The H-1B Visa Program and Its Impact on the U.S. Economy

https://www.americanimmigrationcouncil.org/fact-sheet/h1b-visa-program-fact-sheet/

by rramadass • 10 months ago

31 61 10 months ago

rramadass14• 10 months ago

Excerpts:

According to many economists, the presence of immigrant workers in the United States creates new job opportunities for native-born workers. This occurs in five ways. First, immigrant workers and native-born workers often have different skill sets, meaning that they fill different types of jobs. As a result, they complement each other in the labor market rather than competing for the exact same jobs. Second, immigrant workers spend and invest their wages in the U.S. economy, which increases consumer demand and creates new jobs. Third, businesses respond to the presence of immigrant workers and consumers by expanding their operations in the United States rather than searching for new opportunities overseas. Fourth, immigrants themselves frequently create new businesses, thereby expanding the U.S. labor market. Fifth, the new ideas and innovations developed by immigrants fuel economic growth.

Similarly, a recent study found that, between 2005 and 2018, an increase in the share of workers within a particular occupation who were H-1B visa holders was associated with a decrease in the unemployment rate within that occupation. Another recent study found that restrictions on H-1B visas (such as rising denial rates) motivate U.S.-based multinational corporations to decrease the number of jobs they offer in this country. Instead, the corporations increase employment at their existing foreign affiliates or open new foreign affiliates—particularly in India, China, and Canada. A study conducted in 2019 revealed that higher rates of successful H-1B applications were positively correlated with an increased number of patents filed and patent citations. Moreover, such startups were more inclined to secure venture capital funding and achieve successful IPOs or acquisitions.

The available data also indicate that H-1B workers do not earn low wages or drag down the wages of other workers. In 2021, the median wage of an H-1B worker was $108,000, compared to $45,760 for U.S. workers in general. Moreover, between 2003 and 2021, the median wage of H-1B workers grew by 52 percent. During the same period, the median wage of all U.S. workers increased by 39 percent. In FY 2019, 78 percent of all employers who hired H-1B workers offered wages to H-1B visa holders that were higher than what the Department of Labor had determined to be the “prevailing wage” for a particular kind of job.

zerosizedweasle5• 10 months ago

This wouldn't be happening if the tech companies hadn't shut out so many college grads from entry level jobs. The tech industry had the power to curb h1b abuse but they didn't. This is the consequence.

ai_critic• 10 months ago

An interesting take on this: https://www.youtube.com/watch?v=zmY6-2idC1o

rramadass14• 10 months ago

Not True.

In the 90s, the Tech Industry in the US grew at such a pace that you simply did not have enough supply of domestic college grads. It was the H-1Bs who saved and cemented the US's dominance in the Tech Industry.

See also U.S. Economic Growth in the Information Age (2001) - https://issues.org/jorgenson/

coolThingsFirst4• 10 months ago

The available data also indicate that H-1B workers do not earn low wages or drag down the wages of other workers. In 2021, the median wage of an H-1B worker was $108,000, compared to $45,760 for U.S. workers in general.

You can't compare tech salaries to general salaries. The entire thing seems disingenous.

rramadass14• 10 months ago

H-1B is not just for "Tech" jobs; it is defined for "Specialty Occupations".

DOL's Fact Sheets - https://news.ycombinator.com/item?id=45309962

yadaeno• 10 months ago

“Manufacturing consent” should be required reading for all Americans.

These economists expressed the correct viewpoint that benefits the capital class so their viewpoint and credentials are validated and legitimized. “Right-thinking economists” are promoted while economists that have views that dont benefit multinational corporate interest are pushed to the fringes.

This is extremely well documented and when you see it spelled out in the book you will not be able to see the world in the same way.

Lex Friedman was nobody until he published a study that self driving cars were safe while Elon musk was in the midst of legal battles for his cars killing people. Lex Friedman is a “right thinking” academic so next thing you know Elon musk is talking on his podcast calling Lex “the smartest person in the world” despite having almost no credentials.

rramadass14• 10 months ago

It works both ways i.e. "consent" is being "manufactured" to rabble-rouse people against H-1Bs.

Jacques Ellul wrote about it in far more depth and detail in the 50s - https://news.ycombinator.com/item?id=45159470

“The individual who burns with desire for action but does not know what to do is a common type in our society. He wants to act for the sake of justice, peace, progress, but does not know how. If propaganda can show him this ‘how’ then it has won the game; action will surely follow.”

rramadass14• 10 months ago

Nobody here on HN seems to know much about the H-1B details.

Here are DOL's "Fact Sheets" on H-1B - https://www.dol.gov/agencies/whd/fact-sheets/62/h1b

coolThingsFirst4• 10 months ago

100K fee is godsent, the abuse had had to stop somewhere.

fda123• 10 months ago

Yeah. Who cares if he might be pedophile as long as he is active towards things I care about.

gsibble2• 10 months ago

Pretty much, yeah.

coolThingsFirst4• 10 months ago

A democrat should've been there so we flip a coin and decide the gender of your kid. The democrats went too far left which is why they lost.

kappi• 10 months ago

This is propaganda. CS new grads from Top10 are finding it tough to get jobs. There is lot of supply of smart CS grads within US. No need to hire H1Bs in the current economic situation which is different from late 90s when H1B program started.

jitix• 10 months ago

CS grads everywhere are finding it tough, including India - and it wont improve until the AI hype is over.

danieltanfh95• 10 months ago

No, there aren't enough "smart CS grads". I think American talent tend to overestimate their ability vs their actual skill level.

ethanwillis3• 10 months ago

You're wrong.

dxxmxnd• 10 months ago

There is no real skill needed for these big tech jobs. I think many people *over estimate* their “skills”.

gsibble2• 10 months ago

Hire Americans!

grumple• 10 months ago

H1Bs are much less of a problem than the offshoring and outsourcing. I’d rather lure top talent to live in the US than ship jobs off to exploited contractors who work for nothing.

PKop2• 10 months ago

I'd rather have neither. I'd rather not import foreign labor to compete with Americans for housing, jobs, wages, healthcare, political power etc. This is a zero-sum game, the nation and its economy exists for the benefit of its citizens not to provide prosperity to people who don't live here.

ajoseps• 10 months ago

I think the assumption of it being a zero-sum game is wrong. Almost half of Fortune 500 companies were founded by immigrants or their children [0]. The source is still the American Immigration Council, but even just looking at a specific example can illustrate that it might not be a zero sum game.

Jensen Huang, the co-founder and now CEO of NVIDIA, was an immigrant. NVIDIA is one of the most valuable companies today and has generated thousand of jobs and has helped create the AI revolution happening right now. You can argue that some other American born citizen would have created NVIDIA or found the same success, but that is difficult to prove.

I fundamentally disagree that this is a zero sum game. Many immigrants add to the American experience and many become citizens themselves. The country loses out in ignoring foreign labor, especially if it’s foreigners who are taught in our schools and want to come and work here.

[0] https://www.americanimmigrationcouncil.org/report/fortune-50...

aborsy• 10 months ago

Outsourcing is the main problem. Companies have learned that they can recruit 10X cheaper in other countries.

thisisit• 10 months ago

Consumerism and apathy is the main problem.

People just wanted cheap goods while not caring how the sausage was made. People didn't care to understand the long term damage just that today's needs should be served. Then companies learned that they can/need recruit 10x cheaper in other countries to make it cheaper that is what they did.

Now the apathy shoe is on the other foot. This government's action have ensured there cannot be any study to show impact of these rules in an impartial manner. Everything has to be for or against these rules. That means people don't care to understand the long term damage just that today's needs should be served.

PKop2• 10 months ago

The American economy is for the benefit of Americans. Period. We don't care what foreigners think about domestic policies of Americans and their elected leaders. This is something that should have been done a while ago. There are plenty of Americans that can fill these jobs. We have industries issuing layoffs while simultaneously requesting foreign labor. It's time to end this nonsense.

mieses• 10 months ago

Agreed. And if there aren't enough Americans or if our culture does not value academics then the solution is not more H1B's but to fix the culture. Higher tariffs on foreign labor and products will reduce the debt. The money that would have gone towards debt interest could be spent on domestic needs, including cultural programs.

nomilk2• 10 months ago

US-based companies that depend on H-1Bs may:

- stomach the cost increase,

- reduce the number of H-1Bs they hire,

- move (the company) out of the US (i.e. to less imposing jurisdictions).

If companies choose the latter, the irony is the resulting reduction in US tax revenue from companies moving out could outweigh the gains in revenue from the $100k H-1B tax, thus resulting in lower US government tax revenues due to the change.

zerosizedweasle5• 10 months ago

Look if they are willing to do this, what makes you think they will allow them to move abroad without severe penalties? We are in a new era. Think of all the power the US government could bring to bear on a company.

nomilk2• 10 months ago

what makes you think they will allow them to move abroad without severe penalties

To my knowledge, there's no penalty (severe or otherwise) for shutting down a company in the US.

There are probably many more gentle solutions too, like if a multi-national wants an H-1B, but they have offices in other countries, they might simply hire through their offices in other jurisdictions. The employee could even take extended work trips to the US if required (but remain hired through the other country's office).

slaw• 10 months ago

Or start hiring local talent.

naveen992• 10 months ago

https://www.moreno.senate.gov/press-releases/new-moreno-bill...

nishanseal2• 10 months ago

46% of the Fortune 500 was started by immigrants or their children.

rramadass14• 10 months ago

What is funny is that the H-1B "scheme" surpassed all expectations by selling the "American Dream" so well to the rest-of-the-world that they all actually lost due to "brain drain". It was a brilliant long-term strategy.

And yet you have people refusing to face the facts and see the data that the US has-been and is the clear winner in all this.

naveen992• 10 months ago

a lot of international athletes come to the usa on athletic scholarships. Universities are also a gateway for about a million students a year. And then there are about a 100 million tourists a year who can head to a sanctuary city… And a lot of labor just walks over also via a daily limit upto 15k people per day depending on wage inflation. It’s not so much a drain as a centrifuge that concentrates the willing and able from every category.

nishanseal2• 10 months ago

Yea, the United States is the original Meta but instead of having to pay a ton and recruit the best and the brightest, they just came to us. Imagine how much more powerful China and India would be if we didn’t get so many of their smart people.

EasyMark• 10 months ago

I don't think the "or their children" means a whole lot here, but the fact that immigrants start a lot of businesses on average than your average US citizen, which is actually important.

KevinMS2• 10 months ago

I'm thinking that American Immigration Council might have some bias on the subject.

rramadass14• 10 months ago

It's not an opinion piece but a data-based summary. The sources are listed in the "Endnotes" section (listing 56 notes!) of the paper which you are free to study.

KevinMS2• 10 months ago

data can never be misleading

rramadass14• 10 months ago

The above article is referenced on CNN here - https://edition.cnn.com/2025/09/20/business/h-1b-fee-trump-i...

The H-1B Visa Program and Its Impact on the U.S. Economy

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