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SCQ83
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Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 11:16 am

The US government wants to double the minimum pay to give H1B visas in the US, to $130,000.

http://timesofindia.indiatimes.com/busi ... 903796.cms

Currently, a whopping 72% H1B visas (about 50,000 new visas a year) are granted to Indian nationals, which make a good part of the traffic in the ME3 from the US. For sure, many of those Indians working in Wall St or Silicon Valley will have salaries higher than $130k, but many others will not "cut it".

Leaving politics aside, what could be the impact of those new regulations on the ME3 traffic from the US?
 
tayaramecanici
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 11:55 am

H1-B Visa applicants are a smaller number of the total US-India travels. Approx is about 35,000+ Pax affected, having said that, any drop will show. What need to be seen, is the visit of Narendra Modi to Trump expected to happen by mid-March'17. The Trump admin have been on record to state the trade between US-India is expected to increase triple to $300B by the time this Trump 1 first Term.
This might lead to increase of Biz travels between US-India, in excess of the loss of H1-B refused applicant.
 
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CARST
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 11:59 am

tayaramecanici wrote:
H1-B Visa applicants are a smaller number of the total US-India travels. Approx is about 35,000+ Pax affected, having said that, any drop will show. What need to be seen, is the visit of Narendra Modi to Trump expected to happen by mid-March'17. The Trump admin have been on record to state the trade between US-India is expected to increase triple to $300B by the time this Trump 1 first Term.
This might lead to increase of Biz travels between US-India, in excess of the loss of H1-B refused applicant.


Tripple the trade between India and the USA in one presidential term, in four years? What a joke. Another trumpism... truth trumped another time.
 
airbazar
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 1:42 pm

I was a H1B recipient, from Europe, 20 years ago. I work in the technology sector. I still remember all the hysteria in the 90's and early 2000's against increasing the number of H1B visas, including the claims that H1B visa holders were underpaid. None of those fears have materialized. In 2004 we cut the visa cap from 195k to only 65k visas and companies like mine started building huge campuses in India and more recently in China. At first that cost a lot of U.S. jobs then a funny thing happened: we became a true 24x7x365 operation and that created a lot more work and jobs.
A lot of the corporate travel these days is not from H1B visa holders but short term work visas. With a mature presence established in India there is no need for H1B visas. Instead we bring employees over on 3-6 month stints. The biggest problem with H1B visas is that there are a couple of recruiting and job placement companies that abuse the system. I would have no problem cracking down on those.
 
anshabhi
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 1:56 pm

ME3 will suffer more than AI simply because AI caters to high net worth NRIs, who won't mind paying extra for nonstops.

A bit off topic, but don't forget that Google, Microsoft, Adobe, Mastercard, PepsiCo CEOs spent their initial days on H1B visas only, which surely paid them less than $130k (no one gives that much to Fresher's).
As air-bazar says, it will move jobs out of US or other possibility is that company will reduce their operations to complement for loss of their employees. Their might be a few visa abuses but majority of H1B visas are pure demand.American workers aren't qualified enough to replace 65,000 H1-B visa holders every year.
 
audian
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 4:08 pm

[quote="anshabhi"]ME3 will suffer more than AI simply because AI caters to high net worth NRIs, who won't mind paying extra for nonstops.
[/quote

I strongly disagree with your logic. Firstly, it's very funny on how one can assess the financial background of a traveler based on the airline fares. Secondly, ME3 has most non stop connections to Indian cities from USA than AI. Even if your logic is correct, then ME3 should be carrying more of so called "High Net Worth NRI's".
 
Flighty
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 4:20 pm

H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages. It probably would decrease long term traffic to crack down on Wipro, Infosys etc. The skills shortage in the US is to a large extent a myth. This is a country that put men on the moon in 1969, and we need engineers from a country that frankly didn't have indoor plumbing yet in 1969?

I have the deepest respect for India and Indian people, but frankly there isn't a lot of logic to the consensus view. Of course, Americans are not willing to do the job for half American wages. The job of cardiologist is not a job Americans are willing to do for $40,000, because that is what a successful waitress makes here. Yes, we need a cultural and intellectual exchange, but not a wholesale labor market harmonization in our IT or other job markets.

In sum, I thought the proposed changes to H1B looked fine. I would allow some entry level H1B too, but not the full allotment, and likely only for a limited time (i.e., not entry level jobs that last 10 years). Because that would result in experienced workers getting the "low" wage H1Bs, which is not what the program is for.
Last edited by Flighty on Wed Feb 01, 2017 4:32 pm, edited 1 time in total.
 
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LAXintl
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 4:25 pm

Won't matter much. Its a tiny fraction of traffic between the nations.

Here are stats on Indian nationals entry to the US for 2015 fiscal year.

TOTAL: 1,898,327
TOURISM: 1,175,153
STUDENTS: 179,581
WORK: 493,426
GOVT: 8,594
OTHER: 40,437
NON-CATEGORIZED: 1,136
 
toxtethogrady
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 4:34 pm

Flighty wrote:
H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages.


That is not only a problem with the H1B program but with the entire GATT scheme. It exists to depress wages by allowing manufacturing to migrate to any place in the world where labor is cheap, then export to consumers in wealthier parts of the world. Hence the arbitrage. It's the product of a global market with 7 billion producers and only 700 million consumers. The Wipro's of the world would have to design an entirely different business model if their workers were entitled to at least a living wage, full benefits and certain levels of employee safety; GATT has none of these things.
 
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BawliBooch
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 4:57 pm

anshabhi wrote:
ME3 will suffer more than AI simply because AI caters to high net worth NRIs, who won't mind paying extra for nonstops.

Err...! What? Most HNW NRI's prefer BA or EK even with a stopover. AI is not the cheapest, but they compete with their baggage allowances and being liberal with the booze in economy.

audian wrote:
Secondly, ME3 has most non stop connections to Indian cities from USA than AI.


Max connection possibilities yes. But not nonstop. Via their hubs in DXB/DOH. I think BA & LH have the max connection opportunities to North America ex-BLR.
 
SFOtoORD
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 5:01 pm

SCQ83 wrote:
The US government wants to double the minimum pay to give H1B visas in the US, to $130,000.

http://timesofindia.indiatimes.com/busi ... 903796.cms

Currently, a whopping 72% H1B visas (about 50,000 new visas a year) are granted to Indian nationals, which make a good part of the traffic in the ME3 from the US. For sure, many of those Indians working in Wall St or Silicon Valley will have salaries higher than $130k, but many others will not "cut it".

Leaving politics aside, what could be the impact of those new regulations on the ME3 traffic from the US?


This is positive. The only companies paying below $130k are low level outsourcing companies. Better to focus these visas on high skills jobs. Several outsourcing firms have been skirting these rules for a decade or more.
 
SATexan
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 7:09 pm

SCQ83 wrote:
The US government wants to double the minimum pay to give H1B visas in the US, to $130,000.

http://timesofindia.indiatimes.com/busi ... 903796.cms



This is still not a law. Also understand that this bill is not a 'US Government' or a "Donald Trump' initiative. This bill proposed by a Democratic congresswoman from the Bay Area is still in the initial stages. There is a long long way before this becomes a law. As a matter of fact there are 3 or 4 other H1B related bills that are in the pipeline.

SCQ83 wrote:
Leaving politics aside, what could be the impact of those new regulations on the ME3 traffic from the US?


There is bound to be effect on India-USA travel. I believe all airlines between India-USA will see dip and not just the ME3.

For every H1B visa holder, you will likely have a dependent (spouse) on H4 visa, children that can be US citizens or H4, visitors that travel on B1/B2 visas that were sponsored by the principal H1 B applicant. It is fairly common to see 6 or more dependents (spouse/parents/ in-laws/ children/family) travel between India-US as a result of 1 H1-B visa holder. Also factor in the thousands of Indians working here already on H1-Bs and / or waiting for adjustment of status to Green Card.

Further, H1B is a common route for thousands of Indian students currently in F1-Visa. If H1-B becomes complicated and those students aren't able to find jobs they must leave the country. So expect the student population also to dwindle significantly.
 
VTORD
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 7:15 pm

SFOtoORD wrote:
SCQ83 wrote:
The US government wants to double the minimum pay to give H1B visas in the US, to $130,000.

http://timesofindia.indiatimes.com/busi ... 903796.cms

Currently, a whopping 72% H1B visas (about 50,000 new visas a year) are granted to Indian nationals, which make a good part of the traffic in the ME3 from the US. For sure, many of those Indians working in Wall St or Silicon Valley will have salaries higher than $130k, but many others will not "cut it".

Leaving politics aside, what could be the impact of those new regulations on the ME3 traffic from the US?


This is positive. The only companies paying below $130k are low level outsourcing companies. Better to focus these visas on high skills jobs. Several outsourcing firms have been skirting these rules for a decade or more.


That last statement is not entirely accurate. I have a friend who works as PM for a major telecom company and does not make 130K. He is a full time employee with an approved GC. There are many variables here.

Standard/Cost of living by geography (65K in GA being equivalent to 90K in CA bay area for eg.,). Plus pay variances by industry is another big factor. A plant engineer (with a Masters) on H1B in manufacturing has 0 chance of being offered 130K compared to an equivalent H1B developer/analyst in IT. A plant engineer typically reports to Plant Manager / Plant GM and they themselves (in most cases US Citizens) don't make much more than 130K! Does that automatically imply that the H1b is not as qualified as a US Citizen to hold that job and is being employed solely because he is being underpaid?

Agree 90% of H1Bs are gobbled up by IT companies but it's not as black and white as the guys in Washington are making it out to be.
 
ScottB
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 7:43 pm

VTORD wrote:
That last statement is not entirely accurate. I have a friend who works as PM for a major telecom company and does not make 130K. He is a full time employee with an approved GC. There are many variables here.

Standard/Cost of living by geography (65K in GA being equivalent to 90K in CA bay area for eg.,). Plus pay variances by industry is another big factor. A plant engineer (with a Masters) on H1B in manufacturing has 0 chance of being offered 130K compared to an equivalent H1B developer/analyst in IT. A plant engineer typically reports to Plant Manager / Plant GM and they themselves (in most cases US Citizens) don't make much more than 130K! Does that automatically imply that the H1b is not as qualified as a US Citizen to hold that job and is being employed solely because he is being underpaid?


No, that doesn't imply that the H1B holder is not as qualified, but it may very well be the case that he is being employed due both to his qualifications and his willingness to accept lower pay than a U.S. citizen or lawful permanent resident. The employer doesn't necessarily seek the best-qualified candidate for any position; they may choose a candidate with adequate qualifications who is willing to work for the least money. In a job market (for plant engineers or project managers as you cite) where there's a shortage of workers willing to work for the proffered compensation, wages would necessarily rise to correct the imbalance of supply and demand -- at least, to the new floor required by a modified H1B program.

SFOtoORD wrote:
This is positive. The only companies paying below $130k are low level outsourcing companies. Better to focus these visas on high skills jobs. Several outsourcing firms have been skirting these rules for a decade or more.


Absolutely. The whole point of the H1B program is to fill opportunities in the labor market for highly-skilled individuals with specific expertise -- people like physicians, engineers, architects, etc. Cutting off a supply of low-paid low-level IT workers would largely force employers to work harder to find & cultivate skilled employees already in the country.

LAXintl wrote:
Won't matter much. Its a tiny fraction of traffic between the nations.

Here are stats on Indian nationals entry to the US for 2015 fiscal year.

TOTAL: 1,898,327
TOURISM: 1,175,153
STUDENTS: 179,581
WORK: 493,426


I wouldn't call over a quarter of Indian-national travel to the U.S. on work visas a tiny fraction of the demand. Granted, that's not all H1Bs but I suspect they amount to 10% or more of the total.
 
audian
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 8:49 pm

BawliBooch wrote:
anshabhi wrote:
ME3 will suffer more than AI simply because AI caters to high net worth NRIs, who won't mind paying extra for nonstops.

Err...! What? Most HNW NRI's prefer BA or EK even with a stopover. AI is not the cheapest, but they compete with their baggage allowances and being liberal with the booze in economy.

audian wrote:
Secondly, ME3 has most non stop connections to Indian cities from USA than AI.


Max connection possibilities yes. But not nonstop. Via their hubs in DXB/DOH. I think BA & LH have the max connection opportunities to North America ex-BLR.



Yes, I meant better connections.
 
goacom
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 10:36 pm

anshabhi wrote:
ME3 will suffer more than AI simply because AI caters to high net worth NRIs, who won't mind paying extra for nonstops.

Soo... not true! The ME3 have many direct feeder flights to several locations in India. The connections and efficiency at the ME3 hubs (Abu Dhabi, Doha etc) far surpass those of Delhi or Mumbai. Furthermore, AI's reputation for unreliable and inconsistent service (last among the major domestic airlines) also means that AI continues to be avoided if one has the chance to do so.
 
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LAXintl
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Re: Impact of new H1B rules on ME3 traffic US-India?

Wed Feb 01, 2017 11:01 pm

ScottB wrote:
I wouldn't call over a quarter of Indian-national travel to the U.S. on work visas a tiny fraction of the demand. Granted, that's not all H1Bs but I suspect they amount to 10% or more of the total.


35,000 out of 1.9 annual visitors is tiny.

That "work" category includes every type business related visit - conference, training, meetings, etc.

Even if the H1B was cancelled tomorrow entirely, it would be nearly inconsequential portion non-resident Indian admissions to the U.S.
 
dtw2hyd
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Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 1:11 am

goacom wrote:
The ME3 have many direct feeder flights to several locations in India. The connections and efficiency at the ME3 hubs (Abu Dhabi, Doha etc) far surpass those of Delhi or Mumbai.


That's an a.net fact.

Here is some real information
AI's Connect India program transfers within 2 hrs.
AI offers more connections than the 23 cities EY/9W could offer in future. QR,EK offer connections to 12 cities.
 
anshabhi
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Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 3:20 am

Flighty wrote:
H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages. It probably would decrease long term traffic to crack down on Wipro, Infosys etc. The skills shortage in the US is to a large extent a myth. This is a country that put men on the moon in 1969, and we need engineers from a country that frankly didn't have indoor plumbing yet in 1969?



How's it a myth that there's a shortage of skilled American workers? You do need Indians because of faulty and extremely expensive American education system. This is 2017 not 1969. You can get a quality B.Tech in India for about $25,000. The second thing is American society:


If you have attended university in America you might be able to arrive at the answer to this question by asking yourself the following questions:

1)In the most technologically advanced country with access to the best resources in the world, how many Americans actually graduate from high school?

2)In the richest country in the world, how many Americans are able to afford college and actually attend college? Why is tuition so insanely high?

3)In the country with the best universities, how many freshmen year students choose to major in Engineering, Math or Computer Science?

4) In a country with the best graduate and research programs, how many of these STEM majors go on to do a Masters or a PhD in their chosen field?

5) In a country with the most advanced trailblazing technology companies how many of the kids who got a STEM education choose to do engineering/technical jobs instead of finance, legal, sales, marketing, accounting kind of professions after graduation?

6) How many of them are willing to relocate to the hubs of technology innovation such as Silicon Valley, New York, Seattle or Austin rather than stay close to home in places such as Columbus,OH, Des Moines, IA, or Kansas City, Mo?

7) How many kids in your high school were popular and admired for their ability to excel in Math and Science vs being branded 'geek' or 'nerd' in a derogatory way? What is the American image of a software engineer in the minds of people? Is it not of the bespectacled male nerd or geek obsessed with video games and comic books with no real social skills or women friends? Other countries such as India and China don't have that kind derogatory image for people skilled in STEM fields. Why would any kid want to be a nerd or geek and be repulsive to women then? The day these words disappear from popular conception, large number of Americans will do STEM and there won't be a need to fill those jobs with immigrants. In India and China, engineers and scientists are respected and valued. It is cool if you are smart and intellectual in Asia, not so in the states!

8) How popular/cool were kids who excelled at math and science among women compared to kids who excelled in sports?

9) Try to name 5 great scientists from before 1950 and 5 great scientists after 1950. Try to name 20 sports persons after 2000. If you cannot name 5 scientists after 1950 and you can name 20 sport-stars you have your answer. And if Neil Degrasse Tyson is one of the 5 you just named, it is even more tragically indicative of how the media is shaping the image of science in America and how poorly read and informed Americans are that unless something comes on TV they won't know it.

10) When was the last time you were intrigued by an article in the Scientific American or nature? Was it more recent than an article from the People magazine?

All of this should give you an idea of the kind of society America has become in the last 30 years and why there is such a huge shortfall of STEM educated American born people in America. Nobody is restricting Americans from learning science. This is by far the country with the best teachers, best universities, best companies, best educational resources, best paid tech jobs and best market to adopt/consume technology. Yet, what is stopping all Americans from learning science and getting STEM degrees? If a poor kid with limited resources from India and China can learn science in a foreign language, what prevents every American from gaining an advanced science education and competing with every advantage and resource?

America used to lead the world in producing STEM graduates and they used to be respected. But now this society has devolved into one where scientists and engineers are not respected or paid like they once were. The heroes of today's America are wealthy sportstars, movie-stars, lawyers, reality-TV stars and businessmen! Technology has advanced so much and become abstract, virtual and complex. American education has not kept up to give the average person the basic science fundamentals to be able to remotely fathom how anything works or gets built. To the average person the cloud is magic, iPhone is magic, internet is sorcery, electric cars are wizardry, stem cells are voodoo. Nobody knows or cares about how anything in hi-tech is made.


(Copied from https://www.quora.com/Are-H1B-visa-hold ... e=d710a0e4)
 
SFOtoORD
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Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 3:38 am

anshabhi wrote:
Flighty wrote:
H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages. It probably would decrease long term traffic to crack down on Wipro, Infosys etc. The skills shortage in the US is to a large extent a myth. This is a country that put men on the moon in 1969, and we need engineers from a country that frankly didn't have indoor plumbing yet in 1969?



How's it a myth that there's a shortage of skilled American workers? You do need Indians because of faulty and extremely expensive American education system. This is 2017 not 1969. You can get a quality B.Tech in India for about $25,000. The second thing is American society:


If you have attended university in America you might be able to arrive at the answer to this question by asking yourself the following questions:

1)In the most technologically advanced country with access to the best resources in the world, how many Americans actually graduate from high school?

2)In the richest country in the world, how many Americans are able to afford college and actually attend college? Why is tuition so insanely high?

3)In the country with the best universities, how many freshmen year students choose to major in Engineering, Math or Computer Science?

4) In a country with the best graduate and research programs, how many of these STEM majors go on to do a Masters or a PhD in their chosen field?

5) In a country with the most advanced trailblazing technology companies how many of the kids who got a STEM education choose to do engineering/technical jobs instead of finance, legal, sales, marketing, accounting kind of professions after graduation?

6) How many of them are willing to relocate to the hubs of technology innovation such as Silicon Valley, New York, Seattle or Austin rather than stay close to home in places such as Columbus,OH, Des Moines, IA, or Kansas City, Mo?

7) How many kids in your high school were popular and admired for their ability to excel in Math and Science vs being branded 'geek' or 'nerd' in a derogatory way? What is the American image of a software engineer in the minds of people? Is it not of the bespectacled male nerd or geek obsessed with video games and comic books with no real social skills or women friends? Other countries such as India and China don't have that kind derogatory image for people skilled in STEM fields. Why would any kid want to be a nerd or geek and be repulsive to women then? The day these words disappear from popular conception, large number of Americans will do STEM and there won't be a need to fill those jobs with immigrants. In India and China, engineers and scientists are respected and valued. It is cool if you are smart and intellectual in Asia, not so in the states!

8) How popular/cool were kids who excelled at math and science among women compared to kids who excelled in sports?

9) Try to name 5 great scientists from before 1950 and 5 great scientists after 1950. Try to name 20 sports persons after 2000. If you cannot name 5 scientists after 1950 and you can name 20 sport-stars you have your answer. And if Neil Degrasse Tyson is one of the 5 you just named, it is even more tragically indicative of how the media is shaping the image of science in America and how poorly read and informed Americans are that unless something comes on TV they won't know it.

10) When was the last time you were intrigued by an article in the Scientific American or nature? Was it more recent than an article from the People magazine?

All of this should give you an idea of the kind of society America has become in the last 30 years and why there is such a huge shortfall of STEM educated American born people in America. Nobody is restricting Americans from learning science. This is by far the country with the best teachers, best universities, best companies, best educational resources, best paid tech jobs and best market to adopt/consume technology. Yet, what is stopping all Americans from learning science and getting STEM degrees? If a poor kid with limited resources from India and China can learn science in a foreign language, what prevents every American from gaining an advanced science education and competing with every advantage and resource?

America used to lead the world in producing STEM graduates and they used to be respected. But now this society has devolved into one where scientists and engineers are not respected or paid like they once were. The heroes of today's America are wealthy sportstars, movie-stars, lawyers, reality-TV stars and businessmen! Technology has advanced so much and become abstract, virtual and complex. American education has not kept up to give the average person the basic science fundamentals to be able to remotely fathom how anything works or gets built. To the average person the cloud is magic, iPhone is magic, internet is sorcery, electric cars are wizardry, stem cells are voodoo. Nobody knows or cares about how anything in hi-tech is made.


(Copied from https://www.quora.com/Are-H1B-visa-hold ... e=d710a0e4)


Nothing in your post contradicts the potential H1B changes. The currently salary minimums are abused by the big outsourcers (whose stock dropped today) to pay low wages to the staff members they send to the US to transition US jobs to India. The movement of the jobs is one thing, but why should the person coming over to take them away get paid 50 cents on the dollar to do it? There are legitimate H1B needs, but the outsourcing firms have truckloads of immigration lawyers to apply for the visas. Those visas should instead go to companies that are actually building a business in the US and who will be paid a fair wage to do so.
 
drdisque
Posts: 1827
Joined: Mon Mar 26, 2007 9:57 am

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 4:10 am

This is merely a proposed House Resolution. Anyone in the House can propose a resolution. Just because it exists as a proposal doesn't mean it's going to become law. This would hurt far too many companies to ever be passed with the current language.
 
bioyuki
Posts: 139
Joined: Thu Nov 05, 2009 8:00 pm

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 4:53 am

Flighty wrote:
H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages. It probably would decrease long term traffic to crack down on Wipro, Infosys etc. The skills shortage in the US is to a large extent a myth. This is a country that put men on the moon in 1969, and we need engineers from a country that frankly didn't have indoor plumbing yet in 1969?

I have the deepest respect for India and Indian people, but frankly there isn't a lot of logic to the consensus view. Of course, Americans are not willing to do the job for half American wages. The job of cardiologist is not a job Americans are willing to do for $40,000, because that is what a successful waitress makes here. Yes, we need a cultural and intellectual exchange, but not a wholesale labor market harmonization in our IT or other job markets.

In sum, I thought the proposed changes to H1B looked fine. I would allow some entry level H1B too, but not the full allotment, and likely only for a limited time (i.e., not entry level jobs that last 10 years). Because that would result in experienced workers getting the "low" wage H1Bs, which is not what the program is for.


Your post is full of all sorts of #alternativefacts. Care to back up any of the assertions you've made about the H-1B program including it "has a lot of fraud", "is labor market arbitrage" and that the "skills shortage in the US is to a large extent a myth"? Let me educate you a bit. The Bureau of Labor Statistics data shows that the United States graduates 88,161 computer science degree holders a year (across all degree levels). The BLS data also shows that there are 144,500 annual computer science job openings per year. That means we're already short 88k CS graduates a year, and this is only one specific job category that the H-1B visa is available for. When you look at all technical degrees and jobs, the picture only gets worse.

This is why the H-1B program needs to be expanded. Our leadership in the technology space is being eroded because our companies can't hire and grow. When I finished my undergrad and joined the Google/Facebook/Amazon/Microsoft's of the world, we literally had deportation parties for friends whose student visas extensions had expired and they weren't able to get a H-1B because of the yearly cap. We're talking about Ivy Legaue graduates, some of the best talent in the world, that the US is forcing to leave the country.

Not only are Americans not willing to work for half the wage as you say, Americans in general aren't willing to work hard in college to earn STEM degrees. As second generation American, I'm just as guilty...my parents wanted me to get a STEM degree but I was lazy and ended up with a humanities degree. This sentiment or mentality isn't changing any time soon so we must continue the H-1B program, as well as increasing it, otherwise we're going to continue to loose our competitiveness moving forward. Let me tell you, as someone who tries to hire every day, the US skills shortage is frighteningly real.
 
bioyuki
Posts: 139
Joined: Thu Nov 05, 2009 8:00 pm

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 4:57 am

SFOtoORD wrote:
This is positive. The only companies paying below $130k are low level outsourcing companies. Better to focus these visas on high skills jobs. Several outsourcing firms have been skirting these rules for a decade or more.


Absolutely false. There's plenty of companies, from the Googles of the world, to small startups, that sponsor H-1Bs for less experienced candidates, whose salaries are less than $130k (even in the expensive Bay Area). Wipro and Infosys are terrible, but this proposed legislation would hurt most companies.
 
bioyuki
Posts: 139
Joined: Thu Nov 05, 2009 8:00 pm

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 5:05 am

ScottB wrote:
No, that doesn't imply that the H1B holder is not as qualified, but it may very well be the case that he is being employed due both to his qualifications and his willingness to accept lower pay than a U.S. citizen or lawful permanent resident. The employer doesn't necessarily seek the best-qualified candidate for any position; they may choose a candidate with adequate qualifications who is willing to work for the least money. In a job market (for plant engineers or project managers as you cite) where there's a shortage of workers willing to work for the proffered compensation, wages would necessarily rise to correct the imbalance of supply and demand -- at least, to the new floor required by a modified H1B program.


Have you ever hired a foreign national? Sponsored a H-1B? Managed an employee's Green Card process? Let me tell you, it's the biggest pain in the ass, with all sorts of arcane rules and regulations designed to prevent exactly what you falsely describe. It's so hard to hire non-US citizens, that most companies go out of the way and try and hire US citizens, and only hire foreign nationals as a last resort. It's not about hiring people who are willing to accept lower pay at all. Normally foreign nationals have to be rockstars in order for companies to deal with the additional cost ($10k+ with no guarantee) and hassle of dealing with immigration issues.
 
SFOtoORD
Posts: 1449
Joined: Tue Jul 03, 2007 2:26 am

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 6:25 am

bioyuki wrote:
SFOtoORD wrote:
This is positive. The only companies paying below $130k are low level outsourcing companies. Better to focus these visas on high skills jobs. Several outsourcing firms have been skirting these rules for a decade or more.


Absolutely false. There's plenty of companies, from the Googles of the world, to small startups, that sponsor H-1Bs for less experienced candidates, whose salaries are less than $130k (even in the expensive Bay Area). Wipro and Infosys are terrible, but this proposed legislation would hurt most companies.


Show me your basis for "absolutely false." It may end being $100k and that would be good too. Raising it will help the tech companies because they won't have to compete with the bottom feeder companies for precious H1B slots. Those companies horde these visas today and thus end up hurting everyone else.
 
ikramerica
Posts: 15305
Joined: Mon May 23, 2005 9:33 am

Re: Impact of new H1B rules on ME3 traffic US-India?

Thu Feb 02, 2017 7:07 am

bioyuki wrote:
Flighty wrote:
H1B is a good program and it also has a lot of fraud in it, and a lot of simple labor market arbitrage (hiring $25/hr workers to do a $50/hr job). That isn't "innovation," it is simply poaching American wages. It probably would decrease long term traffic to crack down on Wipro, Infosys etc. The skills shortage in the US is to a large extent a myth. This is a country that put men on the moon in 1969, and we need engineers from a country that frankly didn't have indoor plumbing yet in 1969?

I have the deepest respect for India and Indian people, but frankly there isn't a lot of logic to the consensus view. Of course, Americans are not willing to do the job for half American wages. The job of cardiologist is not a job Americans are willing to do for $40,000, because that is what a successful waitress makes here. Yes, we need a cultural and intellectual exchange, but not a wholesale labor market harmonization in our IT or other job markets.

In sum, I thought the proposed changes to H1B looked fine. I would allow some entry level H1B too, but not the full allotment, and likely only for a limited time (i.e., not entry level jobs that last 10 years). Because that would result in experienced workers getting the "low" wage H1Bs, which is not what the program is for.


Your post is full of all sorts of #alternativefacts. Care to back up any of the assertions you've made about the H-1B program including it "has a lot of fraud", "is labor market arbitrage" and that the "skills shortage in the US is to a large extent a myth"? Let me educate you a bit. The Bureau of Labor Statistics data shows that the United States graduates 88,161 computer science degree holders a year (across all degree levels). The BLS data also shows that there are 144,500 annual computer science job openings per year. That means we're already short 88k CS graduates a year, and this is only one specific job category that the H-1B visa is available for. When you look at all technical degrees and jobs, the picture only gets worse.

This is why the H-1B program needs to be expanded. Our leadership in the technology space is being eroded because our companies can't hire and grow. When I finished my undergrad and joined the Google/Facebook/Amazon/Microsoft's of the world, we literally had deportation parties for friends whose student visas extensions had expired and they weren't able to get a H-1B because of the yearly cap. We're talking about Ivy Legaue graduates, some of the best talent in the world, that the US is forcing to leave the country.

Not only are Americans not willing to work for half the wage as you say, Americans in general aren't willing to work hard in college to earn STEM degrees. As second generation American, I'm just as guilty...my parents wanted me to get a STEM degree but I was lazy and ended up with a humanities degree. This sentiment or mentality isn't changing any time soon so we must continue the H-1B program, as well as increasing it, otherwise we're going to continue to loose our competitiveness moving forward. Let me tell you, as someone who tries to hire every day, the US skills shortage is frighteningly real.

All anti us propoganda and abuse of statistics. American students are working hard to get Stem degrees.

Job openings isn't the same thing as new positions, and certainly not all entry level.

H1Bs are used to squeeze out programmers over 40 because they cost too much and aren't willing to work free overtime for no pay because they have families. H1B are used to hire foreign students right out of a student visa, basically importing unskilled foreign students (who take spots at college from US citizens) then hiring them because they have "skills." It's a blatant abuse of the system.

My wife has been coding for decades. She's worked for a defense contractor, MySpace, an isp, a travel company, and an security company. She has seen all the tricks, all the abuses, all the outsourcing. She has seen citizen friends struggle to find employment despite being good programmers because of the ethnic pipeline (Indian managers hiring less competent Indian H1Bs, Chinese managers hiring less competent Chinese H1Bs, Russian managers hiring less qualified Russian H1Bs). She works with H1Bs who have literally nothing to offer. They don't always have "skills" other than being cheaper and matching the ethnicity of the manager who hired them.

Even her current company who she likes working for ousted their founder partly because he was staunchly against abusing the H1B system but the board of directors wanted to cut costs by hiring more H1Bs.

The system is being abused. So much so that when she switched jobs last year she had to take a pay cut to compete with H1Bs. The $130k number is a well thought out number. It's right about what she's making and if it goes through, she should be able to ask for a larger raise considering her experience and actual tangible skills rather than the paper skills the H1Bs offer.

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