By Neil Ruiz and Shyamali Choudhury, Special to CNN
Neil G. Ruiz is a senior policy analyst and Shyamali Choudhury is a researcher at the Brookings Institution Metropolitan Policy Program. The views expressed are solely those of the authors.
The search for skills has been a daunting task for U.S. companies trying to find the right person to fill well paying and highly skilled jobs. A high-skilled workforce is an essential input to economic growth in the fast-growing knowledge economy, and specialized skills – often requiring education or experience in science, technology, engineering, and mathematics – are critical to supporting innovation in fields as diverse as computers, medicine, and communication.
Instead of relying on classified sections of newspapers or local networks to find the perfect match, companies have to search far and wide for skills in high demand. Yet despite high unemployment rates, many employers report they’re struggling in the job matching process, frequently complaining that there’s a mismatch between the available domestic workforce and the skills they are demanding.
As a result, companies are having to turn to an international pool of high-skilled workers to find the specialized skills they need because the geographical distribution of skills is so uneven throughout the world. More than half (56 percent) of the world’s engineering bachelor’s degrees are earned in Asia, with another 17 percent in Europe, and just 4 percent in the United States according to the National Science Foundation. Even smaller Asian nations outpace the United States with the combined natural sciences and engineering degrees earned in South Korea, Taiwan, and Japan exceeding the United States, despite their collective size being much smaller.
The demand for these highly technical skills is high in the United States, and companies must be willing to consider a range of options for recruiting these skills from abroad. Immigration policy can be critical to the flow of skills entering the United States.
The H-1B visa is the largest dedicated temporary worker visa program for high-skilled workers, and currently allows some 85,000 foreign workers to enter the country annually to support the private sector. Our new research found that the demand for H-1B workers spans industries, metropolitan areas, and a wide range of occupations, and over two-thirds of all requests for H-1Bs are for STEM jobs – the positions that are hardest to fill by employers.
Many globally oriented companies find they need to import skills. Indeed, of the 100 employers with the highest demand for H-1B workers, one-third are internationally headquartered firms. This global approach to filling skills needs has become part of many companies’ recruiting strategy. Access to the global pool of skills should therefore be viewed as a boon to local areas since it gives them the fuel to compete in ways that would be impossible otherwise.
The reality is that these visas are also a critical avenue for hiring foreign students trained at American universities. Without H-1B visas, many of these students must leave the country – taking their diploma, skills, and bright futures with them. In one growing trend, for example, many Indian students educated in the United States are returning to India to start companies rather than face the uncertainty of receiving a visa to stay in the United States or having to wait in the long line for a green card.
To respond to the skills needs of global companies, policies must be flexible and responsive – a tall order for U.S. immigration policy. Yet, the pressure is imminent: countries such as Canada and Australia have already capitalized on America’s inability to respond to these needs by liberalizing their immigration policies towards highly skilled workers.
Global businesses support local economies with offices located around the world. The United States’ competitiveness will falter if employers cannot access the highly skilled workers that they need.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
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Companies are no longer intelligent to basic concepts like Contingency Theory.
Most of these companies like to think that they are splitting atoms and making gauge bozos.
I wish Romney could convince these companies to "Believe in America."
Many of the ridiculously demanding job requisitions are based on inputs from the group, instead of a competent manager. Many times, this group will not want to see the job filled, until they first get their overtime and increased job security.
This protectionism in the workplace is main the force that creates the need for outsourcing, not a better skilled workforce abroad. It is more of a clean slate that resets the politics of the workplace.
Allow Russia to enter Syria. Russia considers Syria critical territory -allow Russia to move into Syria with the mission to
break up the killing. Obviously, the U.S. and other countries will not cross Russia on entering Syria-at this breaking point
Russia can show leadership.
Wrong discussion, oh Confused One!
Part of the problem is that many of the skilled jobs no longer train on site or even in house. You are expected to come in with experience/education. It is time to admit that this has not been happening and work to increase training for those companies that are not doing it themselves.
I agree that there needs to be more training from companies themselves. I just read the report of the authors linked in this posting and they show how there is fund raised from the H-1B visa fees that are supposed to go to technical skills training and STEM education of existing workforce. They show that it has not been distributed to the right places needing the skills. That fund should be used for improving American workforce skills so we do not have to rely solely on the H-1B visas.
But they seem to have no problem having American workers train their foreign replacements, do they?
But there are also foreigners coming into the US to train American workers. There was that great article in the Wall Street Journal showing how Volkswagen needed Germans to come into Tennessee to train Americans so that they can work for the German company. So it's happening! Foreigners are coming to train Americans and not Americans training their replacements. http://online.wsj.com/article/SB10001424052702303665904577452521454725242.html
Americans training foreign replacements on their current jobs is NOT the same as training Americans to upgrade or add new skills.
US College Shuts Asian Schools Over Cheating
http://www.aolnews.com/world/article/cheating-scandal-prompts-us-college-to-shut-asian-schools/19568525
(July 26) - A New Jersey college is shutting down its business schools in China and Taiwan after finding what it called "widespread" cheating among students,
The Star-Ledger of Newark reported. Centenary College in Hackettstown is withholding master's degrees from some 400 students at its campuses in Beijing,
Shanghai and Taiwan, Debra Albanese, the school's vice president for strategic advancement, told the newspaper. They can opt to take a comprehensive exam to earn their
degree or get a tuition refund.
Most of the time US workers are used to train their H-1b replacement. The vast majority of H-1b workers work for outsourcing companies. The H-1b is merely a tool to ship jobs overseas.
I would like to believe that you believe what you are saying.
Nonetheless, for your statement to be believable, you will need to present a valid and reliable source for this intel.
Thanks for the info. I just did a Google search on top H-1b users and they are Indian outsourcing companies. CNN really needs to provide these facts, it is dishonest to keep out important information like this.
Does America need to back away from globalism and pursue a policy of self-sufficiency?
Centralization vs. Decentralization, what is best in the long run?
Most of the businesses are now way beyond thinking about hiring local workforce. All they need is a great worker on reasonable salary and thats where US gets beaten by Pakistani, Indian and Chinese workforce in US.
Ameer Mirza
http://www.ameermirza.wordpress.com
"Most of the businesses are now way beyond thinking about hiring local workforce. All they need is a great worker on reasonable salary and thats where US gets beaten by Pakistani, Indian and Chinese workforce in US."
If you are all so great then why is the US economy collapsing? 14 years ago when Americans ran the economy it was booming. I'd say it's you people who need to go.
Maybe you should go to Mississippi, Alabama, Tennessee and other god fearing, poor states before you make your claim. It is also collapsing because stupid Americans borrowed money they could never afford and it all came home to roost! Maybe you should educate yourself and see what happened to the tech stocks between 2008-2012 and then come back to rant. You are not doing Americans any favor. You sound like an ignorant idiot!
@Wakjob. Yah blame the bad economy on the 6% of the US population which is making twice the US average. If anything the 6% is helping a lot to revive the faltering US economy.
Is Zakaria a paid agent of NASSCOM?
opops, its me who is being paid.
Sorry folks, move along, nothing to see here, (drum roll)............
No. We are just ahead of the curve for useless, overpaid, executives that want to offshore jobs. That's all.
Is Amerika falling behind in the skilled worker race? Sure we are.
But those public sector unions sure do get some FAT pensions.
At taxpayer expense.
Wait wait wait. We've BEEN importing these people for 14 years. Why aren't they keeping the US economy going as promised? In 1998 when the US economy was booming foreign workers were supposed to be our saviors. Why didn't they perform as promised and why do we continue to employ non-performers?
Wakjob what an apt name! These high skilled workers are doing a great job! The sectors they work for is also very robust! The problem with the American economy and the cause of the recession was the "native born Americans" spending like there is no tomorrow based on a housing boom and cheap credit! They are the biggest sufferers of this recession! You should thank the immigrants who come to this country because if they stop the jobs will go to them! Who do you think pays for your grandmother, fat cat public sector employees and every one in between!
@Wakjob Whaky indeed. Who promised you what? Why would America need saviours if it is already booming? Makes no sense whatsover.
Yes it is. And America will continue to fall behind if it continues to cut educational funding. How are Americans expected to be qualified for many of these technical jobs if they can't do basic math? The country needs to allow high-skilled immigrants to enter the country otherwise all the high-skilled will move abroad and flip to being more like a developing country.
The myth of the stupid American is a NASSCOM-created myth.
MUMBAI: Across the world, India is seen as an education powerhouse — based largely on the reputation of a few islands of academic excellence such as the IITs. But scratch the glossy surface of our education system and the picture turns seriously bleak.
Fifteen-year-old Indians who were put, for the first time, on a global stage stood second to last, only beating Kyrgyzstan when tested on their reading, math and science abilities.
Wakjob true India has 600 million poor people! They also have a very strong 300 million highly educated middle class! What is the population of the US again?!
I will have you know that I am not an American, I am a muslim from Pakistan.
I hate Indians, Americans, British, Jews, Chinese, Russian...I could go on and on.
The vast majority of H-1b visas are used by off-shoring outsourcing companies. Most H-1bs are not highly skilled, are cheap and are trained to take US jobs offshore. Those are the facts. This CNN story is completely false and paid for by the outsourcing industry.
I make grandiose statements without backing anything up.
I present no valid source for anything I say.
I am the most interesting man in the world.
Stay thirsty my friend.
Se, see, how cooooooooool I am.
I have a comeback for anything on the moron scale.
Actually, I just did a search on biggest users of the H-1b, and they are indeed Indian off-shoring companies. Learn how to use the internet, nub.
InternetGenius
Could you share your research please?
This is true. While I was working there, Intel brought in many low-level engineers from Malaysia, China, India, etc. and trained them in the USA while paying them next to nothing, using H1-B visas. Once they were fully trained in American factories, the U.S. jobs were moved overseas and the Americans who trained them were laid off. It's all about cutting costs and a ruthless corporate mentality.
Okay, I give up, what is a "low-level engineer".
A low level engineer is some with a low skill level, likely new to the profession. Even you should have known that.
I have heard of high and low level engineering but never of high and low level engineers.
Maybe it's something that changes when you translate what you want to say to English?
Thank you for being someone with intelligence and really blowing the cover off of what is really going on. I worked and lived in other places in the world. We have the best trained workers along with the Germans. They don't want to pay the European and American worker,because we cannot work for less money, based on our economies. In other countries they will work for 30k when the American and German engineers work for 65k. Just look at the products made in Asia and India. These products are viewed as lower quality as compared to the American and German products. Maximizing profits is the name of the game. Blowing smoke is too.
Ok let me explain this.
Outsourcing means sending jobs oversees. H1-B Visas are required to work in the US. If a company hires someone on H1-B visa it is the opposite of outsourcing. The worker will work in the US. Contrary to popular belief it is not possible to hire a H1-B holder by paying less than the prevailing wage. There is a whole mechanism to ensure that at the federal level which involves Department Of Labor and E-verify and USCIS.
Germanny tries to find their workers and young and ambitious workforce abroad, not far away, but in the neigbour european countries. Before politicians can hire them, they claim that there is a shortage of skilled workers. Before politicians claim that there is a shortage, lobby industrial peer groups met with international european reacherchers, hite tec company representatives and managers from certain industries. Then they talked a little bit. There were certain agreements and common interests: we want the best, flexible, cheap and easy conditions to get ridd off those, which doesn' compete. Personal characteristics: young, ambitious, creative, cool and smart: married with the obsession: work and carrier, speed, success, genious, money and from privileged family background. Desire is endless, success promised! Embracing Positivism and blinded through comercialised media! !Hopefully governmental politics face a few more obstacles to feed their lobby group. The industry should be forced to invest in universities and social areas to compensate the loss, if a big company sets so many people free. There is the global market, but too less benefit for the national and regional investments for schools, streets and cities, it the global players don't pay a penny after they made their profits.
Governments have no money for schools, roads, and cities because their tax bases (local workers) have all been put out of work by remittance-hungry 3rd world workers who work but don't pay taxes, earn but send their $ home instead of spending it into the local economy, which would make the economy stronger.
Completely false. Immigrants, like all Americans, have to pay taxes on their income. They just have priorities to help their families abroad and I don't think you should blame them for contributing to America and also their families who are living abroad. The main problem is that the U.S. government priorities are out of wack. They have not been investing in Americans enough and need to focus better rather than rhetoric to simply win an election!
@Wakjob Are you kidding me.. Temporary workers working in the US (Folks who have not applied for green card/immigration) effectively pay greater percentage of their income towards taxes as there are not many deductions on the tax code availalbe for them.
"In one growing trend, for example, many Indian students educated in the United States are returning to India to start companies rather than face the uncertainty of receiving a visa to stay in the United States or having to wait in the long line for a green card."
This issue is real, do an online search with the string 'silicon valley reverse brain drain' to see that the Silicon Valley Business Council has been raising alarms over, for the last three years or more. It's not limited to India, and even US citizens are starting to look abroad, more and more ...
I was born in the US, worked since I was 16. I am a skilled Carpenter and all around Mechanic. If I went for a job today they would offer me $15-20 per hour (no benefits), I was making $17 per hour (with benefits) out of High school 27 years ago. Somthing is wrong with that equation! I have been replaced by foreigners trained by business owners that refused to pay decent wages. Now the foreign workforce has just about eliminated the chances for our childrens ability to get a decent paying job. Our leaders dont see this, they dont need their kids to work in a menial job. Pride in the American workforce is all but gone, manufacturing jobs have been outsourced by thinktanks and pencil pushers that dont have any idea of the impact on blue collar workers. TC
So you say you are a carpenter/mechanic.
Would you please explain how to use a square?
If my 6 cylinder engine goes "bing" what does it mean?
looks like "Abe" is another H-1b looking to be trained on how to do his job by a US worker.
Facts – that was behaving like a troll. If you disagree with something abe said, please let him know what it is?
@tommy chic I feel sorry for you. But I just want to make a point that H1-Bs are generally for high skilled STEM jobs, H1-Bs are generally not a threat to blue collar jobs sir. Your situation may be the result of immigration from your southern neighbors who enter the US mostly on other visas or illegally. Normally H1-B job wages start around $60/hr for consultants and $45/hr for full time employees.
This is just another business propaganda article that proposes more cheap labor to replace well-educated US citizens and keep lowering wages for those allowed to remain. You cannot discuss the H1-B racket without discussing all the exemptions which double the visa numbers. You cannot discuss H1-Bs without discussing the masssive, massive unlimited numbers of work visas under different categories like L1. Add up all the work visas over the past 10 years, it will equal the number of currently unemployed US-born citizens. When smart Americans are denied STEM jobs, they move down the ladder, eventually taking YOUR job. Both parties, and almost ALL senators and congressional reps take bribes from the oligarchs to keep this massive job fraud going. Big Media won't publicize the issue much, because they are all owned by big corporations that want cheap labor. End ALL immigration and our jobs problem will go away.
Fareed, I listen to you every Sunday, but you NEVER highlight environment, population, climate change, ocean acidification, and such issues which are THE ISSUES OF OUR TIME. Economics is a narrow discipline which will be little in the face of human impact on the earth. You want more immigration, but our country CANNOT support another 1-2-3-4 hundred million people living at our standard of waste.
Wow, did I really say something so stupid, "Economics is a narrow discipline which will be little in the face of human impact on the earth." I am an idiot if I dont know that money is everything.
This article is BS. Indians can't program for sh_t. Their code is full of bugs.
Are you are the janitor at Oracle corp I just yelled at for not cleaning my cubicle for 3 straight days?
sorry that was very rude. I apologize. Not sure if there is a way to delete my comment above.
I just get angry when people generalize a whole race/etchinicty/nation when they meet one person who is an idiot. Idiots do not have a nation/race/ethcnicty they are every where.
Every other country looks after their own to keep jobs at home except corporate controlled America. The bottom line is American companies don't want to invest in existing educated American technical workers because workers in India or China or Eastern Europe cost a lot less, they don't receive expensive benefits, and the politicans have been told by their corporate masters to have the tax code favor outsourcing. The aurgument that they can't find qualified workers is BS. What they really mean is they can't find qualified workers willing to work for globalized wages and without benefits. In the meantime the American middle class suffers while the economic fortunes of the emerging middle class of what used to be called third world countires increases. Until you have meaningfull campaign reform in America, Americans and the American economy will suffer.
now if you want programmers that can get into anyone's computer system, talk to the muslims.
We slither into anything for money or glory to allah.
Its a serious issue. I am a Biomedical Graduate from American University and since I can't find a job, I am thinking of going back and starting something on my own.
You are a "Biomedical Engineer" and you are unable to find a job?
You understand, dont you, that you have to leave your mommy's basement, right?
I left my mommy's basement 6 years ago when I was 16 and came to this country. I paid for my tuition myself working 60 hours a week taking 18 credit hours. I don't have 1 cent education loan that you may have had as you were in your mommy's basement.
If you are such a hard worker and yet you are out of work then maybe you did not get good marks.
Ok, start a business in your home country. Make your country better. Bye.
The problem is two-fold. American companies are allergic to training, because people change jobs so quickly(because it's often the only way to get a raise/promotion) and they can pay H1B visa holders much less. Typically they'll advertise or tell a recruiter that their salary range is lower than typical for that skill, then complain they can't hire anyone.
Seems like all we hear about is college students with huge loans they cannot pay because there are no jobs. What are these students being told by guidance counselors and teachers when in high school? Go to college for 6 or 7 years, have a good time and get a degree in basket weaving??? What type of advice are the parents giving their children? Many years ago I earned a degree in engineering and yes it was a lot or work. I spent many weekends studying while others went to parties. The biggest problem we have in this country is too many lazy citizens. My advice to the younger generation, if you don't want to study engineering you should at least learn how to speak Chinese. Some day they may want to hire you for domestic help!
Wow John! – Harsh but unfortunately TRUE.
One of the great losses from the rabid anti-unionism in this country is the apprenticeships. It is almost laughable how many companies wish to hire other companies journeymen.
You young people...... men and women listen to me..... A USDL Industrial electrician journeyman's certificate is worth 125k a year. Plus GREAT respect and trust from your employer.
You are so correct Saeed.
You tell these american pigs they are no good at noting.
Maybe a 3.5 gpa is not good enough for you all.
Actually, the H-1b is mostly used by the outsourcing industry. The H-1b is a critical tool to ship jobs overseas. H-1b destroys US jobs, it does not create any.
Any article on H-1b that fails to mention that these visas are mostly used by outsourcing company is a trash article. Do some research CNN. You are embarrassing yourselves (again)
No mention in the article that H-1b is used basically to outsource jobs? What gives CNN? You guys are losing a lot of credibility when you do "news" like this.
Is America being left behind in the skilled worker race? .......................Hell yes. Where's the incentive when there's no leadership; no money and a failed education system?
I work with a bunch of L1 and H-1bs. Here is there report card:
Nice people? Yes
Work cheaper? Yes
Work harder? No
Genius intelligence level? No
Best and brightest? Nope
Innovators? Haha, not even close.
Sorry CNN.
you might want to take a look at this!!......http://www.renewoureconomy.org/index.php?q=patent-pending
I think one problem is that a LOT of the jobs demand College degrees. When all you really would need is maybe a year of TRAINING to be able to do that job. I get it that SOME careers need to have College degrees.. but seriously.. So many people are trying to play it safe and avoid College, because they do NOT want the debt.
The budget crisis has been a nightmare for our students..My two kids cannot get classes because they have cancelled the classes..No summer school..and my daughter who had been accepted had to wait to transfer..Nursing programs have a 2 year waiting period to get in..Kids have to go overseas for med and vet schools?? Why? Companies can hire these visa people at low salaries..and our kids cannot get out of college quickly..and some cannot even go for lack of funds..Do not say we have a lack of skilled workers because people do not want to get the education..we have been cutting education ..and then hire cheap labor from abroad..Testing is another instrument to keep the masses stupid...memorizing instead of thinking....BTW Cheating is rampant..in foreign countries..so their skills may be questionable..
I wish you would get your facts right about "cheap labor". Asians have the highest incomes and education levels of all the races in the US according to US govt. statistics!!
Any wonder? Farm out American jobs to cheap foreign labor markets and eventually you run the pool of American skilled workers dry, because they had no jobs available here, and consequently no reason to pursue acquiring the skill.
HB-1 and J-1 Visas are a shame that allows companies to deflate American wages and higher Americans in general. It is time for the "US" to take care of us...
We are not falling behind in terms of the number of skilled graduates. We are falling behind in the number of skilled graduates willing to work for low wages.
The good thing is that the nations that are taking our jobs are inherently unstable. It only takes one Indian from the untouchable class to start a war between the rich and the poor. Or one idiot in Pakistan to start a war between them and India. China is only one strike away from rapid inflation. Eventually everything will come into balance.
like they say in some states–where has education ever done for anybody
One of the Indian Mechanical Designers that rotate in for training at our facility it slip a year and a half ago that he makes $1.49 and hour.
That was not counting the all expence paid hotel, company chauffeur to and from work and meals during the 3 to 6 month stay.
It's NOT that the 8 million jobs lost in Ameriaca since NAFTA where filled by overpaid and under skilled idiots here.
Corporate America will trade our competance for $1.49 an hour in a heart beat and let the few Americans they retain check their work and guide their training. Our American staff is half what it used to be and the Indian office has doubled in size.
Is America falling behind in the skilled worker race? Simple answer: No.
Is America pursing a short-sighted policy of short-term corporate profits in an race to the bottom for ever lower wage workers and work environments to the point where nobody they hire can afford to buy the products they make? Absolutely Yes.
Go to YouTube and check out the Programmers Guild video to see how firms are instructed to legally, but explicitly exclude qualified, educated and experienced American workers for positions that the firms wish to hire H-1B workers to fill. Also, check out the Programmers Guild Org website for examples of the phony employment ads these firms are required to post in local newspapers.
and you think doing away with the 65000 odd H1B's will make America's woes disappear? here's some food for thought.....http://www.renewoureconomy.org/index.php?q=patent-pending
These writers and think tanks are funded by the wealthiest individuals, foundations, corporations and their executives,
to produce propaganda to affect public opinion and more importantly to generate a mind-set that is used by corporate lobbyists to influence and actually write legislation to effect their only goal of further self-enrichment.
Ask youself whether you personally contributed to the individual, foundation or other organization that produced the study, report or article. If not, then you can be assured that they are not representing your interests, and are likely working directly in opposition to your interests.
The H1-B program is a joke. This program is a backdoor for Indians to get into the US. 40% of these visas are given to Indians. Shouldn't this program be designed to incorporate diversity into the workplace, assuming diversity makes our country better??? (http://en.wikipedia.org/wiki/File:H1b_demographics.jpg). Indians receive more than 3 times as many H1-B visas as the number 2 country. I work in the I.T. field, and many of the Indians that work in this profession tend to hire only other Indians, even though this is not their country. Not only that, but this also keeps wages down for the I.T. workers in general, since H1-B workers tend to get paid less. If this program is supported, it should be done in a FAIR way that encourages diversity and FAIR wages, NOT artificially lower wages given to just one group of foreigners. If companies paid MUCH HIGHER wages for I.T. workers and promoted this throughout the university/college system, they would attract more domestic talent. Importing sub par talent is not the solution.
According to US law H1B's cannot be paid lower than the prevailing wage for the job... so I have no idea what you are talking about.
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