Donald Trump recently passed a new proclamation that prevents Indians on H1B from securing or renewing their visa from outside USA. This is going to impact around 4000 Indians and their dependents. Donald Trump’s presidential proclamation called them ‘threat to american labour market’.
Most economists and think tanks termed the move unreasonable and also damaging to US economy.
David Bier, a researcher who works for conservative leaning think tank Cato Institute called this decision misleading on statistics.
What if the administration had looked at key H-1B occupations rather than key industries? As Figure 1 makes clear, nearly all workers in the top H-1B occupations were still employed in May. It turns out that from January 2020 to May 2020, total employment increased by about 185,000 in the top 20 H-1B occupations, which account for 85 percent of all H-1B requests, according to the Current Population Survey. The number of unemployed increased by basically the same amount 194,000—a difference of 9,000. This is substantially different from the 20 million cited by the president. Moreover, unemployment in H-1B occupations was already falling in May from April. June’s number (meaning the actual situation right now) is likely even better. Perhaps these details should have been presented to the president as well.
Impact of this decision will be watched closely for coming months.
Sundar Pichai, CEO of Google denounced this presidential proclaimation.
Indian immigrants have faced more troubles under the Trump administration and they have claimed this is a targeted harassment of high skilled Indians who happen to be the biggest demographic on h1b.
Indian immigration in USA face discriminatory per country caps which were historically enacted to keep Asians out of USA. While there is bipartisan consensus to get rid of these caps, Democratic Senator Durbin has blocked the bill in Senate.