H-1B visa program under fire: Manipulation and inequality of opportunity

The US government's annual H-1B visa lottery program, which aims to provide American companies with highly skilled international labor, is once again in the spotlight. New data from Bloomberg News reveals that thousands of companies have gained unfair advantages by submitting additional entries for the selection process. While the H-1B visa program was originally intended by Congress to grant American businesses access to the world's best talent, it is increasingly being used by outsourcing and staffing firms to bring candidates with less impressive resumes and lower wages into the US. This often results in the displacement of American workers and salary reductions, ultimately harming the US economy. A 2023 study by the Wharton School of the University of Pennsylvania indicates that for each H-1B visa not issued to large multinational US companies, about nine jobs are moved abroad. Furthermore, an economist from the Federal Reserve Bank of Richmond estimates that a reduction of skilled workers by just 10% would shrink the US economy by around $86 billion. New rules by the US Citizenship and Immigration Services (USCIS) aim to prevent multiple submissions and strengthen the integrity of the lottery system. However, there have been few consequences for companies associated with these practices so far. It is claimed that these manipulations undermine the program's intended function and disadvantage highly skilled immigrants. A notable case is that of Sandeep Maganti, a 26-year-old software engineer from India, who, despite his expertise and entrepreneurial ambitions, has not received an H-1B visa for years, forcing him to consider pursuing his dreams in his home country. Despite numerous attempts at reform, the H-1B lottery remains a favored target for companies submitting mass applications to maximize their chances. For instance, Cognizant Technology Solutions Corp. was able to meet its expectations by significantly increasing the number of requested visas, even though overall employment in the US declined. The misuse of the system, particularly by "staffing firms," ensures that the type of workers entering the US no longer aligns with the original intent of the H-1B program. Companies that manipulate the system typically pay lower wages, further increasing pressure on American salaries. USCIS's new regulations for 2023 appear to have already reduced abuses through multiple submissions; nonetheless, the system remains vulnerable to exploitation by staffing firms, suggesting that deeper structural changes may be necessary.