The Positive Side of Immigration Green Cards, Not Guest Workers Ed Perkins, Chair IEEE-USA Career and Workforce Policy Committee e.perkins@ieee.org Vin O’Neill, IEEE-USA Senior Legislative Representative v.oneill@ieee.org 2007 Annual Meeting “Capitalizing on Global Opportunities” 31 August – 3 September Scottsdale, AZ Presentation Outline Importance of Highly Skilled Immigrants Foreign Participation in STEM Workforce Visa Programs for STEM Professionals IEEE-USA Position Pending Federal Legislation Conflicting Interests 2 The Positive Side of Immigration 3 Foreign Born Scientists and Engineers Alex Graham Bell Albert Einstein Enrico Fermi Edward Teller Nikola Tesla Werner Von Braun 4 Anousheh Ansari Sergey Brin Andy Grove Vinod Khosla Linus Torvalds Jerry Yang Recent Contributions by Immigrants 25% of new tech companies founded between 1995 and 2005 26%of international patent applications in 2006 50% of international patents filed in 2006 by multi-nationals, including: Qualcomm (72 percent) Merck & Co. (65 percent) General Electric (64 percent) Siemens (63 percent) Cisco (60 percent) 41% of patents filed by the U.S. government Source: Kaufmann Foundation 5 Foreign Born STEM* Professionals Participation in US Workforce STEM Professionals Numbers % Native % Foreign Math & Computer Scientists 3,010,546 82% 18% Engineers 1,704,862 84% 16% Physical Scientists 361,486 75% 25% Life Scientists 217,308 77% 23% Social Scientists 341,983 90% 10% All STEM Professionals 7,030,867 83% 17% All professional specialties 21,368,000 90% 10% All employed workers 136,891,000 88% 12% Source: US Census, 2000 * STEM = Science, Technology, Engineering, and Mathematics 6 Foreign Born STEM Professionals Major Countries of Origin STEM Professionals Math & Computer Scientists Engineers Physical Scientists Life Scientists Social Scientists All STEM Professionals India China FSS Phil Mex Other 24% 17% 5% 7% 4% 43% 12% 16% 7% 4% 3% 58% 12% 25% 3% 6% 1% 53% 11% 29% 5% 2% 2% 51% 7% 8% 3% 4% 3% 75% 17% Source: US Census, 2000 FSS = Former Soviet States 8 16% 5% 5% 4% 53% Immigration to the United States – Principal Paths to Entry Permanent (Immigrant) Admissions Temporary (Non-Immigrant) Admissions ~ 1 million per year Family-sponsored, employer-based, refugees, diversity ~ 30 million per year Business, employment, study, travel Illegal (Undocumented) Admissions ~ .5 – 1 million per year 40% Visa overstays, 60% Illegal entrants Source: Numbers USA Education and Research Foundation 9 Administration and Enforcement Responsibilities are Fragmented Department of Labor Department of Homeland Security US Customs and Immigration Service Immigration and Customs Enforcement Department of State Office of Foreign Labor Certification Wage & Hour Division US Embassies Bureau of Consular Affairs Department of Justice Executive Office for Immigration Review Special Counsel for Unfair Immigration-related Employment Practices 10 Permanent (Immigrant) Admissions By Visa Categories Immigrant Visa Categories Limits Admits Percent Immediate relatives of citizens 418,522 Family-based preferences 480,000 214,355 Employment-based preferences 140,000 155,330 Refugees and asylees 119,592 Diversity immigrants 55,000 50,084 Totals 44% 22% 16% 13% 5% 675,000+ 957,883 100% Source: US DHS, Office of Immigration Statistics, 2004 12 Employment-Based (EB) Admissions by Visa Preferences Admissions Preferences Limits Admits* Percent Priority workers (extraordinary) Advanced degree professionals Bachelors degree professionals Special immigrants Employment creating investors 40,000 40,000 40,000 10,000 10,000 31,291 32,534 85,969 5,407 129 20% 21% 55% 3% -- Totals 140,000 155,330 100% 72,550 82,780 47% 53% * Principals Dependents Source: US DHS, Office of Immigration Statistics (2004) 13 Employment-Based (EB) Admissions By Country of Origin Leading Countries of Origin Admissions Top Five India China Philippines Korea Mexico 39,743 18,539 7,435 7,398 3,269 3,102 55% 26% 10% 10% 5% 4% All others Totals 32,807 72,550 45% 100% Source: DHS, Office of Immigration Statistics (2004) 15 Percent Immigrant Admissions - Issues and Concerns (Pros and Cons) Pros: Provides a clear path to citizenship – unlimited mobility and opportunity Immigrants and citizens compete on a level economic playing field Green card holders (LPRs) have the same basic rights as citizens (except the right to vote) Cons Numbers are restricted – inflexible admissions ceilings and per country limits Administrative complexity, backlogs and delays uncertain results (EB backlog 1,181,505 in 2006) Increasing dependence on temporary (non-immigrant) admissions 16 Temporary (Non-Immigrant) Admissions Visa Categories Admits Percent Short Term Temporary Visitors (for Business and Travel) Students and Exchange Visitors Temporary Workers Treaty Traders and Investors Other temporary admissions 27,395,921 88% 935,196 831,715 182,934 1,435,564 3% 3% 1% 5% Total temporary admissions 30,781,330 100% Source: DHS, Office of Immigration Statistics (2004) 17 Temporary Work Visa Programs Admissions Work Visa Programs Admits Percent Specialty Occupations (H-1B)* Intra-company transfers (L-1) 386,821 314,484 47% 38% 27,127 66,219 37,064 3% 8% 4% 831,715 100% Extra-ordinary ability (O-1) NAFTA professionals (TN) Other temporary workers All temporary workers Source: DHS, Office of Immigration Statistics (2004) 18 H1-B Fact Sheet Term 3-years, renewable for 3 more years (for a total of 6 years) Visas issued to employers, not workers Visa Cap 65,000 per year (1992-1998) 115,000 per year (1999 -2000) 195,000 per year (2001-2003) 65,000 per year (since 2003)* Exempt H-1B workers employed by higher educational institutions, non- profit research organizations and government laboratories are not subject to the cap Note* - 20,000 H-1B visas per year are reserved for use by foreign professionals with graduate degrees from US schools 19 H-1B Temporary Work Visa Petition Approvals Petition categories Approvals New Employment Subject to cap (65,000) Exempt from cap Continuing Employment (Renewals) Total H-1B petitions approved 130,497 71,740 58,737 156,921 45% 25% 20% 55% 287,418 100% Source: DHS, Office of Immigration Statistics (2004) 20 Percent H-1B Worker Education Bachelors 48% B Masters 35% Associate 1% Other Prof 5% PhD 11% 21 Distribution of H-1B Skills Based on Employer OCS* Petitions, for Computer Related Fields 5% 5% 8% Level 1 (Entry Level) Level 2 Level 3 56% 31% Level 4 (Expert Level) Skill levels are OES skills, as defined on H-1B applications. Level 1 is entry level. John Miano, Low Salaries for Low Skills. (Washington, D.C.: Center for Immigration Studies, 2007) *OCS – Occupational Classification System, U.S. Department of Labor 22 H1B Top Countries of Origin (2004) 9% 4% 46% 4% 3% 34% 23 India China Canada Philippines Korea All Other New H-1B Workers by Occupation: 2004 24% Computer 44% Engineering Administration 10% Education All other 11% 11% 24 Numbers of New H-1B Visas 1992 - 2005 250,000 200,000 150,000 100,000 50,000 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 0 25 USCIS Office of Immigration Statistics Unemployment Trends for Electrical Engineers and Computer Scientists 6.0% 5.0% Percent 4.0% 3.0% 2.0% 1.0% Managers Computer Engineering Professional All Workers 0.0% 2000 2001 2002 2003 Year 26 2004 2005 2006 Median Compensation for New H-1B Workers, by Occupation (not adjusted for inflation) $60,000 Computers $55,000 Engineering $50,000 Education $45,000 Medical $40,000 Managerial $35,000 Life Science $30,000 2001 2002 2003 2004 Source: USCIS, Office of Immigration Statistics 27 2005 Distribution of H-1B Wage Claims For Computer-Related Professions 50% 45% 40% 35% 30% 27% 25% 25% 25% 20% 15% 14% 15% 15% 10% 9% 10% 10% 5% 10% 0% 0% 0 - 9% 10% - 24% 25% - 49% H-1B 50% - 74% 75% - 89% 90% - 99% U.S. Source: Miano, John. “Low Salaries for Low Skills.” Washington, DC, Center for Immigration Studies. April 2007 28 Major Employers of H-1B Workers: 2000 and 2006 Rank 1 2 3 4 5 6 7 8 9 10 Top 10 Users - 2000 Top 10 Users - 2006 Motorola Oracle Cisco Mastech Intel Microsoft Rapidigm Syntel Wipro Tata Infosys Wipro Cognizant Patni MPHASIS HCL America Deloitte & Touche Tata Accenture Satyam Source: DOL, Office of Foreign Labor Certification 29 Employer Sponsorship: H-1B Visas and Green Cards in 2006 Company H-1B GC Yield: GC / H-1B1 INFOSYS Technologies Ltd. 22,590 99 0.44% WIPRO Ltd 19,450 69 0.35% Cognizant Technology Solutions 11,330 40 0.35% Patni Computer Systems, Inc. 9,922 29 0.29% MPHASIS Co. 9,908 39 0.39% HCL America, Inc 9,128 14 0.15% Deloitte & Touche LLP 8,367 323 3.86% TATA Consultancy Services Ltd. 7,528 1 0.01% Accenture LLP 7,253 21 0.29% Satyam Computer Services Ltd. 7,235 55 0.76% Microsoft Corp. 4,471 1,181 26.41% IBM Corp. 3,649 83 2.27% 30 H-1B Visas - Key Issues and Concerns (Pros and Cons) Advantages (for employers) Access to a global pool of skilled professionals Serves as a transitional visa (path to citizenship) Facilitates onshore and offshore outsourcing Disadvantages (for US and foreign professionals) Nominal safeguards – recruitment, wages, displacement Limited oversight and enforcement Facilitates onshore and offshore outsourcing 31 Temporary Student Visa Programs (FY 2004-05) Educational Visas* Visas Issued Percent Academic Students (F-1) Exchange Visitors (J-1) Vocational Students (M-1) 255,993 303,822 5,975 45% 54% 1% Totals 565,790 100% Note*: 8% of all Temporary Visas issued Source: DOS, Bureau of Consular Affairs 32 Foreign Student Degree Levels Bachelors Degree 31% Associate Degree 12% Graduate Degree 46% Other 11% 33 Student Demographics Fields of Study Business Engineering Computer Sci Health Care Education Other 20% 18% 10% 5% 3% 54% 34 Regions of Origin Europe Asia South America North America Other 41% 40% 8% 5% 6% Student Visas - Key Issues and Concerns (Pros and Cons) Pros Substantial contributions to STEM education, teaching and research, especially at the graduate and post-doctoral levels Cons Admissions ceilings, per country limits and return home requirements often deter foreign students from adjusting to immigrant status 35 IEEE-USA Policy Recommendations Ensuring a Strong High Tech Workforce Through Educational and Employment-Based Immigration Reforms Increase the availability of employment-based (EB) visas and streamline the immigrant admissions (Green Card) process Allow foreign students with advanced degrees in STEM fields from US schools to adjust directly from student visas to Green Cards Reform the H-1B temporary work visa program – Require all employers to try to recruit US workers; to use the program to supplement, not replace, American workers; and pay H-1B workers, market-based wages. Expedite visa processing for short term visitors Adopted by IEEE-USA Board of Directors on 15 June 2007. 36 Major Legislative Proposals and Outlook: 110th Congress (2007-2008) Comprehensive Immigration Reform Bills High Skills Admissions Expansion Bills Include border security, interior enforcement, workplace verification, new temporary work visa programs, legal admissions reforms and earned legalization provisions HR 1645 (STRIVE Act) – Gutierrez/Flake S 1348 (Bipartisan Compromise) – Kennedy/Cornyn Include EB, H-1B and F visa provisions S 1083 (SKIL Act) - Cornyn HR 1930(SKIL Act) - Shadegg Temporary H-1B and L-1 Visa Reform Bills S 1035 - Durbin/Grassley HR 2538 (Defend the American Dream Act) - Pascrell 37 Conflicting Interests and Perspectives Employers Workers Others Business and Industry Professional Societies Advocacy Groups Educators Immigrants Individuals Immigration Lawyers Organized Labor Think Tanks 38 Sources of Information Congressional Budget Office Compete America www.competeamerica.org www.cbo.gov Congressional Research Service Immigration Voice www.immigrationvoice.org www.loc.gov/crsinfo Government Accountability Office Economic Policy Institute www.epinet.org www.gao.gov 39 The Positive Side of Immigration Green Cards, Not Guest Workers 40