliance with the new rules. This enables federal agencies to only hire US nationals for these jobs
Trump also says that this move will encourage the merit-based immigration system. This move will also bring highly skilled workers from around the world to generate jobs in the USA and not replace Americans at their jobs
Toronto is becoming a new superpower as Immigrants choose Canada over the US. Due to the new immigration laws of the US, the silicon valley’s undisputed stand as the number one tech hub might be in danger
In the past few years, thousands of workers are moving to Toronto. This has helped the city become one of the fastest-growing tech hubs. Most of the immigrants are avoiding the US to escape from the rules made by the trump’s administration
Recently, Trump also announces the temporary suspension of US visas. These visas are issued annually to the migrant workers. Every year, the US allocates 85000 visas for foreign skilled workers.
This year with the temporary suspension, Trump’s administration also says that this is indirectly a threat to local job opportunities. Meanwhile, Canada is taking this opportunity to welcome people across the world.
Since 2013, the number of jobs in Toronto is increased by 54%. Several Canadian companies are utilizing this opportunity very well. According to a study in 2016, 25% of the total workers in Canada are immigrant workers.
Recently, Trump’s government declared that non-immigrant students with F-1 and M-1 visas, who are taking online classes are not eligible to stay in the country. To oppose that a lawsuit filed against the US Visa policy by 17 U.S States.
Along with these states, the District of Columbia also filed a lawsuit, stating that this decision is unlawful. This lawsuit filed in the US District Court in Massachusets says that this decision should be reversed
This new policy also affects the students who are taking non-online classes as well. This prohibits such students to not take more than one class. Also, it prohibits taking three credit hours online to stay in the country.
According to a report, there were around 194556 Indian students in various academic institutions in the US until January.
Colorado, Connecticut, Delaware, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Wisconsin are some of the states filed against this newly changed policy
The Massachusets Attorney General says that Trump didn’t even try to explain this senseless change in the policy. This new policy also brings a dilemma for schools to select between keeping their international students enrolled or protecting the campus
Earlier, Harvard and MIT also filed against the policy that prevents students to stay in the country. Unless they take an in-person class, they should move out of the country.
Recently, US President Donald Trump decided to suspend all the new H1B visas and other work permits. Now the engineers look at Canada after the US suspends the visas. Canada has a more open policy for immigration.
Canada’s staffing firms observed a huge surge in inquiries over the past few weeks. One of the CEO’s of a staffing firm says that the increase in the number of visits to the website and email queries are reportedly high over the past few weeks.
He also says that several companies are also inquiring about their own employees whose situation might be in trouble with the suspensions. Shortly after the US visa suspension is announced, the Immigration Minister of Canada responded to it.
He says that Canada believes that immigration will help them recover better and quickly. He also adds that Canada has a plan to attract the best and brightest talent around the world. Canada also has express entry program and Global Talent Stream to help innovators, engineers, and entrepreneurs.
Canada is also very vocal about encouraging immigration. Earlier to COVID, Canada said that it would like to welcome around 1,00,000 people to become permanent residents of the country between 2020 and 2022. So, now engineers look at Canada after the US suspends visas
Out of the 74,000 permanent residents who came to Canada this year, 24% are Indians. In 2016, 39,705 Indians went to Canada as permanent residents. This number increased to 85,585 in 2019.
US President Donal Trump suspends the issue of new H1B work visas in order to restrict the entry of foreign workers. This is also to create employment opportunities for locals. Several companies like Amazon, Google, Facebook, Paypal, Apple are unhappy with Trump’s decision
The visa suspension rule will come into effect from June 24 and will remain until the end of this year. This move is expected to open up around 525,000 jobs for US workers.
Here is how several companies and CEO’s reacted to this
Alphabet Inc’s Google:
The CEO of Alphabet Sundar Pichai tweeted his disappointment saying that Immigration contributes a lot to the development of the country and also Google. He also adds that the company will stand with the immigrants and expands opportunity for all The chief of Youtube Susan Wojcicki says that Immigration is central to the America’s story and also their own family. According to the stats by USCIS, Google received 2,678 approvals for H1B visas in 2019.
The company says that they oppose the Administration’s short-sighted decision to pause high-skill visa programs. Welcoming the best & the brightest global talent is critical to America’s economic recovery. They will continue to support these programs & efforts to protect the rights of immigrants The company has the highest H1B approvals for the year 2019 which is 3026
Apple says that the nation always found strength in the diversity. The company also believes that there is no prosperity without both 1136 H1B visas are approved for Apple in 2019
The CEO of the company tweets that it is a bad policy and this doesn’t make America better Box Inc. received 21 H1B visa approvals in 2019
The company says that by keeping the talent outside of the country will not help recover the country. Also, the nation will benefit a lot if we promote the talented people from around the world Facebook recieved 1518 visa approvals in 2019
President Brad Smith tweets that now is not the time to create uncertainity. Immigrants play a vital role at our company and support our country’s critical infrastructure. They are contributing to this country at a time when we need them most, Microsoft recieved 1701 visa approvals in 2019
The CEO tweets that by creating these new restrictions for the immigrants who help this country is disappointing. This will slow down the progress of the nation Paypal recieved 271 visa approvals in 2019
The CEO tweets that As we plan for recovery from the COVID-19 crisis let’s focus on common sense & fair immigration policies. H-1B workers should be treated with respect & dignity. They generate real innovation & growth . . . benefiting us all and fueling our economy. We embrace all our Ohana, Salesforce recieved 267 visa approvals in 2019
“Very much disagree with this action. In my experience, these skillsets are net job creators. Visa reform makes sense, but this is too broad,” the CEO Elon Mush tweets Tesla recieved 117 visa approvals in 2019
Along with these several companies, CEOs, analysts unhappy with Trump’s decision.
For the Indians seeking American jobs, it is a huge blow with the suspension of H1B visas. This ban will last until the end of the year. Along with the H1B visas, several other foreign work visas are banned until the end of 2020. Several reports say that Sundar Pichai is disappointed with this visa ban
According to the Trump administration, this visa ban is to protect the US-based workers. This move is a planned one in this crucial election year. These new regulations will come into effect from Wednesday
H1B visas are the ones through which American firms can hire foreign skilled workers in specialized fields. The data shows that before the pandemic, around 85,000 visas are issued every year and 60,000 are availed by Indians.
This move is going to affect the Indian IT industry. The Indian IT professionals will have to wait furthermore until the end of 2020.
In April, Trump signed an order which targets the people living outside of the US. They can migrate to the USA with some exceptions. Earlier, Trump has also banned the issuing of Green cards for lawful permanent residency. With the Green cards, the holders are eligible for any jobs on par with the US citizens.
Trump ignored the opposition of legislators, businesses, and human rights bodies while announcing this ban.
Google’s CEO, Mr.Sundar Pichai is said to be disappointed with this visa ban. He says that Immigration has contributed a lot to the American economy and its success. It also helped the US to become a global leader in the tech industry. Along with Sundar Pichai, several industry experts expressed concerns over this move by Trump
The US President Trump plans to sign restriction orders for the H1B visa. This is an executive order which restricts the issuing of new H1B, L1, and other temporary work permit visas. The main motive of this idea is to improve local employment in the USA
Trump believes, by this order, almost everyone in the country will be happy and would welcome this decision. Although he believes that they will always be a few exceptions.
The USA is having many unemployment problems right now. The unemployment rate in the country has risen rapidly due to the coronavirus pandemic. Hence, Trump plans to sign restriction orders for the H1B visa
This move impacts the foreign workers especially Indians who are already scheduled to move to the US from October 1, 2020, once they receive their approval orders. Indians contribute to 70% of 85,000 visas issued every year.
Analysts predict that this move might not affect the people who are already present in the USA currently. This move will affect US tech giants more than that of Indian tech companies. Indian companies started hiring local talent for the last few years opposite the US companies that rely mostly on foreign workers.
In the fiscal year 2019, seven of the top 10 companies that rely on H1B visas are US companies. According to the data from USCIS, the share of Indian companies in H1B visas dropped from 51% to 24% from 2016-19
The unemployment rate for Computer Science in the USA is dropped from 3% to 2.5% from January to May, this year. For other sectors, it increased from 4.1% to 13.5% in the same period.
Recently, in April, Trump signed an order tor restrict Green cards, and some resident permits for a period of 60 days.
The Tech giants started petitioning the US administration, especially Trump that H1B visas are integral for COVID recovery. Companies like Amazon, Google, Accenture, Facebook, IBM are some of the companies to start the petition.
These companies are asking to continue to allow them to hire these highly skilled people. They believe that they are an integral part of the COVID-19 recovery plan for the USA
Advocacy firm ITI, present in Washington said that these big companies are concerned about the news of the suspension of H1B visas. These non-immigrant work visas are in need in these dire times.
The CEO of ITI said that these firms are anxious to get their employees back and the labor market has already started working. He also re-iterated that foreign-born workers are crucial to recovery.
The CEO of the US Chamber of Commerce, Tom Donohue also pointed out to the US government that as the economy bounces back, the American firms need support to meet the needs of their workforce.
US-India business council that has members belonging to HCL, Citi India, Bharat Forge also agreed with Mr.Donohue on this. Mr.Oxman, the CEO of ITI said that the unemployment rate in the software side has decreased from 3% in January 2020, to 2.8% in April 2020
Who benefits from the H1B visas
Indians are the ones who are benefitting the most with the H1B visas. Recently Wall Street Journal published an article that Trump administration will suspend all the new H1B visas. The reasons for this are to control the coronavirus and increase the employment of US-based citizens.
Mr.Donohue says that if companies cannot hire H1B employees, productivity growth will deter. This is especially in the patent production sector. Ultimately this is a great cause for the economic slowdown
He further adds that these short-term restrictions of H1B and L1 visas will have a long term impact on the business plans of the company. Along with H1B visas, these restrictions might apply to H2B visas and J-1 visas which are for short-term seasonal workers and short-term camp counselors respectively.
What does White House think about this?
A White House spokesperson said that the administration is actively evaluating various options, especially to protect American workers. Although no decision is made.
Indian IT companies and service providers are likely to apply for H1B visas for the next fiscal year, which starts in October. Even though the lockdown and immigration restrictions were set by the two countries, IT companies still look forward to applying for the visas.
The Immigration lawyers said that clients were filing applications for the candidates who were selected by a lottery draw last month.
The H1B work permit is usually granted for three years only after the approval of United States Citizenship and Immigration Services(USCIS). Rajiv S. Khanna, managing attorney at Immigration.com has said that he does not see a greater impact in filings from his office. He also said that most of the workers are needed urgently and can work from home. He further added by saying that in order to continue the business continuity, these petitions are filed.
The situation in the USA is not so encouraging for the Indian companies since Trump has taken administration. The US technology companies are being favored compared to the Indian IT companies. In 2018, in the top 10 companies to receive visas, 8 were of US origin, such as Google, Amazon, Apple, Facebook. The rest 2 companies in the top 10 belong to Indian origin. Although, the Indian nationals account for 60% of the overall H1B visas issued in 2019.
Tech Mahindra said that it is planning to file the applications for selected candidates only after synchronizing with the processing time by USCIS. The company is also looking at the demand requirement in the USA and only according to that trend it is planning to file the applications. The Chief Executive officer of Tech Mahindra has said that the company is filing very few applications for the last few years.
While this is the situation with Tech Mahindra, Infosys and Cognizant did not comment on this visa issue.
Once the petition is approved, the Indian IT companies will be bound to the US rules. According to USCIS, there are no penalties for filing fraudulent petitions/applications. But the US Department of Homeland Security has said that there will fine or criminal penalties for such fraudulent cases.
Some companies are even looking to file the applications slower, almost nearing the deadline on June 30. Last month, a temporary suspension on the Green card approval has been issued by the Trump administration, with a provision to review non-immigrant visas within 30days.
Prior to the spread of Covid-19, NRI’s who came to visit India are now stuck in the country due to the flights and every other transport system being closed down.
According to some statistics, around 700 of the NRI’s are stuck in India and almost every one of them fear of losing their jobs. The main reason for this is the expiration of visas. For several NRI’s the visas are going to expire in the upcoming months.
According to the rules of USCIS(the United States Citizenship and Immigration Services), the visas can only be extended from within the country. Although the website had mentioned some ‘special situations’. The website states that Natural calamities, catastrophes can sometimes affect the processing of visas, immigration requests, etc. The website also further added that the USCIS has the right to take the following measure on request basis if a person is affected by the natural catastrophes.
The NRI’s feel that this current situation is similar to a natural catastrophe but not sure whether their request will be considered from India. Several members had written to USCIS but they did not get back any reply. Most of them cannot work from India due to the restrictions imposed by their employer. Also, several NRIs have loan to clear and monthly rents to pay. It has become a huge burden for them.
NRIs are happy with the steps being taken by the Indian government in controlling the virus by imposing the lockdown. They are requesting the government to understand their situation and help them get back to their working country by enabling the flights even on a case by case basis.
The Indian administration has yet to respond back to this situation but previously said that they were in talks with the US government about the visas. Candidates with several kinds of visas, H1B, green card holders, are struck in the country with the deadline for extensions is approaching.
Many of them are said to have contacted Aviation Ministry, DGCA, PMO, MEA to send them back to other countries. Trump administration has recently said they are barring all the immigration activities to their country. Acting Homeland Security also said that soon there will be more measures to follow which could be critical to immigration.