Visas and green cards are cheaper than paying Americans better wages, so is there “really” a labor shortage?
With a B.S. in computer science, an M.A. in information systems management, and 20 years of experience, Rennie Sawade would appear to be a strong candidate for a job as a software development engineer. But all the 44-year-old can find these days are short-term, temporary jobs—like the 15-month contract he’s currently on at a Seattle-based medical device company. At Microsoft, the most prominent employer in town, he’s had contract jobs and even interviews for permanent positions. But after several failed attempts, he’s given up on trying to land a staff position at the software giant. “I feel like my time is being wasted,” he says.
Just across town at Microsoft headquarters, in suburban Redmond, Wash., Kevin Schofield is grappling with what he calls a severe shortage of qualified workers. Schofield’s job is to help develop recruiting strategies to stay ahead of rivals like Google (GOOG), IBM (IBM), Yahoo! (YHOO), and SAP (SAP). The 40-year-old says Microsoft is desperate to fill 3,000 core technology jobs in the U.S., and there are so few Americans with the specialized skills required that the company needs to bring in more workers from overseas on temporary visas and permanent green cards. “There just aren’t enough people,” says Schofield.
Reform Likely
Sawade and Schofield’s contradictory viewpoints highlight a deepening fault line in the technology industry. While American tech companies say they can’t find enough qualified people, many tech workers say there aren’t enough good jobs. Employers point out that the unemployment rate in the sector is extremely low, a mere 1.8% in the second quarter of this year. Workers counter that salaries in the sector are still below their level in 2000, adjusted for inflation, a sign that companies haven’t had to bid up wages to get staff.
The frustration is growing on both sides. Bill Gates, Microsoft’s founder and chairman, testified in Washington earlier this year (BusinessWeek.com, 3/7/07) that he feels “deep anxiety” over the competitiveness of the U.S. and says that the country needs to do more “to attract and retain the brightest, most talented people from around the world.” Meanwhile, John Miano, founder of the Programmers Guild, which represents tech workers, calls the idea of a labor shortage in technology the “big lie” that U.S. employers are trying to use to hold down labor costs.
Is there any way to satisfy both sides? It may seem like an impossible task, but that’s precisely the challenge ahead for Congress and public policy experts. The Senate and House of Representatives are considering whether to try to overhaul the immigration policies for high-skilled workers. The question is whether there’s a way to help U.S. tech companies recruit the talent they need to stay competitive, while also easing American workers’ anxiety. Representative Zoe Lofgren (D-Calif.), chair of the House subcommittee on immigration whose district includes Silicon Valley, says “there is a greater willingness to move forward on immigration reform” (BusinessWeek.com, 9/11/07).
Read: The Great Tech Worker Divide
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Comments
[...] Stroud brings some light to a topic that most of us simply ignore, in part because it isn’t exciting. The reality is that his [...]
[...] wrote an interesting post today on Visas and green cards are cheaper than paying Americans better …Here’s a quick [...]
I have hired programmers in Russia, India, and even in the U.S. of course quality is one of the primary parts of programming work, and the cost. In the U.S. for a big project it will be too expensive, but a small program or job will be a free lance job, that the worker will have to agree with your price, but most likely you will get your good price even with a American doing the job. For complicated mid-sized applications that can be done by one person with a BA/BS, I have found Russian programmers. For a big project I’m working on, I am using a Indians company because they can afford to hire lots of people to do a big project that is organized and well documented.
I recently went through the green card process, so I tried to stay informed in regards to the Comprehensive Immigration Reform and other initiatives. The consensus among immigration lawyers and organizations trying to lobby Congress for reform was that nothing is going to get done until after the elections, since immigration (illegal and otherwise) is such a hot topic at the moment.
As you notice, the article is older, just after the July visa bulletin fiasco was cooling off and there seemed to be some momentum for change.
I’m curious if there will be a lottery again next year for the H1B visas. Pretty sad!