US Employers Affected Due to Low H-1B Visa Cap


Samarpita Goswami
Updated on Feb 06, 2023 01:13 PM IST

US-based companies are unable to hire skilled foreign workers because of the cap on H-1B visa approvals. 

US Employers Affected Due to Low H-1B Visa Cap

A new report by National Foundation for American Policy (NFAP) reveals that US employers are finding it difficult to secure foreign workers because of the low annual limit of the H-1B visa approvals. The report goes under the title of “H1B Petitions And Denial Rates In FY 2022”.

At present, the allocation of H-1B visas is capped at 85,000. The US Citizenship Immigration Services(USCIS) reported that US employers submitted nearly 4,83,000 H-1B visa registrations in April 2022. The low annual limits on the H-1B visas resulted in the vast majority of the registrations being rejected. 

Out of the 85,000 H-1B visa allocations in a year, 20,000 are reserved for workers holding advanced degrees from US universities. The rest 65,000 visas are approved on a lottery basis. 

Also Read: Indians Travelling Abroad Can Apply for US Visas in Nearest Embassy

H1-B visa allows foreign nationals to work in the USA. US-based companies use this non-immigrant visa to employ overseas professionals in specialised occupations that need expertise. It is the reason that allows companies to hire thousands of employees from India and China. Skilled workers can live and earn in the USA for six years in fields like engineering, technology and medicine. 

Earlier, during Donald Trump’s administration, the denial rates of H-1B visas is very high. Though the scene has changed now, the low number of visa sanctions in a year.

After foreign nationals complete six years in the USA, they are eligible to get permanent residency or green card. Therefore, an H-1B visa is the only route to continue jobs or get citizenship in the USA.

NFAP’s executive director, Stuart Anderson commented that despite the end of restrictive immigration policies of the Trump administration, the US companies are still unable to compete in the global scenario for talent due to the cap of H-1B visas. 

An NFAP study of 2022 found that 55% of the American startup companies valued at USD 1 billion or more have at least one immigrant founder, making the contribution of immigrants towards the US economy crucial. 

Also Read: Job Portal Launched in Chicago to Solve H-1B Visa Techies Lay-Off Woes

The denial rate for new H-1B petitions for initial employment was 2% in 2022. Amazon had the most approved H-1B visas, followed by Infosys, TCS, Cognizant, Google, Meta, HCL America and IBM. 

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Source: Deccan Herald, Mint

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