H-1B Visas Are Scarce As Computer Job Vacancies Reach 1.2 Million

Job openings in computer occupations have become more numerous in the United States. At the same time, it has become more challenging to hire a high-skilled foreign national in H-1B status. Even though there are more than 20 times as many job openings in computer occupations as company approvals for new H-1B petitions in a year in such occupations, critics contend foreign nationals prevent U.S. professionals from obtaining jobs.

“There are more than 1.2 million unique active job vacancy postings in computer occupations in the United States as of September 6, 2021, up 15% from 6 months earlier,” based on data from Emsi Job Posting Analytics, according to an analysis by the National Foundation for American Policy (NFAP).

“Computer jobs were already fast-growing before the pandemic, but it is still remarkable to see now a 15% increase in job postings from 6 months ago, after an 11% increase from the previous 12-month period,” said labor economist Mark Regets. “This is consistent with the low unemployment rates we see in computer occupations. Firms have needed a lot of IT (information technology) talent to reorganize their businesses during the pandemic, and many of the changes will be long-term.”

For the time frame August 7, 2021, to September 6, 2021, there were 435,639 active job vacancy postings for software developers and software quality assurance analysts and testers, 112,990 for network and computer system administrators, 110,134 for computer systems analysts, 76,126 for information security analysts and 47,181 for electrical engineers. It is worth noting these occupations track the eligibility criteria for H-1B visas, according to Department of Homeland Security and Bureau of Labor Statistics data.

“To put the more than 1.2 million active job vacancy postings in computer occupations in perspective, companies can file for only 85,000 new H-1B petitions in a year—and about two-thirds of company-sponsored new H-1B petitions, or 56,000 a year, are in computer occupations,” according to the NFAP analysis. “That would mean there are more than 20 times more job vacancy postings in computer occupations as new H-1B petitions typically used by companies in computer occupations each year, even if one adopted a zero-sum approach to jobs. There are likely more openings than posted positions. Moreover, there is not a fixed number of jobs, and people with high skills often create more jobs for people with complementary skills. The H-1B annual limit has been exhausted every year since 2004.”

As noted in earlier columns, H-1B visas have become essential because they generally represent the only practical way for high-skilled foreign nationals, including international students, to work long-term in the United States and have the chance to become employment-based immigrants and U.S. citizens. H-1B visas have been used to allow the founders of billion-dollar companies and the people responsible for the vaccines and medical care saving American lives during the pandemic.

As of August 2021, the U.S. unemployment rate in computer and mathematical occupations was 1.5%, according to the Bureau of Labor Statistics (BLS). That represents a significant decline from 3.0% in January 2020, prior to the beginning of the pandemic. This is another indicator of the high demand for high-skilled technical labor.

One can also see the demand in computer occupations when examining leading technology companies. “Amazon had at least 20,000 job vacancy postings in computer occupations as of September 6, 2021, Accenture had more than 19,000 and Apple had at least 5,700,” according to the NFAP analysis. “Companies have an ongoing need for more highly skilled professionals to grow, and an insufficient number of available workers slows growth in the U.S. economy.”

The low annual limit on H-1B petitions represents a significant restriction on companies attempting to employ foreign-born talent in the United States. In March 2021, employers filed 308,613 H-1B registrations for FY 2022. However, due to immigration law, USCIS could select only 85,000 H-1B petitions. That means over 72% of H-1B registrations for high-skilled foreign nationals were rejected.

“H-1B visa holders do not adversely affect U.S. workers,” according to a study by economist Madeline Zavodny, a professor of economics at the University of North Florida (UNF) in Jacksonville. “On the contrary, the evidence points to the presence of H-1B visa holders being associated with lower unemployment rates and faster earnings growth among college graduates, including recent college graduates.”

There are more than 1.2 million job vacancy openings in computer occupations in the United States. Economists note that an inability to hire needed employees inhibits growth and investment in the United States. In short, it makes America’s economy less dynamic and encourages companies to move work to other countries.